IOCP and CommonBond Leverage Dollars, Partners to Spur Affordable Housing Development in Plymouth
IOCP and CommonBond Communities have leveraged funds from public and private investors to spur the development of 50 new units of affordable town homes in Plymouth. Funders of the $9.4 million Vicksburg Commons project include Minnesota Housing, Plymouth Housing and Redevelopment Authority, Hennepin County, the Metropolitan Council, IOCP, National Equity Fund (NEF), and local businesses.
The project received mortgage and tax credit funding from Minnesota Housing totaling $7,895,000. The balance of funds came from City of Plymouth-approved tax increment financing through Plymouth Housing and Redevelopment Authority ($500,000), Hennepin County ($400,000), the Metropolitan Council ($300,000), IOCP ($200,000), and local businesses ($10,000). NEF is the syndicator.
“This partnership demonstrates the power of working together to achieve a critical goal,” said LaDonna Hoy, IOCP executive director. “It takes more than one organization to break down the barriers working families in our community face. There is a real need for housing that’s affordable on their incomes, and Vicksburg Commons moves us closer to meeting that need.”
Part of a comprehensive Lundgren Brothers neighborhood development, Vicksburg Commons will operate under a housing with supportive services model. CommonBond Communities, the largest nonprofit affordable housing provider in the Upper Midwest, will develop the property and then manage it once it is occupied. IOCP will provide on-site supportive services for families and children. The 50 units are scheduled for occupancy late in 2007.
A groundbreaking ceremony for Vicksburg Commons, located at the corner of County Road 47 and Vicksburg Lane, will be held on Thursday, November 2, 2006, at 4
p.m. The ceremony is open to the public.
IOCP’s Commitment and Role
With money raised during its annual Sleep Out campaign, IOCP contributed $200,000 to the Vicksburg Commons project. The organization also secured the land. John Berg, retired banking executive who serves on the IOCP Housing Committee and on CommonBond’s board of directors, negotiated the purchase of the land from Lundgren Brothers.
Dollars and Partners Leveraged for Affordable Housing Development, page 3
Once the development is completed, CommonBond will manage the property and IOCP will run an on-site supportive housing and employment services center for residents, linking them to employment, educational, recreational, health, and other resources. Long-term, these services help residents achieve economic self-sufficiency and live healthy, independent lives. IOCP has provided similar services through its CONECT program for seven apartment neighborhoods (786 units) in Plymouth for the past 10 years.
IOCP will also subsidize 10 rental units for clients who are participating in programs to increase their income-earning potential. These units will be designated for very low-income residents who earn less than 30% of the area median income (AMI).
Long a provider of emergency housing assistance and advocate for affordable housing, IOCP is also committed to seeking long-term solutions for the families it serves. Vicksburg Commons is the second affordable housing development in the west metro area that IOCP has spearheaded since June. Construction is underway on two twin homes IOCP is developing in Wayzata with Twin Cities Habitat for Humanity.
