Affordable homes for families coming to Maplewood because of historic state funding
Thanks to an historic investment through the state budget, funding to create thousands of new affordable homes was announced today by Minnesota Housing, including for Gladstone Crossing!
Each year, Minnesota Housing allocates funds from a pool of resources to create affordable housing across the state. Developers like Beacon submit applications for the homes we hope to build, and a scoring system is applied by Minnesota Housing that weighs the feasibility of each development. Funding awards are announced once a year, determining which affordable homes can be built – and which developments (and the neighbors who hope to call them home) will be delayed.
This year, Beacon submitted funding applications for three amazing developments: Gladstone Crossing in Maplewood, Aster Commons in Richfield, and the North View, a combined rehabilitation for three of our south Minneapolis buildings.
Gladstone Crossing will be affordable homes for families
Gladstone Crossing will be comprised of about 40 desperately-needed homes that are affordable to families with the lowest incomes. The vision of the building is to support young families who are at risk of homelessness, offering individualized case management services onsite through nonprofit Solid Ground that will help residents define and achieve goals for stability. There is a glaring gap in the spectrum of housing options for families like this in the Twin Cities, and Gladstone Crossing will start to help fill that gap.
“Gladstone Crossing will be a foundation for families to stand on,” said Chris LaTondresse, Beacon’s CEO & President. “You can’t overstate the importance of home. When families have a home they can afford, everything else becomes a little clearer. How to buy school supplies for your children. How to start saving a little bit. How to move forward. This funding for Gladstone Crossing is an investment in Minnesota families. I can’t think of a better way to use our shared resources.”
The $14.8 million funding for Gladstone Crossing is part of the tax credits and nearly $250 million in financing awarded by Minnesota Housing for multifamily affordable housing across the state this year. This represents the largest capital investment toward home in the state’s history, part of more than $1.3 billion for an array of housing initiatives passed by the legislature this spring.
“The legislature and governor went big on housing this year, and we’re already seeing the positive impacts,” said LaTondresse. “Now we need to sustain it and grow it. We can’t take our foot off the gas, not when we’re so far behind in the race to ensure every single one of us has a home we can afford. Minnesota families need our state and communities to make ‘historic levels of investment’ the new normal. Gladstone Crossing and the other homes that were awarded funding today prove that the need is immense, but also show we have the capacity to meet that need if we choose to prioritize home. Let’s choose yes!”
Gladstone Crossing still needs $750,000 in capital funding before we can begin construction. We are grateful that an additional $4.7 million in capital funding had already been secured for these homes, including from Ramsey County, the City of Maplewood, and the Metropolitan Council.
Other developments delayed due to lack of funding
The two other developments Beacon submitted applications for didn’t receive funding awards this year due to the backlog of need and the injection of new dollars only stretching so far. Aster Commons – a first-in-the-nation development that is deeply affordable with a vision to serve neurodivergent young adults at risk of homelessness – and a rehabilitation initiative for three affordable housing complexes in south Minneapolis will both have to wait until at least 2024 for funding.
This will delay the potential open date for Aster Commons by at least another year. The Richfield Planning Commission and City Council unanimously approved land use for this transformative development in the Fall of 2023, which should improve our 2024 application scoring.
Homes that are affordable for families with the lowest incomes are virtually impossible to build without public funding. Yet according to the 2021 “Gap Report” by the National Low Income Housing Coalition, Minnesota faces a deficit of over 100,000 of these homes. Every level of the government has a role to play in creating these homes, and the allocations from Minnesota Housing today help to move the needle in the right direction.
Community support makes a difference
Securing and maintaining an affordable home is a top priority for Minnesotans.
A $21,000 private contribution – we call it a Seed of Home – creates a Beacon home. It takes Beacon years of planning to create new homes for people with the lowest incomes and the highest barriers to housing as we invest in housing development, congregational organizing, service design, and sustainable growth – all the pieces that lead to the public funding like what was announced today.
It will take $509,000 in Seeds of Home for Gladstone Crossing, and $519,000 in Seeds for Aster Commons, to make these homes feasible. To discuss your giving, contact a member of Beacon’s fundraising team or visit beaconinterfaith.org/give to learn more.
“Minnesotans look out for one another,” said LaTondresse. “We want our neighbors to succeed, and this investment from the state will mean 40 more families will be able to unlock opportunity as they unlock the door of their new home when Gladstone Crossing gets built. The impact of these dollars will ripple out for years to come, positively impacting not just the future residents of Gladstone Crossing, but our entire community. As we make these funding levels the new normal, even more Minnesotans will know the financial security and dignity that comes with having an affordable place to call home.”
