Forgivable Loans Available for Purchase or Rehab of Multi-unit Housing in Audubon Park Neighborhood

Print

The City of Minneapolis has chosen to target single-family foreclosures for assistance, which does not address the need in Audubon”, said Association President, Cindy Schulte. “The City has told us to be organized and focused on the housing challenges faced in our neighborhood. We are not waiting for their help, we’re taking action ourselves.”

Minneapolis, MN July 14, 2008: The Audubon Neighborhood Association (ANA) is offering $5,000 loans to current owners or new buyers of 2- to 4-unit residential buildings within the Audubon Park neighborhood. These loans feature no monthly payments and below-market interest rates. After 15 years, loan principal and accrued interest will be fully forgiven. There are no upper income limits, and the building must remain owner-occupied. This loan program is part of ANA’s proactive efforts to stay ahead of the troubled housing market.

Audubon Park has suffered along with most Twin Cities neighborhoods. Foreclosures in the area are mostly affecting rental property, while owner-occupied housing has remained comparatively strong. ANA’s multi-unit loan program is aimed squarely at the neighborhood’s problems. Encouraging owner-occupancy of rental buildings will create better housing for renters by leveraging property owner investments. Investors, the often-overlooked partners in any housing solution, are offered better cash flow today and long-term appreciation in an established and stable community. “It can be a win-win-win, for tenants, landlords, and the neighborhood,” said Schulte.

Full program details and applications are available from the Center for Energy and Environment (CEE); a non-profit contracted to manage loans on behalf of the neighborhood. CEE offers programs supplemental to ANA’s, bringing the potential funding beyond $20,000 per building. Those interested should contact Jim Hasnik of CEE, at 612-335-5885, jhasnik@mncee.org.