Aeon officially closed sale on Indian Knoll Manor, located in the City of Mound, this week. The building, formerly owned by the Mound Housing and Redevelopment Authority contains 50 apartment homes. Aeon will expand the affordable housing property with six additional apartments on the existing building and 10 new townhomes.
Indian Knoll Manor was first developed in 1970 as senior housing; today, the building currently houses studios and one-bedroom apartments that serve primarily seniors and single adults. Aeon’s plans include additional homes for larger families, helping to create a more diversified community and dynamic building.
“Affordable housing in suburban communities is disappearing and suburban poverty is on the rise,” says Alan Arthur, President and CEO of Aeon. “We’re thankful that this project allows us to preserve 50 affordable homes for the residents currently living at Indian Knoll Manor, and to create new opportunities for families living in Mound.”
“This project offers homes presently not available in Mound’s residential inventory; and adding families to the residents served by this property is exciting,” says Eric Hoversten, City Manager and Public Works Director at City of Mound. “The partnership with Aeon has been brilliant and will continue to bring superior project and property management to the community.”
Along with it increasing the number of affordable homes in Mound, Aeon’s purchase of Indian Knoll Manor is unique in that it’s one of the first Rental Assistance Demonstration (RAD) deals to take place in Minnesota. RAD was created by the Department of Housing and Urban Development (HUD) “to give public housing authorities a powerful tool to preserve and improve public housing properties and address the $26 billion dollar nationwide backlog of deferred maintenance.” (HUD) The program allows non-profit entities the opportunity to purchase these properties and obtain financing to fund improvements.
“The City of Mound Housing and Redevelopment Authority (HRA) owned Indian Knoll Manor for more than 40 years,” says Catherine Pausche, Mound’s Director of Finance and Administrative Services. “Recent challenges made it clear the project was unsustainable in its current form; by partnering with Aeon, the HRA was able to ensure long-term affordability, while Aeon succeeded in ensuring sustainability by bringing together HUD, local, state and private funders to expand and rehabilitate the aging facility. We look forward to the positive outcomes of our partnership with Aeon to make Home possible in Mound.”
Construction on Indian Knoll Manor is already underway, and will continue into late summer/early fall of 2017. An informal groundbreaking event with residents took place Thursday, December 8th to celebrate the start of this project.
Funding partners include the City of Mound, the Mound Housing and Redevelopment Authority, Hennepin County, The Metropolitan Council, Minnesota Housing Finance Agency, HUD and Wells Fargo. Frerichs Construction and Cermak Rhoades Architects are also partnering with Aeon on this project.