Sunrise Banks and Partners Create Program to Preserve Affordable Homes
St. Paul, Minn., Jan. 10, 2020 – Sunrise Banks has partnered with Aeon, the Minneapolis Foundation, the Saint Paul & Minnesota Foundation and the Frey Foundation to create a new, innovative pilot program that will preserve hundreds of units of affordable housing in the Twin Cities.
This novel partnership between the private and nonprofit sectors represents an unprecedented step towards addressing the affordable housing crisis in Minneapolis and St. Paul that the organizations hope will be scaled across the country.
Sunrise Banks created the Sunrise Banks Community Impact Community Development Corporation (CDC) to pool funds from Sunrise and outside investors in order to finance the acquisition of existing rental properties, preserving approximately 600 units of affordable housing for low-income individuals and families. Aeon, a nonprofit developer, owner and manager of affordable homes, will manage the properties.
CDCs are corporate entities used to invest in community development projects. The Minneapolis Foundation, Saint Paul & Minnesota Foundation and Frey Foundation are all important investors in the project.
“Affordable housing is key to financially stable and successful communities,” said Sunrise Banks CEO David Reiling. “Our creation of the Sunrise Banks Community Impact CDC and our partnership with these local organizations is something we’re very proud of and a great accomplishment for everyone involved.”
The creation of the CDC is just the first step in this pioneering project. Aeon will use the funds to acquire and preserve naturally occurring affordable housing (NOAH) units in the Twin Cities. NOAHs are properties that have aged into affordability.
“The scope of the problem our community is facing is so great that we must tackle it together. The problem just gets worse as we see affordable housing properties gobbled up and converted into high-rent apartments,” said Aeon President and CEO Alan Arthur. “Through this collaboration, we are ensuring the stability of home for hundreds of residents.”
The fund has already been used to put permanent financing in place to preserve the affordability of 127 apartment units at a property in Brooklyn Center.
Housing affordability is an issue across the country. The Twin Cities Metro has lost more affordable housing than it added since 2011, according to the Metropolitan Council. Preserving existing affordable homes benefits communities by keeping residents in their homes and children in their schools. It also ensures that aging properties remain long-term assets to the community.
About Sunrise Banks:
Sunrise Banks, N.A., based in St. Paul, Minnesota, seeks to radically change the way urban communities and people thrive by empowering them to achieve financial wellness. Sunrise is certified by the U.S. Treasury as a Community Development Financial Institution (CDFI), a designation earned by approximately 100 banks nationwide. Sunrise Banks is also a member of the Global Alliance for Banking on Values, a public benefit corporation and is a certified B Corp for its demonstrated commitment to transparent corporate governance and positive community impact. Visit Sunrise Banks at SunriseBanks.com, on Twitter @SunriseBanks, or on Facebook. Member FDIC.
About the Partners:
Aeon believes that home is at the center of everything. With a home, people succeed, families thrive, and our region remains strong. At Aeon, we act boldly to create and preserve quality, affordable homes for those who need them most. We develop and manage affordable homes that serve more than 9,000 people in the Twin Cities. For more information, visit aeon.org or follow us on Twitter, Facebook and LinkedIn.
The Minneapolis Foundation has connected people, resources, and ideas to improve lives in Minnesota and beyond, for more than 100 years. The Foundation manages $890 million in assets, providing customized and tax‐smart giving solutions that result in the average annual distribution of more than $50 million in grants. The Foundation brings people together to unite behind common goals and spark positive change in our community. minneapolisfoundation.org
The Saint Paul & Minnesota Foundation believe in the best of Minnesota and the power of its communities. With roots in Saint Paul and partners across the state, it is Minnesota’s largest community foundation and the partner of choice for thousands of donors, nonprofits and community organizations. The Foundation inspires generosity to make Minnesota better for all who call it home. Learn more at spmcf.org.
Frey Foundation strengthens the community through direct giving to organizations that promote self-sufficiency and stimulates creative change that results in an improved quality of life for all. The foundation gives priority to organizations in supportive affordable housing, education, and health and human services. Learn more at freyfoundationmn.org