Aeon, a nonprofit developer, owner, and manager of affordable homes, is pleased to announce the organization has secured $54.4 million to finance the expansion of Village Club Apartments in Bloomington.
The money will be used to construct 172 new apartments on land adjacent to the existing Village Club apartment complex at 1930 E. 86th St. The new buildings will include three- and four-bedroom homes to serve larger families. Funds generated by the development will also be used to renovate the existing Village Club homes. Construction will start next month.
In its continuing efforts to preserve affordable housing in the Twin Cities, Aeon purchased the Village Club Apartments in 2019 with financing assistance from the City of Bloomington and the National Equity Fund.
The 306 existing homes serve mixed-income residents, with more than half of the units affordable at or below 60 percent of the area median income and the remaining units affordable at or below 80 percent of the area median income. Two thirds of the new units will be affordable at or below 60% of the area median income, and one third will be affordable at or below 80% of the area median income. The existing and to-be-constructed buildings are on an almost 18-acre site that features an indoor and outdoor pool, a racquetball court, a movie room and updated community space.
Aeon has developed and preserved 5,580 affordable apartment homes since its founding with a goal to keep rent affordable in the Twin Cities. Even so, there remains a shortage of affordable housing in the metro area, especially for families. Aeon’s original purchase and now expansion of Village Club helps provide needed affordable homes to families in our community.
“We are thrilled to announce the expansion of the Village Club Apartments and want to extend our gratitude to the city of Bloomington and our many valued partners that helped make these new homes possible,” said Alan Arthur, President and CEO of Aeon. “We can do more than just preserve affordable housing in the Twin Cities. With the commitment of public and private partners we can grow the supply to keep residents in their homes and children in their schools. This project is an excellent example of the best of our community coming together to provide a home for the families that need one.”
The key financial partners in the expansion project are BMO Harris, Enterprise, Greystone, the State of Minnesota, and the City of Bloomington. UrbanWorks Architecture of Minneapolis is the project architect. Frana Companies, Inc. of Hopkins is the project contractor. Touchstone Mental Health of Minneapolis is the service provider for the new homes at Village Club.
“This would not have been possible without our partnership with Aeon or before we established our $15-million affordable housing trust fund and the opportunity housing ordinance,” Mayor Tim Busse said. “We are glad to see the City’s commitment to affordable housing result in a tangible addition to our community so quickly.”