WASHINGTON, Oct. 10, 2019 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) announced that it will provide a $14 million Low-Income Housing Tax Credit (LIHTC) equity investment to facilitate the development of Mino-bimaadiziwin Apartments, a 110-unit multifamily residence in Minneapolis. The apartments are being developed by The Red Lake Band of Chippewa Indians. Fannie Mae will invest in the project through Raymond James Tax Credit Funds, a Fannie Mae LIHTC fund partner.
"Our LIHTC financing of Mino-bimaadiziwin Apartments helps support much needed housing and ancillary services for Native Americans and other members of the Minneapolis community near public transit options that enable them to commute to their places of employment," said Dana Brown, Vice President, LIHTC Investments, Fannie Mae. "LIHTC enables affordable rental housing, and we are excited to work with our partners to address our country's pressing housing challenges. Projects like Mino-bimaadiziwin foster a healthier and more stable living environment for individuals and families while also creating a more sustainable neighborhood for all members of the community."
Mino-bimaadiziwin Apartments will offer studios, one-, two-, and three-bedroom units for residents earning 30%, 50%, and 60% of area-median-income (AMI). Twenty-four of the units will serve as permanent housing for the metro area's chronically homeless.
The new development located in South Minneapolis will include a playground, daycare facility, Wellness Center, and the Red Lake Nation Urban Embassy community center. Additionally, residents will have access to on-site healthcare and educational services.
The Red Lake Band of Chippewa Indians will provide a Housing Support/GRH rental subsidy in partnership with Minnesota Department of Human Services. The project will cost $38.6 million. Developers have broken ground on the building project and expect to open it to residents by Fall 2020.
In November 2017, the Federal Housing Finance Agency (FHFA) approved Fannie Mae's re-entry into the LIHTC market as an equity investor. Fannie Mae's deep experience, long history, strong leadership, and partnership approach in the LIHTC market positions the company to provide immediate and ongoing support for the production and preservation of affordable rental housing.
For more information about Fannie Mae's Low-Income Housing Tax Credit program, visit our LIHTC program website.
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of Americans. We partner with lenders to create housing opportunities for families across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit fanniemae.com and follow us on twitter.com/fanniemae.
SOURCE Fannie Mae