Homeownership Nonprofit Gets Boost From U.S. Bank
A local nonprofit that aims to increase homeownership rates in the Twin Cities just received a boost from U.S. Bank to the tune of a $2.6 million investment.
The Minneapolis-based bank announced its investment in the Sustainable Home Ownership Program’s (SHOP) Bridge to Success Fund, which it said also received undisclosed financing from the bank’s high net-worth wealth management unit.
SHOP, a partnership between the Greater Metropolitan Housing Corporation and Dayton’s Bluff Neighborhood Housing Services, uses the fund to sell homes to buyers on a contract-for-deed basis. Buyers agree to refinance into a traditional mortgage upon meeting credit requirements and the fund’s investors receive payment after the traditional mortgage is in place. The idea is that potential homeowners who are otherwise not eligible for traditional financing can be put into a house while eventually resolving credit issues on their way toward traditional financing.
This process usually takes about 5 to 10 years, according to The Star Tribune, which also reported that U.S. Bank’s investment will help about 20 Twin Citians.
New affordable housing complex
Former NBA player and Minneapolis native Devean George’s “Building Blocks” nonprofit will break ground Tuesday on its first local affordable housing development. The Commons at Penn, a 47-unit apartment complex to be built at 2201 Golden Valley Road, is expected to be completed by mid-2015.
Local officials will join George and Building Blocks staff at 11 a.m., Tuesday. The complex is expected to be complete by mid-2015 and will also include space for Building Blocks to provide youth and family development programs focused on physical health and youth mentoring. NorthPoint Health and Wellness Center will also run a community outreach clinic on the first floor.
Also supporting the project is the City of Minneapolis, Hennepin County, Metropolitan Council, Minnesota Housing, the Pohlad Foundation, Family Housing Fund, Local Initiatives Support Corporation and Sunrise Bank.