Answering the Call

CommonBond Affordable Housing

By Erica Rascón on Mar 4, 2020 in News

Yardi client CommonBond Communities entered 2020 with good news. The St. Paul-based developer reported that four transactions will create 267 affordable homes and renovate of 101 units. These additions brought the 2019 total to a record-breaking 925 housing units at an average cost of $191,000. The cost will include renovation and new construction.

With the ink dry on the transactions, work on the new projects is in full swing.

Bridging the gap

CommonBond is the largest nonprofit developer and manager of affordable housing in Minnesota. The organization also offers self-sufficiency development programs for residents.

Though the construction is monumental for the region, CommonBond CEO Diedre Schmidt admits that there is much more to be done. “We are tens of thousands of units behind in Minnesota,” Schmidt said in an interview with Star Tribune. “The support we are starting to get from employers is really critical.”

CommonBond is currently collaborating with employers and for-profit developers to close the gap between the supply and demand on affordable housing in the state.

New affordable housing construction in Minnesota

To achieve its 925 goal, CommonBond has embarked on a series of renovations and new construction.

Scott County will be the site of The Willows in Shakopee. The 60-unit community will serve people with incomes that are 50% or less than the area median income. The site addresses the dire need for affordable housing in the area which has experienced a boom in economic development: the county welcomed employers such as Amazon, FedEx, and Shutterfly but struggles to offer housing that accommodates new workers. Employees are forced to seek housing outside of the county and commute to work. About 50% of the jobs in Scott County are filled by people who live outside of the county.

In Hennepin County, a lack of affordable housing has plagued the area for two decades. The city of Eden Prairie, for example, has not approved affordable housing in nearly 24 years. The Trail Pointe Ridge community in Eden Prairie is breaking barriers in housing. As an extension of the multigenerational housing neighborhood, Smith Village, the new phase will offer 58 mixed-income apartment units with one-, two-, and three-bedroom floor plans. Its position near the Minnesota River Bluffs Regional Trail and Miller Park places it in one of the town’s most desirable areas for families and outdoor recreation.

Diana Dyste of CommonBond is the project manager for Trail Point Ridge. “It’s a great partnership we’ve been working on for a handful of years now with United Properties and Hollyland Corporation,” said Dyste. “There’s the 100-unit for-sale senior co-op development being developed by United Properties, called Applewood point, as well as six custom townhomes being developed by Hollyland Corporation.”

 

Developing new terrain in South Dakota

CommonBond will be opening properties in Rapid City, South Dakota. The projects will address a shortage of 3,500 affordable housing units in the Black Hills region where the average median household income is less than $35,000 per year.

CommonBond is supported by grants from Rapid City Collective Impact and John T. Vucurevich Foundation for the projects. In addition to housing, the partnership aims to facilitate “a more stable, secure, and vibrant community,” reports the CommonBond website.

Regarding the partnership, Liz Hamburg, executive director of the Black Hills Area Community Foundation, Rapid City Collective Impact says, “We are excited to partner with CommonBond Communities because of the organization’s approach in both preserving and creating new affordable housing and by providing resident-focused property management and services.”

David Lust, Affordable Housing Coordinator at Rapid City Collective Impact is relieved that CommonBond will be able to secure affordable housing in the town. “Right now, with the market as it is there’s always pressure on affordable units to go to market rent properties. [CommonBond] doesn’t do market rent properties, so if they obtain a properties, that ensures it will stay affordable.”

The pressure comes in part by the success of nearby Ellsworth Airforce Base and other successful employers in the area. While conventional housing providers aim to capitalize on proximity to the base, securing and expanding affordable housing in the area may prevent a Scott County scenario.

Real estate acquisition and site development in Rapid City began winter 2019.