- $14,000,000 in Fully Committed Grant Funding
- Tax savings of $600,000+ in 2025 with Recently Passed 4D Legislation
- Significant Recent Capital Investment of $9,000,000
- Boost Net Rental Income by $2,000,000+ by Stabilizing Operations at Current Rent
- Unlock Revenue Potential with Additional Capital Improvements
- Immediately Obtain Critical Mass and De-densify the Current Unit Mix
- Creative Structure Available to Fund Capital Projects and Reduce Overall Equity Requirements
- Streamlined Operations/Expense Upside
- A Unique, Affordable/Naturally Occurring Affordable Housing Opportunity for Impact Investing
- Exceptional Going-In Basis with Clear Value Upside Given Recent Transactions
$14,000,000 in Fully Committed Grant Funding
Huntington Place and the current Sponsor have recently been awarded $14,000,000 in grant funding which can be made available to the next owner / sponsor.
- $4,000,000 in grant funding has been offered by the Department of Housing and Urban Development (HUD). The grant funds are to be used as described in the Project Narrative that is approved by HUD – the overall scope is still to be determined. The funds can be made available upon completion and submission of the agreement.
- $10,000,000 in grant funding has been made available from the State of Minnesota as part of the Community Stabilization program. As per the bill, the funds are to be used for the purpose of acquisition, rehabilitation, interest rate reduction, or gap financing. The program is still finalizing the guidelines. The funds will be available in 2024.
Tax Savings of $600,000+ in 2025 with Recently Passed 4D Legislation
Recently passed legislation in Minnesota (SF 1957) will reduce the property tax rate on qualifying low-income rental housing. Currently, such housing has a two-tier rate schedule—0.75% on the first $100,000 per unit of value and 0.25% on the remaining value. The proposed change will remove the tiers and apply a rate of 0.25% (a 66% reduction) to the full property value.
Huntington Place’s 2023 property tax is $838,489, based on a property valuation of $80,300,100 ($96,283 per unit). Considering a hypothetical reassessment of $50,000,000 and the 66.7% reduction of the mill rate to 0.25%, the resulting property tax will be approximately $239,19 and the property will save approximately $600,000 per year. The tax reductions will go into effect in 2025, see page 35 of the OM in the Doc Center for more details.
Significant Recent Capital Investment of $9,000,000
Over $9,000,000 has been invested into the property since 2019. In addition to lightly renovating 200 units, the major capital projects have included a full 100% roof replacement across the entire property, water supply lines, LED lighting throughout, security enhancements, and new common area carpet. These renovations provide a strong foundation for new ownership. See the CapEx schedule in the provided documents for further details.
