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Committee advances $17 million in housing revenue bonds and $1 million seller note for Snelling Yards affordable family housing
Summary
CPED recommended up to $17 million in housing revenue bonds, $849,000 in a TIF note and a $1 million forgivable seller note to support a 95‑unit family affordable housing project on the city‑owned Snelling Yards site; construction mobilization is planned for August 2025.
The Business, Housing and Zoning Committee advanced multiple financing actions on June 24 to support Snelling Yards Family Housing, a 95‑unit affordable rental project planned for the Snelling Yards site in the Hiawatha neighborhood.
Carrie Goldberg of CPED Residential Finance presented the package and said staff recommends up to $17,000,000 in housing revenue bonds to support the project by Lupe Development Partners. The plan includes 95 units in a four‑story building with a mix of one, two and three‑bedroom apartments targeted at households at 80%, 50% and 30% of area median income. Twelve units will have project‑based Section 8 vouchers from the Minneapolis Public Housing Authority, and 13 units are set aside for homeless veterans with Veterans Affairs supportive housing rental subsidies.
Goldberg described a package of six recommended actions: housing revenue bonds (up to $17 million), a tax‑increment financing note not to exceed $849,000 (the Snelling Yards 2 TIF approved by City Council May 1, 2025), $485,000 in additional Affordable Housing Trust Fund (AHTF) support, an extension of prior AHTF awards, a $1,000,000 seller note to bridge a land‑cost financing gap (structured as a forgivable loan to avoid affecting tax‑credit syndication basis), and an allowance to use federal Davis‑Bacon wage rates for certain carpentry work through December 2027, aligning with a recent state law change.
Developer Steve Min said the team expects to close by Aug. 15 and to mobilize construction within days of title clearance; staff stated construction will take about 15–18 months with an anticipated occupancy in late 2026. Council Member Andrea Jenkins asked clarifying questions about the seller note structure; Goldberg explained the forgivable seller note preserves tax‑credit syndication proceeds by avoiding a land write‑down that would reduce project basis.
The committee approved the recommended actions to allow the project to proceed to financing and construction.
