Background:
History: The Crest Apartments is a 122-unit affordable rental project located at 6221 Shingle Creek Parkway, Brooklyn Center. The project includes one- and two-bedroom units. All 122 units serve households at or below 60% of Area Median Income (AMI).
The Crest Apartments was awarded U.S. Department of Housing and Urban Development (HUD) Neighborhood Stabilization Program (NSP) funds in 2013 for acquisition and rehabilitation by the current owner, The Crest Apartments, LLC. The NSP funds were awarded in the form of a deferred loan, with a 30-year term expiring in 2053. The Crest Apartments, LLC desires to sell the property to a new buyer, Crest Limited Partnership.
To facilitate the transfer of ownership of the project and associated rehabilitation and construction of an additional 48-unit building on the property, Crest Limited Partnership requests approval to assume the existing NSP loan and to extend the term of the loan. If approved, The Crest Limited Partnership anticipates acquiring the property in 2022, closing on permanent financing and completing the rehabilitation and new construction in late 2023.
Current Request: This request is for authorization to negotiate the assignment and assumption, and Amendment 1 to Agreement A120631 with The Crest Apartments, LLC allowing the transfer of ownership to Crest Limited Partnership, or an affiliated entity, and extending the affordability period.
Impact/Outcomes: Approval of this request will facilitate rehabilitation of and preserve affordability for 122 housing units and the construction of 48 new units all serving households at or below 60 percent of area median income.
Housing Disparity Domain: This board action request aligns with Hennepin County disparity reduction efforts by creating affordable housing opportunities for households with extremely low incomes.