U.S. Bancorp has agreed to invest $15.8 million in the Hamline Station housing complex, which is under construction near the Green Line stop of the same name. In exchange for investment, the complex’s developer, Project for Pride in Living, will transfer $14.4 million in federal tax credits to the Minneapolis-based banking giant.
“PPL’s mission is to provide affordable housing for low-income families and to help strengthen neighborhoods,” PPL CEO Paul Williams said in a news release. “We are excited to have U.S. Bank as a partner to construct Hamline Station. This is a powerful opportunity to provide low-income families and individuals high-quality housing with a significant transit solution.”
U.S. Bancorp Community Development Corp., a subsidiary of U.S. Bank, funded the investment.
PPL is eligible for federal low-income housing tax credits on the $28.2 million project. The 108-unit apartment complex will house individuals and families with incomes between 30 percent and 60 percent of the area median.
As a tax-exempt nonprofit, PPL had little use for such credits, but by essentially selling them to U.S. Bancorp, PPL secured necessary funding for its project.
“We invested in Hamline Station because it will spark other new development in the Midway neighborhood,” said Vihar Sheth, senior vice president of U.S. Bancorp Community Development. “We are also committed to providing affordable housing that helps alleviate homelessness and serves those struggling with health issues.
Construction of the Hamline Station housing complex is expected to be complete by January 2016.
Nick Woltman can be reached at 651-228-5189. Follow him on Twitter at @nickwoltman.
