National Housing Trust newsletter - May 29, 2008

The challenge of greening existing affordable housing begins in the early planning stages of the development, before construction begins. The development team must evaluate opportunities and create plans for incorporating energy efficient and sustainable building materials.  These steps occur before public resources have been secured, requiring flexible predevelopment financing.

In the case of Har Mar Apartments in Roseville, MN, Aeon turned to the National Housing Trust for help in meeting their financing needs. Aeon received the first loan from the National Housing Trust Community Development Fund's (NHTCDF) Green Affordable Housing Preservation Loan Fund, to help preserve and make energy conservation improvements to 120 affordable apartments.  Aeon, an award-winning nonprofit developer in the Twin Cities metro area, is working with the Green Institute, the University of Minnesota's Center for Sustainable Building Research, Center for Energy and Environment, and other project team members  to develop a sustainability plan for the buildings that includes energy efficient heating and cooling, energy star appliances, environmental remediation, and a more walkable site. NHTCDF's loan will help cover a portion of the costs in planning for these improvements.

"By providing Aeon this loan, NHTCDF is helping us meet our commitment to green building practices and conservation as well as preserve affordable housing in this community," said Aeon project manager Maureen Michalski.

NHTCDF's Green Affordable Housing Preservation Loan Fund requires developers to work with green experts to incorporate practical, environmentally-friendly design elements in the property's rehabilitation plan. In exchange for doing so, a portion of the loan is forgiven.