MidWest@Work Footprint
1
AFL-CIO HOUSING INVESTMENT TRUST
MidWest@Work Strategy
Summer 2018 Status Update
OVERVIEW
The HIT has invested $545.7 million in 24 projects and its subsidiary Building America CDE, Inc. (Building America) has provided $17.5 million in New Markets Tax Credits (NMTCs) to two additional projects as part of its MidWest@Work strategy since its inception in 2016 through August 2018. With $563 million invested in 26 projects, the strategy has reached over 51% of its $1.1 billion investment target in just two and one-half years. With over $1.1 billion in total development, it has built or preserved nearly 3,700 housing units, and created an estimated 4,860 union construction jobs and over 450 permanent jobs.
The HIT pledged to invest primarily in nine cities (Detroit, St. Louis, Buffalo, Pittsburgh, Cleveland, Columbus, Milwaukee, Saint Paul, and Minneapolis) and other Midwest communities and is implementing specific investment initiatives to address local economic development and revitalization needs. To date, investments have been made in six of the nine core markets: Detroit; St. Louis; Buffalo; Cleveland; Saint Paul; and Minneapolis; as well as in Chicago, Rolla, MO, Rochester, MN, and Duluth, MN. Working with selected developers, mortgage bankers, and housing finance agencies and continuing to broaden outreach to other market participants to identify additional projects, the HIT and Building America have built a strong pipeline of projects for the remainder of 2018 and into 2019. The projects on this pipeline include two additional core markets.
A key part of MidWest@Work is connecting the investments with the broader economic revitalization of Midwestern cities, as it incorporates pre-apprenticeship training, single family home repair, and links with the creation of manufacturing and other permanent jobs, when possible, through investment by HIT subsidiaries.
IMPACTS OF 26 MIDWEST PROJECTS
$2.1B total economic benefits
11,900 total jobs across industries in communities where projects are located
9.8M hours of union construction work
$758M wages & benefits, $317M for union construction workers
3,695 housing units with 57% affordable or workforce housing
$217M total tax revenue, with $83M for state & local governments
Economic Impact Data: Jobs, hours of construction work and economic benefits in this report are estimates calculated by the HIT using an IMPLAN input-output model developed by Pinnacle Economics and based on project data from the HIT and its subsidiary Building America. In 2017 dollars.
2
MIDWEST@WORK PROJECTS
Since the MidWest@Work Investment Strategy was implemented in early 2016, the HIT has invested $545.7 million in 24 projects, and Building America has provided $17.5 million in New Markets Tax Credits to two additional projects. These 26 projects, with total development investment of more than $1.1 billion, are creating or preserving 3,695 housing units and generating an estimated 9.8 million hours of union construction work (4,860 jobs). The total $563.2 million of HIT commitments and NMTCs provided by Building America represents over 51% of the $1.1 billion goal set for this seven-year initiative at its inception.
MIDWEST@WORK PROJECTS THROUGH AUGUST 31, 2018
|
Project Name |
City, State |
Total |
Affordable |
Union |
HIT/Building |
Total |
|
Zvago Cooperative at Glen Lake |
Minnetonka, MN |
54 |
0 |
167,600 |
$14,821,600 |
$18,981,774 |
|
Paul G. Stewart Apartments III |
Chicago, IL |
180 |
180 |
288,000 |
$16,296,000 |
$31,426,808 |
|
Detroit Home Repair Program I |
Detroit, MI |
4 |
4 |
8,500 |
$246,000 |
$430,490 |
|
Rolla Apartments |
Rolla, MO |
150 |
150 |
208,300 |
$5,188,300 |
$21,700,000 |
|
District Flats at Miller Hill |
Duluth, MN |
72 |
0 |
126,200 |
$11,213,000 |
$14,036,105 |
|
West Town Housing Preservation |
Chicago, IL |
318 |
318 |
1,088,900 |
$60,404,300 |
$121,182,660 |
|
Detroit Home Repair II |
Detroit, MI |
5 |
5 |
13,700 |
$660,114 |
$694,857 |
|
Detroit Manufacturing Systems* |
Detroit, MI & |
0 |
0 |
0 |
$8,500,000 |
$36,928,000 |
|
Union Flats |
St. Paul, MN |
217 |
217 |
615,800 |
$30,630,000 |
$68,476,863 |
|
1500 Nicollet |
Minneapolis, MN |
183 |
183 |
539,200 |
$34,120,000 |
$61,736,138 |
|
The Fountains of Ellisville |
Ellisville, MO |
229 |
0 |
174,800 |
$17,517,500 |
$18,213,929 |
|
Covenant Place II |
St. Louis, MO |
102 |
102 |
234,900 |
$6,687,100 |
$24,471,938 |
|
Lathrop Homes Phase IA |
Chicago, IL |
414 |
414 |
1,580,200 |
$22,000,000 |
$175,865,785 |
|
30 East Adams Apartments |
Chicago, IL |
176 |
0 |
447,100 |
$44,685,300 |
$49,755,134 |
|
Pioneer Apartments |
St. Paul, MN |
143 |
143 |
403,700 |
$14,475,000 |
$48,739,737 |
|
Fontaine Towers |
Rochester, MN |
151 |
151 |
120,200 |
$20,000,000 |
$28,856,304 |
|
Green on Fourth Apartments |
Minneapolis, MN |
243 |
66 |
505,100 |
$42,654,700 |
$56,169,929 |
|
The Heights at Manhasset Mortgage Increase |
Richmond Heights, MO |
0 |
0 |
16,000 |
$1,670,000 |
$1,670,000 |
|
Zvago Cooperative at St. Anthony Park |
St. Paul, MN |
49 |
0 |
165,200 |
$14,577,500 |
$18,185,346 |
|
Northland Central* |
Buffalo, NY |
0 |
0 |
1,020,500 |
$9,000,000 |
$110,590,381 |
|
Elevate at Southwest Station |
Eden Prairie, MN |
222 |
45 |
541,000 |
$49,500,000 |
$63,510,988 |
|
Zvago Cooperative at Central Village |
Apple Valley, MN |
58 |
0 |
164,000 |
$15,815,400 |
$19,680,017 |
|
The Chamberlain |
Richfield, MN |
316 |
64 |
420,600 |
$48,277,000 |
$62,509,690 |
|
Riverdale Station ((East) |
Coon Rapids, MN |
180 |
0 |
325,700 |
$28,350,000 |
$38,273,494 |
|
Riverdale Station ((West) |
Coon Rapids, MN |
71 |
55 |
138,700 |
$6,925,000 |
$17,489,676 |
|
Project 29 (Church + State) |
Cleveland, OH |
158 |
0 |
459,200 |
$39,000,000 |
$54,708,899 |
|
Total – 26 projects |
|
3,695 |
2,097 |
9,773,100 |
$563,213,814 |
$1,164,284,942 |
*Projects receiving New Markets Tax Credits from HIT subsidiary Building America
3
BUILDING AMERICA
Since its inception in 2010, Building America has helped rebuild low-income communities by creating jobs for community residents; sponsoring training and job-readiness programs that connect job opportunities to local residents; and building affordable housing and community facilities, including healthcare facilities. Two of Building America’s most recent MidWest@Work projects are Detroit Manufacturing Systems in Detroit and Toledo, and Northland Central in Buffalo. In February 2018, Building America was awarded its fourth allocation of NMTCs, bringing its total allocation to $185 million. Building America’s current pipeline includes several potential projects in the Midwest.
RECENT MIDWEST PROJECT HIGHLIGHTS
Project 29 (Church + State), Cleveland, OH
•$54.7 million new construction of a 158-unit market-rate apartment complex, which will include two residential towers, parking, and commercial space.
•HIT committed to purchase $39.0 million Ginnie Mae construction loan certificates and a permanent loan certificate.
•Creating an estimated 459,200 hours of union construction work (228 jobs).
|
|
Project 29 (Church + State) 158 units - $39.0M HIT - $54.7M TDC – 228 jobs |
Riverdale Station (West), Coon River, MN
•$17.5 million new construction of 71- unit building with 55 affordable units. Part of a four-building, 15-acre development (two current and two future buildings).
•HIT commited to purchase of $6.9 million Ginnie Mae construction loan certificates and a permanent loan certificate. HIT also committed to purchase $28.4 million Ginnie Mae certificates to help finance the adjacent 180-unit, $38.3 million Riverdale Station (East).
|
|
Riverdale Station (West) 71 units - $6.9M HIT - $17.5 TDC – 69 jobs |
•Creating an estimated 138,700 hours of union construction work (69 jobs) at Riverdale Station (West).*
4
The Chamberlain, Richfield, MN
•$62.5 million new construction and substantial rehabilitation of a 316-unit mixed-income apartment complex. Three new buildings are being constructed adjacent to three existing buildings that are being renovated. 20% of the units will be affordable.
•HIT committed to purchase $48.3 million Ginnie Mae construction loan certificates and a permanent loan certificate.
•Creating an estimated 420,600 hours of union construction work (209 jobs).
|
|
The Chamberlain 316 units - $48.30M HIT - $62.5M TDC – 209 jobs |
Investors should consider the HIT’s investment objectives, risks and expenses carefully before investing. A prospectus containing more complete information may be obtained from the HIT by calling the Marketing and Investor Relations Department collect at 202-331-8055 or by viewing the HIT’s website at www.aflcio-hit.com. The prospectus should be read carefully before investing.
AFL-CIO HOUSING INVESTMENT TRUST
2401 Pennsylvania Avenue, NW, Suite 200, Washington, DC 20037
(202) 331-8055
www.aflcio-hit.com
