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MidWest@Work 
AN INVESTMENT STRATEGY FOR THE MIDWEST AFL-CIO Housing Investment Trust Status Update Fall 2018 |
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MidWest@Work Footprint
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AFL-CIO HOUSING INVESTMENT TRUST MidWest@Work Strategy Fall 2018 Status Update OVERVIEW The HIT has invested $584.5 million in 27 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 October 2018. With $602 million invested in 29 projects, the strategy has reached nearly 55% of its $1.1 billion investment target in less than three years. With over $1.2 billion in total development, it has built or preserved close to 4,100 housing units, and created an estimated 5,360 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 an additional core market. 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 29 MIDWEST PROJECTS $2.2B total economic benefits 12,960 total jobs across industries in communities where projects are located 10.8M hours of union construction work $832M wages & benefits, $357M for union construction workers 4,079 housing units with 60% affordable or workforce housing $238M total tax revenue, with $89M 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. 2016-October 2018. In 2017 dollars. 1 |
MIDWEST@WORK PROJECTS
Since the MidWest@Work Investment Strategy was implemented in early 2016, the HIT has invested $584.5 million in 27 projects, and Building America has provided $17.5 million in New Markets Tax Credits to two additional projects. These 29 projects, with total development investment of more than $1.2 billion, are creating or preserving 4,079 housing units and generating an estimated 10.8 million hours of union construction work. The total $602 million of HIT commitments and NMTCs provided by Building America represents nearly 55% of the $1.1 billion goal set for this seven-year initiative at its inception.
MIDWEST@WORK PROJECTS THROUGH OCTOBER 31, 2018
| Project Name | City, State | Total Units |
Affordable Units |
Union Construction |
HIT/Building America Investment |
Total Development Investment |
| 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 & Toledo, OH |
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 | $54,834,231 |
| Montclare Sr. Residences -Calumet | Chicago, IL | 134 | 101 | 464,000 | $9,200,000 | $32,721,472 |
| Montclare Sr. Residences -Englewood | Chicago, IL | 102 | 102 | 352,200 | $2,300,000 | $25,397,680 |
| Mark Twain SRO Apartments | Chicago, IL | 148 | 148 | 185,700 | $27,278,700 | $39,905,499 |
| Total – 29 projects | 4,079 | 2,448 | 10,775,000 | $601,992,514 | $1,262,434,925 |
*Projects receiving New Markets Tax Credits from HIT subsidiary Building America
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. 2016-October 2018. In 2017 dollars.
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RECENT MIDWEST PROJECT HIGHLIGHTS
Project 29 (Church + State)
158 units - $39.0M HIT - $54.8M TDC – 228 jobs
Project 29 (Church + State), Cleveland, OH
•
$54.8 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).
Riverdale Station (East & West), Coon Rapids MN
Riverdale Station (East & West)
251 units - $35.3M HIT - $55.8 TDC – 231 jobs
•
$55.8 million new construction of two
buildings
with a total of 251 units,
including 55 affordable units. Part of
a four-building, 15-acre development
(two current and two future
buildings).
•
HIT commited to purchase of a total
of $35.3
million Ginnie Mae
construction loan certificates and
permanent loan certificates.
•
Creating a combined estimated 464,400
hours
of union construction work (231 jobs) at Riverdale Station (East & West).
The Chamberlain
316 units - $48.3M HIT - $62.5M TDC – 209 jobs
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).
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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.
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.
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AFL-CIO HOUSING INVESTMENT TRUST
2401 Pennsylvania Avenue, NW, Suite 200, Washington, DC 20037
(202) 331-8055
www.aflcio-hit.com
