UnitedHealth Group Inc. (NYSE:UNH), as part of its corporate social responsibility supporting the healthcare system, has announced its intention to fund the conversion of a century old Stevens Square apartment building in the Minneapolis area into 19 affordable units for those who do not have permanent housing and are lurking around the streets with an uncertain future.
The healthcare company will kick in with almost $2 million in the form of equity out of the total estimated $3.40 million for the renovation project, which is located at 1926 Third Ave. S. The so-called Lonoke building will be converted into a one-bedroom apartment with upgraded electrical and mechanical furnishings, which translates into new bathrooms and kitchens. The building will also get a new roof on top of other exterior roof improvements.
UnitedHealth Corp., the sponsor of the project, has selected Fredric’s Construction Co. based in Vadnais Heights to undertake the renovation work. Once it is completed, the ten apartments out of 19 will be offered to those who have been classified as long-term homeless, whereas the remaining nine will be offered to those who earn between 30-50% of the median income from the area.
Vice President of UnitedHealth Investment Management, Tom McGlinch, stated that the renovations will be completed later this year, and one which will prove to be critical in improving the healthy and emotional lives of the homeless people with the help of support services; some who may resort to crimes instead of something productive, though they will need some institutional and civic support for that.
The developer for this project will be St. Paul-based Beacon Interfaith Housing Collaborative, the company that purchased the building in 2005, whereas the St. Paul-based Common Bond Communities will be responsible for managing the properties. Their selection is being attributed to both of them winning the Best in Real Estate Award for the Riverview Apartment in Minneapolis.
United Health Corp. will not be alone in the financing though they will have the lion’s share of the equity investment. Loans worth more than million dollars combined will be priced by Minnesota Housing Finance Agency, the City of Minneapolis itself and from the Hennepin County (which will also provide a grant of around $65,000), whereas three quarters of $100,000 will be provided as grant from the Westminster Presbyterian Church as well as from Plymouth Congregational Church.
United Health Group stock price ended the day at $118.99, a rise of 0.80% from the previous day.
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