Aeon

(1) Create affordable apartment homes – Work with neighborhoods, funders, lenders, and other partners to complete the Landing (54 units, Chaska), begin construction on South Quarter Phase IV (120 units, Minneapolis), acquire and renovate Parkview Villa (146 units, Columbia Heights), and begin work on a large preservation project of 10 Aeon properties (579 units, Minneapolis). Our target for 2013 is to create and preserve at least 200 completed apartment homes.

(2) Asset Management – Monitor and manage the financial and physical condition of Aeon properties – including managing property regulatory compliance and organizational risk – to ensure both their mission and financial value over the long-term.

(3) Property Management – Ensure that property management provides excellent customer services and quality affordable housing. Occupancy expectations have increased based on current needs and market conditions. Property Management will also maintain cost containment initiatives to achieve positive net cash flow, improve data collection and analysis, continue energy retrofits, and strengthen third-party service relationships.

(4) Resident Connections – Support residents in maintaining their housing and achieving a sense of home. Specifically, this includes supporting residents’ housing stability (targets vary by property) and community engagement at each of the properties the Resident Connections program serves. In 2013, a major focus will be on community building through resident leadership, especially in Aeon’s Elliot Park neighborhood properties.

(5) Fund Development – Increase unrestricted funding through personal cultivation and a broader source of private funds (i.e. private and corporate foundations) through increased grant development activities. In addition, we are establishing a specific cultivation program for donors in our multi-year giving society – our goal is to have at least one face-to-face call annually, as well as one personal contact via an Aeon event.

(6) Capital Campaign – Aeon has recently launched a capital campaign to support the completion of several key developments, including South Quarter Phase IV (120 units in Minneapolis with a focus on sustainability), Minneapolis Portfolio Preservation Project (579 units in Minneapolis, preserving Aeon’s portfolio as quality assets), and several developments still being planned (including one for formerly homeless youth). This campaign will be implemented over a multi-year period with completion predicted for mid-2015. In 2013, the focus will be to secure funds for South Quarter Phase IV.

Aeon has a reputation for organizational effectiveness and a history of successfully meeting budget demands. Aeon has, with encouraging success, continued to increase fundraising results annually. Foundation support now includes regional and national foundations, and Aeon has increased the number of individual donors from fewer than 30 in 2001 to more than 1,000 in 2012. Individual contributions comprise about 50% of total funds raised annually. Overall, the Fund Development program has increased contributions from less than $50,000 annually before 2001 to more than $1.4 million today.

Aeon will continue to seek grants designated for the Resident Connections program as a part of our long-term funding plan. Because of the organization’s commitment to this program, we will also provide additional support as needed through general operating support.

Development projects, which can take three to five years from inception to occupancy, have independent budgets generally ranging from $8 to $24 million each. The majority of these funds are secured through various government housing finance programs, private equity, and private mortgages. Fund development also secures additional private funding for development projects through grant writing activities.

Once in operation, each property has a budget managed by Aeon’s asset and property management departments. Every Aeon resident is required to pay rent commensurate with their income. Rents go to property operations and maintenance, and some funding comes back to the organization by way of property management fees. Properties primarily operate through rent revenues and reserves.

Community engagement: Prior to development, Aeon begins a process of community outreach and engagement. An essential aspect of this is the dialogue with area residents about the opportunities and needs of their community, and the project in question. This process can last for 18 months or more and may entail altering perceptions about “affordable housing,” adjusting design specifications, or helping resolve neighborhood concerns. Property management works to maintain positive relationships with neighbors and communities long after construction is complete.

Quality and sustainable properties: When we build, we build for generations to come. Aeon constructs or renovates sites according to smart, livable design and high sustainability standards. We invest in materials and use methods that provide for the long-term sustainability of a building, while maintaining cost effectiveness. In addition, we financially structure developments to ensure sufficient operating revenue and reserves to provide proper building maintenance.

Creating homes: Aeon residents have affordable, stable places to make their homes. We design interiors that are healthy, aesthetically pleasing, efficient, and conductive to resident interaction – places residents are proud to call home. In addition, we provide quality management services and many opportunities for residents to connect with others, engage with the community, and, when needed, access our Resident Connections services for extra support. All aspects of Aeon’s work – including designing, maintaining, improving, and managing our properties – are focused on providing an opportunity for our residents to make home for themselves.

Ending homelessness: Currently, Aeon has 489 apartments reserved for homeless individuals and families. We provide Resident Connections programming to support these residents and partner with social service agencies to offer on-site services. Aeon develops pathways to help people who face life’s most complex, persistent challenges find a home, move out of poverty, and engage in the community. By working with formerly homeless populations to first attain housing stability, we help make other achievements possible.

Partnerships: Aeon does not re-create programs and services, but develops our expertise in affordable housing provision and partners with organizations that are experts in their fields. We work with social service agencies to provide on-site supportive services to our residents, as well as with art organizations, sustainability experts, youth development programs, financial institutions, and many others.

Neighborhood investment: Aeon views our projects as significant, long-term investments in the neighborhoods we serve. In keeping with this view, Aeon has maintained ownership and manages all of our properties directly. It is part of our philosophy to maintain that ownership and fulfill our commitment to our neighborhoods and residents.

By creating, managing, and maintaining quality affordable homes, Aeon provides the means for residents to achieve and sustain health, stability, and success while strengthening our communities.

Providing quality affordable homes gives crucial support to the individuals and families most at-risk in our society. This clear benefit is easy to understand – after all, how can anyone succeed if they do not have a place to call home that is stable, not overcrowded, safe, healthy, and affordable? Quality affordable homes allow individuals and families to reduce their stress levels and improve their overall health; strengthen their connection to community; increase their stability; improve school and career success; and avoid homelessness and other dangerous or unhealthy situations. Aeon believes that access to safe and affordable homes is a basic human right, and by developing and managing these homes we can have a profound positive impact on the lives of our residents.

Not only does affordable housing address a critical need for a large, and growing, segment of the population, it also provides a strong benefit to the communities that surround it. Some of these include:
- Reduced strain on emergency resources such as transitional housing, food shelves, emergency room visits, etc.;
- Revitalization of city centers and communities experiencing blight; and
- Strengthened local economies.

The development of affordable housing also provides significant opportunities. Quality affordable apartment buildings can provide a community with needed green space; improve area energy efficiency; preserve and update historic buildings; improve neighborhood safety by adding eyes on the street and redeveloping vacant lots that can be centers of criminal activity; support connections to public transit; and increase diversity.

Beyond this, when those in poverty are able to achieve stability and success through access to affordable housing, everyone in the community benefits. Affordable housing supports a strong and stable workforce and allows individuals to focus on employment. It also improves children’s school success and educational attainment. Given demographic trends in Minnesota, these benefits will be especially critical to the creation of an educated workforce, increasingly important as the educated Baby Boomer generation retires. In addition, affordable housing promotes healthy communities and improves safety. Finally, affordable housing uses funding more efficiently, investing in long-term solutions rather than stop-gap measures.