Twin Cities Habitat for Humanity

"Wells Fargo recognizes that we're only as strong as the communities we serve, and the backbone of vibrant, healthy and stable communities is home ownership," said David Bue, community banking district president for Wells Fargo Duluth. "For this reason, the Greater Minnesota Housing Fund is a tremendous asset to our state and an organization we're proud to support. Its work to spur the development of reasonably priced homes for low- to moderate-income people strengthens greater Minnesota communities."

GMHF, which serves low- and moderate-income individuals and families in Minnesota's 80 counties outside of the seven-county metro area, will use the money to expand an existing $7.4-million loan fund that makes low-interest interim loans to affordable housing developers. The loan fund finances land acquisition, home construction and infrastructure development of housing units. At least $350,000 of the investment will be allocated toward GMHF's Minnesota Green Communities initiative, which encourages the development of energy-efficient and healthy homes that use environmentally friendly methods of design and construction.

The Greater Minnesota Housing Fund was created in 1996 by The McKnight Foundation and the Blandin Foundation to address the need for decent, affordable housing in greater rural Minnesota. GMHF provides financial resources and technical assistance to nonprofit and for-profit developers, local governments and employers to help facilitate the creation of affordable housing in Greater Minnesota.

Wells Fargo also joined with ResCap to take part in a Twin Cities Habitat for Humanity construction effort in north Minneapolis. Historically, Twin Cities Habitat has looked to keep its corporate sponsors separate by providing each with an exclusive single-family home to construct. However, in the face of rising land acquisition costs and a dynamic shift in the housing climate, Habitat's business model has undergone a facelift. While its old model catered to single-family home ownership, the new face of Habitat reflects the need for multi-generational, mixed-income and mixed-use housing.

"It's no longer the best strategy to build one or two Habitat homes in a neighborhood," said Gerry Stenson, Wells Fargo executive vice president and TCHFH board member. "To make a greater impact, we need to reach out to other community and corporate partners and work together to transform neighborhoods. This project is a great example that supports the new approach."

Wells Fargo and ResCap have participated in individual Habitat projects for over a decade. Now working together, the two competitors will supply nearly 1,200 volunteers and dedicate more than $250,000 in financial support to the Ripley Gardens project.

In total, volunteers from Wells Fargo, ResCap and other nonprofit organizations and corporations will work to construct eight new owner-occupied townhomes at the site.