Seward Towers Corporation

Seward Towers Corporation was formed in 1990 to preserve two buildings comprising one of the largest affordable housing projects in Minnesota and whose residents were an integral part of the Seward community. A unique ownership structure was created in order to engage residents and management of the building (commonbond communities) with organizations representative of the larger community (Seward neighborhood group and Seward redesign) each of those groups continue to appoint the governing board of directors. Additional seats on the board of directors are held for residents of the two buildings.by 2015, the buildings were 45 years old and in need of major capital replacements. The board and the entities who appoint them decided to work together to restructure the ownership in order to extend section 8 contracts providing rental support to very-low-income residents and to access the capital needed to renovate the buildings. A new entity was formed, Seward Towers renovation lp, with Seward Towers Corporation and commonbond communities as its general partners. Seward Towers Corporation renewed the section 8 contracts for an additional 20 years and then sold the building to the new entity on january 14, 2016 and completed the wholesale renovation of the buildings by the following year. Low-income housing tax credits were utilized in part to secure the needed capital. Seward Towers Corporation has retained a right-of-first-refusal and option to repurchase the buildings following the 15-year tax credit compliance period in 2031.in the sale, Seward Towers Corporation was paid with a note receivable from the affiliated limited partnership. Seward Towers Corporation plans to utilize the note receivable to repurchase the property under the right-of-first-refusal or option in order to continue to assure affordability of the property and preserve the unique governance structure that brings management, residents and the community together. Payments received on the note will be applied toward that purpose as the central mission of the corporation.payments received are considered program service revenue as they are applied for that purpose or for other purposes deemed critical to that mission on a current basis.