Androy owners awarded funds to preserve historic building

HIBBING—The Minnesota Housing Finance Agency (MHFA) has awarded funds to the owners of the Androy Apartments to help preserve and extend the life of the iconic building, located on Howard Street.

Trellis Co. was awarded $946,990 in 9% housing tax credits to help preserve and extend the life of the Androy. Granted in late 2023, this award is anticipated to generate approximately $8 million for renovation of the apartment building and extend its affordability for residents, according to information posted on the City of Hibbing website.

“Trellis is thrilled with the award and the ability to reinvest in the building and the Hibbing community,” Justin Eilers, Trellis’ vice president of housing development, is quoted on the website. “As a long-term owner, we strive to preserve our buildings and maintain the affordability of our properties so that residents can remain in quality living environments. Our ultimate goal is for all of our residents to thrive where they live.”

With a mix of funding resources—including two Iron Range Resources & Rehabilitation (IRRR) grants and particle forgiveness of a loan created from St. Louis County Community Development Block Grant (CDBG) funds by the Hibbing Economic Development Authority (HEDA)—Trellis plans to put just shy of $12.2 million into The Androy Apartments. Energy and sales tax rebates, a general cash partner, state and federal historic proceeds, and more complete the financial package.

Considered a historic landmark and currently on the National Register of Historic Places, the Androy is a four-story, 48-unit converted hotel built in 1921 in downtown Hibbing. Originally constructed as a hotel in the Renaissance Revival Style by the Oliver Mining Company, it was placed on the National Register of Historic Places in 1986 and was converted into housing in 1994.

“The Androy is a regional landmark for northern Minnesota. Countless weddings, community gatherings, public meetings, and celebrations have taken place in the building for 100 years,” noted Eilers. “This project has significant local support, including partial forgiveness of a loan from the original project from the City, and the local community is particularly excited about the possibility of relighting the building’s historic rooftop sign.”

Today the property is a mixed-use commercial and residential building. The housing units are a mix of studio, one- and two-bedrooms units.

The Androy has historically been a senior-restricted property. Approximately 90% of current residents are aged 55+, 30% have incomes at or below 30% area median income, and just more than 20% have disabling conditions.

“Now that nearly 30 years have passed since the previous renovation on the project, critical repairs are needed to ensure its affordability and preservation for the next generation,” said Eilers.

Mayor Pete Hyduke, who is also a HEDA member, concurs. Given the building’s number of significant physical needs, it is best to move forward with the renovation now.

“This project will address critical physical needs that have risen since it was last renovated,” Hyduke is quoted on the website. “This project has significant local support, including partial forgiveness of the loan created with County grant funds from the Hibbing Economic Development Authority. Plus, it will preserve 48 units of housing for low- and moderate-income households in Hibbing and St. Louis County.”

A core design of the City’s Strategic Plan includes providing quality housing stock that is affordable and accessible for all citizens.

“The Androy has had a major presence in downtown Hibbing for over century and it is welcoming to know it will still remain a statement piece of our downtown moving forward,” added Hyduke.

An aim of the project includes increasing the number of affordable units with project-based rental assistance in Hibbing and the county. Another goal is to honor and celebrate the history of the former Androy Hotel in the renovation design and construction to preserve it for years to come.

The anticipated renovation activities will include:

Replacing outdated mechanical and electrical systems

Replacing old roof

Replacing old unit and common area fixtures and finishes

Improving common areas

Refurbishing windows

Elevator refurbishment

Tuckpointing and historic masonry restoration

As a bonus, plans include lighting of “The Androy” sign.

The work is anticipated to commence in early 2025. Trellis will follow Federal Uniform Relocation Act requirements and does not anticipate displacing any current residents.

“Residents are aware of the award and that we are in the early design phase of the project. They are excited to know that improvements will be coming to the building,” said Eilers. “Prior to application submission in July 2023, residents were generous with their time and met with Trellis staff and provided feedback on the needs of the building.”

Betsy Olivanti, City of Hibbing Community Development Director, also pointed to the recent comprehensive housing needs analysis. Completed in 2023, it recommends the city add housing units, including more than 60 new units of multi-family housing.

“Also, there is strong demand for association-maintained units; thus, preserving this building and these housing units is critical to our downtown and our Hibbing community,” Olivanti added. “We’re extremely pleased that Trellis is willing to take on this large project and the necessary investment in this historic building.”

Eilers reiterated what a key component the partial loan forgiveness played in Trellis securing the funding from the MFHA.

“Trellis applied for this funding in July 2022 without this (forgiveness),” he said. “The City’s agreement to provide it increased the Androy’s score, and our application was successful this time.”

Trellis Management had managed The Androy for more than 20 years before Trellis Co. purchased the property in 2021 and currently manages it.

Trellis Co., formerly Community Housing Development Corporation, was founded in 1991 with the mission of sustaining and creating equitable affordable housing opportunities that enhance communities over the long-term and create and maintain healthy living. As owner of approximately 4,000 affordable housing units in 51 properties. Trellis is now one of the largest nonprofit providers of affordable housing in Minnesota.