StoryEDA loan forgiveness decision enabling property sale to Mass Capital GroupMarch 24, 2025

Brooklyn Park EDA Forgives $3.8M Huntington Place Loan

Meeting date: Mar 24, 2025
Published Aug 5, 2025

The Brooklyn Park Economic Development Authority voted 6-0 Monday to forgive a $3.8 million loan to Aon BP LLC for Huntington Place Apartments in exchange for a $450,000 cash settlement and access to a $4 million federal grant.

The decision clears the way for Mass Capital Group of New Jersey to purchase the 834-unit affordable housing complex and invest up to $18 million in renovations. The loan forgiveness was contingent on receiving both the cash settlement from National Equity Fund, the primary lender, and securing the federal grant for property improvements.

EDA commissioners acknowledged the decision came with significant concerns about potential resident displacement. Mass Capital plans to require all tenants to reapply when their leases expire and move to newly renovated units under new screening criteria. Rent is expected to increase from the current $900-950 range to approximately $1,100 per month, though Section 8 voucher holders would remain protected.

We're not being given many good choices here," said EDA President Hollies Winston, who emphasized that preventing foreclosure was the primary concern. "The thing that concerns me the most is displacement... That could mean folks just can't live there no more.

Several Huntington Place residents spoke during public comment, requesting transparency about rent payments, assistance with potential relocation, and a voice in decision-making processes. The EDA committed to beginning community engagement at the property using the adjacent Zane Wood Teen Center as a meeting space and providing housing resources for residents who may need to relocate.

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Areas of Interest (5)

  • Brooklyn Park EDA weighs forgiving $3.8M loan on Huntington Place despite resident outcry.
  • Huntington Place tenants demand accountability and seat at the table in property sale negotiations.
  • City officials clarify that potential $4.45M settlement is not a cash fund for tenant relocation.
  • Mass Capital Group's proposed $18M renovation threatens to increase rents and displace vulnerable residents.
  • Lack of 'no-displacement' ordinance leaves tenants relying on city goodwill during foreclosure transition.

Votes (1)

Approval of the agenda

Passes6-0

Moved by Commissioner McGarvey · Seconded by Commissioner Erickson

Notable Quotes (2)

If we don’t forgive the loan... we would get 0, so we would no longer likely have access to that 4.45 million.

— Director Gladhill
Loan forgivenessDiscussing the risks of not accepting the settlement offer.

This is a discussion about whether we’re going to forgive the loan. If we don’t forgive the loan, what direction do we go in?

— Mayor
Meeting scopeClarifying the scope of the meeting for the audience.

People (5)

Laha Perkins HanktonResident

Speaks for tenants regarding foreclosure options and rent assistance.

1 quote

“if the property does go into foreclosure if they will receive assistance in moving.”

Questioning city regarding tenant support.

Denise ButlerResident

Associate Director at Acer, advocate for Huntington Place residents.

1 quote

“they have a list of demands that they understand their council has tax dollars that are being leveraged in this conversation.”

Highlighting city leverage in the sale.

Tamita GainesResident

Demanding seat at the table for decision-making.

1 quote

“we want to ensure the tenants have a seat at the table during all decision-making processes.”

Demanding transparency and inclusion.

Elizabeth SmithResident

Resident since May 31st, concerned about displacement.

1 quote

“I’m really frustrated that the possibility of displacement could be happening to all of us and I would be devastated.”

Expressing fear of losing home.

Director GladhillDirector

Explaining the financial mechanics of loan forgiveness and foreclosure.

1 quote

“our primary priority really is limiting displacement of those existing tenants, while also protecting the EDA investment.”

Stating city objectives.

Places Mentioned

City Hall, room 8203, 5208 5th Avenue North, Brooklyn Park, MinnesotaHuntington Place apartmentsZane Wood Teen Center

Events & Meetings (1)

  • Special EDA Meeting
Source document

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Other Topics from This Document

  • Huntington Place foreclosure and EDA loan forgiveness

  • Potential sale of Huntington Place to Mass Capital Group

  • Tenant displacement risks and housing assistance

  • Use of settlement funds and federal grants for Zane Wood Teen Center

  • Transparency regarding past rent payments and mortgage defaults

  • Accessibility improvements for disabled residents

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