JO Cos. proposes affordable apartment complex on Penn Avenue in Richfield

[Originally published by Minneapolis / St. Paul Business Journal, written by Alyxandra Sego: View Source]

Johnny Opara is president and CEO of JO Companies. Photo by Antonio T Harris.

Twin Cities housing developer JO Cos. wants to build an affordable apartment complex on Penn Avenue in Richfield.

The firm's proposal is for approximately 40 affordable units to be built at 6501 Penn Ave. S., currently a vacant lot that has been owned by the Richfield Housing and Redevelopment Authority (HRA) since 2018. JO Cos. CEO Johny Opara presented his preliminary plans to Richfield City Council, HRA and Planning Commission during Monday’s hearing.

Finance and Commerce first reported on the proposal.

HRA noted that another developer in recent weeks has been considering the site and also proposed a mixed-income development in which 80% of the units would be at market rate. In their report, city staff brought Opara’s proposal forward because two market-rate developments have already been recently built on Penn Avenue.

City staff haven’t made a formal decision on JO's proposal, but noted that it would help the city meet its goals to “maintain Richfield as an affordable place to live.” The apartments would be at 30% or less of the area’s median income.

The Penn Avenue site received a previous proposal in 2020, but didn’t get financing to go forward.

To finance the development, Opara plans to apply for Low Income Housing Tax Credits (LIHTC).

JO Cos. is a new Black-owned developer whose mission is to provide the Twin Cities with affordable housing. The company has been involved with The Hollows, a 62-unit housing project on Payne Avenue in St. Paul, and Wangstad Commons, a 54-unit development in Brooklyn Center. Currently,

Also, JO is partnering with Sherman Associates on The Heights, a 112-acre redevelopment of 1,000 homes on the former Hillcrest Golf Course in St. Paul. JO will be responsible for nearly 300 homes at The Heights.