Three Links Apartments
Northfield, MN; 84 Units, Senior Affordable Housing


Three Links Apartments is an affordable, 84-unit senior housing project located in Northfield, Minnesota.  The project was developed in the mid 1970’s under HUD’s non-insured State HFA Section 236 interest rate subsidy program.  The project had significant outstanding deferred maintenance loans coming due.   The Section 236 Interest Rate Payment and Rental Assistance Payment contracts (RAP) were set to expire. 


This project faced several substantial challenges:


Rockhall leaned on its expertise in the Section 236 and Section 8 Housing programs to navigate the 236 prepayment process and to obtain approval to convert expiring rental subsidies to project-based rental assistance.  Rockhall doubled the number of units receiving project-based rental subsidies and increased rents 35% under the new Section 8 HAP contract. Rockhall utilized FHA insured financing to pay off all existing debt, fund $1.4 million for repairs, improvements, and accessibility modifications, and to fund a significant deposit to replacement reserves.  The 236 prepayment/223(f) refinance locked in a low fixed interest rate for a 35-year term, and provided the project with a new Section 8 HAP contract for a 20-year term, ensuring the long-term affordability and economic viability of the project.