Model Cities Properties

What it reported doing in 2025

Model cities properties encompasses all of model cities' real estate development projects. Our most recent development, model cities brownstone, is located at the victoria street light rail transit (lrt) station of st. Paul's green line. The development is a 4-story, mixed-use transit-oriented development that includes 35 units of affordable rental housing; approximately 20,000 square feet of retail, office and community space; and close to 7,000 square feet of outdoor space dedicated to a pocket park. In 2025, 44 individuals (31 households) with low incomes gained access to safe, affordable housing at our brownstone loft apartments. See schedule o for additional information.since opening in 2017, brownstone has been at or near 100 percent occupancy (approximately 94% on average each year) for the 35 units of affordable housing included in the project. The population of residents is diverse with a mix of races, ages, and families residing at brownstone. Interest continues to remain high in the residence as we typically get multiple applications for vacancies when they arise. In addition, model cities is increasing its capacity as a property manager as it has successfully met all the lihtc compliance issues that came with the project. All five commercial suites along university avenue have continued to thrive during their lease. Commercial tenants have been a blend of business owners from the surrounding neighborhood including a somali-owned convenience store/deli, an african american-owned barbershop, an african american women owned event center, a bipoc-owned apparel store, and an african american women-owned restaurant. These shops have employed nearly 20 individuals over the past year, many of whom are residents from the area.

Financial Efficiency

• Mission deployment rate: 80.4%; rating input score 80
• Program expense ratio: 76.3%; rating input score 76
• Fundraising efficiency: $7.26 raised per $1 spent on fundraising; rating input score 25; 25th percentile among comparable filings

Transparency & Controls

• Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
• Pay-setting controls: Limited
• Foreign activity oversight: Limited
• Grant itemization coverage: Limited
• Major donor itemization: Limited
• Related-party transparency: Limited

Accountability

• Independent voting board: 90%; rating input score 90; 26th percentile among comparable filings
• Governance controls: 8 of 8 controls in place; rating input score 100
  • Conflict-of-interest policy: Pass
  • Whistleblower policy: Pass
  • Document-retention policy: Pass
  • CEO compensation review process: Pass
  • Other executive compensation review process: NotApplicable
  • Form 990 shared with the board: Pass
  • Board meeting minutes documented: Pass
  • Audit committee oversight: Pass
  • Independent financial-statement audit: Pass

Sustainability

• Operating margin: -5.9%; rating input score 18; 18th percentile among comparable filings
• Total-asset coverage ratio: 8.13; rating input score 90; 90th percentile among comparable filings
• Liabilities to assets ratio: 0.84; rating input score 6; 6th percentile among comparable filings
• Officer compensation ratio: 1%; rating input score 56; 56th percentile among comparable filings

Growth

• Program expense growth: 11.9% per year; rating input score 100; 63rd percentile among comparable filings
• Revenue growth: 16.1% per year; rating input score 100; 76th percentile among comparable filings
• Asset growth: 14.6% per year; rating input score 100; 68th percentile among comparable filings