RE-Seed Program

PPL piloted a program in 2023 to collaborate with emerging developers to buy our small, scattered-site properties, and “College House” in South Minneapolis was our first successful sale. The first of many to come, this tri-plex property was sold at a below-market price, with the buyer enjoying down payment assistance, a reserve pool to help cover unexpected costs to maintain each of the units, and property management consulting. The property was improved before the sale, all in an effort to build the capacity of emerging developers, which, in turn, returns true community assets to community members. The newly named “RE-Seed” program is expected to launch to grow capacity and assets in full, in the fall of 2024.

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PPL invested over $170,000 in improvements to the College House property, including new windows, flooring, counters, siding, and an HVAC system. PPL Asset Management Analyst Jake Lefaive said that our target is to have at least 90% of the improvements done to all of the RE-Seed properties prior to sale. We then work with a select group of realtors to enable us to reach our goals through private sales.

College House purchaser Bashe Said Siste said the entire process was “a really great experience.” Siste had been searching for single-family homes in the Midway area of St. Paul when he happened across the listing for College House. As this was his first home purchase, he had no initial interest in purchasing a multi-family property or becoming a landlord. However, College House was in a neighborhood where he had previously lived and wanted to return, so he decided to take a look.

Siste found that the home was newer and in better shape than the other houses he had been considering, so he immediately applied for the property. He wasn’t sure he would get it, but his bank helped him secure the funds for the purchase. Siste said that the PPL staff were also “very professional” with him. He highlights Jake Lefaive, saying, “[He] is very helpful. He was there for me when I needed help with permits and a heater – he puts me in touch with the right people. When I’m stuck, I just call PPL.”

Siste lives in one of the College House units with his wife and children, while the tenants who were living in the other two units at the time of purchase have chosen to continue with their leases. Siste has tapped into the reserve funds once thus far, when one of the AC units needed repairs.

“Becoming a landlord was not easy, but I enjoy it,” said Siste. He added, “It’s nice to have ongoing support [through PPL]. I get a response and more than help right away. It’s like buying a house from a family member rather than a stranger.”

College House was set up to be an owner-occupied pilot program. The forthcoming RE-Seed properties are intended to be owned by emerging developers who do not live in the same buildings.