Olmsted County Housing and Redevelopment Authority (HRA) Board moves forward with affordable housing initiatives

On February 15, 2024, the Olmsted County Housing and Redevelopment Authority (HRA) Board approved two initiatives aimed at addressing the need for affordable housing options in Olmsted County.

The first initiative involves the $5 million purchase of the Residences of Old Town Hall building, located at 607 E. Center St. in Rochester. The project will be partially financed through a property tax levy designated for housing programs. The Coalition for Rochester Area Housing is providing a $1 million deferred forgivable loan for the project. Upon completion of renovations, the building will provide approximately 60 units of housing.

“We are thrilled to embark on this significant endeavor to expand affordable housing opportunities for our community’s most vulnerable members,” said Olmsted County Housing and Planning Director Dave Dunn. “We have earned the support of residents who live near the building and look forward to partnering with them through this transition period.”

Minimal modifications will be made to the building to accommodate existing lease agreements with the Boys Scouts and Luther College through May 2025. New residents could move into available units as early as the summer of 2024 dependent upon availability.

In addition to the Residences of Old Town Hall project, the HRA Board also approved the $680,000 purchase of 10 lots on Red Hawk Drive in southeast Rochester. These lots will be used to construct affordable single-family homes and placed into a community land trust in partnership with First Homes. This initiative will be funded with a portion of the $4.9 million in remaining American Rescue Plan Act (ARPA) funding that was allocated for the creation of affordable homeownership opportunities in the region.

The Olmsted County Housing department will work to identify builders who can meet the criteria for affordable housing, with construction of homes expected to begin in spring 2024.

Historical context
The groundwork for this project was laid in 2021 with the establishment of the
Growing Affordable, Inclusive Neighborhoods (GAIN) in Olmsted County program, funded with $5 million in ARPA dollars. The program allowed qualifying applicants to receive a $10,000 down-payment assistance loan toward the purchase or construction of a new home, with construction costs not exceeding $300,000.

Building upon the initial GAIN program, the revised version aims to further amplify affordable housing options in the community.