Land sale offer north of Wannigan Park declined

Photo by Robert Williams
Construction continues on a 36-unit apartment project at the intersection of Highland Drive and Randolph Road in Detroit Lakes.

By Robert Williams

Editor

Becker County Commissioners held a public hearing before considering adopting a Local Housing Trust Fund (LHTF) ordinance on Tuesday, April 21.

A Local Housing Trust Fund provides a flexible, locally controlled funding source that can be used to address various housing needs and leverage state and other external funding opportunities. 

“I think there’s a pretty wide consensus that home ownership and affordability doesn’t get any easier,” EDA Specialist Cody Piper said. “That’s a high priority need throughout most counties statewide, if not nationwide.”

Many counties and cities throughout Minnesota have already established a Trust Fund and have utilized them. County staff consulted with other counties and Minnesota Housing Partnership in drafting the resolution.

The County Economic Development Authority (EDA) proposed to initially capitalize the fund using available Statewide Affordable Housing Aid (SAHA) funds, with the intent to pursue additional funding sources from other eligible revenues.

Piper addressed the target population, citing dependence on funds received.

“That’s primarily dictated by the source of funding that goes into the program,” Piper said. “If it’s a grant, state-funded, or federal-funded, and it has income requirements that would apply to it, as well. If it’s a private donation, contribution money, that would be treated differently.”

Some examples of trust fund programming include but are not limited to:

Emergency rental assistance; financial support to housing providers; construction of affordable rentals or homes; acquisition of existing property or land for affordable housing; rental and homeowner rehabilitation programs; demolition and redevelopment; construction or permanent financing; interest rate reduction; refinancing debt, TIF and GAP financing.

Piper shared some specific examples from around the state:

Swift County LHTF established to purchase and preserve Gra-Mar Court, a 16-unit senior and disabled housing unit to prevent the loss of the affordable units.

Winona County established and utilized funds to rehabilitate existing low-income apartments, ensuring structural integrity and continued long term affordability.

Chisago County established and has grown its fund from HRA-owned property revenues to provide GAP financing as a tool to attract developers of workforce housing, reducing the difficulty of financing such projects.

Redwood County established a trust fund and utilizes it to provide low-interest loans specifically for the redevelopment of non-residential structures into housing units.

Minnesota counties with Local Housing Trust Funds: Chisago; Crow Wing; Goodhue; Hennepin; Lake; Otter Tail; Swift; Meeker; Sherburne and Aitkin.

Commissioners approved the ordinance unanimously.

Land

Commissioner Barry Nelson reported from Natural Resources Management (LRM) that the county had received an opportunity to purchase “a large chunk of land” near Wannigan Park.

“We thought some other agencies might be a better fit for that,” Nelson said. “We could be partners, but we’re not going to be the fiscal organization on that.”

The proposed land is located north of the park. 

Recycling

Commissioner Phil Hansen gave a preliminary report on the county’s successful tire recycling event. 

“That’s to clean up the county, to give our residents something for free,” said Hansen. “This was very good.”

Hansen expects to submit a full report by June with Environmental Services Administrator Steve Skoog.