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On Thursday, the Minnesota Housing board of directors selected and advanced proposed housing developments totaling nearly $191 million in investments that will support the creation and preservation of 2,276 single-family homes, apartments and manufactured home community lots. In total, these projects represent more than $480 million of housing development and will support 4,400 jobs.

The funding supports a project in Albert Lea to build 60 new low- to moderate-income workforce housing apartments on the Blazing Star Landing, the former site of Farmland Foods that has sat unused for over 20 years since the plant burned down in 2001.

The apartments are slated to be built south of where the new Kwik Trip will be constructed.

Josh Nguyen, communications specialist with Minnesota Housing, said the Albert Lea project will receive $10.6 million in state housing infrastructure appropriation and $4.5 million in federal HOME Investment Partnerships Program funds. The total cost of the project, planned by LaSalle Development Group, is estimated at $24.02 million.

Albert Lea City Manager Ian Rigg said the city will get more details about the project and close on the property after the holidays.

“We are excited about this opportunity and hope this and the Kwik Trip project will continue to move the Blazing Star development forward,” Rigg said.

The total funding announcement is a compilation of project selections the agency made in all types of housing it funds: multifamily rental housing, single-family homeownership opportunities and manufactured home community infrastructure.

Rental housing investments highlights

Across the state, the multifamily rental selections support a total of 959 units. Nearly 55% of the units (523 units) will be new construction and 45% (436 units) are preservation of existing affordable properties. Thirteen of the 21 multifamily developments are in Greater Minnesota, representing 62% of the overall recommended projects, with a total of 596 units. The multifamily rental selections will leverage additional federal resources totaling more than $175 million of equity generated by the federal low-income housing tax credit.

It’s difficult for renters to find stable and affordable homes, and for some property owners it can be equally difficult to maintain and manage affordable rental properties. Preservation resources help rental properties maintain and improve existing affordable housing for years to come. Investing in these homes will address critical maintenance needs. Preservation resources support improvements at federal Section 8 project-based rental assistance developments as well as properties at risk of loss of the affordable apartments due to market conversion, critical physical needs, and ownership capacity. Of the multifamily selections, 230 units have federal Section 8 project-based rental assistance and 303 units meet other preservation needs. These preservation resources will bring stability and improvements to both the physical parts of the buildings as well as improve the properties’ finances.

Many of the rental properties are for specific populations, such as 186 units designated for seniors, nearly 90 units exclusively for people with disabilities, and 280 units for people who have experienced homelessness or need supportive services. One supportive housing development, Bickham Court Apartments —  formerly known as Perspectives Apartments — in St. Louis Park, will see stability and improvements thanks to the fast work of Trellis, preserving 56 affordable apartments that could have been lost when the previous owner went bankrupt.

“When I heard the Perspectives Apartments in St. Louis Park were in jeopardy, I immediately thought of the moms and kiddos at risk of losing their homes,” said Lieutenant Governor Peggy Flanagan. “I’m so grateful that Trellis stepped forward to buy and preserve these buildings and that Minnesota Housing is able to support them in improving the apartments. These services are crucial to supporting Minnesota families in finding housing stability.”

Homeownership investments

In the homeownership area, the board approved 46 projects supporting a total of 587 homes. Of these, 172 homes will be new construction. The agency also provides funding for owner-occupied rehabilitation, acquisition, rehabilitation and resale, and downpayment assistance to make homeownership more affordable across the state.

One of the successful applicants for single-family funding is Dreamliner Estates LLC, a developer that plans to build 34 new homes in St. Cloud. This is the first time Dreamliner is receiving funding from Minnesota Housing. They will access $3.4 million in funding to support 16 of their planned homes.

Manufactured home community improvements

In addition to the rental and homeownership projects described above, Minnesota Housing selected nine manufactured home community investments this year for a total of $2.7 million. These funds can be used for infrastructure projects such as electrical work, water and sewer upgrades, storm shelter construction or repairs, and road and sidewalk improvements.

Bonnevista Terrace, a 202-unit, privately owned manufactured home community in Shakopee, is one of the selections. With a grant from Minnesota Housing, the community will be able to replace their entire electrical system and update the technology to make the community adaptable for future electrical needs.

Statewide impact

Between multifamily, single-family and manufactured home communities, Minnesota Housing’s selections span the state.

“Every community faces housing challenges, and we know they look different from town to town,” said Minnesota Housing Commissioner Jennifer Leimaile Ho. “I’m pleased we’re able to support a significant number of projects across Greater Minnesota. Thanks to the legislature, we have a range of programs to help us meet local needs, whether they need more supportive or senior housing, more single-family homes people can afford, or infrastructure upgrades in manufactured home communities.”

For more information about the project selections, visit Minnesota Housing’s Project Selections webpage.