HRDC Moves Forward Toward 20-Unit Housing Production Goal

The Headwaters RDC has adopted a goal of building twenty units of affordable housing on an annual basis.  Along with two partners, the Headwaters Housing Development Corporation and the Beltrami County HRA, the goal is in sight.  This past year the organizations built fifteen affordable houses throughout the Region, and, due to challenging market conditions, strong marketing efforts are now underway. 

During the past year the HHDC has built affordable housing in Bemidji, Clearbrook, and Akeley.  The Bemidji High School Carpentry program, led by Rod Bauman, constructed two houses in the Mid Valley Subdivision.  The Clearbrook High School Carpentry class, headed by instructor Jim Papke, has finished construction of its second house.  Additionally, the HHDC has a home being built in Akeley by private contractor Kevin Chase.  The pre-sold Akeley house is moving forward ahead of schedule and shall be completed by mid June.  The HHDC looks forward to continued relationships with these partners, and plans to build new partnerships in other areas in the upcoming year.   

The HHDC and HRA have continued working together to produce quality housing in the Lincoln South Subdivision.  This year seven houses have been built utilizing the Institutional Community Work Crew under the tutelage of Don Casmey.  The HHDC is seeking new land opportunities to make use of the ICWC program in other areas of the County.

HRDC supported the efforts of the HHDC and HRA by accessing affordable financing products for use throughout the Region.  HRDC staff helped each County receive an allocation of Minnesota City Participation Program low interest mortgage financing. 

The MCPP Fund Usage Report can be viewed here.

HRDC also worked with lender consortia in Beltrami County and the Park Rapids area to access Community Activity Set Aside mortgage financing to support the construction and sale of affordable single family housing in those communities.  HRDC also worked with lenders in Beltrami County to access Entry Cost Home Ownership resources from Minnesota Housing to help lower income families achieve home ownership.  Finally, HRDC staff accessed gap financing resources from Minnesota Housing and Greater Minnesota Housing Fund to help moderate income families get into homes that they would otherwise be unable to afford.

The Headwaters Housing Development Corporation has built and sold affordable single family houses since its incorporation in 1998.  The organization plans to continue building affordable housing throughout the Region, including homes that will be sold to moderate income working families.  One such project involves the redevelopment of an old MN/DOT storage site in the City of Bemidji into a high quality mixed-income residential neighborhood.  Development of workforce housing in other communities, such as Park Rapids and Baudette, is also being actively pursued.

HHDC has begun to pursue two new development opportunities that will help a new market niche and help meet needs not currently being addressed.  One new venture is the Mutual Self-Help Housing Program.  This USDA Rural Development program provides funds to help organizations work with groups of moderate income families to collectively build affordable homes.  USDA provides the construction funds, then provides the back end mortgage financing for the participating families.  HHDC hopes to initiate a Self-Help Program in the spring of 2008.

A second new venture involves the development of supportive and transitional housing in Bemidji.  The housing would be developed by the HHDC and owned by the Beltrami County HRA.  This multiple-family housing would serve homeless families and individuals in the Bemidji area.  The housing would provide shelter and services needed in order to help these families and individuals be successful.  This development could begin as soon as 2008.

These two activities will help meet needs that are not currently being addressed, and keep the HRDC moving aggressively toward its goal of twenty units annually.

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HHDC is working with the City of Bemidji and Greater Minnesota Housing Fund to create optional site plans for the Rako Street site. One of the optional designs is shown above.