Housing has been a priority for the Headwaters Commission since the creation of the organization in 1971.  A major role of the Commission in the early years focused on allocative planning- identifying and securing outside resources to help meet local needs.  As those resources diminished, especially at the federal level, the role of the Commission in accessing outside resources reduced accordingly.

In the mid 1990’s the need for new housing was great as a result of strong population growth combined with smaller households.  The vacancy rate for housing was very low as the supply of units was much lower than the need.  Community and business leaders began to see the inadequate supply of affordable housing units as an important community and economic development issue.  The importance of housing as a critical community issue remained strong, but a different approach was needed. The development of new housing units to meet the needs of an expanding workforce became a priority.

The Headwaters RDC responded to the need for new housing through creative new initiatives.  A partnership was formed with the Beltrami County HRA, Bemidji High School, and Northwest Technical College which resulted in the construction and sale of 4-5 new single family houses in Bemidji on an annual basis.  The HRA provided the development authority while the Headwaters RDC brought the staff capacity needed to successfully build and sell homes to moderate income working families.  Almost fifteen years later housing is still being produced as a result of this creative partnership.

The partnership with the Beltrami County HRA was highly successful at producing housing in Beltrami County.  A different approach was needed to produce affordable housing in other parts of the Region.  The Headwaters RDC was interested in developing housing in all five counties but had no authority to own residential property, limiting the ability to develop housing on its own.  In 1998 the Commission received legislative approval to create a non profit subsidiary corporation for the purpose of developing affordable housing.  The Headwaters Housing Development Corporation has been building affordable single family houses throughout the Region for the past ten years.  The Corporation has built 42 houses since its creation, and has a current goal of developing 20 units on an annual basis.

Over the past two years changing market conditions have meant that the HHDC once again will need a new approach in responding to local housing issues.  While the demand for housing has been altered by the soft housing market, the need for affordable housing and safe shelter remains great.   The HHDC is working closely with the Beltrami County HRA and other partners to develop twenty housing units for homeless families and individuals in Bemidji.

What’s the next big thing?  Given the soft housing market the best approach may involve rehabilitation of the existing housing stock.  Opportunities may even exist in the foreclosure crisis as vacant units may be available for purchase, rehabilitation and resale to moderate income home buyers.  Optimistically, homes may be made available for purchase by some potential buyers who were unable to purchase newly built homes.  As in the past, Headwaters RDC is ready to change with the times and respond to needs in the Region by taking advantage of emerging opportunities.