Supportive Housing for Homeless Families Moving Forward

Construction of Conifer Estates, a twenty unit supportive and transitional housing project in Bemidji continues to move forward toward construction.  Continuation of this project proves, in the words of baseball great Tommy Lasorda, “The difference between the impossible and the possible lies in a person's determination.”

In this case, it was the collective determination of many partners who wouldn’t quit until they hit a home run.

Initially, a variety of political issues and site problems presented obstacles. To move the project forward, the Beltrami County HRA provided an alternative building site at no cost, but the new site required more infrastructure than the original project budget allowed. The City of Bemidji agreed to finance a portion of the street construction, but additional funding was still necessary. Since last year, a complicated, but solid financing package has come together and bids were let for the infrastructure and the 20-unit building.

Click image above for larger view

In addition to the HHDC, Beltrami County HRA and the City of Bemidji, partners on this project include the Red Lake HRA, Leech Lake HRA, Bi-County CAP, and DW Jones.  Funding was originally provided by Minnesota Housing, Greater Minnesota Housing Fund and the Minnesota Department of Human Services.  The enhanced funding package includes $500,000 secured from the Federal Home Loan Bank of Des Moines by First National Bank of Bemidji and $350,000 from the DEED Small Cities Development Program.

In less than a year, very low-income homeless families and individuals will be able to seek occupancy at a high quality facility that will include available services to help stabilize their housing.

The MCPP program makes affordable mortgage financing available for first time home buyers throughout the region.

In 2010, the MCPP allocated each county the HRDC serves the following amounts: Beltrami - $665,606, Clearwater - $125,151, Hubbard - $285,646, Lake of the Woods - $100,000 and Mahnomen $100,000.

Last year the program was not available due to the difficulty of selling bonds to finance it. Again this year, Minnesota is not issuing mortgage revenue bonds, but has opted to use federal resources to support the program. It is expected the program will continue to be popular among the region’s counties and that they will use more money than has been initially allocated. This becomes possible when some counties don’t reserve their share of the initial MCPP allocation. When that happens, the money is pooled and becomes available to counties that are actively participating.

In the past, Counties in the Headwaters Region have made good use of the program, especially Beltrami and Hubbard.

HRDC also provides assistance to the Hubbard County HRA, which is ramping up to increase the number of single family housing rehabilitation projects completed this year.

The Hubbard County HRA administers rehabilitation programs with resources provided by the Minnesota Housing Finance Agency (with some federal revenue involved) and Greater Minnesota Housing Fund. The HRA also has a local revolving fund that provides low-interest loans to qualified individuals and families primarily for emergency repairs such as upgraded wells, septic systems, furnaces and other health and safety deficiencies.   

Beginning in 2010, the HRDC also will administer a rehabilitation program on behalf of Park Rapids, the City of Akeley, and Hubbard County.  The City of Park Rapids was awarded a $700,000 DEED Small Cities Development Program grant. The funding will go toward downtown commercial rehabilitation/storefront renovation, rehabilitation of eight downtown rental housing units, and rehabilitation of 18 owner-occupied homes in the county.  The goal of owner-occupied home rehabilitation is to assist moderate income homeowners in making their homes safer, more energy efficient and more livable.

The Hubbard County HRA continues to provide home ownership education and each year sells a home built by students at the Nevis School. An agreement is now in place to continue this partnership in 2010 and beyond.

Ray Melander, who has chaired the Hubbard County HRA board the past eight years, says that by contracting with the HRDC, the HRA has the ability to access a broad range of skills to help the organization become more effective.  According to Melander “The HRDC brings the best of three worlds: leadership and new program development, administrative expertise, and accountability through sound financial management.  The staff support is provided at less cost than through hiring additional staff to perform the same duties.  I appreciate working with the HRDC and look forward to working together to effectively address the significant housing needs in Hubbard County.” 

(Ray also has served as president of the Headwaters Housing Development Corporation board of directors since the HHDC’s inception in 1998.)

Bemidji has received DEED Small Cities Development Program funding to support commercial rehabilitation/storefront renovation of 14 units, following up on the completion of 17 units in Phase 1 completed at the end of 2009.

Roger Hellquist, Bemidji city councilman, commented, “The City of Bemidji has strongly supported improvements in the downtown. The second phase of the commercial rehabilitation/ storefront renovation program is one example of that support.  We appreciate HRDC’s assistance in obtaining resources to help make the improvements possible.”

The DEED grant award also included funding to Bemidji for construction of a portion of a city street and related infrastructure needed to support construction of the supportive housing project (Conifer Estates).

The Region is really moving on Active Living

The HRDC has made significant progress on active living over the past year.  This effort started in the Bemidji Area with a robust planning process and is now in the first of four years of implementation.  It has been exciting to see real change as people start to incorporate physical activity into their daily lives.  There has been an ever-increasing “buzz” in the community around health, wellness and physical activity.

Successes!
With the help of our dedicated Active Living Bemidji Partnership, many real things have been accomplished:

• Share the Road Signage
• The City of Bemidji and Beltrami County partnered in the installation of “share the road” signage along key routes/streets in Bemidji to alert motorists of the presence of bicyclists.
• Active Living Bemidji Website
• Launched the Active Living Bemidji website in partnership with Fit City and the City of Bemidji Parks and Recreation Department. www.activelivingbemidji.com.
• Social Media
• Utilized social media such as blogging, Facebook, and Twitter in an effort to connect with more people and increase awareness of active living.
• Programs
• Offered structured opportunities for physical activity through the Passport for Fitness Program. Participants could take 30+ classes at various health and fitness clubs in town for only $20.00.
• Created a pilot program called Simple Steps, a non-competitive walking program encouraging residents to get out and walk with a friend.
• New Partnerships!
• Partnered with Bike Bemidji, a local volunteer-based organization to plan bicycle events highlighting the importance of rider safety and bicycle awareness.
• Created new partnerships with the Indigenous Environmental Network, Indian Health Services and the City of Bemidji Parks and Recreation Department.

Rethinking Transportation
Lessons learned from both successes and challenges throughout the first year of implementation have been invaluable.  These new skills have helped the HRDC completely rethink the traditional approach to transportation planning.  The result has been a truly region-wide approach to active living and transportation.

The Statewide Health Improvement Program (SHIP) has been a catalyst to this new region-wide approach.  The goal of SHIP is to improve the health and longevity of Minnesota residents through policy, systems, and environmental changes that support healthy behaviors. SHIP addresses risk factors for preventable death, decreased quality of life, and financial costs associated with chronic disease in four interventions: community, worksites, schools, and healthcare. HRDC staff is assisting the SHIP community leadership team with the development of a strategic vision and implementation for active living in four communities under the jurisdiction of the North County Health Board (Beltrami County, Hubbard County, Lake of the Woods County, and Clearwater County).

If you have any questions about active living in the Headwaters Region, please contact Emily Brooks or Matthew Dyrdahl. 

It has been exciting to see real change as people start to incorporate physical activity into their daily lives.  There has been an ever-increasing “buzz” in the community around health, wellness and physical activity.

Lessons learned from both successes and challenges throughout the first year of implementation have been invaluable.  These new skills have helped the HRDC completely rethink the traditional approach to transportation planning.

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HHDC: Taking the Opportunity to Grow

The past year has been one of changes for the HHDC. The transition from a work program that focused solely on new construction to one that includes purchase rehabilitation has presented great challenges and opportunities for the corporation. As funding priorities shifted with our primary partners Greater Minnesota Housing Fund and the Minnesota Housing Finance Agency, the HHDC was given the chance to grow as an organization and gain experience with rehabilitation development projects.

There are many benefits of housing rehabilitation for all parties involved. Housing rehabilitation can revitalize neighborhoods by fighting the spread of blight and stabilizing home values. We can reduce energy consumption through the “greening” of the homes which is good for the environment as well as the homeowner who pays the utility bills. The HHDC can also reach market sectors that we previously could not reach with new home construction.  From a business standpoint increasing our development models to include rehabilitation will only make the corporation more stable in the long term. When markets improve for new construction and funding is once again available the HHDC will have the capacity to respond to the need for new construction, rehabilitation, or both. Moreover, the HHDC will have the ability to choose the model that is most viable in each community. 

The HHDC has been working hard to get purchase rehabilitation efforts off the ground and running over the past year. Projects are currently underway in Bemidji, Baudette, and Blackduck, with additional projects planned throughout the Region. 

Completed purchase rehabilitation home in Blackduck

HHDC: Building New Remains Important

Despite the intense focus on developing the purchase rehabilitation model, the HHDC remained active in the development of new homes throughout the year. We feel that new construction is still an important component of the HHDC work program despite current challenges. The HHDC continues to serve markets for new affordable homes when viable.

The Bemidji High School carpentry students learned new skills in completing another home for the HHDC. The home is located in the Mayer Estates subdivision that is owned by the HHDC. The School District remains a great partner for the HHDC. The High School students will build one home during the 2010-2011 school year in our Sunset Meadows subdivision. The program also welcomed a new instructor this year, Jeff Olson. Jeff proved to be a perfect fit for the program. He is very skilled and passionate about what he and his students are doing. 

A home built in Bemidji by the High School

The Minnesota Department of Corrections Institution Community Work Crew (ICWC) program built 4 homes in the Sunset Meadows subdivision during the past year and 27 units since its inception in Beltrami County. Unfortunately, due to a number of challenges, the program will no longer be administered by the HHDC after May of 2010.

ICWC built home in Sunset Meadows

The private contractor model proved viable in select markets for the HHDC. One home was built in Blackduck and one in Bemidji. Blackduck is a difficult market for new construction as the cost to build homes new is greater than the ultimate appraised value in the current market. For this reason the new home in Blackduck required many partners.  Funds from the Department of Employment and Economic Development (DEED) were used to fill an affordability gap for the buyer and resources from MHFA bridged the gap in value for the HHDC. Finally, the family that purchased the home secured a subsidized first mortgage from USDA Rural Development to complete the package and make the home affordable. 

The home built by a private contractor in Bemidji also required key partners. The home was a pre-sale, meaning the buyer was identified before the start of construction. The buyer in this case was pre-approved with USDA financing. Because construction financing was limited the HHDC approached the Headwaters Regional Finance Corporation (HRFC) for a short term 0% loan from their revolving loan fund. This model proved effective and the HHDC would like to pursue similar projects in the coming year.

HHDC: Partnerships are Paramount

The HHDC relies on several key partnerships to further its mission. Continued support from GMHF and MHFA allowed the corporation to grow during the past year. New partners such as the HRFC proved critical to success as well.

The HHDC also strengthened its partnership with USDA Rural Development. The HHDC has had a long history of working with USDA on several projects both through their direct loan program and guaranteed loan program.  This year however the need to work with USDA grew even larger as conventional lending markets all but shut down for many of the buyers in our target market. The direct loan program provides fixed rate loans with a subsidy component that reduces the interest rate for the borrower based upon their income and family size. USDA will also provide complete financing for the appraised value of the home and requires no down payment. In fact, some of the closing costs of the loan can be incorporated into the principal balance.  The band of individuals who qualify for the direct loan program is fairly tight, but the program is highly effective when a buyer is eligible. Without this program, the HHDC would have suffered greatly in new home sales, particularly in Sunset Meadows.

Breaking the Cycle of Disaster Damage, Reconstruction, and Repeated Damage

The term “hazard mitigation” describes actions that can help reduce or eliminate long-term risks caused by natural hazards or disasters, such as floods, wildfires, tornadoes and winter storms.

After disasters, repairs and reconstruction are often completed in such a way as to simply restore damaged property to pre-disaster conditions. These efforts may expedite a return to normalcy, but the replication of pre-disaster conditions often results in a repetitive cycle of damage, reconstruction and repeated damage. Hazard mitigation is needed to break this repetitive cycle by producing less vulnerable conditions through post-disaster repairs and reconstruction.

Implementing hazard mitigation actions means building stronger, safer and smarter communities that are able to reduce future injuries and damage from natural hazards and some that are manmade.

Initial plans in the five counties HRDC serves were developed in 2005-2006. Most of these plans now need to be updated to meet Federal Emergency Management Agency (FEMA) requirements.

Hubbard County was one of the first to conduct a comprehensive review of its hazard mitigation plan. The plan is done and has been submitted for state and FEMA approval.

Participants in updating Hubbard County’s plan included representatives and staff from cities and schools, the sheriff’s office, DNR Forestry, North Memorial Ambulance and public health. Local business owners also were invited. During the process, the group explored ways to involve other people, too.

As Hubbard County participants looked at how to lessen hazards county wide, one concern that rose to the top was community wildfire protection and one solution will be expanding the DNR’s Firewise program. Hubbard County also placed a priority on the need to assess and upgrade civil warning systems. School districts also identified ways to be better prepared and safer.

Brian Halbasch, Hubbard County Emergency Services Manager, is already implementing some measures the process brought to his attention. He is new in the position and a happy HRDC customer. “I know for sure that I could not have done anything without Mareike Stoutenburgh’s help!,” he said. “She was more knowledgeable about most of the topics then I was. Granted, I had just walked into the EM spot and she was, and had been working on the project for a while. There is no way I would have or could have done half the work she did with the plan. At times I felt like I could not help her because she was more wrapped up in the topics then I was at the time. I just hope I can successfully fill the shoes she is leaving behind as the plan becomes active. There is no doubt in my mind with all the work she put in behind this that the State of Minnesota and FEMA will approve it and adopt it!”

White Earth is developing a brand new plan. Since the White Earth Reservation boundaries lie within three counties, it is unique. Beltrami, Clearwater, Lake of the Woods and Mahnomen County are all waiting for approval of funding to update their hazard mitigation plans. It’s expected that Beltrami and Clearwater will be next. The same collaborative effort made in Hubbard County will be used in preparing White Earth’s plans and for updating plans for remaining counties in the region. The more the public is involved, the better the plans will be, but broad participation isn’t easy. Most people don’t think about disasters until they happen.

Once the state and FEMA approve local plans that meet new requirements, local governments will be eligible to apply for grants to implement ways to lessen the impact of possible hazards.

Steve Cochems, manager of Anderson Fabrics, is heading up a committee to build a youth center in Blackduck. The youth center would be a key community asset for Blackduck to be seen as family friendly and respond to youth complaints that there is not enough to do in the area.

Original committee members visited other youth centers in northern MInnesota to learn what worked and what didn’t. The group also received a grant from the Blandin Foundation to hire an architect who helped select a site, develop a design, and devise a cost estimate. During the planning, HRDC staff interviewed 15 students to find out what activities they would want the center to accommodate. Interestingly, Steve said, they wanted a 1950s-style cafe with a soda fountain. Based on the students’ input, three other spaces are included in the plan: a “chill” room where they can hang out and relax, a study area and a game room. Click here to see some renderings developed by Widseth Smith and Nolting staff.

Recently, three students, the city administrator and school superintendent have joined the discussion. The next step is to develop a fundraising strategy to make it real.