HOUSING

HRDC Pledges to Lead the Way in the Development of Green Housing

With rising energy costs and a renewed focus on living green, the HRDC has committed to operating ahead of the leading edge within the realm of green housing development.  Building green is a good place to be in many ways.  It not only lowers energy consumption and operating costs for homeowners, it promotes healthy living and awareness.  However, there will be challenges in balancing affordable housing with green design.  This is a challenge that we intend to meet head on.  The HRDC is currently creating green development plans and strategies in conjunction with our most prominent statewide funding agencies, the Greater Minnesota Housing Fund and Minnesota Housing Finance Agency.  Together we will be able to meld “green” with “affordable” and emphasize the marketability of environmentally sound building.  Living green and building green are no longer catch phrases for the eccentric; sustainability is the only answer if we wish to remain solvent and continue leading the way for affordable housing development within the Headwaters Region.

HRDC Maintains Production Goals During the Ebb and Flow of a Dynamic Market

The Headwaters RDC has adopted a goal of building twenty units of affordable housing on an annual basis.  This objective remains unaltered amidst current market conditions.  The HRDC and its subsidiary housing entity, the Headwaters Housing Development Corporation, have a production schedule in place to produce fifteen affordable single family homes throughout the Region annually.  We are very close to our ultimate goal and have many promising new ventures on the horizon to get us there.  The key to the maintenance and expansion of current production levels lies within the cultivation and development of strong partnerships.  Additionally, the growth of new marketing strategies will be paramount in the coming years, as we are certain that our target niche exists in numbers greater than we currently reach.

The HRDC and HHDC have continued housing development projects this year under many of the same building models used in the past.  This year the HHDC took control of the Institutional Community Work Crew program.  The ICWC crew will build six homes per year for the HHDC and is currently working on scattered site development projects in rural Beltrami County.  In the coming years the ICWC crew will focus on the build out of our latest rural subdivision, Sunset Meadows.  This subdivision is located three miles west of Bemidji and will provide unique amenities in the form of dedicated park land and walking trails within the development.

The Bemidji High School Carpentry program continues to lead the way in our Region for such programs, and keeps on impressing the community and HRDC staff by producing quality results year after year.  The foundation of this success is built on strong partnerships with the School District, an amazing instructor, and dedicated students.  This year the students are constructing two single family homes southwest of Bemidji in our Mayer Estates subdivision.  They will continue to build there for two more years, building one home per year.

The HRDC is back in Park Rapids and picking up steam with a new builder dedicated to quality affordable housing.  In addition, we are also working with the Hubbard County HRA and other local agencies to identify several potential housing projects.  Krotzer Construction Incorporated will build two homes for the HHDC this year within the city limits of Park Rapids.  We are intent on building strong relationships with our Hubbard County partners and our current work will provide a base for the creation of a robust housing presence in the south of our Region.

In addition to the projects listed above, the HRDC and HHDC are pursuing housing initiatives within the cities of Bagley, Baudette, and Blackduck.  These projects are in various stages of development and local partners from each community have committed resources to aid us in our efforts.

HRDC supported the efforts of the HHDC and HRA by accessing affordable financing products for use throughout the Region.  HRDC staff helped Beltrami, Clearwater, Hubbard and Mahnomen Counties and the City of Baudette receive an allocation of Minnesota City Participation low interest mortgage financing.  These resources will help several families in the Region purchase their first home.

HRDC also worked with lenders and other partners 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.  Finally, HRDC staff accessed gap financing resources from Minnesota Housing and Greater Minnesota Housing Fund and the Wells Fargo Foundation to help moderate income families get into homes that they would otherwise be unable to afford.

For more information on the Headwaters RDC housing efforts contact Aaron Chirpich, Mary Thompson, or Tim Flathers, all of the HRDC.

HHDC Develops Workforce Housing and Pursues New Niches

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, Bagley 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.  Initiation of this program is pending availability of USDA financial resources.

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 are.  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.