HLDC proposes $7M workforce housing project

Heartland Lakes Development Commission (HLDC) is spearheading a workforce housing project.

In partnership with Hubbard County and the city of Park Rapids, HLDC has proposed constructing a 58-unit housing development, costing an estimated $6,963,911.

For the project to move forward, a Local Housing Trust Fund must be established, a lender and a Minnesota Housing grant must be secured and both the county and city must agree to a 15-year tax abatement.

In addition, the HLDC will ask the city to relocate an undeveloped park previously dedicated in the neighborhood, allowing the new apartments to connect into existing infrastructure.

Two apartment buildings are proposed for this project. One would house six three-bedroom units, 16 two-bedrooms units and six one-bedroom units. The second would have 22 one-bedroom units and eight studios. There would be a community room as well.

Hubbard County Housing and Redevelopment Authority (HHRA) currently owns property adjacent to the Meadow’s Edge Apartments and Meadow View Apartments at 317 Career Path. Each of those buildings has 28 units. The HHRA is donating the land for the new apartment complex, which will also go toward the local match for the proposed state grant.

HLDC executive director Mary Thompson said the grant application to Minnesota Housing’s Workforce Housing

Development Program must be submitted by mid-February, with awards to be announced in March or April. She emphasized that the project must be “shovel-ready” by then – meaning, community partnerships must be in place.

However, she noted, for the grant to be accepted, the city must be the applicant. Therefore, Thompson said, the HLDC will ask the city to approve the application, which she will write.

Thompson said the Minnesota Housing grant will require a local match, which could include the HRA’s land donation and a contribution from a Local Housing Trust Fund, but the “lion’s share” would have to come from county and city tax abatements.

Thompson noted that HLDC already owns 20 acres to the north of the proposed development, where they are working to prepare a subdivision where private developers can build affordable, single-family homes and two- or three-unit townhomes.

To access that area as well as the new apartment buildings and the relocated park, Thompson said a new road will have to be built. She said HLDC has a five-year plan to fund and build the road, but will ask the city to permit a temporary access road during that time.

Assuming the grant is awarded, Thompson said construction on the apartments could begin by late summer and be ready for occupancy by early 2024.

Hubbard County HRA offers workforce housing and other aid

The Hubbard County Housing & Redevelopment Authority (HRA) owns and operates several rental properties that provide a wide range of options for residents of Hubbard County.

The offerings include single-family, income-restricted units and market-rate workforce housing.

HRA also provides an entry cost assistance loan program that provides up to $7,500 to eligible households for closing costs and down payments associated with the purchase of a home.

HRA works to support projects that assist low- and moderate-income households obtain safe and affordable housing, and works with all the communities in the county to address critical housing and redevelopment needs.

HRA is a municipal corporation created in 1995 by the Hubbard County Board under the authority granted by state law. The organization is governed by a five-member board of directors appointed by the county board. They have a contract with Heartland Lakes Development Commission to provide operational support.

To learn more about the activities of Hubbard County HRA, call 218-732-9118 or visit www.hubbardhra.org.