Olmsted County HRA approves $650,000 purchase to continue transitional housing program

May 16—ROCHESTER — Olmsted County's Housing and Redevelopment Authority plans to purchase a former group home it's been renting since 2020 to provide transitional housing for individuals experiencing homelessness.

The Creek, 2206 11th Ave. SE, was launched using federal funds to provide short-term housing for 12 people at a time with the goal of securing permanent shelter for program participants.

The program provides up to three months of secure shelter while tenants work with social workers who support their housing searches, while also addressing other potential needs.

Last year, the program helped 31 people transition from homelessness to being fully housed, but the current lease is set to expire at the end of July, which prompted discussion of purchasing the property.

"We see a value in property ownership ... because it allows us long-term access and allows us to control the future of the property and what we'd like to do," Olmsted County Housing Director Dave Dunn told the HRA Board earlier this year.

Board members, who are also county commissioners, called a closed meeting Tuesday afternoon to

discuss the potential purchase,

emerging with a 5-1 vote to approve a $650,000 purchase price.

Commissioner Mark Thein cast the sole opposing vote without public comment.

The approved purchase includes the agreement to extend the existing lease by a month, with one final $11,800 payment to avoid interruption of services.

Dunn said the transitional housing program, which is operated in partnership with Catholic Charities of Southern Minnesota and Zumbro Valley Health Center, is expected to remain in place.

He said the county has applied for a two-year state grant to support the operations, which will depend on legislative action.

"That's one of the budgets left to figure out at the state," he said of the housing support.

The planned purchase of The Creek facility follows a decision by the county HRA to purchase another former group home for $500,000. That property, located at 1621 10th St. SE, is expected to be used to provide transitional housing for families facing homelessness.

With the anticipated ability to serve up to 10 families at a time, the county has been discussing operational options with Family Promise of Rochester, which operates a nonprofit transitional housing program for families.

The Creek was

launched using federal funds to lease space for short-term shelter

for 12 people at a time with the goal of securing permanent housing for program participants.