Potential 39-unit affordable housing project presented to Bemidji City Council

Mar. 26—BEMIDJI — Bemidji could see more housing coming its way in the form of allowing owner-occupied rentals and pursuing a potential 39-unit affordable housing project that would be constructed on the north side of town.

Both possibilities were discussed during the

Bemidji City Council's

Monday work session, which was devoted entirely to housing and ways the city could help alleviate the area's ongoing shortage.

The first topic presented to the council was the potential to allow owner-occupied rentals within the city, which, if approved, would create a structure for homeowners to rent a room in their own residence to an unrelated tenant.

"It allows individuals and families with extra rooms to open their homes," explained Ben Hein, Bemidji's rental inspector. "This was born of a need. We have people in the community who want to help (with the housing shortage)."

Eligible homes would have to be owner-occupied, with the landlord and tenant both having the same physical address. The home would have to be in the owner's name and considered a homestead.

Owner-occupied rentals would also be cheaper to apply for, with a $100 application fee and a $75 annual fee. Once an individual applies and the fee is paid, the home would be inspected and if it meets all of the safety requirements it would be allowed to become a rental unit.

Hein emphasized that it would not be a system designed for the landlords to make a profit and that it wouldn't allow for a home to be operated like a dormitory or duplex.

"It's not designed to be a money maker, this is designed for somebody who says 'Hey, I have an extra bedroom... it can help pay my mortgage and gives somebody a place to sleep,' " he said.

The council received the idea favorably, appreciating that it could create more housing units out of the existing stock.

"I struggle to see a downside here," said Ward 5 Councilor Lynn Eaton. "I think this is worth a try."

At-Large Councilor Audrey Thayer was supportive, but did share a concern about families who may already be renting space in their homes without this permission, which under the current ordinance is not allowed if the tenant is unrelated.

Hein shared that this would be a way to make those rental situations permissible, and would provide a structure to protect the rights and ensure the safety of potential tenants. This is something Mayor Jorge Prince agreed with, and noted as an advantage.

"I don't think it's wrong to put some structure around it," Prince said. "This way if (a unit) is registered I could come forth (as a tenant) and have any concerns vetted in a way that currently doesn't exist."

The council gave its approval for the idea to be explored further, and an ordinance allowing owner-occupied rentals is expected to come before the council at a future meeting.

Monday's work session also saw a presentation by Sandy Hennum, a community development specialist with the Headwaters Regional Development Commission.

After explaining the basics of and need for affordable housing, which was defined as housing that takes up less than 30% of an individual's income, Hennum presented a project the HRDC is spearheading to construct 39 units of affordable housing on the north side of town.

Of those units, which would be one, two and three bedrooms, 31 would be market rate and eight would be income and rent-restricted. Preliminary plans have already been drawn up, and Sanford Health has already donated land toward the effort just north of 34th Street Northwest.

The request to the council was that the city act as the applicant for an upcoming workforce housing development grant, which could fund up to 50% of the project's costs.

"I feel like we're really in a position to capture some of this money," Hennum said. "My goal is to have one (housing project) in the pipeline, one getting ready."

The deadline for the grant application, which opened on Feb. 29, is April 30. With support from the city, local businesses and organizations, Hennum believes it will be possible for Bemidji to receive the money and pursue the project.

"Collaboration is just crucial, we can't do it without collaboration," Hennum said. "People want this so badly, and they know we need it so badly."

Basic plans for the project have already been drafted, outlining potential funding sources and other development details. Once it's complete, the Beltrami County Housing Redevelopment Authority would operate the complex.

Once again, the council was supportive. Thanking Hennum and the others who have worked on the project for their efforts.

"This is exactly what we need, I'm very supportive," said Ward 2 Councilor Josh Peterson.

A resolution to have the city be the grant's applicant is expected at a future council meeting, alongside future discussions on the project itself.

During the work session, the council also discussed pursuing a housing study for the area, potentially in partnership with Beltrami County. It also confirmed plans to revisit the city's rental code,

which was updated in 2023

with plans for reevaluation this year.