Rochester earmarks $1 million to help create affordable homes

Randy Petersen, Post-Bulletin, Rochester, Minn.
·2 min read

Dec. 7—A $1 million experiment aims to build approximately 50 homes in Rochester, while also reducing potential fees to keep housing affordable.

"I think this is a good proposal," Rochester City Council member Patrick Keane said of the plan to use federal American Rescue Plan funds to help build single-family homes in the city.

The plan, which met with unanimous council approval, will contribute $500,000 to the Coalition for Rochester Area Housing to create new homeownership opportunities, focusing on reducing the housing gap for people of color.

Another $500,000 would be committed implementing a fee-waiver pilot program for developing homes for families earning 50% to 60% of the area median income, as well as offering city-owned land for below-market prices for affordable housing projects.

Taryn Edens, the city's manager of housing and neighborhood services, said the programs will be able to be combined with a county program that is offering $10,000 down-payment assistance loans for new homes.

She said the plan is to work with the housing coalition, which includes the county, Rochester Area Foundation and Mayo Clinic, to seek development proposals for the new funds, adding that the council would likely review individual projects for final approval.

"This is very different than what the coalition was asking us for," said Keane, who represents the council on the coalition.

He said the added council discretion over spending is welcome, and the plan to address fees is something developers and others have sought when considering the price of developing housing.

He added that more work continues to be needed, even as Olmsted County commissioners have put $10 million in federal funds to housing and Mayo Clinic has committed $5 million to the effort.

"I think the city is being a good partner with the other groups that can make progress in this," he said.

Council President Brooke Carlson agreed.

"I wish we could invest 10 times as much," she said, adding the council remains dedicated to finding thoughtful solutions for housing needs.

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What happened: The Rochester City Council approved using $1 million in federal funds to help address housing shortages.

Why does this matter: Continued affordable housing needs have been cited throughout the city.

What's next: The council is expected to vote on housing projects supported by the funds.

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