Workforce Housing Funding Announced

St. Paul, MN: The Minnesota Housing board of directors approved $38.7 million to build new residential rental units in Greater Minnesota on September 26, 2024. The investment will create 832 market-rate rental units in small- to mid-sized communities with proven job growth and demand for workforce housing.

“We’re hearing across the state that employers are unable to recruit the workers they need because there is not enough rental housing in their areas,” said Minnesota Housing Commissioner Jennifer Ho. “Building more workforce housing lays the groundwork for economies to grow and communities to thrive.”

The Workforce Housing Development Program (WHDP) was created by the Legislature to increase the supply of market-rate rental housing in Greater Minnesota. The funding supports construction of new rental units, including converting non-residential properties into rental housing.

Minnesota Housing funds projects with the highest percentage of market-rate units in communities with a population of 30,000 or less.

The City of Wabasha will receive $2.95 million to build the Alleghany Apartments, a new, 50-unit riverfront property located in the city’s downtown.

Major employers in Wabasha like Gundersen St. Elizabeth’s Hospital and Wabasha School District report a lack of available rental housing as a major barrier to growing their workforces.

“We are a jobs-rich community,” said Caroline Gregerson, City Administrator of Wabasha. “We were thrilled to apply for this funding, because without it, new housing in Wabasha was simply not feasible.”

Funding recipients for the 2024 Workforce Housing Development Program are:

191 Melro, Gaylord, Sibley County, 16 units

971 Apartments, Winona, Winona County, 14 units

1000 Division, Northfield, Rice County, 8 units

1800 W Highway 61, Grand Marais, Cook County, 16 units

Aire Apartments, Owatonna, Steele County, 73 units

Bayview Flats, Howard Lake, Wright County, 20 units

Bridgeview Apartments, Zumbrota, Goodhue County, 38

Bunker Hills, Aitkin, Aitkin County, 44 units

Dawson Duplexes, Dawson, Lac qui Parle County, 10 units

Glenshire Estate Townhomes, Watkins, Meeker County, 12 units

Grand Rapids Workforce Housing, Grand Rapids, Itasca County, 132 units

Grand Street Apartments, Chatfield, Fillmore County, 14 units

Grass Lakes Farm Apartments, Winsted, McLeod County, 62 units

Henderson Apartments, Henderson, Sibley County, 4 units

Hendricks Workforce Housing, Hendricks, Lincoln County, 4 units

Hillcrest Faribault, Faribault, Rice County, 6 units

Laker Landings, Mountain Lake, Cottonwood County, 12 units

Litchfield Midtown Lofts, Litchfield, Meeker County, 60 units

Mountain View Meadows, Bemidji, Beltrami County, 6 units

River Haven, New Ulm, Brown County, 96 units

Sandstone School Workforce Housing, Sandstone, Pine County, 31 units

Steele Heights, Ellendale, Steele County, 22 units

Sunrise Lane Townhomes, Atwater, Kandiyohi County, 4 units

The Alleghany, Wabasha, Wabasha County, 50 units

The Lincoln Apartment Homes, Battle Lake, Ottertail County, 10 units

Twenty08, Alexandria, Douglas County, 64 units

Waterville Apartments, Waterville, Le Sueur County, 4 units
 

For more information about the program, visit the Workforce Housing Development Program webpage.

About Minnesota Housing:

Minnesota Housing is the state’s housing finance agency. For more than 50 years, we’ve worked to provide access to safe, decent and affordable housing and to build stronger communities across the state. In 2023, we distributed $1.85 billion in resources and served more than 69,500 households.

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