Minnesota Housing to Invest Nearly $40 Million to Develop Workforce Housing Across the State
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
- Waterville Apartments, Waterville, Le Sueur 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, the state’s housing finance agency, works to provide access to safe, stable and accessible housing Minnesotans can afford in a community of their choice. In 2023, the Agency distributed $1.85 billion in resources and served 69,500 households. Visit our website to learn more.
