Morrison County officials recently discussed how to allocate $112,042 in annual statewide affordable housing aid from the Minnesota state legislature. Health and Human Services Director Nathan Bertram updated the County Board of Commissioners on two proposals under consideration during its planning session on Tuesday, March 19.
The allotment for Morrison County in 2023 was $112,042, which was distributed to the county Dec. 26, 2023. In 2024, the county will receive the same amount of funds, but $56,021 will be distributed July 20 with the remaining $56,021 being distributed Dec. 26. The allotment amounts for 2025 are currently unknown, but the county will be informed of the amount on Aug. 1. There is currently no sunset date on this aid, meaning the county can expect to receive affordable housing aid from the state until informed otherwise.
Funds must be spent by Dec. 31 of the fourth year after being received. For example, the funds received in 2023 must be expended by Dec. 31, 2027, the funds received in 2024 must be expended by Dec. 31, 2028, and so on.
Habitat for Humanity of Morrison County submitted a plan to use the funds for various programs, using $3,000 of funds for foreclosure prevention, $30,000 for gap funding, $25,000 for land/lot costs, $4,000 for closing costs and $50,000 for aging in place (preservation). The local nonprofit aims to support low-income homeowners and help families achieve affordable homeownership.
Habitat for Humanity of Morrison County Executive Director Kathy Lange came before the Board to discuss the work the organization currently does and what it could do with these funds.
“Our goal is homeownership to those who wouldn’t be able to have a home with very little means. So we basically absorb the costs of the home but make it affordable by giving them a mortgage that reflects the cost of the home,” Lange said. “They do have a mortgage. A lot of our mortgages for our homes are about $600 with taxes and insurance, so a single parent can afford to have a home. So we pride ourselves in that. It’s an exciting, impactful, powerful message for our residents here in Morrison County. I’d like to be able to do more, so we’re working towards that. With your help, we can do that.”
Bertram also presented the option of establishing a county housing trust fund through the Morrison County Housing and Redevelopment Authority (HRA). This long-term solution could leverage future state dollars on an ongoing basis. However, it would require set-up work with the HRA and conforming to legal requirements. Of the allotted funds, $30,000 would go toward emergency rental assistance, $12,000 would be for Housing Quality Standards minor repairs (preservation), $43,000 would be for rehabilitation of rentals (preservation), $22,000 would go toward down payment assistance and $5,000 would be for housing navigation.
Only Habitat for Humanity and the Morrison County HRA had brought forth proposals by the time of the planning session, but the county had also made contacts with Morrison County Community Development and Oasis Central Minnesota to see if they had any proposals for how they would utilize the affordable housing aid. Bertram said according to the state of Minnesota, there is no requirement to make an official Request for Proposal for these dollars.
Commissioners debated the merits of both approaches. While Habitat for Humanity has a proven track record locally, some felt the trust fund could help more residents through initiatives like minor home repairs and rental rehabilitation. Bertram agreed to provide more details on eligible trust fund expenses.
The Board discussed funding Habitat for Humanity with a portion of the funds received in 2023 while further exploring the trust fund. Commissioner Jeffrey Jelinski supported partnering with local groups like Habitat for Humanity that understand community needs. Others saw value in coordinating housing efforts under the long-term structure of a trust fund.
The Board agreed to put a motion to partially allocate the funds from 2023 toward Habitat for Humanity on the consent agenda for its next regular meeting, March 26. However, a decision on what to do with the remaining funds from 2023 and all future funds is pending as Bertram prepares additional information for a future Board meeting. He estimated he would have prepared all the information he needed within one to two months.
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