Rochester gives $4M as part of home ownership program

In an attempt to increase the homeownership opportunities for its residents, the city of Rochester gave $4 million to the Prairie Ridge subdivision development at its Monday, July 15 meeting.

The contribution is a part of the Home Ownership Creation Program and will support the building of 201 units of single family within the city’s borders.

The development would designate 40 homes to be priced between $368,000 and $422,000. This will in turn create what the city documents dub “Economic Vitality Affordable Units” and will be purchasable at 115% of the area median income. The remaining 161 units will cost $426,000 to $479,000.

The Economic Vitality Affordable Units will have a restricted covenant placed on them to ensure the resale price is relative to the original sale price for a term of 10 years.

The Prairie Ridge development is a neighborhood that consists of 152 townhomes and 50 single-family homes, all for sale, according to planning documents.

The Home Ownership Creation Program is among the latest policies and programs Rochester is using to revitalize its home-building. As previously reported in Finance & Commerce, the city of Rochester has fallen short of its need for for-sale homes for many years. To make up for the shortfall, the city would need just under 1,000 for-sale homes built per year. Earlier this year, the City Council voted to do away with its prevailing wage requirement for most single-family development projects that receive tax increment financing dollars.

RELATED: Rochester moves to end prevailing wage rules for single-family homes getting TIF

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