County approves letter of support for housing grant

Commissioners issued a letter of support for the housing project proposed for the city of Luverne.
County administrator Kyle Oldre wrote the support letter for the Southwest Minnesota Housing Partnership (SMHP) project.
“The county board believes the units, consisting of two, three and four-bedroom townhomes, will help address the critical shortage our community currently faces in affordable housing,” Oldre wrote.
“The board is also very supportive of the fact that this project includes four units designed for persons with disabilities.
“… please let this letter serve as the county board’s very strong support for your efforts.”
The board approved the letter of support at the July 11 commissioners meeting after it was requested by Jen Theneman, director of real estate and community development with the housing partnership.
In her June 26 email to Oldre, Theneman asked for potential financial support and for a letter of support to secure a grant.
“To make this project work, we will be submitting a grant application to the Minnesota Housing Finance for significant financing,” she wrote. “Of course, much of the application is also focused on local factors and support, which is why I’m reaching out to you.”
Theneman was not specific about the financial request to Rock County commissioners.
Commissioners agreed only to a letter of support at this time.
The city of Luverne is providing land in the Sybesma Addition with access along County Road 4 and will develop a tax increment finance district for the project.
The letter to commissioners came after a public discussion of the plans.
“(On June 20) we held a community open house to hear from residents, employers, business owners and government officials about the project,” Theneman wrote to commissioners.
“It was very well received, and we heard that this will be impactful for the city of Luverne and Rock County.”
SMHP is proposing to develop, own and asset manage a housing development similar to the existing Rock Creek Townhomes in Luverne.
The housing partnership asked the city of Luverne to sell the land for $1 and create a TIF district in order to make the project financially feasible.
In late June the city approved creating a TIF district for the project.
Application for a Minnesota Housing Finance grant is for “significant funds,” according to Theneman’s email.
She supplied no specific project costs in her request to commissioners.
If the finance agency’s application is denied this year, the partnership intends to apply again during the next funding cycle.
If approved this year, construction on the housing project could begin in 2024.