A new 30-unit multifamily housing project is being considered for southwest Luverne.
The Southwest Minnesota Housing Partnership (SWMHP) is exploring the potential of the new development in the Sybesma subdivision.
The organization is hosting an open house from 4:30 to 6:30 p.m. Tuesday, June 20, at the Trailhead building at 601 E. Main Street to share the proposal and gather feedback from community members.
Luverne Economic Development Director Holly Sammons said the open house will be a casual, come-and-go style event.
“The proposed housing development will be presented in static exhibits with no formal presentation,” said Sammons.
“SWMHP staff will be present for questions, comments and conversations related to the development and housing needs in general in Luverne.”
The housing partnership has been working with the city to conceptualize a housing project similar to the Luverne Family Housing development that was completed on the neighboring property years ago.
The current proposal includes 30 mixed-income rental townhome units on a 3.4-acre site just to the west of the current similar development. The address is 1101 County Road 4. Access to the site would be via County Road 4 and not through the neighborhoods of Pine Drive or Cherry Drive.
The proposed two-story townhomes can include two-, three- and four-bedroom units with in-unit laundry and private garages.
According to Sammons, this housing type appeals to multiple demographics including families, young professionals and aging adults looking to downsize.
“The Luverne Family Housing project has been a very successful development, and there's always a waiting list for those homes,” Sammons said.
The SWMHP has expressed interest in developing the site as developer, owner and operator of the project.
According to Sammons, the exact unit rents for the proposed development are yet to be finalized and will be based on local needs and the unique financial supports available for the development which will help determine the project’s rental mix.
One potential funding source is Minnesota Housing’s competitive consolidated RFP. The SWMHP will use feedback from the open house in their application process. If funding is not secured this year, the partnership could apply again next year and into the future.
“Many communities are facing housing shortages across the entire income spectrum, and many housing projects take years to secure funding since the gaps are wide and the resources are scarce,” Sammons said.
“We’re in this for the long haul. It’s never too early to start the discussion on the next potential housing project.”
The city is partnering with SWMHP on the project through planning efforts, site selection, and possibly establishing a tax-increment financing (TIF) district, which could help lower the funding gaps considerably.
“Luverne is fortunate that 54 market-rate apartments were recently constructed, but there has been no affordable new construction housing built in Luverne in recent years,” Sammons said.
“The addition of these townhome units would help support that future need for Luverne’s growth.”