Amid a dearth of affordable housing, the Northfield City Council is backing an effort by the Community Action Center and Rebound Partners to bring eight multi-family workforce housing units to town with the help of state funding.
At its Tuesday night meeting, the council unanimously approved a proposal to request $800,000 in assistance from the Workforce Housing Development Program, a program designed to help small to midsize communities in Greater Minnesota meet their rental workforce housing needs.
Under the plans laid out by Rebound and CAC, the building at 100 Division St. S. would be converted into four larger townhome units, two one bedroom apartments and two studio apartments, all priced affordably for persons making 60% to 80% of the area median income.
Built in 1900, the property at the corner of Division and Woodley Streets has served a variety of purposes over the years. The property is located in a primarily residential neighborhood and was rezoned last year, opening the door for intense residential development.
Sitting at a relatively busy intersection, the development would be one of the first multifamily housing projects to take place in a “neighborhood center floating district,” a new zoning category created by the Council last year with the goal of boosting housing availability and density.
Multifamily housing developments of up to eight units are allowed in neighborhood center floating districts without a Conditional Use Permit, so long as they maintain the character of the existing neighborhood, with height not to exceed 40 feet.
Notably, minimum parking requirements have been scrapped for neighborhood center floating districts, a move intended to support development and encourage residents to consider alternative forms of transportation in line with the goals of Northfield’s Climate Action Plan.
In his role as Committee Administrator for the Minnesota Senate’s Housing and Homelessness Prevention Committee, Councilor Davin Sokup helped to secure $39 million for the Workforce Housing Development Program last year, a dramatic funding boost compared to years past.
Projects selected through a competitive application process will receive assistance in the form of a forgivable loan covering up to 50% of a project’s total development costs. Funding can be used for either new construction or redevelopment of an existing building to add units.
The program is specifically targeted at cities like Northfield, which have recently had a rental housing vacancy rate below 5%. To further confirm local workforce housing needs, at least one letter of recommendation from an area business with 20 or more employees is expected.
Applications only open up once every two years, and this year they are due by April 30. Community Development Director Jake Reilly received the assistance request from Rebound and CAC late last week and thanked the council for adding the issue to its agenda.
Asked by Mayor Rhonda Pownell, Reilly said that the units might come onto the market within a couple of years. While not required, the project is tentatively expected to include at least some parking, with garage facilities tucked under the townhome style homes.
Sokup was elated that a Northfield project could tap into the Workforce Housing Development Program, one of his favorite state housing programs. With the shortage of workforce housing still so substantial, he implored staff to search out as much state assistance as possible.
“This is an amazing program and I’m really excited that we have an identified project,” Sokup said. “I am really excited to learn more about the proposal.”
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