Community Redevelopment

Community and Redevelopment

 

Our Mission
“Community Redevelopment is an innovative, financial resource and catalyst in business development and housing rehabilitation assisting in the economic growth of Red Wing and the HRA”

The Red Wing Housing and Redevelopment Authority has a long history of working with the community to improve housing stock in Red Wing.  Many however do not realize that the RWHRA also plays an active role in renovating and rehabilitating commercial property in the City.

Affordable Housing is Coming to Red Wing

For the past 1 ½ years, the staff of the Red Wing HRA have been working with Keller-Bartmann Properties LLC, a Red Wing development company, in the development of 250 housing units to be built over five years in four phases.  The development will be located in two parcels, one at the intersection of Tyler Road and Hewitt Boulevard; the other located just south of State Street on Red Wing Avenue South (and Rivers Ridge Drive).

 

 

The development will begin with the construction of 108 general occupancy apartment units, then 32 Townhomes, followed by 78 units designated for Seniors and finishing with another 32 Townhomes.   100 units will be designated as affordable for households who earn 60% or less of the Area Median Income.

The entire development will cost $46 million.  The HRA processed a Housing Tax Increment Financing (TIF) package for the developer.  The project will receive about $5.4 million in principal payments plus interest over a 25-year period.  A portion of the TIF proceeds will go into the Red Wing Affordable Housing Trust Fund for use in other affordable housing projects in the City.

The HRA is excited about being a part of this housing.  By assisting the Developer in a TIF application we are meeting our mission as stated below:

To provide quality, affordable, sustainable housing and community redevelopment programs utilizing resources that develop public and private partnerships.

The HRA also wants to acknowledge the assistance received by Keller Bartmann Properties LLC, Springsted, Inc., Kennedy & Graven, Chartered, the City of Red Wing City Council and Staff, and Finn Daniels Architects in making this development possible.

AFFORDABLE HOUSING TRUST FUND

Homebuyers Assistance Loan Program 

The Red Wing HRA is accepting applications for its AHTF Homebuyers Assistance Program.

Funding for this program is made available through the Red Wing Affordable Housing Trust Fund (AHTF).  The AHTF Memorandum approved by the HRA and City has a preference for funding opportunities for workforce housing, which means at least one member of the applying household must be employed as full-time to be eligible for this loan.   For the Year 2021, the allocation shall be $63,000.

The purpose of the program is to assist low and moderate-income workforce families with the purchase of affordable housing in the City of Red Wing.  This program will provide financial assistance to households who have income at or below 115% of the area median income.  Eligible households can receive up to $9,000 for homebuyer assistance based on need.  The applicant must have at least $1,000 of their own equity in the home purchase.

The homebuyer assistance will act as a deferred loan at zero percent interest.  This means that the borrower will not need to make monthly payments on this loan.  However, the loan is not forgivable.  It must be paid back by the homeowner upon the sale of the house, vacating the house as a primary residence, or at the expiration of the 30-year term.

Applicants will be processed as received on a pipeline basis.  The program will continue until the $63,000 is allocated to applicants.

The AHTF Guidelines, Budget Worksheet, and Application links are here: Homebuyer Assistance program AHTF Guidelines Nov 2022(guidelines), Budget worksheetAHTF Homebuyer Assistance Program Application.  We recommend reading the Guidelines before beginning the application process.  Program is subject to change. Here is a link to information on the on the Home Stretch classes and the 2021 class schedule https://www.semmchra.org/home-ownership/homebuyer-education-classes/

MCPP allocation  
On February 1, 2021, the Red Wing HRA was notified by Minnesota Housing that we were allocated $237,626 for first time homebuyers in the City of Red Wing. Click on the link below for more details.

2021 MCPP Press Release

Small Cities Program Income Fund

(A revolving loan fund)

Artist Sanctuary received $50,000 in 2019
CMA Properties LLC received $50,000 in 2020
Elks Lodge received $50,000 in 2020
Masonic Lodge #8 received $50,000 in 2020

Map of Targeted Area

Community Development Loan Application

As of October 31, 2019, the Red Wing HRA has about $2.4 million in Small Cities amortized and deferred loans lent out to commercial businesses and homeowners to improve their properties.  Amortized loans have an annual or monthly payment to the HRA’s Small Cities Program Income (SCPI) fund.  The HRA revolves SCPI funds to commercial businesses for eligible rehabilitation projects in our target areas.  The typical loans are $50,000 total of which $25,000 is amortized for payback over 10 years and the other $25,000 is deferred with a 10-year forgiveness clause if conditions are met.  Both loans have 0% interest rates.  Because there is a high demand for these funds and limited supply, commercial business property owners should contact the HRA to discuss their proposal and see if funds are available.  Typically, we are able to make one to two Small Cities Program Income fund loans per year depending on the payback of the existing loans.

The HRA has partnered with local lenders, property owners, and State of Minnesota agencies to make available commercial rehabilitation funds for the improvement of downtown and Old West Main Street properties.  Since 1996 the HRA has made over $3,000,000 in commercial rehabilitation loans.  Many of those loan recipients received funding that was accompanied by forgivable conditions.  Of the $3,000,000 in funding that has been provided, over $2,000,000 fell under those terms.  The result of this program is visible to the residents on a daily basis with the extensive improvements to the historic buildings that comprise the heart of Red Wing.

The staff and directors of the HRA are continually researching, monitoring, and developing new programs that will assist the residents of Red Wing in preserving the quality of life and beauty of the city.  The HRA has played and will continue to play a strong role in the redevelopment of our historic community.  By partnering with other City organizations the HRA will continue to be an advocate for the property owners of the Red Wing community in housing and commercial redevelopment into the future.

Red Wing HRA-SCDP Program does business in accordance with the Federal Fair Housing Law (The Fair Housing Amendments Act of 1988).  It is illegal to discriminate against any person because of race, color, religion, sex, handicap, familial status, or national origin.

Anyone who feels he or she has been discriminated against should file a complaint with the U.S. Department of Housing and Urban Development (HUD): 1-800-669-9777 (toll free) or 1-800-927-9275 (TTY)

SEMMCHRA

SEMMCHRA offers a range of services to assist with the home buying process & increasing an individual’s financial confidence.

-For people who want to better understand their finances & help reaching financial goals, they offer Financial Wellness.
-For those who are ready to buy a home, but would like an opportunity to discuss their options, they offer Pre-Purchase Counseling.
-For those who want to better understand the homebuying process, they offer Home Stretch, a home buyer education class.

Financial Wellness & Homebuyers Services