Representatives from One Roof Housing of Duluth were in Grand Marais in June, sharing information on the partnerships the organization has formed in Cook County.
At the Grand Marais City Council meeting on Wednesday, June 8, Cliff Knettel joined Cook County/Grand Marais Economic Development (EDA) Director Mary Somnis to describe a proposed housing project in the city of Grand Marais. Somnis said in her short tenure with the EDA she has already learned that a major roadblock to economic development in the county is the lack of housing—affordable and market rate.
For that reason, Somnis said she was pleased to introduce Knettel, whose goal is to help Grand Marais with a housing project that could begin to alleviate the problem.
Knettel explained that the EDA and One Roof were working on phase 1 of a housing plan which could result in seven homes and eventually three additional multi-family dwellings on West 2nd Street and 14th Avenue, west of the Homestead Housing Cooperative. The anticipated closing date for the property is November 15, 2016.
The first phase calls for construction of seven single-family residential homes, with a mix of homes—three available for people at 80 percent of the county’s median income (AMI) and four for families at 115 percent of the AMI. According to research done leading to the housing project, Cook County’s median income is approximately $65,000. So, to be eligible for the 80 percent AMI home, a single person could earn up to $36,000; two people, $41,150; a family of four, $51,400.
For the four homes at 115 AMI, an individual could earn up to $62,300; two people, $71,200 and a family of four, $89,000. “These are for the folks working at the hospital, school, county or city—families who can afford decent market rate housing, but cannot find housing,” said Knettel.
The homes would be two-bedroom, one bath with walkout basements. It is anticipated that the homes will feature either wood grain or log interiors.
There were many questions about construction and funding sources. Knettel outlined estimated construction costs and potential funding sources for the project and said commitments have been made for $75,000 from Northeast Minnesota Home; $10,000 from NeighborWorks and $7,500 from the Arrowhead Economic Opportunity Agency.
The explanation of funding included a description of the community land trust (CLT) model. Knettel said One Roof Housing has 284 units in Duluth and surrounding communities. He explained that the CLT “allows qualified, income-eligible buyers to purchase high-quality homes at affordable prices.”
In exchange, he said, Land Trust homeowners agree to pass on the affordable price to the next owners. Knettel said the resale price is determined by a formula that benefits the homeowner but also ensures future affordability.
In addition to overseeing the development of the project, Knettel said One Roof provides support to homeowners in need, helping with financial counseling, funds for emergency repairs, etc. “We’re there for the long-run,” said Knettel.
Knettel asked the council if it would send a letter of support for the project. He said the city did not have to make a financial commitment at this time, but talked about ways the city could assist— through a financial contribution, via tax incentives, or with infrastructure support. What was more important, Knettel said, was letting funders know that this is of great need in the community and that the city would lend support in some manner. “But if we could pin that down by August 1 that would be helpful,” he said.
Knettel also told the city council that his company was working with the EDA on a West End housing project.
Leave a Reply