Rochester Approves Assistance for Affordable Housing Development

Rochester, MN (KROC-AM News)- The Rochester City Council, acting as the city’s Economic Development Authority, has approved financially assisting an affordable housing development.

Council members approved the measure on a unanimous vote Monday night. The development is slated to be built on a vacant lot in southeast Rochester.

Developer Build Wealth MN, Inc. is planning to build 50 single-family residences that would be sold to buyers with a household income at or slightly above Rochester’s median income.

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Rochester Leaders Approve Affordable Housing Development in Southeast Rochester

Crews would build the homes at a vacant property along the east side of 16th Ave SE, south of 8 1/2 St SE and north of 10th St SE.

The council approved granting up to $20,000 in tax increment financing to the developer per home, capped at $1 million.

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Developer Build Wealth MN, Inc. would collect the assistance upon the sale of each home to a qualified buyer. The financial assistance would allow the developer to cap the price of each residence to $350,000, according to the meeting’s agenda item.

City officials estimate the funds will be paid back after 6-7 years of property tax collections. The Coalition for Rochester Area Housing is also providing the developer an interest-free loan in the amount of $1,237,000, contingent upon the homes being sold at a price at or below $350,000.

Renderings shown to the council call for constructing 14 triplex structures and four twin home structures.

In addition to the single-family homes, Developer Build Wealth MN, Inc. is also planning to construct a 12-unit apartment building that would be available to individuals making between 50% and 80% of the median area income. A childcare center is also planned in the development.

Construction on the development is scheduled to start next month. The homes are anticipated to be completed by November of 2027.