$4 Million Housing Project Subsidy Before Rochester City Council

Update: Rochester Approves Millions in Funding for New Housing 

Rochester, MN (KROC-AM News) - The Rochester City Council is expected to vote Monday on a proposal to invest $4 million in a major housing development in northwest Rochester.

Under the plan, the funding from the Rochester sales tax extension approved by voters last fall to support economic vitality will be used to reduce the prices of just over 200 new homes that are set to be included in the Prairie Ridge Development along Valleyhigh Drive Northwest and the 50th Avenue Northwest.

According to the agenda for the City Council meeting, the expenditure, under the Home Ownership Creation Program that was approved by the Council in April, will support the creation of new for-sale housing to help meet the community's growing need for residential housing units.

The housing project by North Rock Real Estate meets the criteria for the public subsidy by including a portion of the planned housing units with prices considered affordable to households earning 115% of the area median income. City officials say that translates into 40 of the new homes priced at between $368,000 and $422,000. The remaining homes in the development would be priced at between $426,000 and $479,000.

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Under the terms of the public subsidy arrangement, the 40 housing units deemed to be "Economic Vitality Affordable Units" would have restricted covenants that would ensure the house, if it were to be resold within 10 years, would be offered at a price relative to the original sale price.

The agreement with the developer also requires the project to be completed by November 2027, with the option to extend an additional year.

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