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First Homes

Affordable Homeownership in and around Rochester, MN, for 20+ Years

Homeownership is a quintessential part of the American dream, but due to rising housing costs, it is out of reach for many. That’s why for over 20 years, First Homes has been working to make the dream of affordable homeownership possible for buyers in and around Rochester, MN.

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A Gentleman’s Agreement: How One Family Fought for their Right to Housing

Arthur Lee and the American Dream

In 1931, Mr. Arthur Lee was working in Minneapolis as a postal worker. He had served abroad during World War I and was working to support his wife Edith and their young daughter, Mary. 

Edith and Arthur Lee
Edith & Arthur Lee

It was a tough time to raise a family; the Great Depression had left 4 million Americans unemployed, a number that would peak in 1933 between 12-15 million. Lee was fortunate to have a job as unemployment disproportionately affected Black Americans. Even more incredibly, Lee was ready to realize the American dream and buy a house. 

The modest white house was located in the majority white Eugene Field Neighborhood of south Minneapolis. The neighborhood’s racial makeup was no accident. Racial segregation was not relegated to the South; it was rampant in Minnesota, perpetuated through redlining, racial covenants, and violence.

Methods of Segregation

Redlining was a practice designed to segregate housing opportunities based on race. Maps were color-coded to designate which areas were safe to insure mortgages and which weren’t. Black communities and nearby areas were coded red to indicate that mortgages would not be insured for these areas.

In addition, to promote the creation of more housing, the federal government subsidized developers who were mass-producing large subdivisions for white buyers and renters. To qualify for government subsidies, developers could not sell or rent their properties to Black Americans. This was further enforced by the use of racial covenants. These were provisions that prevented Black homebuyers from purchasing certain homes based on race and prohibited white homeowners from selling or renting to Black people. These covenants were outlawed by the Fair Housing Act of 1968, but can still be seen on property records today.

A Gentleman’s Agreement

In this case, the Eugene Field Neighborhood Association had made what they called “a gentleman’s agreement” not to sell or rent their properties to non-Whites. 

Arthur Lee House
The Lee House at 4600 Columbus Ave.

The grass roots racism worked, making the neighborhood around 46th St. and Columbus Ave. entirely white. That is, until one homeowner diverged from their neighbors. This person owned the modest white house at 4600 Columbus Ave. and sold it to the Lee family for $4,700. (approx. $100,221 today).

The neighbor’s motivations for selling their home to a black family are unknown, other than resentment over an “unsettled grudge.”

Whatever the reason, the Lees moved into their new home in early July of 1931 much to the astonishment of their neighbors.

Shortly after the Lees moved in, the Neighborhood Association formed a special committee to figure out what to do about their new neighbors. The committee raised and offered the Lees $5,000 if they would leave. Mr. Lee, a shrewd man, countered with $7,500. Negotiations halted. 

When bribery didn’t work, the neighbors resorted to a tried and true strategy- violence and harassment. 

A Mob Gathers

Within a week, the Lee’s home was bombarded by neighbors shouting insults, threatening violence, and throwing stones and dousing the house in black paint. By July 11th, the mob had reached 150 people with the violence showing no signs of abating.

Edith Lee with her daughter, Mary, in front of their home, splattered with black paint.

The Lee family kept the lights off and stayed away from the windows to protect themselves from the mob, which grew into the thousands. As the Minneapolis Tribune published on July 15th, 1931, “The Lee family kept their home in complete darkness. Whenever they appeared, outside or on the porch, the crowd lifted up its voice in threats and denunciations.”

The front yard was now littered with garbage, signs bearing racial slurs, and human excrement. Temperatures were reaching 100 degrees, exacerbating the odors.

The mob became so large that refreshment wagons began parking nearby to sell beverages to the mob.

Finally, the local police got involved. Captain A.C. Jensen arrived at Columbus Avenue and, on July 12th, threatened to arrest people for unlawfully gathering, though no arrests were made. He was able to calm the crowd a bit by suggesting they meet with the mayor and a committee of black leaders to seek a solution. 

Then Mayor of Minneapolis, William A. Anderson, refused to intervene. He claimed that the situation was a neighborhood dispute and not under his authority and that the growing mob did not fall under his responsibility.

Finally, the Minneapolis Tribune published a front-page story on the event, titled “Home Stoned in Race Row.” 

In the article, Lee was quoted as saying, “Nobody asked me to move out when I was in France fighting in mud and water for this country. I came out here to make this house my home. I have a right to establish a home.” 

The article further stated “Despite the best efforts of the police, stones continued to be pelted at the house, usually by persons at the rear of the crowd, out of sight of the patrolmen.”

The article brought with it more attention and larger crowds until police had to cordon off the house and ensure the streets were not blocked by crowds. 

No Intention of Moving

The Lees had retained an attorney who advised the family to leave. Wanting to fight for their right to live in peace in the home they bought, The Lees fired their attorney, instead hiring Lena Olive Smith, a lawyer and the president of the local NAACP. 

Unlike their previous attorney, Smith was up for a challenge and ready to fight back. 

Lena’s first move was to publish a statement in the papers, stating “[Mr. Lee] has no intention of moving now or later, even after we are assured the feeling in the district has subsided.” 

Smith had earned her law degree from Northwestern College (now Mitchell Hamline School of Law) in 1921, becoming the first Black woman in Minnesota to do so.

Lena Olive Smith

Active in the community, Smith would eventually become the local National Association for the Advancement of Colored People (NAACP) chapter’s president from 1930-1939.

It was through the NAACP that she met the Lee family, who were members. Upon learning about what the family was contending with and their previous attorney’s retreat strategy, Smith was happy to help. 

In an article about the event, attorney and law professor Ann Juergens wrote “Smith’s attitude toward the situation differed sharply from that of the Lees’ other advisors. She advised them not to move out in spite of the relief that a ‘settlement’ would bring. To Smith, the level of threatened violence only highlighted the importance of the principle at stake: that African-American people may live wherever European-American people live. Smith believe that ‘it would be unwise and unfair to this man to be forced to leave his home under the circumstances’ and that agreeing to move out ‘would have no effect other than to convince the mob that their action had been successful.’”

Smith held strong as tensions around the Lee home rose. She met with the police chief to encourage better protection of the Lees and even called on the Governor to summon the National Guard. 

Police presence became constant around the Lee home and their daughter, Mary, had to be escorted to and from school. 

In addition to the police, fellow veterans Lee had served with organized a group of armed guards to protect the home and family. 

While helping with the family’s practical protection, Smith also worked on the public, making emphatic arguments in the press, asserting the Lee’s right to live in peace in their own home. 

After a month, the mob began to disburse; after a year, police presence was no longer required.

The Lee family would eventually sell their house and move to the ethnically diverse Central neighborhood in Minneapolis, but this wasn’t until late 1933.

Arthur Lee’s Legacy

Arthur Lee placque
Memorial placard depicting Arthur Lee at 4600 Columbus Ave. South Minneapolis.

Today, the Lees’ former home at 4600 Columbus Avenue South in Minneapolis still stands, looking much as it did in 1931, minus the splattering of black paint. In 2014, the Arthur and Edith Lee House was added to the National Register of Historic Places. On the corner of the lot sits a metal sign, depicting Arthur Lee, accompanied by his quote from the 1931 Minneapolis Tribune Article.

Unfortunately, the Lee family’s story is not unique; redlining, racial covenants, and violence were all used to prevent people of color from purchasing homes. Most of the strategies utilized were created and enforced by the federal government, creating widespread impact on non-white Americans.

While these policies are illegal today, we can still see their impact in how our housing, transportation, schools, and how our communities are built. It is up to all of us to be aware of our country’s housing history so we can work together to address the harm done and create a more equitable future for everyone.

Where Community Learning Meets Community Giving

In spring of 2024, Rochester Community and Technical College (RCTC) carpentry student, Ashleigh Huxsahl, worked to attach siding to new home in Southeast Rochester. She and other carpentry students move about the construction site, working on different projects. The new construction was unusual in a well-established neighborhood, but the modest home would fit in perfectly with its neighbors.

Carpentry student, Ashleigh Huxsahl, adds siding to new-construction house.

RCTC had partnered with local nonprofits in the past to build homes and give students valuable experience, but this was the first time that RCTC was partnering with First Homes.

“The timing worked out perfectly,” explained First Homes’ Director of Projects, Justin Voss.

First Homes was preparing to build a new home in southeast Rochester when the new semester was getting underway. RCTC, who had partnered with Habitat for Humanity in the past, had no upcoming projects for their students.

Thus a partnership was formed.

RCTC Instructor, Aaron Davis, supervises and guides students as they transition from the classroom to the worksite.

“Learning encompasses everything from site layouts and framing to siding and everything that goes into building residential housing,” explained Davis.

As part of RCTC’s carpentry program, students had the opportunity to gain valuable real-life experience. Getting experience in the field is invaluable to the students who are working to establishing careers of their own.

RCTC Instructor Aaron Davis

Huxsahl, a Navy veteran, joined the RCTC carpentry program to gain the skills necessary to start her own business.

“I’m going to work in residential,” she explained, “then start my own company building modular houses.”

In addition to learning, students were excited to give back to their community.

This opportunity particularly appealed to Huxsahl who wants to establish her own business to help seniors right-size into more accessible homes. “This is an introduction to see what it’s all about and to get into building affordable houses,” Huxsahl explained. “I’m very excited to work with First Homes. It’s a win for First Homes, RCTC, and future buyers.”

The partnership between RCTC and First Homes was the first of its kind and served as a proof-of-concept, to see if future partnerships would be beneficial. The home that Huxsahl worked on was completed on time and sold to an income-qualified buyer.

Now, RCTC is getting ready to partner with First Homes on its third home.

“It has been a wonderful, mutually beneficial opportunity,” said First Homes Program Associate Emily Neville. “Our tagline is ‘benefiting families and communities,’ and this is just another way we can do both.”

When their project in Southeast Rochester was completed, students and their families were invited to a showcase to see the finished product. Huxsahl attended with family members, explaining the work that she and other students did.

“Building a house is a pretty unique school project,” commented Neville. “Everyone was so proud of their work.”

The completed home before sod installation.

The home was sold to an income-qualified buyer and has led to two more similar projects between First Homes and RCTC. Both organizations are excited to continue this cooperative relationship that supports local residents, students, and future professionals.

Is Your Client Considering Purchasing a CLT Home? What You Should Know as an Agent

As a real estate agent, you want what is best for your client. This means getting to know their wants, needs, and budget so you can present them to options that will work best. That’s what the Community Land Trust (CLT) offers- an option. Purchasing a CLT home through First Homes isn’t the right choice for everyone, but by understanding what a CLT is, how it works, and the qualifications, you can help your client understand all of their options so they can make the choice that is right for them.

What is a Community Land Trust?

A Community Land Trust (CLT) is a well-established model built around shared equity to create and preserve affordable homeownership. This allows for a cycle of affordability, meaning one home can stay affordable in perpetuity.

CLT affordability cycle

    How Does Shared Equity Work?

    First Homes subsidizes a CLT home to sell it to an income-qualified buyer at a more affordable price. When the owner sells the CLT home, the appraised equity is shared 50/50 with half going to the seller and the other half staying within the home. This continued investment re-subsidizes the home and keeps it affordable for the next buyer, creating a cycle of affordability.

    How do I Know if My Client is Income Qualified?

    First Homes operates at 80% Area Median Income (AMI.) To be an income-qualified buyer, your client must make at or below 80% AMI. This changes annually. Click here to view the current income limits.

    What Types of Houses Does First Homes Buy and Sell?

    First Homes purchases homes on the open market to add to the CLT. We buy a variety of homes including single-family detached and town homes, and have the resources to renovate them when necessary. We also build new construction homes using high-quality builders. View our available homes here!

    Does a CLT Buyer Own Their Home?

    Yes! When your client purchases a CLT home, they own it, build equity, and are responsible for maintenance, taxes, and other traditional homeowner duties.

    Does the Director of Community Land Trust Earn Commission?

    No. The Director of Community Land Trust does not earn commission for CLT home sales; instead they are a salaried employee of First Homes. Any commission earned goes to the First Homes organization to support its operations.

    Do I Still Earn Commission as my Client’s Agent?

    Yes. When you represent your client purchasing a CLT home, you still earn commission based on their purchase.

    Is Purchasing a CLT Home Right for my Client?

    First Homes is not right for everyone. However, if your client is struggling to afford a market-rate home and is income-qualified, First Homes can be a path to homeownership. If you have more questions about First Homes or the CLT, contact us at 507-287-7117!

    Resources For

    Home buying discussion

    CURRENT HOMEOWNERS

    Resources for existing CLT homeowners.

    Couple hug after buying a home

    HOME BUYERS

    Interested in purchasing a CLT home? Find more information here. 

    Home buying deal

    LENDERS

    Find a list of our partner lenders and other resources. 

    Deal for buying a home

    REALTORS

    If your client is purchasing a CLT home or interested, access resources and a ‘Buyer Checklist’ here.