The Olmsted County Housing and Redevelopment Authority (HRA) has begun its latest affordable homeownership project with 10 affordable homes being built in Rochester, MN.
Using 10 county-owned, residential lots located on Red Hawk Dr. SE, Rochester, MN, the HRA is building 10 new-construction homes. All 10 homes will be subsidized and added to the First Homes Community Land Trust (CLT) to preserve their affordability. Interested buyers must be at or below 80% of the Area Median Income (AMI).
The first two homes are expected to be completed in November 2024 with the remaining eight being completed by spring of 2025.
Home Designs & Features
The homes will feature two distinct styles, a one-floor slab on grade (left) and a split level (right). We do not currently have the selling prices available.
Slab on Grade Design
Two Bedrooms
Two Bathrooms
Two-car attached garage
Split Level Design
Two Bedrooms
Two Bathrooms
Two-car attached garage
Unfinished basement
Interested Buyers
If you are interested in purchasing one of these homes, please complete the First Homes Intake Form. A staff member will review your information and determine if you may be eligible for the First Homes program. If so, you will be asked to get pre-approved with one of our partner lenders. While we cannot promise a home to a prospective buyer, we will alert pre-approved applicants when the homes become available.
What is First Homes?
First Homes is a nonprofit that has been operating in Southeast Minnesota since 2000. Our mission is to create and preserve affordable homeownership. We do this using the Community Land Trust (CLT) housing model. The CLT model relies on shared equity to not only make homes affordable, but to preserve their affordability for future buyers.
If you are struggling to afford a market-rate home, First Homes may be a path to homeownership.
Cycle of Affordability
When First Homes acquires a property, we subsidize it so it can be sold at a lower cost to an income-qualified buyer. We also maintain a deeded interest in the land to further reduce the cost. First Homes operates at 80% AMI.
An income-qualified buyer buys the home. The buyer must have a mortgage with one of our partner lenders. First Homes does not allow cash offers and has an asset limit of $50,000.
The homeowner is responsible for property taxes, homeowner’s insurance, and maintenance of the home. They also pay a small monthly ground-lease fee.
When a homeowner sells their home, the appraised equity is shared with 50% going to the seller and 50% staying in the home. This builds on the original subsidy that First Homes invested, ensuring the home is affordable for the next buyer.
Another income-qualified buyer purchases the home and the cycle repeats.
Questions About Affordable Homes?
If you have questions about your eligibility, the Red Hawk Dr. homes, or First Homes, please contact Program Associate, Emily Neville, at emily@rochesterarea.org or 507-287-7117.