St. Cloud Backs $80,000 in Fee Waivers for 58-Unit Senior Affordable Housing Development

(KNSI) — A new affordable housing development in St. Cloud is receiving significant local financial support, which could lead to the state chipping in, too.

Developers are trying to put up a 58-unit complex on Pinecone Road that would be reserved for those over 55 years old, making between 30% and 60% of the average median income in the area. The current proposal calls for seven of the units to go to those battling homelessness.

To happen, it will need both local and state dollars.

The St. Cloud City Council voted to contribute through something known as the Life Cycle Housing Ordinance. Community Development Director Matt Glaesman says the law was passed by all of the major cities in the St. Cloud Metro a couple of decades ago. The goal is to have 15% of all housing or rental stock qualify as affordable housing.

To incentivize that, St. Cloud would waive tens of thousands of dollars in fees. Glaesman stresses, “Between park land dedication, the planning and zoning fees, which weren’t the case here, the SAC and WAC and trunk area charges, and the building permit alone, it really is a comprehensive list of those fees that a developer faces when they come forward.”

St. Cloud approved waiving 20% of the overall fees, which it estimates equates to approximately $80,000 in financial support. That should help the developers as they apply for Statewide Affordable Housing Aid grants. St. Cloud has $160,000 available in “use it or lose it” credits. Vista on Pinecone would join the Avivo Homeless Shelter as the projects selected in recent years.

Glaesman notes SAHA approval is almost impossible to get for developers without buy-in at the local level. “There is an increasing expectation of cities to put money where their mouth is. In the past, a letter of support, a resolution from the council was sufficient, but the competitive nature of the grants these days simply requires a significant cash contribution.”

Council approval of the issue was 5-1. Dave Masters was absent from the meeting.

The Vista on Pinecone project is being spearheaded by the Minnesota Housing Partnership, based in St. Paul.

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