One of Duluth’s newest housing developments was once an abandoned industrial site.
Although the buildings that housed the former natural gas holding facility were removed decades ago, contamination from lead-based paint from the exterior of the building remained. This contamination hindered any development.
In exchange for an environmental clean-up grant, the city promised a mixed-income development using factory-built homes.
When private developers couldn’t make the project work, the City approached One Roof Community Housing.
One Roof Community Housing used MMCDC financing to help the city deliver on its promise.
The result is a new neighborhood with a variety of styles and prices to choose from. Three are single-level, slab-on-grade homes consisting of three bedrooms and two baths. Two have full basements, with four bedrooms, two baths and room for more finishing. “These two homes were built for folks earning up to 115 percent of the area median income, and we utilized $30,000 for each home in affordability gap financing from Minnesota Housing,” Deputy Director Cliff Knettel explained. “These homes were priced around $265,000 but with the gap funding, they were able to mortgage for around $235,000.”
The last four homes were two-story homes with three bedrooms, 2.5 baths, and a basement, with no income restrictions.
MMCDC had a major role in the success of this nine-unit development; One Roof Community Housing used part of a $2,000,000 loan from MMCDC for the construction financing for the homes.
Cliff Knettel, Deputy Director, One Roof Community Housing
