By Joshua Schuetz
A major step forward for workforce housing in Greater Minnesota was taken on September 26, 2024, when the Minnesota Housing board of directors approved $38.7 million to develop new residential rental units. The investment will create 832 market-rate rental units in small to mid-sized communities with strong job growth and significant demand for housing.
One of the communities set to benefit is Chatfield, which will receive $475,000 to build 14 new market-rate apartments. This development replaces an 8-unit apartment building destroyed by fire, offering a mix of one- and two-bedroom units, including one fully handicap-accessible apartment. Chatfield’s application was authored by former CEDA Vice President Chris Giesen, and CEDA team member Todd Kieffer will guide the project to its conclusion.
The project addresses a critical need in Chatfield, where limited rental options have posed challenges for employers trying to attract and retain workers. More than 900 people commute into Chatfield for work daily, while only about 150 live and work in the city. With more housing, city leaders hope to attract more residents to the community, where they can contribute to the tax base, support local businesses and the school district.
Michael Tuohy, Chatfield’s EDA President, highlighted the grant’s expected impact on the city and framed it as a long-term investment in the city’s prosperity. “We are incredibly grateful to receive this grant, which will significantly impact our community. Workforce housing is essential for supporting local businesses, retaining talent, and fostering economic growth,” he said. “This funding helps ensure that our workers have access to safe, affordable housing, strengthening the foundation of our community for years to come.”
Chatfield’s project aligns with the goals of the Workforce Housing Development Program (WHDP), which was created by the Minnesota Legislature to boost market-rate rental housing in Greater Minnesota communities with populations under 30,000.