City of Albert Lea

Community Development Plan

2005 to 2010

 

Executive Summary

 

The Southwest Minnesota Housing Partnership in collaboration with Partners in Housing, Inc., the City of Albert Lea, and the Albert Lea Housing and Redevelopment Authority have developed the Albert Lea Community Development Plan to identify a strategy for the implementation of community needs.  The foundation of this plan is the Housing Market Analysis and Demand Estimates for Freeborn County completed in January 2006 by the research firm Maxfield Research, Inc.  The goal of the Community Development Plan is to identify existing trends and needs as described in the housing study and subsequent research; and to outline priorities and strategies for the community to implement for improved housing and other related community needs.

 

The City has a strong history of local planning efforts including a 2002 Housing Study by Partners in Housing, Inc., Minnesota Design Team visit (October 7-9, 2004), and Albert Lea Listens.  Albert Lea Listens is a strategic planning process completed in 2004.

 

A community meeting was held on March 15, 2006 to discuss local housing needs, barriers, and resources available with local community representatives.  A list of those participating through the community meeting and overall planning process can be found at the end of this document. 

 

The City of Albert Lea and the Albert Lea Housing and Redevelopment Authority (HRA) are the primary public entities responsible for housing in the City of Albert Lea.  This Community Development Plan creates a framework for the community to accomplish locally developed goals.  While the implementation of these goals will primarily be the responsibility of the City and its HRA, working with nonprofit organizations, consultants, builders, developers, employers, and others will be critical to the overall implementation. 

 

Community involvement to implement recommendations found in this plan can occur at varying degrees.  The first is at the policy level in which communities can make changes to local policies and plans to support a balanced housing development.  The second is at an intermediate level where communities can provide letters of support, and financial or technical assistance.  The final level would be an advanced level where a community may not only finance a project but assume an ownership role as well.  The following outlines activities along all three levels where the community could become involved.  Often the degree at which communities become involved in projects depends on local growth, involvement of the private market, as well as the profile of persons needing housing.  For instance, a community with lower household incomes will need to produce the most affordable housing possible which may include utilizing multiple resources such as land contributions, tax increment financing, down payment assistance funds, etc.      

To achieve the goals that are outlined in this plan, an investment of local public and private funds as well as major investments of state, federal, and other charitable funds will be required.  The following table outlines the overall production goals for the community as well as total investment. 

 

Table 1

Housing Production Goals:  2006-2010

FOR-SALE HOUSING	Housing Study/Plan Demand 2005 to 2015	Action Plan Proposed Units 2006 to 2010	Estimated Value Per Unit	Total Development Value
Single Family Entry Level Homes	50 to 55	50 to 55	$140,000 - $175,000	$7,000,000 - $9,625,000
Single Family Move-up and Executive Homes	200 to 215	100 to 125	$175,000+	$17,500,000+
Condominium/Townhome Entry Level Homes	40 to 45	20 to 25	$150,000 - $200,000	$3,000,000 - $5,000,000
Condominium/Townhome Upper End Homes	55 to 65	25 to 35	$200,000+	$5,000,000+
Total For-Sale Housing	345 to 380	195 to 240		$32,500,000+
REHABILITATION
Trailside Apartments and Townhomes (formerly Channel View)	110	110	$70,909	$7,800,000
Owner Occupied Rehab	40 to 60	20 to 30	$20,000	$400,000 - $600,000
Rental Rehabilitation	30 to 100	15 to 30	$15,000	$225,000 - $450,000
Commercial Rehabilitation	10 to 20	0	$0	$0
Purchase plus Rehab	5 to 10	2 to 5	$80,000	$160,000 - $400,000
MURL	3 to 6	2 to 3	$70,000	$140,000 - $210,000
Redevelopment (infill demolition and new construction)	3 to 6	2 to 3	$140,000 - $160,000	$280,000 - $480,000
Total Rehabilitation	188 to 286			$9,005,000+
RENTAL HOUSING
General Occupancy Affordable (LIHTC) Units – Pickerel Park #2	24	24	N/A	N/A

General Occupancy Affordable/Subsidized Units	20 to 35	20 to 35	$105,000 - $120,000 (tax exempt financing) $120,000-$140,000 (tax credit financing)	$2,100,000 - $4,900,000
General Occupancy Market Rate Units	55 to 75	25 to 40	$120,000 - $135,000	$3,000,000-$5,400,000
Senior Adult/Few Services Market Rate Units	55 to 65	55 to 65	$85,000-$100,000	$4,675,000-$6,500,000
Senior Congregate Market Rate Units	25 to 30	0	$0	$0
Senior Assisted Living Market Rate Units	15 to 20	0	$0	$0
Senior Memory Care Market Rate Units	10 to 15	10 to 15	$120,000-$140,000	$1,200,000-$2,100,000
Total Rental Housing	204 to 264			$10,975,000+
TOTAL ALL HOUSING				$52,480,000+

Note:  These figures are approximate costs with actual development costs varying depending on amenities provided, size of the units, site conditions, and design of projects.

 

Housing is an extremely important component in the overall function of the community.  The community’s housing stock instills a significant impact on the physical character of the City of Albert Lea.  Adequate housing, as a basic element, is critical to current and future citizens.  The availability of dwellings and a variety of housing types and options is essential to continued community stability and growth.  Factors such as the age of housing stock and the age of the population are only a couple of factors that determine need.  Possible constraints on land and the cost of development will determine where development occurs. 

Based on the research conducted through the housing study and these efforts, the following development concepts are recommended:

 

2005 to 2015

• 55 to 75 units of general occupancy market rate rental units

o       20% to 25% one bedroom units at $500 to $550

o       60% to 65% two bedroom units at $650 to $700

o       10% to 20% two bedroom plus den units at $725 to $775

• 20 to 35 units of general occupancy affordable/subsidized rental units targeted to low and very low income households

o       33% to 50% one bedroom units based on 30% of income

o       50% to 66% two bedroom units based on 30% of income

• 55 to 65 units of senior adult/few-services market rate rental units

o       25% to 30% one bedroom units at $675 to $700

o       25% to 30% one bedroom plus den units at $775 to $800

o       40% to 50% two bedroom units at $825 to $875

• 25 to 30 units of senior congregate market rate rental units

o       one bedroom units starting at $1,150

o       two bedroom units starting at $1,300

• 15 to 20 units of senior assisted living market rate rental units
   

• 10 to 15 units of senior memory care market rate rental units

o       10 to 15 efficiency units with base fees at $3,300

• 50 to 55 entry level single family owner occupied units between $150,000 and $175,000 
   

• 85 to 95 move-up single family owner occupied units between $175,000 and $270,000 
   

• 115 to 120 executive single family owner occupied units over $270,000 
   

• 40 to 45 entry level condominium/townhome owner occupied units between $150,000 and $200,000
   

• 55 to 65 upper end condominium/townhome owner occupied units over $200,000
   

• 10 to 20 units of commercial rehabilitation