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HEDC announces rural workforce housing award, local match and $5 million revolving housing fund
Summary
Hastings Economic Development Corporation said the city secured rural workforce housing funds paired with local matches to renovate a middle school and build a townhome project, and that the city’s revolving housing fund will grow to about $5 million.
Hastings Economic Development Corporation announced that Hastings won rural workforce housing funds and will pair those dollars with local matching funds to support two housing projects.
The award, announced to the Hastings Utility Board on March 13, 2025, will be combined with local matching money already committed by city and utility funds. “We are partnering, $200,000 from the utilities and city, $200,000 from CRA, $150,000 from HEDC,” said Shannon (HEDC representative). The projects described were the renovation of the middle school for housing and a prefabricated townhome project called Veil Side Village in the North Park Commons area.
The HEDC presentation said the federal award and local match together create a larger pool of investable capital for housing projects in Hastings. Shannon said the package would boost the city’s local revolving housing fund to “just at $5,000,000,” which staff said would be used to finance future local housing projects on a revolving basis.
Board members and staff asked logistical questions about timing and matching requirements. Shannon said the grant required a community match greater than the 25% minimum “because of the amount of competition for that money,” which she said improved the application’s competitiveness. She also noted the city recently completed a five‑year certification that makes Hastings eligible for Community Development Block Grant (CDBG) funding.
HEDC staff said one of the projects is already moving into local approval: the Veil Side Village project “will be located up north in the North Park Commons area” and was expected to appear before the Planning Commission for initial approvals. Shannon said construction activity was expected this year if approvals proceed.
The board discussed the utility budget’s role in supporting economic development and noted the utility’s economic development fund has been drawn down; staff said there is no current mechanism to replenish that fund and that the board should consider options as part of upcoming budget discussions.
Board members did not take a formal vote on the grant at the Utility Board meeting; Shannon requested staff begin contract work to move the grant funds into the housing account so the developer process can proceed.
The presentation also referenced the city’s recent CDBG certification and noted an earlier, larger local match totaling about $550,000 toward a $1.5 million CDBG ask for other projects.
The utility board’s packet included an acronyms list and the board chair thanked staff for the materials.
