Dunn County pays off housing authority loan to avoid refinancing and potential displacement

Dunn County commissioners voted to pay off the remaining loan on townhomes owned by the Dunn County Housing Authority, approving a 10‑day payoff of $496,881.61 drawn from Betterment and Royalties funds.

Representatives from the housing authority told the commission the property faces a balloon payment and refinancing would raise carrying costs for residents. “We have a balloon payment coming in February to the total of $461,717.78. This does not include the interest, which would be about another $24,000,” Amanda Bangart, speaking for the Dunn County Housing Authority, said. She warned that refinancing would increase monthly payments and could force displacement of the eight families living in the eight townhome units.

The housing authority provided monthly figures to the commission: total monthly rent currently collected from the eight units is $6,600 (8 units × $825), while the property’s monthly mortgage payment is $4,470.32, leaving roughly $2,130 monthly after debt service for operations, maintenance and reserves. The authority said those margins leave limited capacity for a substantially higher payment after refinancing.

Dane Larson supplied an estimated assessed value for the property of about $1,100,000 (roughly $130,000 per unit with $75,000 in land value). The authority said it plans a modest rent increase, proposing a $25 raise on July 1 and an eventual target rent of $900, but had not finalized the timing or cadence of increases.

Commission discussion focused on the tradeoff between preserving affordable units and the county’s fiscal priorities. A motion to pay the tally amount was moved and seconded in the meeting; the board approved the 10‑day payoff of $496,881.61 and directed that the funds come from Betterment and Royalties accounts. A roll‑call vote on the motion recorded affirmative votes and the chair announced the motion carried.

Commission and housing authority representatives said paying the loan now would avoid a higher interest burden and keep the units in local control while allowing the housing authority to pursue future development projects.

The housing authority thanked the commission and noted plans to continue work on additional housing projects designed to accept Section 8 vouchers and expand affordable housing supply in Dunn County.

The county will coordinate payoff paperwork with the housing authority and the lender as directed by the motion.