Morrison County allocates $112,042 in state housing aid to Habitat for Humanity

Morrison County commissioners on March 11 approved using $112,042 in state Affordable Housing Aid (SAHA) for local Habitat for Humanity projects, including a proposal to purchase land adjacent to a high school for a school-linked build program and continued gap and aging-in-place funding.

The decision came after a presentation by Kathy, representing Habitat for Humanity, and a staff overview from Nathan Bergen, Morrison County Health and Human Services director. Kathy told the board, “This money has been a game changer for us,” and described how SAHA funds awarded last year let Habitat serve more households and launch an aging-in-place pilot.

Why it matters: the SAHA program was created by the state legislature in 2023 and the county’s initial certified allotment of $112,042 has been set aside for local projects. County staff and Habitat said that the 2025 certified allotment is lower — about $49,020 — meaning grant cycles and budgeting will continue to affect how projects are phased.

Details of the proposal and past spending

Kathy told commissioners Habitat has received 13 applications this year and used last year’s $112,042 to expand activity: $34,018 went to land acquisition (two lots that required fill and drainage work), $12,786 to an aging-in-place program that so far served four households, and $20,525 to gap funding for home purchases. She said $85,265 of the earlier award has been spent and $26,776 remains.

For the project before the board, Habitat proposes buying about 2.9 acres across from the high school to create a build site where the district’s carpentry students can work on homes. Kathy said Beacon lists the land value at $46,000; Habitat’s current proposal includes up to $75,000 to acquire the parcel and pay for tree removal plus about $7,000 for coordination with the school and volunteers. Habitat also asked for additional funding for gap assistance and to expand the aging-in-place work.

Kathy described Habitat’s financing structure: the organization finances the home and sets a first mortgage based on what a family can afford, then uses second (often forgivable) mortgages from program funding such as Habitat Minnesota’s down-payment assistance. She said her affiliate raised income eligibility to 75 percent of area median income this year to match current market realities and noted Habitat uses volunteers plus a paid construction manager on builds.

Board action and logistics

County administrator Matt LeBlanc recommended the board act because the other applicant that had applied for SAHA funding withdrew. A motion to allocate the funds passed by roll call; commissioners recorded aye votes and the motion carried.

The county administrator and HHS staff clarified that the $112,042 being allocated today was the certified SAHA amount the county received earlier and that the 2025 certified amount is lower; the county may run a new RFP at the end of the year when additional funds are certified.

Votes at a glance

- Motion: allocate Morrison County SAHA funds in the amount of $112,042 to Habitat for Humanity for use in eligible housing projects. Second recorded: Commissioner Casper. Roll-call recorded ayes from Commissioner Casper, Commissioner Winsor, Commissioner Moran and Commissioner Blaine. Outcome: approved. - Consent agenda: approved earlier in the meeting by roll call (aye votes recorded; motion carried).

What happens next

Staff assigned to implement the allocation: Health and Human Services will coordinate contract reporting and follow-up with Habitat. Habitat said it will continue its family-selection process, coordinate with the school on the build schedule (one home at a time, with foundations prepared in summer and carpentry classes framing in fall), and continue gap funding and aging-in-place work while reporting back to the county on use of the grant.