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McLeod County allocates $30,000 from SAHA to preserve 24 affordable rental units in Hutchinson
Summary
The county approved a $30,000 allocation to Southwest Minnesota Housing Partnership to close a financing gap for the acquisition and rehabilitation of Northplace Apartments (24 units) in Hutchinson; the funding is contingent on successful closing (expected by April 30, 2026) and leverages roughly $4.55 million in outside investment.
The McLeod County Board approved a $30,000 allocation from its statewide affordable housing aid (SAHA) fund on March 17 to support the acquisition and rehabilitation of Northplace Apartments in Hutchinson by Southwest Minnesota Housing Partnership (SWMHP).
Economic development staff and the county economic development committee recommended the commitment to close a small financing gap created by changes in the seller’s USDA Rural Development mortgage balance. SWMHP’s real-estate development manager told the board the project will preserve 24 existing affordable rental units and leverage approximately $4.55 million in federal, state and nonprofit funding. The county’s SAHA funds (received in 2023) must be committed by the end of 2026 and spent by the end of 2027.
Board members noted the request came late in a multi-year financing process and that closing is near (SWMHP expects a closing on or before April 30, 2026). The board approved the $30,000 allocation contingent on a successful closing; the county will remit funds from SAHA2-701 upon evidence of closing.
SWMHP indicated the project will maintain income-restricted rents (under USDA/Minnesota Housing requirements) and that a third-party manager (Lloyd Management) would operate the property after acquisition. The county’s allocation is structured as a local support piece to eliminate a small shortfall created by delayed payoff assumptions on the seller’s rural development loan.
The vote was unanimous among commissioners present; the board instructed staff to coordinate the conditional funding release upon closing documentation.
