Lake Benton council backs $521,640 housing rehab grant application

The Lake Benton City Council on March 2 authorized Development Services, Inc. (DSI) to move forward with a Small Cities Development Program final application requesting $521,640 to rehabilitate 21 owner-occupied housing units.

Kristie Johnson of DSI reviewed the proposal with the council and community at a public hearing, saying 42 households expressed interest and that 35 of those appear to meet HUD low-to-moderate-income guidelines. The city proposes an average SCDP rehabilitation cost of $24,480 per unit and requested SCDP funding of up to $25,000 per unit. The proposed financing includes a two-tier loan structure: deferred loans at 0% for 10 years with the loan balance reduced by 10% annually, and repayable loans amortized at 2% interest with a maximum 10-year term.

Johnson also outlined environmental and historic-preservation review requirements. Projects using federal funds must undergo a State Historic Preservation Office (SHPO) review under Section 106 of the National Historic Preservation Act when work affects buildings older than 50 years or involves ground disturbance, she said. She described DSI's experience administering SCDP grants and noted the application deadline of April 15, 2026.

Administrator/Clerk Eileen Christensen told the council each member must complete a conflict-of-interest disclosure and abstain from votes if they or immediate family members intend to apply for program assistance. The council voted to authorize DSI to prepare the final application, authorize the mayor to sign application documents, adopt Local Government Resolution No. 20260302 for the grant, and authorize a request for proposals for administrative services. The city anticipates a $20,000 local match from its revolving fund and will select an administrative proposal at its April 6 meeting.

The council held no public comment during the hearing and closed the hearing at about 5:34 p.m.