Woodcrest project expands county strategy for attainable homeownership

Olmsted County’s Woodcrest project represents an important step in the county’s long-range housing strategy to expand affordable and attainable homeownership opportunities. 

Woodcrest provided entry-level homes that middle-income families can realistically afford. The project supported the construction and sale of eight homes priced under $350,000, and all eight homes have already sold. This work highlights how local government can successfully partner with private development. 

“Woodcrest is an important pilot that can help us test and refine development models we can scale in the future,” said Olmsted County Housing Development and Preservation Project Manager Mark Engel. 

Woodcrest builds on momentum from the Red Hawk Drive project. Red Hawk Drive provided 10 homes priced at $251,900 through a land trust model. This is a structure in which a nonprofit land trust through First Homes retained ownership of the land while homebuyers only purchased the physical building. Following this model reduced upfront costs and preserved long-term affordability for homebuyers. Ten families achieved stable homeownership with Olmsted County overseeing development while First Homes qualified buyers and completed the sales. 

Woodcrest tested a new model by offering homes at market prices where buyers fully own the land. This is supported by a zero‑interest construction loan from the Housing and Redevelopment Authority (HRA). The project was designed for households earning up to 120% of the area’s median income and helps create an additional path to expand affordable homeownership. 

“Over the next decade, the impact of Woodcrest could extend far beyond its eight-home footprint,” Engel said. “The project will show developers that there is strong demand for smaller, more affordable single-family homes. It will also help the county better understand which financial tools are most effective at lowering production costs.” 

For Bigelow Homes President Mike Paradise, Woodcrest represents more than eight homes. It marks a shift in how developers and local government work together. 

“Building affordable homes in our community is more important than ever,” Paradise said. 

He explained that, historically, developers tried to reduce fees to keep homes affordable while local governments relied on those fees for infrastructure. This often pushed prices up and limited entry‑level options. 

Rising construction costs have since forced many builders to focus on higher‑priced homes, deepening the shortage of attainable choices. But Paradise said these pressures have also strengthened collaboration. 

“These challenges have fostered better communication between developers, city and county staff, and local leaders,” he said. “That has helped create programs that incentivize builders to produce the homes our community really needs.” 

He sees Woodcrest as proof of that progress. With support from the county’s zero‑interest construction loan, Bigelow Homes was able to build smaller, more attainable single‑family homes. Paradise encourages other builders to be patient, flexible, and creative as they partner with local government. 

Like Paradise, Engel hopes the project encourages more private builders to enter this segment of the market. Olmsted County's goal is to increase supply and ease pressure across the housing spectrum. 

With Woodcrest completed, the Olmsted County HRA anticipates developing projects modeled after Red Hawk Drive and Woodcrest in the years ahead. Stay connected with OlmstedCounty.gov to learn when these future initiatives occur.