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Olmsted County HRA Board awards construction bid for affordable housing development

  • News
  • Jun 26, 2024

On Tuesday, June 25, 2024, the Olmsted County Housing and Redevelopment Authority (HRA) Board awarded a construction bid for the development of 10 affordable, single-family homes to Bigelow Homes LLC. Bigelow Homes was selected as the lowest responsive bidder with a bid of $2,543,050. The new homes will be located on Red Hawk Drive in southeast Rochester.

“The development of these homes is a significant step toward addressing the need for affordable housing in our community,” said Olmsted County Housing and Planning Director Dave Dunn. “We are excited to partner with Bigelow Homes to bring these much-needed residences to Olmsted County.”

The HRA Board acquired the 10 residential lots with the help of $680,000 in funding from the American Rescue Plan Act.

The homes will feature two distinct styles:

  • Slab on grade
    • Two bedrooms
    • Two bathrooms
    • Two-car garage
  • Split level
    • Two bedrooms
    • Two bathrooms
    • Two-car garage
    • Unfinished basement

Project timeline

  • Mid-November 2024: Two homes substantially complete.
  • Early May 2025: Remaining eight homes substantially complete.

Construction of each home is expected to cost around $250,000. The homes will then be available for sale and inclusion in the First Homes Community Land Trust. Under the land trust, future home sales transfer the property to First Homes. The new owner maintains the home, while First Homes retains land ownership. This reduces home-buying costs and allows the owner to build equity.

“The partnership with First Homes is crucial in making homeownership attainable for more families,” said Dunn. “Their model not only reduces costs but also supports long-term community stability and growth.”

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