Construction completed on 3 ‘affordable homes’ in Claremont

It was a little over a year ago that Matt Durand of Owatonna, owner of Arden Home Services, began constructing affordable housing in Claremont.
For several years, the City of Claremont has offered an “empty lot program.” The city acquired nine lots from a development that did not materialize and has been trying to encourage people to take the lots and build affordable homes on them. On three of those lots, Durand, working with the city, constructed three homes. All three are now completed; one is sold, and Durand is looking for buyers for the remaining two homes so he can begin planning Phase Two of the development.
The goal of the project, for both Claremont and Durand, is for nine local families to be able to move into affordable housing.
Durand said he grew up in Medford and has been involved in construction all of his life. He became aware of the affordable housing shortage, he said, when he moved to Owatonna and was looking for an affordable home for his family.
The Claremont Workforce Housing Program is designed to provide entry-level, workforce, single-family housing to income-based qualifiers.
Durand said that initially, two of the homes had buyers when construction began in the summer of 2024, but one of the families was unable to get financing. Seeing the difficulty potential buyers had with financing caused him to “switch gears.” A big problem in getting financing, he said, was that the potential buyers could not make a large enough down payment to satisfy lenders’ requirements.
The solution, Durand thought, was to find a way to help people with the down payment. He applied for grants to provide first-time homeowners with downpayment assistance and received funding from two agencies, including the Dodge County Housing Trust and a second organization in Rochester, to lower the down payment cost for each of the two houses.
Those interested in the program can apply through the City of Claremont. In order to qualify for the program, the home buyers must have a household income of more than $75,000 and less than $129,000 for a family of three or more. Approved homeowners may qualify for a free lot and up to $64,000 in assistance with purchase costs.
Each of the two homes available, Durand said, is 1,000 square feet, two bedrooms, one bath with a two-car garage. He said there is room for the homeowner to finish the basement, add two bedrooms and one bath. The price for each is $284,900.
“Homeowners over time can finish the basement and add equity to their home,” Durand said.
Durand said the homes are modular construction. They were built in a controlled facility in Detroit Lakes with union labor. The basement for the homes was built, and the two sides of the home were brought on flatbed trucks to Claremont, where they were assembled.
“It really speeds up the process,” Durand said.
Home construction costs are going up, both in labor and materials, he said, and the modular process helps bring down the cost.
Durant said many builders will not build unsold homes like he does, “but it’s OK to be a trailblazer.” His mission is to help people reach their goals. The program, he said, “is not a handout but rather a hand up.”
When the two houses are sold, he said, he will begin work on Phase II of the project with the ultimate goal to make affordable homes available to nine families.