Trust fund tackles problem of affordable housing

It may not be in plain view, but homelessness affects people in southeast Minnesota, including Dodge County.
Across 20 southeast Minnesota counties, this area has the third highest number of people who are homeless or at risk of homelessness. Some have disabilities, others are experiencing domestic violence or have been homeless for a long time.
There are homeless individuals living in Dodge County, and even though there are no local shelters for these people, there are organizations who can provide assistance. There are places in neighboring Steele County, Rachel’s Light, which serves women and their children, and Hospitality House, for single men. There are also services available for helping the homeless in Olmsted County.
But as a gap between the need for and supply of affordable housing drives up both rental and single-family home prices, we can expect to see more people challenged to find a safe place to live.
Just over the past two years, MN Prairie, which provides human services for Dodge, Steele, and Waseca counties, has seen a 300% increase in the need for housing-related services.
Minnesota counties will over the next five years receive dedicated funding to help tackle this growing challenge. Local Homeless Prevention Aid dollars can only be used to help homeless or at-risk families with preschool and school-age children and young people who need to move out of their homes, and to connect families with services that will help them stay in their homes.
In March, a MNPrairie Housing Resource Specialist, provided details to Dodge County commissioners regarding establishment of a Local Housing Trust Fund (LHTF) along with a recommendation to appropriate 90% of the member-county’s Local Homeless Prevention Aid (LHPA) to seed the LHTF and appropriate the remaining 10% into a fund utilized for hotel shelter vouches. At that meeting, the commissioners approved the allocation of the LHPA dollars.
At last week’s Dodge County Commissioners meeting, a public hearing was held to consider the ordinance establishing the fund. At that meeting and public hearing, commissioners were told Dodge County’s allocation is anticipated at $75,814. All but 10% of that first payment will be used to establish the trust; the remainder will provide hotel vouchers for people who need immediate help.
Enabled by state law, the trust can only be used to cover administrative expenses, grants, loans and loan guarantees for housing, matching funds for housing projects, or local down payment assistance, rental assistance, and homebuyer counseling services.
And it won’t stop growing when the Homeless Prevention Aid does. The trust can accept donations from individuals, businesses, and charitable groups, and can apply for grants from the federal government, private foundations, and other sources.
LHTF dollars all stay within the community. Ideas for using the funds will come from a local advisory committee, with final decisions made by county commissioners.
The DCI applauds officials for setting the county on a path that will not only provide direct, immediate help to residents in need but also give more families an opportunity to continue to live and work in Dodge County.