2024 HRA Year End Report HRA
HUTCHINSON HOUSING AND
REDEVELOPMENT AUTHORITY
2024 Annual UTCHtIwr
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PARK TOWERS
AF'°ARTME NTS
111 Hassan Street SE 133 Third Ave. SW
Hutchinson, MN 55350 Hutchinson, MN 55350
(320) 234-4251 (320) 587-2168
Fax (320) 234-4240 FAX (320) 587-3748
Website wwwhutcMnsonhracom
Hutchinson HRA 2024 Annual Report Page 1 of 10
Executive Summary:
The Hutchinson HRA (HHRA) was formed by the Hutchinson City Council in 1969 to address a
shortage of housing for low to moderate income families and to address substandard areas in
Hutchinson. The HHRA owns and manages Park Towers Apartments, plus administers other
housing rehab programs throughout the city to preserve housing stock.
2024 Hutchinson Yearly Comparisons:
• Below 5% apartment vacancy rate for the last 11 years
• Median home sale price of$257,450
• Home mortgage interest rate averaged 6.79% in 2024
• 21 newly constructed single-family units
• Two new developments, adding 25 lots to the vacant lot inventory.
• 5 Foreclosures
Summary of HHRA Activities and Accomplishments:
Park Towers:
• Park Towers Housing Specialist earned her Housing Specialist Certification.
• 11 move-ins, and 17 move-outs in 2024
• Updated/Repaired/Installed: multiple boiler system &exhaust repairs, replaced flooring in
both elevators, toilet replacements in main floor public restrooms, installed vinyl planking in
9 units, installed water saver power flush toilets in 9 units,replaced 1 H/C unit range, 1 A/C
unit
City Center:
• 5 City home improvement program grants (5 approved in 2024; 4 completed in 2024)
• Completed the construction/rehab of 1831 Island View Circle and sold it December 2024
HHRA Priorities:
• Staff training
• Implement HUD Multifamily, Section 8 Project Based Rental Assistance Program(PBRA)
policy changes at Park Towers
• Continue with asset preservation and energy conservation improvements at Park Towers
• Continue to administer City Home Improvement Program Grant Programs and Minnesota
Housing's Home Improvement Programs
• Explore the availability of housing programs and projects that will address identified housing
needs of Hutchinson
Hutchinson HRA 2024 Annual Report Page 2 of 10
HutchinsonYearly Comparisons
Rental Data from the 2024 Apartment Survey:
Market Rate General Occupancy Vacancy Rate
16.00% 14
14.00%
12.00% .,, 10.31%
10.00% 8.38%
8.00%
, 1
S.. .% 3.82/° ..
6.00/ 4.08% 6l ........ ......... .........3.60°%
4.00% 1.89% 1.85%176% 76°0' ° .. � .W..
W 1.83/0
2.00% .... :. ... �gU 0.72%
.00%.... ...
0.00%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 2023 ' 024
*Oct/Nov.2024 Survey of General Occupancy properties
Hutchinson 2024 Vacancy Rates Median Rents*
I Market Rate General
7.05% Occupancy(860 units)
8.00% r .. ......... .......... Studio $480 +$30
int Subsidized(Non Market 1 Bedroom $726 +$39
6.00% `' 3 82% 4.21% Rate)General Occupancy 2 Bedroom $922 +$147
�' (283 units)
4.00% ii Senior Rental Housing 3 Bedroom $1,141 +$303
11111111 1 1111116
Market Rate(190 units) *Oct/Nov 2024 survey.
2.00% 0.00%
rn Subsidized(Non Market
0.00% Rate)Senior Rental Housing
2024 Vacancy Rates (77 units)
Home Resales Data from McLeod County Assessor's Office:
Home Resales
City of Hutchinson
7 years(2018-2024)
Year 2024 2023 2022 2021 2020 2019 2018
Price range # Pct. # Pct. # Pct. # Pct. # Pct. # Pct. # Pct.
<$50K 0 0.0% 2 0.8% 2 0.7% 4 1.1% 7 2.0% 1 0.3% 7 1.9%
$50K-$75K 0 0.0% 3 1.1% 4 1.3% 5 1.3% 10 2.9% 5 1.6% 11 3.1%
$75K-$100K 3 1.3% 11 4.2% 11 3.7% 13 3.5% 10 2.9% 8 2.5% 15 4.2%
$100K-$125K 2 0.9% 6 2.3% 7 2.391 10 2.7% 19 5.5% 27 8.6% 46 12.8%
$125K-$150K 12 5.2% 7 2.7% 12 4.0% 29 7.8% 49 14.4% 50 15.9% 67 18.7%
$150K-$175K 10 4.3% 12 4.5% 21 7.0% 34 9.1% 51 14.9% 64 20.3% 70 19.5%
$175K-$200K 17 7.3% 22 8.3% 30 10.0% 58 15.5% 55 16.0% 59 18.7% 55
>$200K 188 81.0% 201 76.1% 212 71.0% 220 59.0% 142 41.4% 101 32.1% 88 24.5%
Totals 232 264 299 373 343 315 359
Median I $257,450 I $246,250 I $244,000 I $215,400 I $186,000 I $175,000 I $161,900
%%increase 4.5% 0.9% 13.3% 15.8% 6.3% 8.1% 5.5%
Hutchinson HRA 2024 Annual Report Page 3 of 10
2024 Hutchinson Home Sale Price Ranges
u• Under $50,000 :::::::: 0%
0. % • /% 1 $50,000 to 74,999 = 0%
2.1/0 09%
uuuuuu .2., , ➢ 0 -tO J.A9,999 .:::: 5.2.%
l '• IIIIIIIIIII $15 , 00 t0 .'24,99° .::::: 4.3%
$175,000 to 1..99,999 :::::::: 7.,3
111111111 $200,000 to 224,999 :::::::: 15,.9%
1111111 2.I , D to 299,999 :::::::: l2„ %
M1
IIIIIIIIIII $400,000 -to 499,999 :::::::: '7.3%
IN $500,0001 IIu�u5 :::::::: 2.1.%
Year End Hutchinson Home Resales Data from the Minneapolis Area Association of Realtors:
2024 2023 2022 2021 2020 2019 2018 2017
Median
Sales Price $268,900 $261,750 $262,900 $236,250 $200,000 $181,000 $170,000 $161,000
#of Sales 198 236 265 317 324 315 330 318
• 16.1%less home sales in 2024 than in 2023.
• 35 days on the market in 2024 vs. 38 in 2023.
2024 Home Mortgage Rates:
Early in 2024, the 30-year fixed home mortgage rate was 6.62% and ended at 6.85% according to
Freddiemac.com. The lowest the interest rate in 2024 was 6.08% the week of September 26, 2024.
Hutchinson HRA 2024 Annual Report Page 4 of 10
New Construction Units (the following 3 charts are based on information from the Department of Planning,Zoning and Building Department):
Number of New Construction Single-Family Dwelling Units
80 73
60 58
40 32 34 36
19 23 20 30 27 23 24 20 21
20 12
47454iulIIIII
0 1 I I I I I I I I I I Y
200520062007200820092010201120122013 2014201520162017201820192020202 120222023 2024
Number of Certificate of Occupancy for General Occupancy Multi-Family Dwelling Units
200 .... .... .... .... .... .... .... .... .... .... .... .... .... .... ....
loo ii
...l IlI, w 18 0
1994 1996 1999 2017 2018 2019 2020 2021 2021 2022 2023 2024
Ridgedale Deer Park Century Highfield Highfield Highfield Century Century Highfield 101 Park Michel Ct
Square Court TH Court Court Place NW
East West West Apts.
Residential Lots Available
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McLeod County &Hutchinson Foreclosures:
250
McLeod County& Hutchinson
200 Foreclosure Counts McLeod County
200 176
150 135 iiululi Hutchinson
93
100
2 .... 75
5 53 44
128
25 118 1 3.. 247 12 146 53 1910 114 165
O ... .. ... '. 1 '.. N fah'.... �.... rc15%.... a .... .... ��X .... rtq......
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Hutchinson HRA 2024 Annual Report Page 5 of 10
umar 2...H 202 Acco,,,,,,,,,,,,, fl :
Park Towers Apartments Management - Multifamily, Section 8
Project Based Rental Assistance Program (PBRA):
Park Towers Property Management
• 11 move-ins, and 17 move-outs in 2024.
Reasons for move outs:
4 Death of sole family member
2 Owner initiated for nonpayment of rent
1 Owner initiated other than nonpayment of rent
10 Tenant initiated
• December 2024, annual unit inspections were done at the same time as the City Rental
Registration inspection.
• Park Towers Housing Specialist earned her Housing Specialist Certification.
• September 1, 2024 Park Towers moved from HUD administration of our HAP contract to the
Performance-Based Contract Administration(PBCA) portfolio within Minnesota Housing.
• Contracted with a new accountant that is familiar with HUD's Multifamily program.
• Multiple staff trainings for changing & new HUD policies.
Asset Preservation, Property Improvements and Energy Conservation
• Replaced the maintenance garage roof.
• Multiple boiler system & exhaust repairs.
• Replacement of the flooring in both elevators.
• Replacement of 1 toilet in main floor women bathroom and 1 urinal in the main floor men
bathroom.
• New vinyl planking was installed in 9 units at turns.
• Water saver power flush toilets were installed in 9 units to save water and reduce toilet plugs.
• 1 H/C unit range and 1 A/C unit were replaced.
Tenant Demographics
• Average age of head of household is 54.
o 32 Sixty-two or older
o 46 Disabled
o 16 No special status
• Income Categories:
o 5.7%= $0 - $l,999
o 2.3%= $2,000 - $3,999
o 0.0%= $4,000 - $5,999
o 4.6%= $6,000 - $7,999
o 4.6%= $8,000 - $9,999
o 82.8%= $10,000+ (below $35,900)
Hutchinson HRA 2024 Annual Report Page 6 of 10
Tenant Services
• Hosted National Night Out and a Christmas Dinner for the tenants.
• Park Towers continued as a Senior Dining Program Site through a lease with Lutheran Social
Services. Meals are prepared offsite and delivered to Park Towers Monday through Friday.
• Throughout the year different community organization such as the Elks and the youth from
Foundation Church brought care packages to the residents.
• Coordinate activities with the Tenant Council.
City Center Operations:
Operations:
New employee training.
Owner Occupied Rehabilitation Programs Available:
1. Minnesota Housing Rehab Loan Program (RLP) —One applicant in 2024, closed/completed in
early 2025. One project from 2023 finished.
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2. City Home Improvement Program Grants (HIP): This program was established in 2015 as a
flexible tool for rehabilitation of single-family, owner occupied housing (4 targeted programs).
• City Home Repair Grant Program— 6 applicants: (4 closed; 1 open; 1 cancelled)
Address Amount Program Project Description App. Date Completed
1525 McDonald Dr SW
#43 33,920 RLP Roof,windows, HVAC,misc. 06/25/24 02/12/25
142 3rd Ave SE 59,679 RLP/ELP Windows,plumbing,electrical,misc. 05/01/23 finished
93,599
549 Main St S 4,750 City HIP HVAC 04/08/24 07/23/24
525 Northwoods Ave
NE 7,218 City HIP HVAC,water heater 05/06/24 08/19/24
938 Jorgenson St SE 4,758 City HIP Roofing,siding 08/06/24 11/12/24
645 Main St S 2,184 City HIP HVAC 12/10/24 12/31/24
578 Main St S 5,000 City HIP Bathroom accessibility 11/10/24 Open
736 Hassan St SE 3,950 City HIP Cancelled 06/10/24 CNCL
27,860
Hutchinson HRA 2024 Annual Report Page 7 of 10
Rental Rehabilitation
Ongoing Annual Recertifications of other City of Hutchinson Rental Rehab Program projects.
House Move to Island View Heights Lot
The house construction/rehab was completed fall 2024 and sold in December 2024.
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Local Realtor 2025 Housing Market Predictions:
1. What do you see for the housing market for Hutchinson in 2025? We believe the 2025
housing market in Hutchinson will resemble the 2024 market. We're predicting similar units
sold (which was a 30-year low), while pricing remains flat.
2. What are the most influential factors affecting housing in Hutchinson? Interest rates are the
main contributor to the market slow down. Home prices increased at a record pace, which was
supported by historically low interest rates for over a decade. With rates twice doubling in just 3
years, affordability is the major issue for most buyers. Also, existing homeowners with rates
locked in the 3-4% range are not as interested in moving and losing that rate.
3. What do you think will happen to new housing construction in 2025? We also feel that new
construction starts will be similar to 2024 numbers. Affordability and the inflation of new
construction prices makes any significant growth a challenge. A modest new construction home
with 4Bd& 2Ba would cost 30-40% more than the average home in Hutchinson. The average
price/sq ft for existing homes is $150/sq ft, where new construction is about $250/sq ft.
Local rt2a2e Lender 2025 Housin2e r icti s:
1. What do you see for the Hutchinson housing market in 2025?
I think the Hutchinson housing market will move toward a more healthy balance between buyers
and sellers. We are already seeing the signs of home that have fewer competitive buyers, homes
that remain listed for longer than a few days, and some appearance of price reductions from list
price occurring. I think that these factors might slow the pace of price appreciation a little
bit...but I don't expect dramatic things to happen this year.
Hutchinson HRA 2024 Annual Report Page 8 of 10
2. What are the most influential factors affecting housing in Hutchinson?
Quite a bit of uncertainty remains about the future of interest rates. Rates are affecting buyer's
ability to afford the homes at current prices....and sellers remain reluctant to sell and give up
their low rate mortgage for a higher one if they move.
3. What do you think will happen to new housing construction in 2025
New construction will likely continue to be somewhat healthy. Existing home prices are
high....and people can make a choice to buy new construction and have it be relatively
competitive. Lower priced homes, though, are not even possible any more with new
construction. The combination of price and rate makes new construction a tough hill to climb
for most buyers. But for those folks looking for existing homes in the $300+price category, new
construction can become an option for them.
Hutchinson HRA Priorities for 2025:
Park Towers Apartments Management:
• Administer the RAD Multifamily, Section 8 PBRA program at Park Towers.
• Staff training for RAD Multifamily, Section 8 PBRA program and new HUD program changes
such as AFFH rule, HOTMA, VAWA and NSPIRE inspections.
• Housing Specialist attain a Minnesota Department of Labor and Industry issued Special Engineer
boiler license.
• Continue to install vinyl planking and power flush water saver toilets at unit turns.
• Potential improvements: new door card entry system, installation of splitter,heating/cooling
system in the laundry room, unit smoke detectors, common areas flooring replacement near the
elevators and sewer main replacement coordinated with City of Hutchinson.
• Follow legislation for grant funds to retrofit sprinklers in high rise residential buildings.
• Support the Tenant Council activities.
City Center Operations, Owner Occupied Rehab:
• Administer the City Home Improvement Grant Program, Minnesota Housing Rehab Loan
Program and the Fix Up Fund Home Improvement Loan Program.
• Follow rollout of new State housing programs and determine interest/need in Hutchinson.
• Market available programs throughout the community.
• Identify and determine interest of potential SCDP owner occupied rehab project.
City Center Operations, SCDP Rental Rehab Program:
• Identify and determine interest of potential SCDP rental rehab projects.
City Center Operations, Housing Development
• Explore other housing resources available to address the housing needs identified in the Maxfield
Comprehensive Housing Study/Market Analysis for the City of Hutchinson
• Determine best use of the remaining 2 HHRA Island View Heights lots.
Hutchinson HRA 2024 Annual Report Page 9 of 10
December 31, 2024 Housing Fund Balances
SCDP City Revolving Local Income Balance** $218,790.50
SCDP City Revolving Program Income Balance** $51,873.89
TIF Available Balance $35,000.00
Total Funds Available: $305,664.39
HRA Notes Receivable HHPOP $9,245.56
Total Balance of HRA Loans Receivable $9,245.56
**As of 9/30/2024 DEED Report
p 7
Executive Director (320)234-4451 v.._(City Center)
(320)587-2168 flernrnin 7O.)hutch(ell.net(Park Towers)
Hutchinson HRA 2024 Annual Report Page 10 of 10