2020 HRAYER
2020YEAR END REPORT
The Hutchinson HRA is a public body politic formed by the Hutchinson City Council in 1969
according to MN State Statue. The HRA was created to address a shortage of housing for low to
moderate income families and to address substandard areas in Hutchinson. In 2020:
The HRA administered $500,000 in SCDP funds for the 907 Dale Street Apartments
(South Dale) rental rehab project.
The HRA administered owner occupied rehab programs throughout the city to preserve
housing stock and improve neighborhoods.
The HRA owns and manages Park Towers Apartments. The HRA determined in 2019
that a non-financial conversion from HUD public housing to HUD Section 8 was
feasible. The RAD application was approved by HUD in October 2019 when a CHAP
was issued. The RAD conversion was closed in December of 2020. The HRA promotes
a strong emphasis on property management, property improvements, and energy
conservation at Park Towers.
Promoted the Healthy Homes Program by offering grant match funds for radon
mitigation.
Evaluate housing data to identify community housing needs and develop housing
programs that provide a positive impact on the community.
Why does Housing matter?
Housing matters because:
Safe, affordable housing is shown to stabilize families. Studies have shown that children
who have stable housing do better in school.
Housing Programs help improve neighborhoods and maintain property values.
Housing Programs provide economic stimulus for the local economy by providing work
for local contractors and businesses.
Summary of 2020 Activities:
Park Towers Apartments:
Asset preservation, property improvements and energy conservation a priority at Park
Towers
New vinyl planking was installed in the community room and kitchen, as well as in 15
apartment units at turns. Water saver power flush toilets were installed in 7 units to save
water and reduce toilet plugs.
Park Towers Property Management
Sixteen apartments were re-occupied in 2020.
Achieved a 98.85% percent average occupancy for 2020.
Park Towers continues to be a needed source of 101 apartments with subsidized rent based
on 30% of adjusted income. Project demographics include the elderly, disabled and low-
income workforce.
2020 Hutchinson HRA Year End Report 5/26/2021 Page 1 of 12 Pages
Tenant Services
Park Towers continued as a Senior Dining Program Site through a lease with Lutheran Social
Services. Meals are prepared at the Evergreen Senior Dining kitchen, then delivered to Park
Towers Monday through Friday.
Park Towers RAD Conversion from Public Housing to Section 8 Project Based Rental
Assistance Program
The HRA converted Park Towers from Public Housing to RAD Section 8 Project Based Rental
Assistance (PBRA) in order to lock in attractive 2021 RAD rents with high Capital Funds and
Operating Funds while moving to a more stable funding environment. Park Towers will still be
publicly owned, managed and operated by the Hutchinson HRA. The RAD program provides a
set 20 year contract with less uncertainty around year to year fluctuations in congressional
funding. The RAD program also provides a plan to continue maintenance replacements needed
over the next twenty years. After closing, an Initial Deposit of $650,000 was deposited into the
Park Towers Replacement Reserve Account for future Capital Needs. The RAD closing occurred
in December 2020, with the change from Public Housing To Section 8 going into effect January
1, 2021.
City Center Operations:
Owner Occupied Rehabilitation
In 2015, City of Hutchinson TIF owner occupied Home Improvement Program (HIP) was added
as a flexible tool for single-family owner-occupied housing rehab to continue owner occupied
rehab efforts throughout the city. At the April 2020 HRA Board meeting the HRA Board
approved the creation of the Hutchinson Emergency Home Repair Grant Program to assist
homeowners with a grant for eligible emergency home repair costs.
The City grant HIP with Minnesota Housing Impact Program and the Minnesota Housing
Rehab Loan Program
home inspections, work write ups, procurement and bidding, loan closing with the owner(s),
construction oversight, and disbursement of loan proceeds to the contractor.
The 2017 MHFA Impact Program was revised to allow rehab of manufactured homes to
match City HIP (TIF).
The City Accessibility Grant, Hutchinson Emergency Home Repair Grant, the City HIP
Grants (Live and Work in Hutchinson and Streamline) and the Minnesota Housing Fix Up
Loan Program requires that the owner submit contractor quotes and that the owner meets
loan underwriting criteria to obtain home improvement loan proceeds. However, HRA
inspection and construction management is not required.
There were no City Accessibility or Hutchinson Emergency Home Repair Grants closed in
2020.
One Live and Work in Hutchinson grant was closed.
Three Streamline HIP grants were closed in 2020 for a boiler, roof and furnace.
One Mobile Home Initiative grant was closed.
One MHFA Fix Up Loan (secured) closed in 2020.
2020 Hutchinson HRA Year End Report 5/26/2021 Page 2 of 12 Pages
Rental Rehabilitation
The 2019 Minnesota Small Cities Development Program Grant (SCDP) full application was
submitted to DEED and approved for the rental rehab of 907 Dale Street Apartments (South
Dale).
Activity # of SCDP SCDP Cost/ Total SCDP Total PI Total Leveraged Source of Totals
units/goals Cost Per without SCDP Admin SCDP Resources Leveraged Funds
unit admin Admin % Costs
Rental GMHF & Owner
Rehab-MF 40 10,212 408,479 408,479 91,521 214,286 Match 714,286
Rental Rehab
Admin 40 1,532 61,272 15.0% 61,272 13,728 75,000
The SCDP and Program Income (PI) funds equal $500,000 which is used for 70% of the total
rehab costs. The owner must contribute the remaining 30% as an owner match.
The deferred grant requires that 51% of the
units will be occupied by low-moderate
income (LMI) household at affordable
rents. On an annual basis if the owner
meets these criteria, 20% of the loan will
be forgiven each year for 5 years.
2020 Hutchinson HRA Year End Report 5/26/2021 Page 3 of 12 Pages
Project Time:
June 2019 DEED Awards Announced
June-August 2019 checklist, complete
federal requirements and Environmental Review/Clearance (achieved
8/19/19)
August 2019 Inspections/Scopes of Work/Bid documents
December 2019
Funds)
February 2020 Contract Award
*COVID-19 Delays in Schedule
May 2020 Loan Closing (maturity May 2025)
July 2020 Pre-Construction Meeting
August 2020 Notice to Proceed, Construction/Rehab started
Spring/Summer 2021 Project Close out
September 30, 2022 DEED funds need to be obligated/used
2020 Hutchinson HRA Year End Report 5/26/2021 Page 4 of 12 Pages
Trends:
1. Rental Housing: Vacancy rates may be lower than reported due to the eviction
moratorium. A shortage of for sale housing, especially for those that are affordable to
first time buyers, also helped drive some demand for rentals.
Market Rate General Occupancy Rental
The market rate general occupancy rate in February of 2021 was 4.13%. A 5.0% vacancy
rate is considered a healthy vacancy rate to allow for turnover and consumer choice. A
vacancy rate of greater than 5.0% indicates a soft demand or mismatch between supply and
demand. Since 1999, the rental vacancy rate has fluctuated from a low of 1.00% to a high of
14.9% in 2009 due to area layoffs. Highfield Apartments (Kuepers developers) has opened
three buildings (87 units) assisted with TIF funds. Kuepers opened an additional 70 units
that are not TIF financed in 2021. Century Court West Luxury townhomes has an approved
site plan of 84 total units that are not TIF financed. Three 12 unit buildings were completed
in February 2020 and another is under construction. The rent is $1350 - $1400 for a 2
bedroom, 2 bath unit with an attached garage.
Market Rate General Occupancy Vacancy Rate
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Non-Market Rate General Occupancy Rental
The vacancy rate of non-market rate general occupancy projects in February 2021 was
3.09%. Vacancies in subsidized developments should typically fall around 2.0% - 3.0%.
Senior Housing
February 2021 vacancy rate for market rate, apartment style senior housing for the Oaks &
Pines and Prince of Peace Retirement Living, (not including memory care) was 14.5%.
Woodstone has completed 38 units of senior independent living.
The February 2021 vacancy rate for affordable/subsidized senior housing was 1.30%.
Vacancies in subsidized developments should typically be around 2.0 - 3.0%.
2020 Hutchinson HRA Year End Report 5/26/2021 Page 5 of 12 Pages
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2021 Vacancy Rates
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2021 General Occupancy-Market Rate Rents (February 2021)
AptNameEfficiencyEffic.AptNameAptNameRents
Dawson Property2$400435 California Apt.2$475435 California Apt.1$600
Colonial Apt.1$415Alexander10$550Valley View Apt. 2$713
Gateway Central1$445Mansard Apt.11$550Olson Apartments6$750
Alexander1$500Olson Apartments25$550Golfview Apts.2$750
South Dale Apt.2$550Colonial Apt.4$570Dale Street Apt.1$750
Apollo Apt.7$600Bradford Apts.2$875
AptName Parkwood Apartments16$610Ridgedale Square 12$945
435 California Apt.1$395Valley View Apt. 32$655Highfield 1,2&36$950
Mansard Apt.1$475Golfview Apts.9$670Twin Oak Townhomes8$970
Apollo Apt.3$500Gateway Central13$675Deer Park 12$1,015
Dawson Property2$500Bartco8$699Bartco3$1,100
Olson Apartments2$500Bradford Apts.2$70028$1,260
Century Court Apt. E
Twin Apt.14$500Cedar Acres Apts.15$700
Parkwood Apartments8$515Dale Street Apt.30$700
Colonial Apt.3$530Southview Terrace18$700
Gateway Central3$575Fairlane Apt.15$705
Valley View Apt. 2$592Park View Terrace A17$710
Golfview Apts.1$590Echo Manor Apt.28$720
Echo Manor Apt.2$600565 Jefferson Apt.11$725
Dale Street Apt.7$600Country Club Manor50$755
Fairlane Apt.9$605Ridgedale Square 34$775
565 Jefferson Apt.1$605Hutchinson Apts LLC34$800
Cedar Acres Apts.21$650Twin Oak Townhomes64$800
Bartco$669Highfield 1,2&351$850
3
Park View Terrace A$695Deer Park 105$910 Income
Yearly
1
Country Club ManorHighfield 4&546$995
21$695
Ridgedale Square $705Century Court Apt. East 47$1,040
2
Century Court Apt.
West
Twin Oak Townhomes84$1,350
8$715
Hutchinson Apts LLC
2$750
Highfield 1,2&3
30$750
Deer Park
20$815
Century Court Apt. E$870*
21
Highfield 4&5* Median Household Income in Hutchinson from USCB 2019: ACS 5yr Est.
24$895
Table
* Some above listed rents may include utilities; see the Hutchinson Apartment Guide for details.
**Information is deemed correct at time of survey but not guaranteed.
Change in Hutchinson Apartments
Market Rate Median Rents
General Occupancy, Market Rate Median Rents
8/2019 2/2021 Change % change
Efficiency $473 $445 -$28 -5.92% Decrease
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1 Bedroom $572 $603 $31 5.42% Increase
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2 Bedrooms $675 $700 $25 3.70% Increase
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Bedrooms $795 $910 $115 14.47% Increase
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2020 Hutchinson HRA Year End Report 5/26/2021 Page 6 of 12 Pages
Change in Hutchinson Apartments
Market Rate Average Rents
General Occupancy, Market Rate Average Rents
8/2019 2/2021 Change % change
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Efficiency $479 $462 -$17 -3.55% Increase
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1 Bedroom $591 $627 $36 6.09% Increase
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2 Bedrooms $698 $734 $36 5.16% Increase
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3 Bedrooms $840 $890 $50 5.95% Increase
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85.4%
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$57,672 Median Income*
Median Price of Hutchinson Home * Median Household Income in Hutchinson from USCB 2019: ACS
Re-Sale from MLS $200,000 5yr Est. Table
Monthly Mortgage Payment $843 $700 Median Rent of Market Rate 2 BR in Hutchinson
Percent of Monthly Income to Buy 29% 14.6% Percent of Monthly Income to Rent Home
2. Homeownership
Interest rates are currently low; low interest rates and an affordable median re-sales price
compared to Hutchinson median income provide opportunities for buyers who have good
credit and are mortgage ready. The thirty-year fixed rate mortgage interest rate is 3.00%.
For a loan of $200,000 the payment for principal and interest would be $843 per month.
However, currently the lack of inventory is slowing sales.
According to information from the Minneapolis Area Association of Realtors, the median
Hutchinson sales price rose 10.5% in 2020 from $181,000 to $200,000, a vigorous increase
in the for sale housing market. There were 323 sales in 2020 compared to 315 sales in 2019.
As of December 2020, there was an inventory of only 18 homes for sale.
2020 Hutchinson HRA Year End Report 5/26/2021 Page 7 of 12 Pages
According to information from McLeod County, in 2020 there were 343 sales in Hutchinson
with a median sales price of $186,000.00
HOME RESALES
CITY OF HUTCHINSON
2010 through 2020
Year20202019201820172016201520142013201220112010
Price RangeNo.Pct. No.Pct. No.Pct. No.Pct. No.Pct. No.Pct. No.Pct. No.Pct. No.Pct. No.Pct. No.Pct.
Under $50,00072.0%10.3%71.9%92.7%103.0%154.2%185.72910.24415.33012.42411.1
$50,000 to $74,999102.9%51.6%113.1%103.0%154.6%267.3%175.43512.33311.53112.8167.4
$75,000 to $99,999102.9%82.5%154.2%226.6%3811.6%3911.0%3410.83612.76221.64619.03214.8
$100,000 to $124,999195.5%278.6%4612.8%4613.8%5416.4%5816.3%5918.74917.35218.14819.83817.6
$125,000 to $149,9994914.3%5015.9%6718.7%7021.0%7623.1%6819.1%6821.55920.84114.33313.63817.6
$150,000 to $174,9995114.9%6420.3%7019.5%7321.9%5516.7%6016.9%5116.12910.2165.6229.12310.6
$175,000 to $199,9995516.0%5918.7%5515.3%3911.7%237.0%277.6%216.6165.6134.593.7125.6
$200,000 +14241.4%10132.1%8824.5%6419.2%5817.6%6317.7%4815.23110.9269.1239.53315.3
Total 343100.0%315100.0%359100.0%333100.0%329100.0%356100.0%316100.0284100.0287100.0242100.0216100.0
Median$186,000$175,000$161,900$153,500$140,000$138,750$133,500$121,000$101,400$109,950$121,600
Sources:Peterson-Paulsen Associates Inc. Realty
Maxfield Research Inc.
McLeod County Assessor's Office
According to the Census 2019: ACS 5 year estimate, the median household income for
Hutchinson is $57,672 or $27.73/hour at 40 hours per week. Based on a household being
able to afford a home priced at 3.5 times their income, not factoring in savings or debt that
they may have, a $57,672 yearly income could afford a home priced at $201,852.00.
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Total 2020 Hutchinson Year End Home Resales = 343
The above charts are based on information from McLeod County.
3. Housing Construction in Hutchinson
According to the City of Hutchinson, Planning/Zoning/Building Department, there were 36
new construction dwelling units built in 2020. As of 12/31/2020 there were 133 lots
available. The lot supply benchmark for growing communities is a three to five year lot
supply. A three to five year lot supply allows adequate consumer choice but minimizes
2020 Hutchinson HRA Year End Report 5/26/2021 Page 8 of 12 Pages
Residential Lots Available
397
331
323
318317
314314
309
299
292292
284
279
262
254
242
239
216
188
180
165
133
1999200020012002200320042005200620072008200920102011201220132014201520162017201820192020
Number of New Construction Single-Family Dwelling Units
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Number of Certificate of Occupancy for General Occupancy Multi-Family Dwelling Units
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The above 3 charts are based on information from the Department of Planning, Zoning and Building
4. Foreclosure Update: Foreclosures in 2020 were lower than in 2004 when foreclosure data
was initially tracked.
McLeod County and Hutchinson
Foreclosure Counts
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McLeod CountyHutchinson
2020 Hutchinson HRA Year End Report 5/26/2021 Page 9 of 12 Pages
Number of Foreclosures in McLeod County and Hutchinson
Year McLeod Hutchinson
2004 48 14
2005 56
2006 72
2007 142 40
2008 159 42
2009 135 50
2010 200 62
2011 176 77
2012 135 45
2013 93 39
2014 75 28
2015 53 25
2016 44 18
2017 34 11
2018 24 7
2019 27 12
2020* 14 6
*Moratorium on all pending and future foreclosures when the foreclosure arises out of a substantial decrease in income or
substantial out of pocket medical expenses caused by the COVID-19 pandemic, or any local, state, or federal governmental
response to COVID-19 (State of Minnesota Emergency Executive Order 20-79)
2021 Realtor Predictions:
Q. What do you see for the housing market for Hutchinson in 2021?
A. We expect the housing market to be very similar to 2020.
Q. What are the most influential factors affecting housing in Hutchinson?
A. The lack of inventory of homes for sale is driving the prices up. This is not a local concern,
but a concern throughout the country. However, many buyers are able to purchase because
of the low mortgage interest rates.
Q. There were 36 houses built in 2020. What do you think will happen to new housing
construction in 2021?
A. We expect the building to continue to expand. That being said, we will likely run short of
lots to build on, but there are a couple of areas that are being considered for development.
Hutchinson HRA Priorities for 2021:
HRA Park Towers:
Implement RAD Section 8 PBRA at Park Towers.
Follow legislation that may require sprinklers in high rise residential buildings.
City Center Operations, Owner Occupied Rehab:
Administer the City Home Improvement Grant Program (TIF available funds) for owner
occupied rehab.
Administer Minnesota Housing Impact Funds, and Fix-Up Loans, as leverage funds to the
City Home Improvement Grant Program.
Administer the Minnesota Housing Rehab Loan Program for owner occupied rehab for very
low income homeowners.
2020 Hutchinson HRA Year End Report 5/26/2021 Page 10 of 12 Pages
Administer the Fix Up Fund Home Improvement Loan Program.
Identify owner occupied target areas needing rehab. Consider allocation of targeted funds to
those areas.
City Center Operations, SCDP Rental Rehab Program:
Identify and determine interest of potential rental rehab projects.
City Center Operations, Rental Development
Obtain a Comprehensive Housing Study/Market Analysis for Hutchinson after the 2020
Census Data is available. Develop a subsequent housing plan including potential resources
for needed housing development.
December 31, 2020 Housing Fund Balances
G/HRA/Year End Report/2020 HRA Year End Report
2020 Hutchinson HRA Year End Report 5/26/2021 Page 11 of 12 Pages
2020 Hutchinson HRA Year End Report 5/26/2021 Page 12 of 12 Pages
2020 Year End by the Numbers
General Occupancy Vacancy Rates
February 2021
A healthy vacancy rate is 5.0% to allow for unit turnover and consumer choice
Market Rate General Occupancy Vacancy Rate
14.90%
16.00%
14.00%
12.00%
10.31%
10.00%
9.00%
9.00%
8.38%
7.54%
8.00%
5.30%
6.00%
4.60%
4.68%
4.08%
4.13%
4.07%
2.76%
1.89%
4.00%
1.85%
1.76%1.83%
1.76%
2.12%
2.00%
0.00%
2021 General Occupancy-Market Rate Rents (Feb 2021)
AptNameEfficiencyEffic.AptNameAptNameRents
Dawson Property2$400435 California Apt.2$475435 California Apt.1$600
Colonial Apt.1$415Alexander10$550Valley View Apt. 2$713
Gateway Central1$445Mansard Apt.11$550Olson Apartments6$750
Alexander1$500Olson Apartments25$550Golfview Apts.2$750
South Dale Apt.2$550Colonial Apt.4$570Dale Street Apt.1$750
Apollo Apt.7$600Bradford Apts.2$875
AptName Parkwood Apartments16$610Ridgedale Square 12$945
435 California Apt.1$395Valley View Apt. 32$655Highfield 1,2&36$950
Mansard Apt.1$475Golfview Apts.9$670Twin Oak Townhomes8$970
Apollo Apt.3$500Gateway Central13$675Deer Park 12$1,015
Dawson Property2$500Bartco8$699Bartco3$1,100
Olson Apartments2$500Bradford Apts.2$70028$1,260
Century Court Apt. E
Twin Apt.14$500Cedar Acres Apts.15$700
Parkwood Apartments8$515Dale Street Apt.30$700
Colonial Apt.3$530Southview Terrace18$700
Gateway Central3$575Fairlane Apt.15$705
Valley View Apt. 2$592Park View Terrace A17$710
Golfview Apts.1$590Echo Manor Apt.28$720
Echo Manor Apt.2$600565 Jefferson Apt.11$725
Dale Street Apt.7$600Country Club Manor50$755
Fairlane Apt.9$605Ridgedale Square 34$775
565 Jefferson Apt.1$605Hutchinson Apts LLC34$800
Cedar Acres Apts.21$650Twin Oak Townhomes64$800
Bartco$669Highfield 1,2&351$850
3
Park View Terrace A$695Deer Park 105$910 Income
Yearly
1
Country Club ManorHighfield 4&546$995
21$695
Ridgedale Square $705Century Court Apt. East 47$1,040
2
Century Court Apt.
West
Twin Oak Townhomes84$1,350
8$715
Hutchinson Apts LLC
2$750
Highfield 1,2&3
30$750
Deer Park
20$815
Century Court Apt. E$870*
21
Highfield 4&5* Median Household Income in Hutchinson from USCB 2019: ACS 5yr Est.
24$895
Table
* Some above listed rents may include utilities; see the Hutchinson Apartment Guide for details.
**Information is deemed correct at time of survey but not guaranteed.
Change in Hutchinson ApartmentsChange in Hutchinson Apartments
General Occupancy, Market Rate MedianGeneral Occupancy, Market Rate Average
RentsRents
$890
$1,000
$900
$840
$910
$900
$800
$795
$734
$698
$800
$700
$700
$627
$675
$591
$603
$700
$600
$572
$462
$600
$479
$500
$473
$445
$500
$400
$400
$300
$300
$200
$200
$100
$100
$0
$0
Efficiency1 Bedroom2 Bedrooms3 Bedrooms
Efficiency1 Bedroom2 Bedrooms3 Bedrooms
8/20192/20218/20192/2021
Monthly Income Needed to Buy vs. Rent
Affordable Rental Housing Standard: Housing should cost no more than 30% of the
household gross income.
Monthly Income to Buy
Monthly Income to Rent
14.6%
29%
85.4%
71%
Percent of Monthly Income to Rent Home
Percent of Monthly Income to Buy
$57,672Median Income*
Median Price of Hutchinson Home Re-Sale
* Median Household Income in Hutchinson from USCB 2019: ACS 5yr Est. Table
from MLS$200,000
Monthly Mortgage Payment$843$700Median Rent of Market Rate 2 BR in Hutchinson
Percent of Monthly Income to Buy 29%14.6%Percent of Monthly Income to Rent Home
2020 Hutchinson Home Resales
compared to the MLS median of $200,000.00
The MLS median showed a 10.5% increase from the previous year
2020 Hutchinson Home Resales
2020 Hutchinson Home Sale Price RangesHutchinson Median Sales Price
$200,000
2.0%
Under $50,000
2.9%
$186,000
2.9%$180,000
9.3%
$50,000 to $74,999
$175,000
5.5%
3.8%
$75,000 to $99,999
$161,900
$160,000
$100,000 to $124,999
$153,500
6.7%
$140,000
$125,000 to $149,999$138,750
$140,000
14.3%
$133,500
$150,000 to $174,999
$117,750
8.5%
$121,000
$120,000
$175,000 to $199,999
$200,000 to $224,999
$109,950
14.9%
$100,000
$225,000 to $249,999
$101,400
13.1%
$250,000 to $274,999
$80,000
$275,000 to $299,999
20202019201820172016201520142013201220112010
16.0%
$300,000 +
Hutchinson Median Sales Price
Total 2020 Hutchinson Year End Home Resales = 343
Residential Lots Available in Hutchinson
397
331
323
318
317
314314
309
299
292292
284
279
262
254
242
239
216
188
180
165
133
9012345678901234567890
9000000000011111111112
9000000000000000000000
1222222222222222222222
The lot supply benchmark for growing communities is a three to five year lot supply. A three
costs. At the current building rate of 36 homes per year there is a 3.7 year lot supply.
*Southfork Ridge Fourth Addition final plat May 2021-an additional 19 lots.
Number of Hutchinson New Construction,
Single Family Dwelling Units
*Skyrocketing lumber prices resulted in the average price of a single family new home
increasing by $24,000.
80
73
70
58
60
50
36
40
34
32
30
27
30
23
23
20
19
20
12
7
10
5
44
0
2005200620072008200920102011201220132014201520162017201820192020
Certificate of Occupancy Issued for Hutchinson
General Occupancy
Multi-Family Dwelling Units
150
137
100
96
50
48
36
29
29
29
0
1994199619992017201820192020 Century
RidgedaleDeer ParkCenturyHighfieldHighfieldHighfieldCourt West
SquareCourt TH
East
2020 Hutchinson General Occupancy
Rental Development
Century Court West Luxury Townhomes has an approved site plan of 84
total units that are not TIF financed and completed construction of 3
buildings(12 units each) in 2020.
2021 General Occupancy Rental
Development
General Occupancy:
HighfieldApartments (Kuepersdevelopers) completed 2 buildings (35 units each) in
February 2021.
Century Court West Luxury Townhomes -12 units are currently under construction
in 2021.
2020 Foreclosures
6 Foreclosures in Hutchinson
McLeod County and Hutchinson
Foreclosure Counts
200
176
200
159
142
135
135
150
93
100
75
7744
53
62
34
27
40
246
50
42
45
50
39
28
25
18
7
11
12
14
0
20072008200920102011201220132014201520162017201820192020
McLeod CountyHutchinson
*Moratorium on all pending and future foreclosures when the foreclosure arises out of a substantial decrease in income or substantial out of pocket
medical expenses caused by the COVID-19 pandemic, or any local, state, or federal governmental response to COVID-19 (State of Minnesota Emergency
Executive Order 20-79)
McLeod County Point in Time
Homeless Count
On January 27, 2021, the HOMES program had 3 families (7 total people)
sheltered.
HOMES stands for Housing Opportunities in McLeod for Emergency
Shelter. They are a collaboration of members of the Hutchinson community
and United Community Action Partnership.
Information provided by Justin Vorbach, Southwest Minnesota Continuum
of Care Coordinator.
McLeod County Homeless Count
HOMES Program operates in Hutchinson only. UCAP provides staff supportive services and
financial accounting. HOMES Board raises money to pay for three rooms each night.
27 households were served in 2020.
44% males/56% females
87% of the adults served had Mental Health concerns.
11% physical disability
27% fleeing domestic violence
Average length of Stay in HOMES -78 days
UCAP opened an office in Glencoe this year and plans to help those facing homelessness.
2020 HRA RESULTS
The HRA administered $500,000 in SCDP funds for the 907 Dale Street Apartments (South
Dale) rental rehab project. The total project cost including owner match is $714, 286.
The HRA administered rehab funding for 6 homeowners throughout the city to preserve
housing stock and improve neighborhoods.
Conducted a windshield survey to identify the need for rehab target areas. No target areas
were identified so rehab funds will remain city wide.
2020 HRA RESULTS
Park Towers RAD Conversion from Public Housing to Section 8 Project Based Rental Assistance:
The HRA converted Park Towers from Public Housing to RAD Section 8 Project Based Rental
Assistance (PBRA) in order to lock in attractive 2020 Capital Funds and Operating Funds while
moving to a more stable funding environment.
Park Towers will still be publicly owned, managed and operated by the Hutchinson HRA and provide
rents at 30% of household income for households at up to 80% of McLeod County Area Median
Income adjusted for family size.
The RAD program provides a set 20 year contract with less uncertainty around year to year
fluctuations in congressional funding.
The RAD program also provides a plan including an initial investment of $650,000 Replacement
Reserve to continue maintenance improvements needed over the next twenty years.
Residents will not have to worry about displacement or moving out, because no large scale
construction will be taking place.
The RAD transaction closed in December 2020 with the change going into effect January 1, 2021.
Impact of COVID-19
There is concern for work force housing and naturally occurring affordable housing developments that
the eviction moratorium and loss of rental income has resulted in a decrease in operating income for
apartment owners. The impact to subsidized housing is nominal, because the government helps
guarantee 70% of the rent payments.
The Eviction Moratorium in Minnesota at this time remains in place for non-payment of rent. Rent is
still due during this time period and will accumulate if unpaid.
Governor Walz issued an Executive Order halting evictions, beginning March 24, 2020 and continuing for
the duration of the peacetime emergency declared in Executive Order 20-01 or until rescinded by proper
authority The order also requests financial institutions holding home mortgages to implement an
immediate moratorium on all pending and future foreclosures and related evictions when the foreclosure
is related to lost income or out of pocket medical expenses due to the COVID-19 pandemic.
Impact of COVID-19
Minnesota is now bracing for a glut of evictions once the eviction moratorium ends. A
--day
phase out period where landlords would have to provide notices to tenants before filing
evictions. A final version is expected to pass in late April or May. In the meantime,
State Housing Finance officials are preparing to launch a new COVID-19 Emergency
Rental Assistance Program with $375 million that Congress provided in a COVID-19
relief bill in December. Eligible renters will include households that earned 80% or less
of area median income in 2020 or in the most recent month. More information is
available at 211 or RentHelpMN.org is open for applications. Additional rental
assistance is included in the American Rescue Plan approved by Congress in 2021;
information about that program is not yet available.
2021 Realtor Trends
Q. What do you see for the housing market for Hutchinson in 2021?
A.We expect the housing market to be very similar to 2020.
Q.What are the most influential factors affecting housing in Hutchinson?
A.The lack of inventory of homes for sale is driving the prices up. This is not only a local concern, but
a concern throughout the country. However, buyers are able to purchase because of the low mortgage
interest rates.
Q.There were 36 houses built in 2020. What do you think will happen to new housing construction in
2021?
A. We expect the building to continue to expand. That being said, we will likely run short of lots to build
on, but there are a couple of areas that are being considered for development.
2021 Priorities
Train Staff and implement RAD Section 8 PBRA at Park Towers.
Follow legislation that may require sprinklers in high rise buildings.
As of December 31, 2020 there is $177,029.98 in SCDP Program or Local Income Funds available for
either Owner Occupied or Rental Rehab projects for households up to 80% of McLeod County Median
Income.
TIF available balance of $340,000 for up to $10,000 grant, home improvement funds per home for
households with incomes up to $80,900. The grant covers 50% of eligible improvements.
A $5,000 Live and Work in Hutchinson grant for First Time Homebuyers is also available for household
incomes up to $93,100 or $107,000 for households of 3 or more.
2021 Priorities
Administer City owner occupied rehab programs, including the City Home Improvement
Grant Program (TIF available funds), Fix-Up loans, Minnesota Rehab Loan Program.
Evaluate need for SCDP Program or Local Income rehab program to provide funding for
households up to 80% of McLeod County AMI.
Identify potential rental projects needing rehab.
2021 Priorities
Obtain a Comprehensive Housing Market Analysis for Hutchinson after the
2020 Census Data is available. Census data is beginning to release with
County population (age, sex, race) available June 17, 2021.
After the Housing Study is complete, develop a housing plan including
potential resources available.
Questions???
Information will be at www.hutchinsonhra.com