2121 HRAYER
2021 Year End Report
CITY CENTER OFFICE
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 www.hutchinsonhra.com
2021 Hutchinson HRA Year End Report Page 1 of 9
“We know that without a safe, affordable place to live, nothing else in life works –
not your job, your health, your family, or your education,” - Senator Tina Smith
The Hutchinson HRA (HHRA) is a public body politic formed by the Hutchinson City
Council in 1969 according to MN State Statue. The HHRA was created 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. In addition, the HHRA administered
other housing rehab programs throughout the city to preserve housing stock and improve
neighborhoods.
Yearly the HHRA collects housing data to help identify changing community housing needs and
then administer/develop housing programs that will provide a positive impact on the community.
The HHRA Board of Commissioners meets at 7:00 a.m. on the third Tuesday of the month at the
City Center. The Board consists of five members, four of whom shall be residents of the City
and one who shall be a member of the City Council. HRA Board members are eligible to serve
two full terms.
Vision Statement
“The Hutchinson HRA will advocate for safe, affordable housing and encourage collaboration
with the other agencies and the private sector to meet community housing needs.”
Mission Statement
“The Hutchinson HRA will provide affordable housing programs relevant to the housing needs
of the community.”
Message from the Executive Director
2021 was a year of many changes for the HHRA. Starting off in January when Park Towers
Apartments transitioned from HUD’s Public Housing Program to HUD’s Multifamily, Section 8
Program (RAD-PBRA). March began a chain of staffing changes when long time, Executive
Director, Jean Ward announced that she was retiring. August I was hired as the new Executive
Director and in November our new part-time HRA Technician was hired. Also, in August the
907 Dale Street Rental Rehab project was completed and the grant was closed out. Throughout
the year we also continued to administer the City’s owner-occupied rehab grant programs.
2022 will be a year of continued learning!
Judy Flemming
Executive Director (320) 234-4451 jflemming@hutchinsonmn.gov (City Center)
(320) 587-2168 jflemming@hutchtel.net (Park Towers)
2021 Hutchinson HRA Year End Report Page 2 of 9
0.00%Senior Subsidized Rental HousingHousingSenior Market Rate RentalSubsidized General OccupancyMarket Rate General Occupancy 1.30%2.04%3.44%0.72%2021 Vacancy Rates 4.00%2.00%0.00%Market
Rate General Occupancy Vacancy Rate 0.72%1.83%2.76%1.76%1.76%1.85%1.89%4.08%5.30%8.38%7.54%4.68%4.07%2.12%4.60%9.00%9.00%16.00%14.00%12.00%10.00%8.00%6.00%4.00%2.00%
Hutchinson Yearly Comparisons
Rental Data from the October 2021 Apartment Survey:
2021 Hutchinson HRA Year End Report Page 3 of 9
$215,400$224,999$200,000 to$199,999$175,000 to$174,999$150,000 to$149,999$125,000 to$124,999$100,000 to$75,000 to $99,999$50,000 to $74,999Under $50,000 Ranges2021 Hutchinson Home Sale
Price 26.8%11.4%20.9%18.6%22.3%15.5%9.1%7.8%2.7%3.5%1.3%1.1%Hutchinson Median Sales Price Hutchinson Median Sales Price$240,000$220,000$200,000$180,000$160,000$140,000$120,000$100,000$80,000$109,950
$101,400$121,000$133,500$138,750$140,000$153,500$161,900$175,000$186,000
Year End Hutchinson Home Resales Data from McLeod County Assessor’s Office:
Year End Hutchinson Home Resales Data from the Minneapolis Area Association of Realtors:
2021 2020 2019 2018 2017
Median Sales Price $235,000 $200,000 $181,000 $170,000 $161,000
# of Sales 317 324 315 330 318
2021 Mortgage Rates:
30-year fixed rates at the beginning of 2021 were 2.65% and ended at 3.1% according to
Minneapolis Area Association of Realtors.
2021 Hutchinson HRA Year End Report Page 4 of 9
73 Highfield2021Court West2021 CenturyCourt West2020 CenturyHighfield2019Highfield2018Highfield2017TH EastCentury Court1999Deer Park1996SquareRidgedale1994 20010007036362929299613748
Residential Lots Available 2021202020192018201720162015201420132012201120102009200820072006200520042003200220012000107133165188216242279284299309314317314323331397254292239292318262
HutchinsonMcLeod CountyForeclosure CountsMcLeod County and Hutchinson 3612711182528394577625042405142724344453759313517620013515914220010008060402003536233427302023125474193258
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
Number of Certificate of Occupancy for General Occupancy Multi-Family Dwelling Units
Hutchinson Foreclosures:
2021 Hutchinson HRA Year End Report Page 5 of 9
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
2021 5 3
*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)
Summary of HHRA 2021 Activities:
Park Towers Apartments Management:
RAD Conversion from Public Housing to Multifamily, Section 8 Project Based Rental
Assistance Program (PBRA): Park Towers management was in two worlds in 2021. We still
received operating funding from the Public Housing Program but all the requirements for the
Multifamily, PBRA program had to be followed.
Asset Preservation, Property Improvements and Energy Conservation
In Units: New vinyl planking was installed in 9 apartment units at turns. Water saver power
flush toilets were installed in 11 units to save water and reduce toilet plugs. 5 units had Air
Conditioners replaced.
Replaced the front entry automatic door opener.
Each of the residents’ keyless-entry door systems needed a software update. The building’s
two, keyless-entry door systems needed the update too.
Park Towers Property Management
Both Park Towers staff members earned the HUD Multifamily Housing Specialist
Certification. The Housing Specialist earned her boiler license.
2021 Hutchinson HRA Year End Report Page 6 of 9
City Home Improvement Grant Program (TIF):Match Funds:
Total Project
Live and WorkPersonalWeatherizationCost
$5,000.00Washington Ave. WWindows/Doors$5,000.00
$5,000.00Boulder Street SWA/C & Plumbing$5,000.00
Total$10,000.00$0.00$0.00$10,000.00
Total Project
Home Improvement - GrantPersonalMH Fix Up LoanCost
$10,000.00CarlisleBathroom Updates$25,822.00$35,822.00
$9,848.34Washington Ave. W *Windows/Doors$9,848.34$19,696.68
$10,000.00Harmony LaneDecking$10,000.00$20,000.00
$1,280.00Glen Street SWSewer$1,280.00$2,560.00
$4,537.00Jefferson Street SEBoiler & Electrical$4,537.00$9,074.00
$10,000.00McDonald Dr. SWSiding$10,000.00$20,000.00
$4,104.00Adams Street SEWindows$4,104.00$8,208.00
$4,272.00Madson Avenue SWFurnace & A/C$4,272.00$8,544.00
$10,000.00Second Avenue SWWindows$10,000.00$20,000.00
Total$64,041.34$49,937.34$29,926.00$143,904.68
*Project combined with L&W program
2021 Total Owner Occupied Rehab Projects10
There was one tenant that transferred to a different unit, 13 move-outs, and 17 move-ins in
2021.
One significant change from the Public Housing Program is that every time a tenant has a
change in income of $200 or more a month, the rent has to be recalculated.
Tenant Services
Hosted National Night Out and a Pick-up Christmas Diner.
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.
City Center Operations:
Owner Occupied Rehabilitation
Rental Rehabilitation
Completed the rehabilitation of 907 Dale Street Apartments (South Dale) and closed out the
2019 Minnesota Small Cities Development Program Grant (SCDP).
Final Budgets Former Change Final
Federal Reverted $469,751.00 - $469,751.00 Met small cities goals
Program Income $105,249.00 - $105,249.00
Leveraged funds $214,286.00 $31,715.00 $246,001.00 Exceeded leverage goals
Totals $789,286.00 $31,715.00 $821,001.00
2022 Realtor Housing Market Predictions:
Q. What do you see for the housing market for Hutchinson in 2022?
2021 Hutchinson HRA Year End Report Page 7 of 9
A. Buyer demand will continue to put pressure on the already low listing supply. I believe the
number of overall sales will be lower than last year due to this (based on 1st quarter
numbers).
Q. What are the most influential factors affecting housing in Hutchinson?
A. Supply, affordability, and interest rates.
Q. There were 35 houses built in 2021. What do you think will happen to new housing
construction in 2022?
A. Similar to 2021. I believe new construction will be limited by the availability of lots, rising
construction costs, and limited work force in the trades.
Hutchinson HRA Priorities for 2022:
Park Towers Apartments Management:
Continued implementation of RAD Multifamily, Section 8 PBRA program at Park Towers.
Continue to install vinyl planking and power flush water saver toilets at turns.
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), Minnesota
Housing Rehab Loan Program and the Fix Up Fund Home Improvement Loan Program.
Market available programs throughout the community.
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 2021
Census Data is available. Develop a subsequent housing plan including potential resources
for needed housing development.
City Center Operations – After Housing Needs Study Completion
Determine best uses of the HRA Island View Heights lots.
Identify American Reuse Plan Fund potential housing projects.
2021 Hutchinson HRA Year End Report Page 8 of 9
SCDP City Revolving Local Income Balance$188,393.14
SCDP City Revolving Program Income Balance
$51,873.89
TIF Available Balance$280,000.00
Total Funds Available:$520,267.03
City SCDP New Construction$78,450.00
City SCDP Rehab (Owner & Rental)$523,689.60
City TIF Owner Rehab $80,430.75
Total Balance of City SCDP Loans Receivable
$682,570.35
HRA Notes Receivable HHPOP$9,245.56
HRA Notes Receivable Rehab$0.00
December 31, 2021 Housing Fund Balances
Total Balance of HRA Loans Receivable
$9,245.56
2021 Hutchinson HRA Year End Report Page 9 of 9