2016HRAYERij r.
Before Owner Occupied Rehab After
HRA 2016 YEAR END REPORT
HUTCHINSON HOUSING AND
REDEVELOPMENT AUTHORITY
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 needs for
low income families and to address substandard areas in Hutchinson. Since then the HRA has
been involved in building and operating Park Towers Apartments with HUD Federal funding and
is a HUD High performer. The Hutchinson HRA also helped to redevelop the parcel that is now
Prince of Peace Retirement Living. Since 1990, the HRA has obtained over $20M of federal,
state or other outside funding for the housing needs in Hutchinson and has been involved with
various housing programs including owner occupied rehab, rental rehab, the school construction
program and affordability gap for workforce housing. The HRA has been instrumental in
obtaining Small Cities Development Program funds, Minnesota Housing Finance Agency
Funding, and Greater MN Housing Funds for housing programs within the city of Hutchinson.
In 2016, the HRA helped facilitate the use of TIF for construction of Highfield Apartments, a
new 87 unit general occupancy rental project, administered rehab programs for owner occupied
and rental and owned and managed Park Towers Apartments.
Why does Housing matter?
Housing matters because:
• Decent, affordable housing is shown to stabilize families -for example 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
In 2016, the HRA worked on the following housing objectives:
1. Continue to maintain strong emphasis on property management, property improvements, and
energy conservation at Park Towers.
2. Support rehabilitation of housing to preserve housing stock and improve neighborhoods.
3. Facilitate the development of needed general occupancy rental housing.
2016 Hutchinson HRA Year End Report 2/16/2017 Page 1 of 11 Pages
Summary of 2016 Activities:
Park Towers Apartments:
Property improvements and energy conservation remains a priority to maintain 40 vear
old building
1. Completed a $425,000 elevator renovation project in March 2016.
2. Building Improvements -$60,395.65: Replaced front entrance intercom system, replaced 8
unit carpets, replaced 9 unit air conditioners, replaced 3 way air handler valves, installed air
handler emergency stop and installed air handler circulator pump, installed heat circulator
pump in laundry room, installed unit vertical blind vane savers, replaced batteries in all unit
smoke detectors, replaced 13 fresh air supply vent covers, replaced two water heaters, and
replaced rest room exhaust fan motor.
3. Consumption of water, natural gas, and electricity decreased in 2016 from the previous year.
Park Towers Property Management
1. Updated/prepared the following: ACOP, Resident Handbook, Smoke Free Policy, 2016
Schedule of Charges and 2017 Park Towers Annual and 5 Year Plan.
2. Maintained a HUD PHAS High Performer Score of 99 out of 100 on Park Towers operation
and management.
4. Achieved a 99% average occupancy for 2016 and leased sixteen apartments.
5. Inspected all units, community areas, systems and site.
6. Park Towers continues to be a needed source of one -bedroom apartments for the elderly, the
disabled and low income workers. Current demographic report: the average household
income is $14,656 and the average tenant rent is $315 including utilities.
Tenant Services
Continued the focus on providing decent, affordable housing as well as facilitating services
needed by the senior and disabled population at Park Towers. A management goal at Park
Towers has been to support programs and partnerships that address the needs of residents.
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 and served
at Park Towers. $5,695 meals were served at Park Towers in 2016 through the Senior Dining
Program. The full cost of a meal is $7.00 and the suggested donation is $4.00.
The Park Tower's 2016 budget included funding for Tenant Services to create a monthly
activities calendar and newsletter. The Holiday Party and National Night Out Party are two
events planned by Park Towers staff that are very popular with residents. Staff also supports the
activities planned by the tenant council.
2016 Hutchinson HRA Year End Report 2/16/2017 Page 2 of 11 Pages
City Center Operations:
Owner Occupied Rehabilitation
In 2015, an available balance of $300,000 in city TIF owner occupied housing rehab funds
(HILP) was added as a flexible tool for single family owner occupied housing rehab to continue
owner occupied rehab efforts throughout the city. The City HILP Deferred Grant program and
Minnesota Housing Rehab Loan Program are "full service" programs that are HRA labor
intensive, requiring 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 Minnesota Housing Fix Up Loan Program, Community Fix Up Loan Program, City
Accessibility Deferred Grant and City HILP Streamlined Deferred Grant 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.
1. City HILP Deferred Grant Program — Three loans closed and the projects are completed.
This project had issues with the front stoop
plus drainage issues that were affecting the
foundation. Energy efficiency items were
addressed: new insulated front door with
storm door and insulation was added to the
attic. Minor plumbing & electrical issues
were also addressed. HILP $3,325.50 +
Owner funds $3,296.50 = Total $6,622
2016 City HILP Deferred Grants (3 completed projects) $14,623.42
2016 Other leverage funds: 3% HRA Loan or Personal Funds $22,419 + $3,296.50 = $25,715.50
2016 Total for 3 projects $40,338.92
2. City HILP Streamlined Grant Programs - No loans closed.
Minnesota Housing (MHFA) Rehabilitation (RLP) Program — No RLP loans were closed.
The MHFA Rehabilitation Program is a 0% deferred loan forgiven after fifteen years that
stresses safety, livability, and accessibility for families with very low incomes who own
their homes.
4. Minnesota Housiniz Finance (MHFA) Fix Un Loan and Communitv Fix Un Loan
Home Improvement Programs — Two Fix Up Loans closed. One loan was for windows
and handicap accessible bathroom improvements. The other loan was for a roof and
furnace.
Total of 2 Fix Up Loans $34,580.04
Allocation for Community Fix Up loans at 3% available January 2017 as owner matches
to the City HILP Deferred Loan/Grant Program for homeowners with incomes at or
below 80% AMI.
5. Minnesota Housing Finance (MHFA) Impact Deferred Loan Program — owner match
funds at 0% for City HILP Deferred Grant Program available January 2017.
2016 Hutchinson HRA Year End Report 2/16/2017 Page 3 of 11 Pages
Rental Rehabilitation
In 2015, the HRA was awarded $364,359 Small Cities Development Program funds for an
approved $771,501 downtown area rental rehab project Unit goals are: 3 single family units, 8
units of duplexes and 24 units of 3+ unit complexes for a total of 35 units.
# of Unit Goals Completed
Single Family / 1 Unit above Commercial 1
Duplex / 2 Units above Commercial 4
3+ Unit Complexes 0
2016 Rental Rehab Projects
City Rental Rehab
Loan/Grant
$72,257 � Other leverage funds: City
$25,714 Loan
Other leverage funds:
$17,000 Personal Funds
Obligated 2016 City Rental Rehab Loan/Grant
$72,257
Obligated 2016 Other leverage funds:
City Loan or Personal Funds
$42,714
($25,714 + $17,000)
Obligated 2016 Total
$114,971
Combined Years Obligated City Rental Rehab Loan/Grants
$100,089
Combined Years Obligated Other leverage funds:
City Loan or Personal Funds
$57,042
($25,714 + $31,328)
Combined Years Obligated Program Total
$157,131
In January 2016, it became apparent that the SCDP Rental Rehab
target area needed to be expanded due to the lack of interest or
eligibility for the program. Therefore, time was spent on soliciting
additional interested landlords near the original target area. The
expanded target area was approved in September 2016.
Applications have been received from Gateway Apartments (17
units) and 565 Jefferson (12 units) from the expanded target area.
With these applications, goals for the grant are expected to be met
by December, 2017.
2016 Hutchinson HRA Year End Report 2/16/2017
Page 4 of 11 Pages
Trends:
1. Rental Housing
Market Rate General Occupancy Rental
The market rate general occupancy rate in the fall of 2016 was 1.76%. 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 1.00% to a high of 14.9% in 2009 due
to area layoffs.
Market Rate General Occupancy Vacancy Rate
14.90%
15.00%
10.31%
10.00% 9.00 0 % 7.54% 838%
7.00%
4.68% 5.30%
5.00% 4. % 4.U8%
° 1.85%
2.12/° 1.89% 1.76%
0.00%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Non -Market Rate General Occupancy Rental
The vacancy rate of non -market rate general occupancy projects in the fall of 2016 was
1.28% Vacancies in subsidized developments should typically fall around 2.0% - 3.0%.
Senior Housing
The 2016 vacancy rate for market rate, apartment style senior housing for the Oaks & Pines
and Prince of Peace Retirement Living, (not including memory care) was 0.00%. Prince of
Peace Retirement Living has discussed expansion of market rate Congregate Housing at their
downtown location.
The 2016 vacancy rate for affordable/subsidized senior housing was 1.69%. Vacancies in
subsidized developments should typically be around 2.0 -3.0%.
2.00%
1.50%
1.00%
0.50%
0.00%
2016 Vacancy Rates
■ Market Rate General
Occupancy
■ Subsidized General Occupancy
■ Senior Market Rate Rental
Housing
■ Senior Subsidized Rental
Housing
2016 Hutchinson HRA Year End Report 2/16/2017 Page 5 of 11 Pages
2. Homeownership
The median sales price rose slightly in 2016, reflecting a stable housing market.
Foreclosures declined in 2016. Interest rates are currently low; low interest rates and an
affordable median sales price provides opportunities for buyers who have good credit and are
mortgage ready. The interest rate in December 2016 for a first time homebuyer MHFA Start
Up loan for an RD or FHANA loan was 4.00%.
According to information from McLeod County, in 2016 there were 329 sales in Hutchinson
with a median sales price of $140,000.
According to information from the Minneapolis Area Association of Realtors, looking at data
for Hutchinson, the 2016 median sales price was $147,200 compared to $145,000 in 2015, an
increase of 1.5%. There were 315 sales in 2016 compared to 338 sales in 2015. As of
December 2016, there were 71 homes for sales compared to 88 homes for sale in 2015.
HOME RESALES
CITY OF HUT CHINS ON
2006 throw h 2016
Year
2016
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
Price Range
Nr,-
Pct
Na-
Pct
Nn-
Pct
Nn-
Pct
No.
Pc*
Na-
Pct
Nr,- Pct
Nn- Pct
Nn- Pct
Nn- Pct
Nn- Pct
Under $50,000
10
3.0%
15
4.2%
18
5.7
29
10.2
44
15.3
30
12.4
24 11.1
9 4.2
6 2.7
5 18
6 16
$50,000 to $74,999
15
4.6%
26
17
5.4
35
0 12.3
33
11.5
31
12.8
16 7.4
V'27 12.5
11 4.9
6 2.2
.6
11.0%
$75,000 to $99,999
38
11.6%
39
34
10.8
36
12.7
62
2L6
46
19.0
32 14.8
36 16.7
23 10.2
17 6.1
22 5.8
$100,000 to $124,999
54
16.4%
58
16.3%
59
18.7
49
17.3
52
18.1
48
19.8
38 17.6
47 218
43 19.0
39 14.0
56 14.8
$125,000 to $149,999
76
23.1%
68
19.1%
68
2L5
59
20.8
41
14.3
33
13.6
38 17.6
46 2L3
34 15.0
63 22.6
67 17.7
$150,000 to $174
55
16.7%
60
16.9%
5
16.1
29
10.2
16
5.6
22
9.
23 10.6
20 9.3
51 22.6
59 211
88 23.2
$175,000 to $199,999
23
7.0%
27
7.6%
2
6.6
16
5.6
13
4.5
9
3.7
12 5.6
12 5.6
22 9.7
36 12.9
45 11.9
$200,000+
58
17.6%
63
17.7%
48
15.2
31
10.9
26
9.
23
9.5
33 15.3
19 8.8
36
54 19.4
85 22.4
Total
329
100.0%
356
100.0%
316
100.0
284
100.0
287
100.0
242
100.0
216 100.0
216 100.0
226 100.0
279 100.0
379 100.0
Median $140,000
$138,750
$133,500
$121,000
$101,400
$109,950
$121,600
$117,750
$146,750
$157,900
$158,000
S ources : Peterson -Paulsen Associates hie. Realty
Maxfield Research hie.
McLeod County Assessor's Office
7.0'Yo
I`
16.7%
2016 Hutchinson Home Sale Price Ranges
■ Under $50,000
■ $50,000 to $74,999
■ $75,000 to $99,999
■ $100,000 to $124,999
■ $125,000 to $149,999
■ $150,000 to $174,999
■ $175,000 to $199,999
0$200,000+
Total 2016 Hutchinson Year End Home Resales = 329
$170,000
$160,000
$150,000
$140,000
$130,000
$120,000
$110,000
$100,000
$90,000
$80,000
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
"-Median Sales Price
The 2016 median family income for McLeod County is $69,800. Based on a household
being able to afford a home priced at 2.5 times their income, not factoring in savings or debt
that they may have, a household would need an income of $58,880 to afford a home priced at
$147,200, the MLS 2016 median sales price of a house.
2016 Hutchinson HRA Year End Report 2/16/2017 Page 6 of 11 Pages
3. Housing Construction in Hutchinson
According to the City of Hutchinson, Planning/Zoning/Building Department, there were 30
new construction dwelling units built in 2016. There is an adequate supply of 242
residential lots available January 1, 2016 compared to 279 lots as of January 1, 2015.
500
400
300
200
100
0
Residential Lots Available
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
100
80
60
40
20
0
Number of New Dwelling Units Construction
93
81
73
58
32
19 12 23 20
4 4 5
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
The above charts are based on information from the Department of Planning, Zoning and Building
4. Foreclosure Update
200
100
IC
McLeod County and Hutchinson
Foreclosure Counts
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
■ McLeod County
■ Hutchinson
2016 Hutchinson HRA Year End Report 2/16/2017 Page 7 of 11 Pages
Number of Foreclosures in McLeod County and Hutchinson
Year
McLeod
Hutchinson
2001
37
2002
43
2003
48
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
2016 Sheriff Sales Cancelled In Hutchinson
9
2017 Sheriff Sales Scheduled to Date In Hutchinson
4
2017 Predictions from Local Realtors:
Q. What do you see for the housing market for Hutchinson in 2017? Are there any factors that
will be most influential in 2017?
A. Currently there is a shortage in inventory for sale. This is not just Hutchinson, but is a
nationwide concern. The shortage of homes for sale is helping the new construction market
and will ultimately cause prices of homes to rise. I do anticipate 2017 to still be a good
strong market as long as the interest rates don't go up much more than they currently are.
Q. The number of permits for new housing construction was 30 in 2016. (23 in 2014, 20 in
2015 and 30 in 2016). What do you think will happen to new housing construction in
2017?
A. In the last few months of 2016, there were many more building lots sold to builders than
we've seen in quite a while, so we're anticipating that the permits for new housing
construction will be strong in 2017.
Q. How does the increase in baby boomers affect the housing market?
A. For the last couple of years, when a townhome, condo, or twin home comes up for sale, it is
sold very quickly and many times with multiple offers. The demand for this type of housing
is very strong and will continue because of the number of baby boomers and the fact that
many of them currently own homes that they are able to sell quickly.
Q. Are people looking to rent rather than buy? How will the addition of Highfield Apartments
affect the rental housing market in Hutchinson?
A. We are not seeing that trend as much in Hutchinson. There are still many first time buyers
waiting to purchase their first homes. I think the addition of Highfield Apartments will affect
some of the current rentals that may not be as nice or as maintained as what the new
apartments will offer. If a tenant can be in a new apartment vs. an old house or apartment
that isn't as well cared for, and the rents are comparable, I think the tenants will move into
the new building.
2016 Hutchinson HRA Year End Report 2/16/2017 Page 8 of 11 Pages
Hutchinson HRA Priorities for 2017:
HRA Park Towers:
• Using 2016 CFP funds and operating reserves, convert a regular unit to a handicapped
accessible unit, update the first floor lobby, and paint corridors.
• Purchase new air conditioners, power flush water saving toilets, or upgrade electrical panels
using 2017 CFP funds.
• A new HUD rule called the AFFH (Affirmatively Furthering Fair Housing) has been
finalized, however with the change in Administration, implementation requirements may
change.
• With the new HUD rule regarding Smoke Free Housing finalized, implement a revised
Smoke Free Policy at Park Towers.
• Implement Housing Opportunity through Modernization Act of 2016 (HOTMA as HUD
releases guidance.
• HUD has published new provisions enhancing the Violence Against Women Act that require
implementation in 2017.
City Center Operations, Rental Rehab Pro, -ram:
• Request SCDP grant extension to December 31, 2018, if needed.
• Research the need for another SCDP Rental Rehab application.
City Center Operations, Owner Occupied Rehab:
• Administer the City Deferred Grant Program (TIF available funds) for owner occupied rehab.
• Implement Community Fix -Up Loan as leverage funds to the City Deferred Grant Program.
• Administer the Minnesota Housing Fix -Up Loan Program.
• Administer the Minnesota Housing Rehab Loan Program for owner occupied rehab.
City Center Operations, Rental Development:
• Highfield Apartments is expected to help relieve the shortage of general occupancy
apartments. The first phase of 27 units of Highfield Apartments is expected to be complete
in fall 2017. The second phase wasn't expected to begin until May 2017, but due to the
strong rental market and economies of scale in building the two phases concurrently, the
construction is beginning this winter. The general occupancy vacancy rate was 1.76% in
August 2016.
City Center Operations:
• Continue to request free radon test kits from the Minnesota Department of Health for
distribution in Hutchinson. Free radon test kits are available at the Hutchinson Planning,
Zoning, & Building front desk. Hutchinson is in a high radon area; radon mitigation is
recommended at radon levels above 4.Opc/L.
• Research the addition of Facebook social media for HRA.
2016 Hutchinson HRA Year End Report 2/16/2017 Page 9 of 11 Pages
2016 Hutchinson HRA Financial Summary:
2016 Federal & State 2016 Local Funds
Funds Obligated Obligated
Park Towers:
2016 Federal Operating Funds $98,400.00
2016 Federal Capital Funds $101,112.00 Handicapped Accessible unit & Lobby renovation
Operating Reserves Corridor Painting $42,987.00
Operating Reserves Park Towers Building Improvements $60,395.65
Homeowner Rehab Loans closed
TIF $13,294.50 HRA Home Improvement Loans $22,419.00
Other Leverage funds - Personal $3,296.50
MHFA:
CFUF $0.00
FUF $34,580.04
Unsecured FUL $0.00
RLP
2016 Obligated SCDP Rental Rehab Loans $72,257.00 2016 Obligated Owner Matches $25,714
Foreclosure Remediation:
Total 2016 Federal & State Funds Total 2016 Local Funds
Administered $319,643.54 Administered $154,812.15
Total all Funds Administered $474,455.69
Funds Available:
SCDP City Revolving Local Income
SCDP City Revolving Program Income
SCDP Income Received from 9-30-16 to
12-31-16
TIF Available Balance
Housing Fund Loan Balances:
HRA Notes Receivable 11HPOP
HRA Notes Receivable Rehab
City SCDP New Construction
City SCDP Rehab (Owner & Rental)
City TIF Owner Rehab
Total Balance of City SCDP Loans
Receivable
2016 Budgets
Park Towers
City Center
Total HRA Budget
$110,023.07 ($41,636.81 allocated for other programs)
$20,000.00 ($20,000 allocated to Rental Rehab)
$5,394.02
$285,376.10
$72,445.56
$25,189.32
$302,450.00
$471,002.67
$13,294.02
$786,746.69
$524,193.83
$375,677.80
$899,871.63
2016 HRA Personnel 4.0 Total FTE
Executive Director
HRA City Center Program Coordinator
Park Towers Public Housing Specialist
Park Towers Maintenance/Custodian
2016 Hutchinson HRA Year End Report 2/16/2017 Page 10 of 11 Pages
G: HRA/Year End Report/2016 HRA Year End Report
2016 Hutchinson HRA Year End Report 2/16/2017 Page 11 of 11 Pages
H UTGH I NSON HOUSING AND
REDEVELOPMENT AUTHORITY
2016 Year End by the Numbers
General Occupancy Vacancy Rates
16.00%
14.00%
12.00%
10.00%
8.00% - 7.00%
6.00%
4.
4.00% -
2.00
0.00%
00� 00� 00� 00�
14.90%
7.54% .
4.68%
07%
2.12%
10.31%
5.
4.08%
1.85%
1.89% 1.76%
1 i--#
� OHO eel
04' O°, 'yO 'y�' '��' 'y� 'y�` 'y� 'y1°
eel ,LO ,LO e ,LO ,LO r efO ,LO ,LO of of 1
1.80%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
2016 Vacancy Rates
1.76%
Market Rate General
Occupancy
Subsidized General
Occupancy
Senior Market Rate
Rental Housing
Senior Subsidized Rental
Housing
2016 Home Resales
2016 Hutchinson Home Sale Price Ranges
$170,000 1 Hutchinson Median Sales Price
$160,000
Under $50,000 $150,000
� $50,000 to $74,999
$140,000
11.6%
$75,000 to $99,999
$130,000
$100,000 to $124,999
%
$125,000 to $149,999
$120,000
_ $150,000 to $174,999
HOME RESALES
1 $175,000 to $199,999
$100,000
■ 5200.000 +
CITY OF HUTCHINSON
2006 throu
h 2016
Year
2016
2016
2014
2013
2012
2011
2010
2009
2008
2007
2006
Price Range
Ne-
Pct_ I
Ne-
Pct_ I
Ne-
Pct_
I Ne-
Pct_
Ne-
Pct_
Ne-
Pct_
Ne-
Pct_
Ne-
Pct_
Ne- Pct_
Ne- Pct_
Ne-
Pct_
5.7
10.,
Under $50,000 1 C
3.0°/ 1
4.2°/ 1 E
29
44
15.3
30
12.d
24
11
9
4.2
6 2.7
5 1.E
6
1.
$50,000 to $74,999
1E
4.6°/
26
7.3°/
1
5.4
35
12.
33
11.
31
12J
16
7.4
27
12.
11 4.9
6 2.2
10
2.
$75,000 to $99,999
38
11.60
39
11.00
34
1 OJ
36
12.-,
62
21.3
46
19.
32
14.
36
16.
23 10.,
17 6.
22
5.
$100,000 to $124,99
54
16.40
58
16.30
59
18.
4
17.
5
18.1
48
19.
38
17.
47
21.
43 19.
39 14.
56
14.
$125,000 to $149,99
7
23.1°
6
19.1°
6
21.
5
20.
4
14.
3
13.
38
17.
46
21.
34 15.
63 22.
67
17.
$150,000 to $174,99
5
16.7°
6
16.9°
5
16.
2
10.
1
5.
2
9.
23
10.
20
9.
51 22.
59 21.
88
23.
$175,000 to $199,99
2
7.0°/
2
7.6°/
2
6.
1
5.
1
4.
9
3.
12
5.
12
5.
22 9.
36 12.
45
11.
$200,000+
5
17.6°
6
17.7°
4
15.
3
10.
2
9.
23
9.
33
15.
19
8.
36 15.
54 19.
85
22.
Total 1
32
100.00
35
100.00
31
100.
28
100.
28
100.
24
100.
216
100.
21 E;
100.
226 100.
279 100.
379
100.
I
I
I
I
I
Median
$140,000
$138,760
$133,600
$121,000
$101,400
$109,960
$121,600
$117,760
$146,760
$167,900
$158,000
Sources:
Peterson -Paulsen Associates Inc. Realty
Maxfield Research Inc.
McLeod County Assessor's Office
2016 Hutchinson Home Sale Price Ranges
$170,000 1 Hutchinson Median Sales Price
$160,000
Under $50,000 $150,000
� $50,000 to $74,999
$140,000
11.6%
$75,000 to $99,999
$130,000
$100,000 to $124,999
%
$125,000 to $149,999
$120,000
_ $150,000 to $174,999
$110,000
1 $175,000 to $199,999
$100,000
■ 5200.000 +
Total 2016 Hutchinson Year End Home Resales = 329
$158.000
$90,000
$80,000
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Median Sales Price
450
400
350
300
250
200
150
100
50
0
Residential Lots Available
317 314
309 299 284
279
242
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
100
70
60
50
40
30
20
10
.J
Number of New Dwelling Units
Construction
i
ME
7 4 5
12
23
20
30
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
7 4 5
12
23
20
30
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Foreclosures
McLeod County and Hutchinson
Foreclosure Counts
200
200 159 176
142 135
150 135
93
100 75
62 77 53 44
50 40 42 50 45 39
28 25
18
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
McLeod County
Hutchinson
2017 Priorities
HRA Park Towers:
• Convert a regular unit to a
handicapped accessible unit,
update the first floor lobby ,
paint corridors using 2016 CFP
Funds and operating reserves, resulting in six total
handicapped accessible units available.
• Using 2017 CFP funds purchase new air conditioners and
power flush water saving toilets or update electrical
panels.
• Complete plan for 2018 CFP funds
• Numerous HUD rules were released the fourth quarter of
2016. Implement as guidance is released.
2017 Priorities
City Center Operations, Rental Rehab Program:
• Complete the Downtown SCDP Rental Rehab Program by December
3110 2017. The goal is 35 units.
1
M
I
n
12 may be re -bid; bids exceed estimates
12�
H
3+ Unit Complexes 17
Total is 39 Units a s of 12-31-2016
• Request SCDP grant extension to December 31, 2018, if needed.
• Research the need for another SCDP Rental Rehab application.
2017 Priorities
City Center Operations, Owner Occupied Rehab Programs - City
wide
• Administer the City Deferred Grant Program (TIF available funds)
for owner occupied rehab.
• Implement Community Fix -Up Loan as leverage funds to the City
Deferred Grant Program.
• Administer the Minnesota Housing Fix -Up Loan Program.
• Administer the Minnesota Housing Rehab Loan Program for owner
occupied rehab.
This project had issues with the front
stoop plus drainage issues that were
affecting the foundation. Energy
efficiency items were addressed: new
insulated front door with storm door and
insulation was added to the attic. Minor
plumbing & electrical issues were also
addressed. City D.G.P. $3,325.50 +
Owner funds $3,296.50 = Total $6,622
2017 Priorities
City Center
Operations,
Rental Development:
area; radon
mitigation is recommended at radon
levels
above
• Highfield
Apartments
is expected to
help relieve the shortage of
general occupancy apartments. The first phase of 27 units of
Highfield Apartments is expected to be complete in fall 2017. The
second phase wasn't expected to begin until May 2017, but due to
the strong rental market and economies of scale in building two
phases concurrently, the construction is beginning this winter. The
general occupancy vacancy rate was 1.76% in August 2016.
City Center Operations:
• HRA requests free radon test kits from the Minnesota Department
of Health that are available at the Hutchinson Planning, Zoning, &
Building front desk. Hutchinson is in
a high
radon
area; radon
mitigation is recommended at radon
levels
above
4.Opc/L.
• Research the addition of Facebook social media for HRA.
2017 Trends
According to local realtors:
Q. What do you see for the housing market for
Hutchinson in 2017? Are there any factors that will
be most influential in 2017?
A. Currently there is a shortage in inventory for
sale. This is not just Hutchinson, but is a nationwide
concern. The shortage of homes for sale is helping
the new construction market and will ultimately
cause prices of homes to rise. Ido anticipate 2017
to still be a good strong market as long as the
interest rates don't go up much more than they
currently are.
2017 Trends
According to local realtors:
Q. The number of permits for new housing
construction was 30 in 2016. (23 in 2014, 20 in
2015). What do you think will happen to new
housing construction in 2017?
A. In the last few months of 20161, there were many
more building lots sold to builders than we've seen
in quite a while, so were anticipating that the
permits for new housing construction will be strong
in 2017.
2017 Trends
According to local realtors:
Q. How does the increase in baby boomers affect the
housing market?
A. For the last couple of years, when a townhome,
condo, or twin home comes up for sale, it is sold
very quickly and many times with multiple
offers. The demand for this type of housing is very
strong and will continue because of the number of
baby boomers and the fact that many of them
currently own homes that they are able to sell
quickly.
2017 Trends
According to local rea Itors:
Q. Are people looking to rent rather than buy? How
will the addition of Highfield Apartments affect the
rental housing market in Hutchinson?
A. Weare not seeing that trend as much in
Hutchinson. There are still many first time buyers
waiting to purchase their first homes. I think the
addition of Highfield Apartments will affect some of
the current rentals that may not be as nice oras
maintained as what the new
apa
apartments
a tenant can be in a new rtment vs. a
or apartment that isn't
rents are comparable,
into the new building.
as well cared for,
think the tenants
will offer. If
n old house
and the
will move
Questions????