First Homes, a subsidiary of Rochester Area Foundation, is conducting due diligence after signing an agreement to purchase the Center Street Village apartments (626 E Center St, Rochester, MN) to preserve the apartments as naturally occurring affordable housing. Center Street Apartments contains 36, two-bedroom units near downtown Rochester and currently has rents that are affordable for people under 50% of Area Median Income.
Last year, the Governor’s Task Force on Housing released comprehensive findings and recommendations for housing priorities in our state. One of the top solutions identified is to preserve the affordability of the homes currently in communities. Naturally Occurring Affordable Housing (NOAH) units are residential properties that are affordable, but unsubsidized by any federal program. Rent payments are low compared to the area housing market. NOAH properties are the most common form of affordable housing in the United States. The Rochester community stands to suffer a significant loss if this property is sold and is at risk of being redeveloped into housing that is no longer affordable.
First Homes is grateful to many community partners who are working with them to pursue this purchase, including the Coalition for Rochester Area Housing, Olmsted County HRA, Greater Minnesota Housing Fund, and the many donors who continue to support First Homes. This is one of the largest NOAH projects in the area to date, and an incremental step in First Homes’ Efforts in supporting workforce housing. As the new owner, First Homes is committed to keeping rents affordable for low and moderate income households.
“For 20 years, First Homes’ vision has been to provide opportunities for low and moderate income families to secure housing in the Rochester area that is decent and affordable. We are making every effort to realize that vision by preserving an important affordable rental option in Rochester,” said Jennifer Woodford, President of Rochester Area Foundation and First Homes. “When we have safe, secure places to live, kids do better in school, health and well-being improve, communities prosper, and we all thrive.”