Affordable housing is a prominent issue throughout the country, and with home values rising faster than incomes, city officials are looking for solutions to address the affordability gap. The City of Alexandria is one step closer to bridging this gap by breaking ground on Summer Meadows, an affordable housing development made possible by a partnership between the city and Habitat for Humanity of Douglas County.

While city officials have long agreed that the area’s lack of affordable housing must be addressed, achieving that goal proved more difficult. City of Alexandria Mayor Bobbie Osterberg explained that attending a Habitat for Humanity Board Meeting was one of her first official duties after taking office.

“We got together and thought, ‘There has got to be something that we can partner on as a city with Habitat for Humanity, and I wonder what that could be.’ That was four years ago,” Osterberg said.

After a study by the city in 2023 revealed the rising need for affordable housing, the Alexandria City Council granted a request for Habitat to build the Summer Meadows development on the current property. Habitat then teamed up with the Alexandria Area Economic Development Commission (AAEDC) to apply for tax-increment financing to help fund the project. AAEDC Executive Director Nicole Fernholz noted that it was never a question of if the city would partner on this project but a question of how.

“The City of Alexandria, Douglas County, and the school district all participated in a tax increment financing, which helps to fund the public infrastructure of this project, making all the homes affordable and making this project happen,” Fernholz said.

In addition to financing through fundraising efforts and taxes, USDA Rural Development awarded Habitat a $1.6 million Site Loan. USDA Rural Development State Director for Minnesota Colleen Landkamer emphasized how Summer Meadows will not just provide housing but also establish a thriving community.  

“I can’t go into a community in this state where the first things out of their mouths are, ‘We need housing, and we need affordable housing.’ You’re making that happen,” Landkamer said.

Summer Meadows marks Alexandria's first affordable housing development since 2002 and the largest project in Habitat for Humanity of Douglas County’s 27-year history. Sitting on 25 acres, the development calls for 42 homes to be built over the next ten years. The homes will be two, three, or four bedrooms, ranging from 1,000 to 4,000 square feet, and all will boast a two-stall garage.

Habitat promises to optimize each home’s energy efficiency through features including in-floor heating.

“Not only are you building 42 homes, but they’re going to be energy efficient, and that helps the homeowners pay for electricity when they’re more energy efficient,” State Director Landkamer said.

The development will reinforce a sense of community through its traditional neighborhood design, with sidewalks, bike trails, and a city park with a playground. Tony Loosbrock explained that Habitat homeowners are strong, determined people, an aspect that will further establish a sense of community.

“They’re striving to improve their lives to keep growing and add value to the community. I see a future here, a vibrant community filled with laughter, tears, campfires, and graduation parties,” Loosbrock said.

Summer Meadows will be geared towards area residents earning 80% or below of the area median income. Infrastructure work is already underway, and Habitat anticipates beginning construction of the first homes in the spring of 2025.