During a recent government meeting, officials discussed critical housing issues affecting Stearns County, focusing on the Housing and Redevelopment Authority (HRA) annual levy and the appropriation to the housing trust fund. The HRA is requesting a levy of $525,000 for the upcoming period, marking a $70,000 increase from the previous year. This increase is attributed to a significant rise in the number of households served, from 221 in fiscal year 2023 to 301 in fiscal year 2024.
Neil, a representative from the HRA, provided detailed statistics highlighting the economic challenges faced by many households in the county. He noted that 81% of Section 8 households served are at or below 30% of the area median income, with an average annual income of just $21,210. In contrast, the income required to afford a two-bedroom apartment in the area is approximately $45,000. Furthermore, 82% of these households also receive additional forms of assistance, such as welfare and food stamps.
The meeting also addressed the rising costs associated with housing. The per-unit cost for households served by the HRA has increased from $467 six years ago to $667 at the end of fiscal year 2023. This rise is largely due to landlords opting out of the program and increasing rents by 5% to 15% annually, driven by high occupancy rates.
Commissioners expressed concerns about the broader housing crisis, noting that many residents struggle to find affordable housing options. The discussion highlighted the need for more comprehensive solutions beyond the current Section 8 and HUD programs, which have specific parameters and limitations.
Additionally, the meeting touched on the challenges faced by residents in mobile home parks, where rent increases have become unsustainable for many, particularly those on fixed incomes. The only potential relief for these residents would be if landowners were willing to sell the land to the renters, a scenario that is increasingly rare as corporate ownership of mobile home parks rises.
Overall, the meeting underscored the pressing need for effective strategies to address the growing housing crisis in Stearns County, as officials grapple with rising costs and limited resources to support vulnerable populations.