Golden Valley Will Build Affordable Homes on City-Owned Lots
The city of Golden Valley has chosen the first three locations for affordable housing program, the Home Ownership Program for Equity, or HOPE, to break ground.
The program will utilize fifteen city-owned lots to build single family homes. The three vacant lots are located at: 1605 Douglas Dr., 208 Meander Rd., and 4707 Circle Down.
Housing and Economic Development Manager Cherie Shoquist said although the HOPE program is open to all, it does prioritize historically underserved BIPOC communities.
“Minnesota has one of the worst racial disparity rates in home ownership in the nation. Golden Valley also has a high disparity in home ownership between White population and Black, Indigenous and people of color home owners,” explained Shoquist. “While the up to fifteen HOPE homes will not create enough of an impact to reduce the racial disparity in homeownership in Golden Valley, the program is expected not to further the disparity.”
Golden Valley chose Twin Cities Habitat for Humanity and Greater Metropolitan Housing Corporation to develop the vacant land parcels. Shoquist said both organizations have a proven track record of supporting underserved communities.
“One of the priorities of the HOPE program is to work with organizations that have a demonstrated relationship of trust and service of providing home ownership opportunities to Black, Indigenous, and people of color,” stated Shoquist.
HOPE Homes Valued Up to $700,000
The HOPE homes will be approximately 2,000 square feet, with three to four bedrooms and two bathrooms.
“These new single family homes will be valued at $400,000 to $500,000,” said Shoquist. “The properties are anticipated to be valued at $200,000.”
Shoquist said a majority of Golden Valley homes sell for more than $500,000, in turn pricing many people out of the city, which makes programs like HOPE so important.
“These homes will be priced to be affordable to people who make 80 percent of area medium income, which is about $94,000 per year,” stated Shoquist. “Someone who makes that amount is able to afford a home for $355,000.”
The HOPE program will access state and county funds to fill the affordability gap. Households may also be able to access down payment assistance.
If funding goes through, developers could break ground as early as next spring. For more information, contact Cherie Shoquist at email@example.com
See Also: Equitable Housing Forum in Golden Valley