Affordable housing
I am a member of the Delano Area Chamber of Commerce and a few years ago I had the opportunity to tour the facility of Trelleborg, one of our local manufacturers. During the tour, our guide mentioned that they have a hard time filling some of the more entry-level positions because prospective employees could not afford to live in the area and they didn’t want long commutes for entry-level wages.
After reading the story of a 22-year-old healthcare professional who wanted to return to live in this area but could not afford the rent, I began to give more thought to the affordability of housing.
I spoke with additional local businesses who have experienced similar challenges as Trelleborg. There are people who would be happy to accept the jobs if they could afford to live in the area. Jo Reinhardt, CEO and President of Industrial Louvers, said that anything the city or surrounding area can do to have affordable housing would benefit employers. She said that she does occasionally hear that the drive is too far from applicants living in the Minneapolis metro area.
Karlye Emerson, Executive Vice President at Landscape Structures, said “Having opportunities for employees to live close to where they work is desirable for us and our employees. It allows the opportunity to engage with our community and creates a sense of belonging. More housing options and maybe even, more importantly, public transportation, would help support our business needs.”
Local realtors, Kelly and Dave Jaunich of RE/MAX Results, said they hear all the time that people can’t afford to live here. Seniors who need to sell their homes often can’t afford to stay in the area near their adult children. A friend whose children were raised here and wanted to come back and raise their own children in the area could not afford to buy or rent a home in the area.
According to the US Department of Housing and Urban Development, affordable housing is defined as where the occupant pays no more than 30% of their gross income on housing costs including utilities. For example, Minnesota minimum wage is $8.63/hr for smaller employers or $10.59 for larger ones, so affordable housing for these minimum wage workers would, at most, be $448.41 - $550.26 per month. Even at $15.00 per hour full-time, affordable housing would be $779.40 per month. The current market rental rates for apartments and houses in Delano often far exceed affordable housing rates. This is a problem across not only our area but the rest of the country.
Sometimes communities can feel gated without the bricks and mortar of a physical fence. Speaking for myself, I don’t want to live in an exclusive community where my friends, family and those in lower income brackets are left on the outside looking in.
Some communities are getting creative, using land grants to cover the cost of the land to keep the cost of housing built on the land lower. Others are working cooperatively to sell affordable housing units that, when later resold, remain in an affordable range for the new owners. We can solve this if we have a mind to, and the votes to make change happen when legislatively necessary.
