County Reallocates Housing Development Funds to Le Center and Surrounding Cities
Le Sueur County, located in the state of Minnesota, has recently decided to distribute thousands of dollars back to several local cities, marking a significant move that could potentially aid in the restoration of residential homes. The cities poised to benefit from this refund include Le Center, Elysian, Waterville, and New Prague.
Originating from a sizeable $483,000 Minnesota Small Cities Development Program grant that Le Sueur County received back in 2010, a total sum of $110,846 is now being reallocated. The initial grant was dedicated to facilitating repairs on 20 owner-occupied homes scattered across these four communities. To implement this, homeowners received funds as a 10-year deferred loan, which was converted into a grant if they continued to reside in their properties without selling or transferring them over a decade. However, a substantial number of these residents opted to move, leading to the return of $110,000 to Le Sueur County.
Fast forward to Tuesday, January 4, when Le Sueur County Commissioners made a unanimous decision to give these funds back to the cities from which they initially came. Their hope is that these cities will use the funds to create and implement their own development programs. The distribution saw Le Center and Elysian each receiving $21,000, Waterville acquiring $50,369, and New Prague awarded $18,477.
Addressing the Le Center City Council on April 11, County Commissioner David Preisler explained the potential uses of these funds. He said, “It’s $21,000 that you can use to do basically your own sort of program. You can use this to address blight properties, or provide loans to residents to make improvements on their properties. The utilization of these funds is fairly open-ended, but the main objective is to aid in the rectification of issues that impact the community.”
The county resolution specifies that the funds should be applied towards Small Cities Development Program grant eligible expenses that fulfill at least one of three federal objectives. A project receiving funding must be aimed at either benefiting low to moderate income individuals, eliminating slum and blight conditions, or addressing an urgent public safety concern.
Initially, the grants given to Le Sueur County were primarily intended to assist those with low or moderate income in refurbishing local housing. However, the Small Cities Development Program also allocates grants for enhancing or developing wastewater treatment facilities, improving wells and water towers, and granting loans to local businesses for property improvements, code compliance, and health and safety-related issues.
Le Center City Administrator Dan Evans admitted that he had been unaware of the incoming funds until Preisler brought it to his and the Le Center City Council’s attention during the April 11 meeting. As such, plans for the optimal use of the funds are still under discussion among the city staff.
