--- ## title: CoNORTH 3 PHASES NEW date: D:20260806115956-05'00' --- ## CITY OF SAINT PETER, MINNESOTA ## AGENDA AND NOTICE OF MEET ING City Council Workshop Session of Monday, August 17, 2026 - 5:30 p.m. ## Community Center - Governors Room (600 South Fifth Street) ## I. ## CALL TO ORDER ## II. ## DISCUSSION a. Department Presentation - Fire Department - p. 2 b. School Liaison Contract - p. 3-8 c. CoNorth Development Agreement - p. 9-61 ## Ill. ADJOURNMENT ## Todd Prafke ## City Administrator ## Memorandum ## TO: Honorable Mayor Nowell DATE: 8/14/26 ## Members of the City Council ## FROM: Todd Prafke ## City Administrator ## RE: Department Presentation: Fire ## ACTION/RECOMMENDATION None needed. For Council information and discussion only. ## BACKGROUND Each year, each City Department provides a presentation to the City Council at a Workshop. The tentative schedule for Department Presentations is as follows: ## March Community Development (completed) July City Attorney (completed) ## April Public Works (completed) August Fire ## May Hospital (completed) November Rec & Leisure Services ## June Finance & Police (completed) The workshop on Monday evening will feature a presentation from your Fire Chief, Matt Ulman. Please feel free to contact me if you have any questions or concerns on this agenda item. ## TP/ks 2 ## Memorandum ## TO: Mayor Nowell DATE: 8/14/2026 ## Members of the City Council ## FROM: Todd Prafke ## City Administrator ## RE: Cultural Liaison Agreement with District 508 ## ACTION/RECOMMENDATION For your information and input. ## BACKGROUND In the summer of 2025, the School District and the City entered into an agreement that provided access to and support from the District’s cultural liaisons. Through this partnership, the City was able to promote activities, share information on programs and projects, and strengthen connections between community members and City staff regarding the use of existing City services. The agreement was designed to create a more structured approach to these efforts and to provide additional funding to the District to support the outlined services. Because it was considered a pilot initiative, both City and District staff agreed it would be reviewed in the summer of 2026. Following that review, staff from both organizations concluded that the partnership has been beneficial. The funding allocation supported and improved communication pathways and access to information, ultimately providing meaningful value to community residents. The Shared Services Committee—comprised of School Board Members and City Councilmembers—also reviewed this initiative at its most recent meeting and expressed support for continuing the partnership, citing positive outcomes for the District, the City, and the community as a whole. Attached is a copy of the current agreement, which includes the structure of the partnership and the annual fund transfer of $5,000. If the Council is interested in continuing this collaboration for the 2026–2027 school year, no change in the funding amount is anticipated. Our intent for the upcoming workshop discussion is to help Councilmembers gain a clearer understanding of how the agreement has been utilized and to gather your input. This will position the Council to take action on a substantially similar agreement in the near future. Please feel free to contact me if you have any question or concerns. ## TP/ks 3 ## L EARNJNG ## MATTERS ## SAINT PETER PUBLIC SCHOOLS ## Agreement ## With ## SCHOOL CULTURAL LIAISON PROGRAM & ## CITY OF SAINT PETER 2025-2026 2026-2027 4 ## SCHOOL CULTURAL LIAISON PROGRAM AGREEMENT THIS AGREEMENT is by and between INDEPENDENT SCHOOL DISTRICT NO. 508 hereinafter referred to as the "School District, and the CITY OF SAINT PETER, hereinafter referred to as "City". WHEREAS, School District and City desire to join in a mutual effort to enhance communication and program and service access to all members of the Saint Peter Community; and WHEREAS, School District provides Cultural Liaisons that can provide assistance to City Department to enhance program knowledge and access. NOW, THEREFORE, in consideration of the mutual covenants and conditions contained in this Agreement, School District and City mutually agree as follows: ## ARTICLE I - CULTURAL LIAISON DEFINITION AND DUTIES 1.1. For the purpose of this Agreement, the term "CULTURAL LIAISON" hereinafter referred to as "LIAISON" shall: a. Be an employee of School District who's primary job task is to assist members of the community who may have access challenges due to language or culture to navigate systems that help provide for use of programs and services. 1.2. The duties of the LIAISON shall include, but are not limited to, the following: a. Provide promotion of and assistance for registration for Youth Activities (youth sports, special events, general interest). b. Provide promotion of and assistance for registration for summer swimming lessons. c. May provide promotion of and assistance for registration for youth athletic associations and summer camps. d. Provide promotion of and assistance for accessing and using the City Transit system. e. Assist City staff in connecting with program users including parents and children and elders. f. From time to time assist in translating and/or providing interpretation for direct communication with program users. ## ARTICLE II - FUNDING OF THE CULTURAL LIAISON PROGRAM The City Agrees to pay the sum of $5,000 per school year to be paid in two installments. One installment of $2500 will be paid in September of 2025 and one in March of 2026. 2.4 School District agrees to provide an invoice for payments specified in this Article. ## ARTICLE III - RESPONSIBILFTY OF SCHOOL DISTRICT 3.1 School District shall be responsible for the following duties and/or services: 5 a. Provide guidance and assistance to the LIAISON(S) through the principals, teachers, administrative staff and student body. b. Requires its principals to coordinate efforts of the LIAISON(S) within the schools. c. To meet cooperatively with the City and its Recreation and Transit (MRVT) Department on a regular basis to review the goals, needs, operations and effectiveness of the school resource office program and officers. ## ARTICLE IV - RESPONSIBILITf OF CITY 4.1 The City shall be responsible for the following duties and/or services: a. Provide a contact list of City Employees including emails and phone numbers, promotional material and web site information. b. To meet cooperatively with School District and its Superintendent on an as needed basis to review the goals, needs and effectiveness of the LIAISON(S). ## ARTICLE V - INDEMNITY AND HOLD HARMLESS 5.1. School District agrees to indemnify and save harmless the City of and from any and all liability and expenses, including attorneys' fees, of any nature whatsoever (including any claim on account of any injuries, diseases, or claimed injuries or diseases compensable under the Worker's Compensation Laws of the State of Minnesota) resulting or in any manner arising out of the use of any property, structures, or equipment of the School District (whether improved, modified, altered, or developed by City or otherwise) or any activities sponsored by City taking place on any such property, structures or equipment. 5.2 City agrees to indemnify and safe harmless School District of and from any and all liability and expenses, including attorneys' fees, of any nature whatsoever (including any claim on account of any injuries, diseases, or claimed injuries or diseases compensable under the Worker's Compensation Laws of the State of Minnesota) resulting or in any manner arising out of the use by School District of any property, structures or equipment of City (whether improved, modified, altered, or developed by School District or otherwise) or any activities sponsored by School District taking place on any such property, structures, or equipment. 5.5 The parties hereto agree to cooperate with one another in the defense of any claims, demand or rights of action within the terms of this Agreement. 5.6 In no case shall either party's obligation to indemnity the other party exceed the statutory liability limit of the of the party. 6 6.1 6.2 6.3 6.4 6.5 6.6 6.7 ## ARTICLE VI - GENERAL PROVISIONS Regardless of the date of attestation, this Agreement shall commence on July 1, 2025 and end on June 30, 2026. Either party may terminate this Agreement by providing six (6) months written notice to the other of its intention to terminate this Agreement. Nothing herein contained is intended or should be construed in any manner as creating or establishing the relationship of co-partners, joint venture, or joint enterprise between the parties hereto or as constituting either party as an agent, representative or employee of the other for any purpose or in any manner whatsoever. This Agreement shall be construed and understood solely as an Agreement between the parties hereto and shall not be deemed to create any rights in any other person. No person shall have the right to make claim that she or he is a third-party beneficiary of this Agreement or of any of the terms and conditions hereof, which, as between the parties hereto, may be waived at any time by mutual agreement between the parties hereto. Any amendment to this Agreement shall be in writing and shall be executed by the same parties who executed the original Agreement or their successors in office. This Agreement, together with all its paragraphs, terms and provisions is made in the State of Minnesota and shall be construed and interpreted in accordance with the laws of the State of Minnesota. The waiver by the parties of any breach of any term, covenant, or condition herein contained, shall not be deemed to be a waiver of any subsequent breach of same or any other term, covenant, or condition herein contained. Notices to provided for herein shall be sufficient if sent by the regular United States Postal Service, postage prepaid, addressed as follows: ## TO THE CHV: ## Saint Peter City Administrator ## Attn: Todd Prafke ## 227 South Front Street ## St. Peter, MN 56082 ## TO SCHOOL DISTRICT #508 ## School District #508 ## Attn: School Superintendent ## 100 Lincoln Drive ## St. Peter, MN 56082 6.8 This Agreement may be executed in separate counterparts with the same effect as the if all signatures were on the same Agreement. 6.9 For purposes of this Agreement, a telecopy or facsimile document and signature shall be deemed as, and shall serve as, an original Agreement and signature. 6.10 This Agreement, along with any attached exhibits, embodies the entire understanding of the parties and there are no further or other agreements, permits, or understandings, written or oral, in effect between the parties relating to the subject matter hereof. 6.11 The understandings of Article 5 above shall also extend to any uncommunicated expectations the parties may have regardless whether specifically mentioned in this Agreement. 7 IN WITNESS WHEREOF, the parties hereto have set their hands on the day and year first written above. ## CITY OF SAINT PETER ## ShanonA. Nowell ## Mayor ## STATE OF MINNESOTA) ## )SS ## COUNTY OF NICOLLET) ## Todd Pre ## CityAdyfiir/strator The foregoing instrument was acknowledged before me this &/ / day of MfA i. 2025, by Shanon A. Nowell and Todd Prafke, the Mayor and City Administrator of the City of Saint Peter, Minnesota. ## KeishaAnnSeys ## Notary Public ## Minnesota ## My Commission Expires: January 31, 2029 ## Notary Pu ^;/; r7). /<^ ## Charlie Potts ## School Board Chair ## SCHOOL DISTRICT #508 ^ ## Kate Martens ## School Board Clerk ## STATE OF MINNESOTA) ## )SS ## COUNTY OF NICOLLET) The foregoing instrument was acknowledged before me this 2; ^ day of ## ^OL\^ 2025, by Charlie Potts and Kate Martens, the Board Chair and Board Clerk of Schifiol) District #508. rnii^j ^jnu>4 ^to•fary Public ^\ ~_ - -,.-..L-.A ^ ## KIM(feBt.£SWDEMlNG ## Noiary Public ## State of Minnesota My commission expires 1/31/2029 8 ## Memorandum ## TO: Mayor Nowell DATE: 8/14/2026 ## Members of the City Council FROM: Todd Prafke Benjamin Baker City Administrator Community Development Director ## RE: Development Agreement with CoNorth - New Residential Development New North Neighborhood Located at Klein Street & (Future) N Washington Ave ## ACTION/RECOMMENDATION None. For your information and discussion. ## BACKGROUND On February 3, 2025, CoNorth (a nonprofit formerly known as the North Country Foundation) presented a new residential cooperative neighborhood concept to the City Council. The design proposed 55 facility‑built homes and a community center that aligned with the City’s goals for expanding affordable housing. CoNorth’s mission is to create facility‑built home communities managed through a cooperative model, support residents with low incomes, and promote lasting, affordable, self‑governing neighborhoods. While CoNorth’s past work has focused on acquiring and assisting manufactured‑housing cooperatives, this will be its first full new‑development project. On June 23, 2026, the City approved an Exclusive Right to Negotiate Purchase agreement identifying two potential sites for the project. Although an initial resolution on November 24, 2025, to locate the project at Klein Street did not pass, subsequent discussion, evaluation of alternative sites, and clarification of community benefits led to renewed Council support following the March 29, 2026, Council Goal Session. Since then, staff and CoNorth have worked together to develop a mutually agreed‑upon Development Agreement. The attached agreement has been review by your attorney and the attorney for CoNorth. The substantive issues covered in the agreement include: ## 1. Assignment and Exclusivity 2. Parkland Dedication ## 3. Location and Land Transfer 4. Home Ownership Product Offering ## 5. Zoning/Land Use 6. Funding, Assessments, and Fees ## 7. Engineering, Const Plans, and Phasing 8. Liability and Notice ## 9. Improvements 10. Conveyancing Provisions 9 The nuts and bolts of the agreement are based on the items you have discussed previously, and we believe to be covered appropriately in the documents. Those issues are: • Fees and payments as outlined in the attached schedule, including a $30,000 payment at signing • Transfer of land to CoNorth and City support for the MHF infrastructure grant • Unilateral cancellation option for either party at the 50% engineering milestone and again at 90% design completion • Assessments to repay all development costs • City ownership of all infrastructure, consistent with other subdivisions, to ensure long‑term maintenance control • CoNorth to provide financing and mortgage products as described in the agreement • Collaborative design process meeting City standards; City to lead infrastructure design, bidding, and construction The development will include the following design considerations on subdivision layout, infrastructure development and lot development: • Approximately 60 facility‑built homes • Three phases of ~20 homes each • Mix of home types: 11% Cross‑Mod (6 units), 28% Single‑Wide (17 units), 61% Double‑Wide (37 units) • Homes with enhanced façade design • Two off‑street parking stalls per unit • Full sidewalk network • Tree‑lined streets • Neighborhood park/play area: playground, basketball court, open space • Community center/storm shelter • On‑site storage options (garages, sheds, storage units) We believe some of the goals the Council has discussed that can be achieved through the project include but are not limited to: • Expanded affordable and workforce housing options • New mortgage products created through NeighborWorks Home Partners or similar partners • Increased population and school enrollment • Activation of long‑vacant North Industrial Park land • Additional property‑tax generation and elimination of current City tax expense on this parcel • Increased public‑utility usage • Progress toward northwest road and trail connections to Co Rd 20 • Progress toward a regional stormwater pond • Creation of a new neighborhood park and additional park funding The development is expected to generate approximately $15,000–$30,000 annually in property taxes, benefiting the City, School District, and County. The City currently pays $15,000 annually on the vacant land; transferring the property will eliminate this cost. Approximately 60 new homes will connect to City utilities, generating monthly utility revenue and hook‑up fees. 10 The City plans to issue a bond and apply for Minnesota Housing Agency (MHF) grant funds to support project infrastructure. Any uncovered costs will be assessed back to the developer over time. Grant funding is expected to reduce infrastructure costs and ultimately lower home and lot prices. The property (Outlot B; Parcel 19.671.002; 9.6 acres) is currently valued at $483,700. Under the agreement, it will be transferred to CoNorth at no cost—similar to past transactions with other affordable‑housing partners. No additional City financial incentives will be provided. This type of dense, facility‑built, cooperatively financed development is new and untested in Minnesota. Financial and risk‑mitigation strategies mirror some those used successfully in other City‑led subdivisions, such as Traverse Green. Key risk‑management components include: • City‑led design to City standards • City ownership of infrastructure • Cooperative ownership model • Use of assessment‑waiver agreements previously applied in other housing projects which pay for cost of the infrastructure Our goal is to position the Council to act on the Development Agreement soon to ensure alignment with grant timelines and engineering, bidding, and development schedules. Please feel free to contact me if you have any questions or concerns about this agenda item. ## BB/TP 11 182 ft ## PHASE IPHASE I ## (~20 Homes)(~20 Homes) ## PHASE IIPHASE II ## (~20 Homes)(~20 Homes) ## PHASE IIIPHASE III ## (~20 Homes)(~20 Homes) 12 ## New Leaf Neighborhood FAQ: 1/6/2025 1 ## New Leaf Neighborhood Overview ## Frequently Asked Questions This information is current as of January 6, 2025. The answers below reflect the goals, intentions and plans based on details currently available. Details, numbers and timelines will be finalized when the work moves forward. Home Costs and the Neighborhood ...................................................................................................... 4 How much will the homes cost? ..................................................................................................... 4 What will the homes be like? ......................................................................................................... 4 How many people will live in the neighborhood? ........................................................................... 4 Are there existing communities like this? ....................................................................................... 4 Why does the plan for the neighborhood include its own community center? ............................... 5 What happens in case of severe weather? .................................................................................... 5 What are the provisions for parking, garages, and exterior storage? ............................................ 5 What streetscape and architectural design options are available? ................................................ 5 Does the neighborhood plan provide diverse building appearances and curb appeal? ................ 5 Are there other parcels of land for this project? ............................................................................. 6 Cooperative Homeowners’ Association Make-up and Purpose ............................................................ 7 Cooperative track record of success .............................................................................................. 7 Cooperative HOAs Keep Homes Affordable .................................................................................. 7 Why is a co-op necessary for this project? Why couldn't this just be a typical neighborhood without the coop? ........................................................................................................................... 8 What prevents investors from renting out these homes? ............................................................... 8 What’s included in the monthly co-op dues? ................................................................................. 8 What will a homeowner own? ........................................................................................................ 8 Does everyone in the co-op pay the same amount in dues? ......................................................... 9 If people buying the homes owned the land, wouldn't their home appreciate more? .................... 9 NCF: Northcountry Cooperative Foundation ....................................................................................... 10 13 ## New Leaf Neighborhood FAQ: 1/6/2025 2 How does the New Leaf project align with housing needs in St. Peter? ..................................... 10 Will New Leaf require ongoing subsidy to remain affordable? ..................................................... 11 Homes and Foundation Types ............................................................................................................ 12 Are these mobile or trailer homes? .............................................................................................. 12 How are these homes different from the homes in existing manufactured home communities? . 12 Why a mix of modular and manufactured homes? ...................................................................... 13 How do the homes connect to the land? ...................................................................................... 13 What would it take to make many/any of these homes accessible from the outside? Can we get close to zero entry for at least some of them? ............................................................................. 14 How much will the foundation cost? ............................................................................................. 14 Does the foundation type impact the ongoing costs of utilities and home maintenance? ............ 14 Are these homes safe in severe weather? ................................................................................... 14 Can you get rid of the chassis? .................................................................................................... 14 Does the chassis interfere with attaching the home to a permanent foundation? ....................... 15 Do these homes have an energy rating? How can carbon goals of the climate action plan be met? How do the long-term costs of energy factor into the homeowner costs? .......................... 15 Miscellaneous ..................................................................................................................................... 16 What’s the anticipated timeline? ................................................................................................. 16 How will NCF use local builders and contractors? ...................................................................... 16 How would this neighborhood compare to a mobile home park, a land trust, or a “traditional” single- family neighborhood subdivision with a Homeowners’ Association? ................................ 16 Homebuyer Financing & Resources ................................................................................................... 17 What lenders will provide a mortgage for the homeowner? ......................................................... 17 Will the home be titled as real property or as personal property? ................................................ 17 How do community members without a social security number qualify? ..................................... 17 What examples or evidence is there that manufactured homes will appreciate in value like traditional site-built single-family homes and offer the chance for families to build generational wealth? ......................................................................................................................................... 17 Project Financing ................................................................................................................................ 19 Can you share a draft pro forma? What are the sources and uses for the project? .................... 19 Who will finance the construction costs and how? ....................................................................... 19 How does NCF make money? Is there a financial incentive for NCF in doing this project? ........ 19 What financial support is expected from the St. Peter City Council? ........................................... 20 14 ## New Leaf Neighborhood FAQ: 1/6/2025 3 What is the City's contribution to the project? Land, site improvements for roads and utilities, etc.? ............................................................................................................................................. 20 What can the City of St. Peter do to make this project happen? ................................................. 20 Definitions ........................................................................................................................................... 21 15 ## New Leaf Neighborhood FAQ: 1/6/2025 4 ## Home Costs and the Neighborhood How much will the homes cost? Homebuyers will have three choices. The prices will be between $150,000 to $200,000 for the smallest home and $250,000 to $325,000 for the largest. The goal is to keep a family’s total housing cost each month to 30% of their monthly income or less. That total cost includes the mortgage on the home, utility costs and dues owners will pay each month for common expenses. For example: ● One Northfield family makes about $60,360 per year or $5,030 a month. The goal cost for their mortgage, dues, and utilities would be $1,509 or less. ● Another family’s income is $80, 500 per year or $6,708 a month. The goal cost for their mortgage, dues, and utilities would be $2,012 or less. The income examples above are based on the Nicollet County Average Median Income (AMI) from HUD’s Office of Policy Development and Research. The $60, 360 income is 60% and $80, 500 is 80% of the AMI for a family of four. For a two-person household, 60% is $48,300 and 80% is $64,400. In Northfield today, people with these incomes are new teachers, utility workers, hourly workers at the college, hospitals, schools, and core businesses like Alumacraft Boat Co. and Creation Technologies. The rooms are all on one level which makes the neighborhood attractive for seniors as well. What will the homes be like? All homes will have three bedrooms and two baths. They will be built in a facility and moved to the neighborhood. The size of the home and its finishings will determine the price. The most expensive homes will have a garage and basement. How many people will live in the neighborhood? There are 55 homes in the current design. We expect about 135 people to live in these homes. Are there existing communities like this? This development combines elements that exist in many communities around the country but have not been implemented here. There are new construction neighborhoods that use homes built in facilities all over the country. There are cooperative neighborhoods in Minnesota and around the country. 16 ## New Leaf Neighborhood FAQ: 1/6/2025 5 Why does the plan for the neighborhood include its own community center? NCF has helped many cooperatives build community centers. The standard design features an office, bathrooms, full kitchen, storage, and a central gathering space. The center becomes the heart of the community. It provides a place for the cooperative board to hold its monthly meetings and annual membership meeting. Most communities use the center for tutoring programs and classes, summer activities for school-aged children, a lending library and fresh food distribution center, and of course graduation parties, birthdays, holidays and other family events. Often, in partnership with other organizations, the space is used to help teens and adults prepare for job interviews, find financial and legal information, or simply sit and read a book. What happens in case of severe weather? We understand the concerns about safety; most of them stem from communities built in the 1960s and 1970s before the HUD Code improvements that make facility-built homes as safe as other homes. That said, families in New Leaf have options during severe weather. ● People can shelter in an interior room such as a closet or bathroom without windows. ● Homeowners can choose to include a storm cellar in their home. ● The community center includes a storm shelter. Homes built to modern HUD code meet wind performance standards in line with the weather in this region. What are the provisions for parking, garages, and exterior storage? All homes will have a two-car driveway. Some homes will have an attached garage. The neighborhood plan also includes exterior storage units that homeowners may rent from the cooperative for storage and vehicles. What streetscape and architectural design options are available? The project will meet City of St. Peter requirements for street design. In addition, the project has a variety of street widths, and each street includes sidewalks to encourage walkability. NCF anticipates the homes to have a select number of architectural design options, including the color of siding and home features like garages. Does the neighborhood plan provide diverse building appearances and curb appeal? As you’ve seen, most modern subdivisions offer very little visual variety. That’s why a strong priority in the New Leaf plan features great community and street-facing appeal. Three home styles provide 17 ## New Leaf Neighborhood FAQ: 1/6/2025 6 physical variety. A selection of colors ensures that every home is different from its neighbor. In addition, the homes all have front porch features to provide neighborhood engagement and a walkable feel. NCF’s experience shows that homeowners in cooperatives love gardening and place a high value on trees, landscaping, and flowers to have a beautiful surrounding environment. NCF will work with co-op members to put in place landscaping and beautification projects they identify. Are there other parcels of land for this project? The Klein Street site is ideal for this neighborhood. It’s connection to surrounding neighborhoods, trails and walking paths, and proximity to schools and outdoor recreation. The New Leaf neighborhood compliments surrounding housing options, which include affordable (subsidized) rental homes and site- built homes. 18 ## New Leaf Neighborhood FAQ: 1/6/2025 7 ## Cooperative Homeowners’ Association Make-up and Purpose All homeowners in the New Leaf neighborhood will be part of a cooperative homeowners’ association. Owners will elect a board of directors and officers. This group sets the rules, goals, and governance standards for the community. Setting up the community as a cooperative from the start means: ● Bringing homeowners together makes it more affordable to own the land ● Self- determination on the use of shared resources ● Membership rules and eligibility criteria that respect fair housing requirements ● No profit motive for outside investors ● Economy of scale to get discounts on common maintenance services as a group rather than each homeowner by themselves ● Ready -made organization to address community needs (after school programming, senior walking group, yard work for those that can’t physically perform, etc.) NCF brings its decades of experience to the community to support the work of homeowners. Ongoing support from NCF includes board member recruiting, education, budget planning, best practices, and leadership development. Cooperative track record of success Cooperatives have a proven track record of success in Minnesota and across the country, including in St. Peter. ● Like the other cooperatives that NCF supports, New Leaf will remain affordable. ● NCF helps communities get lower interest rates to buy land under their homes. ● There are no shareholders to pay. The people voting on the membership dues are the people who will have to pay them. ## Cooperative HOAs Keep Homes Affordable Cooperative homeowners associations create affordable housing, good neighborhoods and build wealth for people. With “starter” homes no longer profitable for builders, cooperatives provide the American dream of homeownership. The New Leaf Cooperative is structured as a “limited equity cooperative” (see definitions section). That structure allows funding to be directly connected to cooperative ownership. Limited equity maintains affordability over generations of housing sales. Homes appreciate in value and homeowners build equity. When a homeowner sells, they receive the equity from the sale of their home. The homeowner also gets their money back for their share of the cooperative. That share does not appreciate. If the homeowner paid $1000, they will get $1000. The new homeowner will only pay $1000 for a share of the 19 ## New Leaf Neighborhood FAQ: 1/6/2025 8 cooperative, just like the seller did. This is another way cooperatives keep homes affordable into the future. Once the co-op has paid off the financing for the underlying land, the co-op can choose to reduce the monthly dues to its members. Why is a co-op necessary for this project? Why couldn't this just be a typical neighborhood without the coop? It could, but the financing of the land would need to be added to the mortgage sizing of each homeowner. The neighborhood would not have a community center. The homeowners would lose the benefits of maintenance and purchasing power support over time. The neighborhood would have less of a sense of shared mission and community. What prevents investors from renting out these homes? The co -op bylaws for the community require the homes to be owner-occupied. What’s included in the monthly co-op dues? Most of the dues go to pay for the land which the co- op will own. Dues also pay for property management services, maintenance and care of commonly owned property. Co- op members decide if they want to buy additional services together and pay for them through dues. What will a homeowner own? Homeowners in a limited equity manufactured home community like New Leaf: ● Own their home ● Own their share in the corporation that owns the land and common areas. ● Will have a lease that forever ties the home to the lot in the community. See the table on the following page for more information. 20 ## New Leaf Neighborhood FAQ: 1/6/2025 9 ## What You Own Proof of Ownership ## Upfront ## Costs ## Ongoing ## Costs Rights & Responsibilities of ## Ownership ## Resale & Appreciation ## Home ## Deed Down Payment & ## Closing ## Costs ## Monthly mortgage payment, taxes, insurance, and utilities Take care of your home Abide by co-op rules (including any resale restrictions when you sell your home Outgoing homeowner provides co-op notice when they intend to sell their home. Homeowner sells home and retains all equity from the sale. ## Co-op ## Membership ## Share ## Proprietary Lease (gives homeowner exclusive right to the land underneath their home) ## Membership ## Agreement (governs member’s participation and interest in the cooperative) ## Membership share (one -time fee; the goal is to keep the share price as low as feasible) ## Monthly membership dues (covers the costs to operate the cooperative) Pay monthly dues Participate in the co-op (attend membership meetings, serve on the board and committees) Co-op returns share to outgoing homeowner when home is sold. Share does not appreciate. Does everyone in the co-op pay the same amount in dues? Often co-ops choose to charge the same for every home. The New Leaf co-op will set dues that are fair for the services each home gets. This is a detail that will be finalized as the work moves forward. If people buying the homes owned the land, wouldn't their home appreciate more? The homebuyers do own the land as members of the cooperative. The co-op structure strikes a balance to help ensure homes remain affordable and at the same time appreciate in value. 21 ## New Leaf Neighborhood FAQ: 1/6/2025 10 ## NCF: Northcountry Cooperative Foundation How does the New Leaf project align with housing needs in St. Peter? NCF's New Leaf Cooperative project aligns with the recommendations identified in St. Peter's 2024 Housing Study related to affordable homeownership: ## 1. Meeting Demand for Owner-Occupied Housing • The New Leaf Cooperative contributes directly to the projected need for 110 to 120 owner -occupancy housing units over the five-year period by creating opportunities for cooperative homeownership. • This initiative focuses on St. Peter as the primary location for future construction activity, aligning with the study's emphasis on serving household growth in the city. ## 2. Promoting Affordable Homeownership Programs • Affordability Focus: The New Leaf Cooperative offers an alternative to rising home prices (median sale price of $255,000 in 2023) by providing lower-cost cooperative housing options that enable homeownership for income-eligible households. • Continued Assistance: Like the city's efforts with affordable lot subdivisions and Community Land Trust (CLT) units, New Leaf Cooperative integrates affordability into its structure, ensuring long-term accessibility for low- and moderate-income residents. ## 3. Supporting the Development of Very Affordable Homes • The project aligns with the recommendation to produce 2 to 3 very affordable homes annually by expanding housing options for those unable to purchase traditional homes, addressing demand from marginal homebuyers. • By utilizing efficient construction methods and cost-conscious strategies, New Leaf Cooperative helps to bridge affordability gaps for households that may not qualify for Habitat for Humanity homes or other ownership options. ## 4. Promoting Entry-Level Home Construction • New Leaf Cooperative helps create housing opportunities that fall below the $350,000 threshold, appealing to the growing 35-44 age group seeking entry-level homes. • By prioritizing affordability and sustainability, the cooperative expands access to homeownership, contributing to the 27% to 38% of future new construction targeted at affordable market segments. ## 5. Leveraging Suitable Lots • The project may utilize or complement available lots in areas such as Traverse Green or other infill locations, maximizing the city's land use for affordable housing development. ## 6. Expanding Ownership Models 22 ## New Leaf Neighborhood FAQ: 1/6/2025 11 • New Leaf Cooperative introduces an innovative homeownership model that adds diversity to the housing market, complementing existing strategies like Habitat for Humanity and CLT homes. • By offering shared equity and cooperative governance, the project provides an additional pathway to stability and community ownership for households unable to access traditional single-family homes. ## 7. Long- Term Community Impact • Like the city's prior initiatives, the cooperative model ensures lasting affordability, contributing to a sustainable and inclusive housing market in St. Peter. • The project addresses both immediate and future needs, helping the city achieve its goals for affordable and entry-level housing over the next five years. Will New Leaf require ongoing subsidy to remain affordable? No, the plan is for the community to no longer need subsidy after the initial development. Unlike typical subsidized housing, this project is unlikely to become unaffordable after an externally-enforced affordability period. Today NCF supports more than 1,000 households in 16 communities across Minnesota and Wisconsin. It’s part of a national network of similar nonprofits providing financial, organizational and practical advice to cooperative boards and residents. They educate homeowners, share what works—and doesn’t—to create successful communities. Cooperative homeowners associations create affordable housing, good neighborhoods and build wealth for people. With “starter” homes no longer profitable for builders, cooperatives provide the American dream of homeownership. 23 ## New Leaf Neighborhood FAQ: 1/6/2025 12 ## Homes and Foundation Types Are these mobile or trailer homes? No. They are drastically different from the old mobile or trailer homes built in the 1960s and 1970s. These homes are modern and built in a facility under strict quality and safety standards. Federal regulations and materials used to build the homes have changed dramatically over the years. The January 2021 federal HUD code for homes built in a facility has requirements beyond those for any other home. In fact, homes in New Leaf will be superior to many traditional homes being sold today. NCF and organizations like it around the country have decades of experience. They know what works—and what doesn’t—to create successful communities. How are these homes different from the homes in existing manufactured home communities? New Leaf homes requirements go beyond today’s HUD requirements. ● Built to a High-Performing Code. The code that manufactured homes are built to have come a long way since the HUD Code was first established in 1976. The building code for today’s modern manufactured homes is virtually indistinguishable from the building code of other facility -built homes, including modular. ● Sustainable and Energy Efficient. The homes will be U.S. Department of Energy certified Zero Energy Ready Home (ZERH). All ZERH homes and the facilities where they are built must meet strict requirements. They are certified by an approved quality assurance provider. This ensures homes are inspected, labeled and that the facility meets certification and maintenance standards. The ZERH standard includes higher than normal R-values for insulation in the walls, ceiling, and floor. Additional energy efficiency components include: o Solar- ready roof o Electric heat pump or high efficiency gas furnace o Heat pump water heater o Energy-star appliances o LED lighting o Low- E windows o Smart thermostat 24 ## New Leaf Neighborhood FAQ: 1/6/2025 13 All of these combine to make the home extremely energy efficient. Combining the ZERH standards and additional requirements saves homeowners $70 to $100 each month in utility bills compared to homes built without these features. ● Accessible. The foundation places homes lower to the ground. The change allows zero step entry access for some of the homes. 1 Why a mix of modular and manufactured homes? The New Leaf plan includes some modular homes. Modular homes are built in the same facilities with the same materials as New Leaf homes. The modular homes offer larger floor plans with more options for cosmetic upgrades. However, the added cost for the modular home options makes the home unaffordable for many people in St. Peter who earn hourly wages. How do the homes connect to the land? NCF worked with Tekton Engineers, a local structural engineering firm, to design a permanent foundation. The system they designed installs the home near ground level. It includes frost footings, poured concrete walls, and a crawl space that is recessed into the ground. The home is attached to the permanent foundation with through-bolts just like site-built homes are attached with through-bolts to their foundations. The final design for each home is matched to the soil conditions for long term stability. ## Figure 1 Foundation diagram by Tekton Engineers 1 Zero step entry homes are designed so that no steps are required to enter or access any part of the home, from the front door to the showers and more. 25 ## New Leaf Neighborhood FAQ: 1/6/2025 14 What would it take to make many/any of these homes accessible from the outside? Can we get close to zero entry for at least some of them? The homes may be placed within a foot of ground level, just like conventionally built homes. How much will the foundation cost? Our current estimates of foundation options are: ● Full basement: $66,450 ● Shallow foundation and crawl space: $27,280 Other designs we considered include: ● Helical piers and grade beams: $42,900 ● Frost protected concrete slab: $34,250 Does the foundation type impact the ongoing costs of utilities and home maintenance? The crawlspace foundation is designed to minimize ongoing utility and maintenance costs compared to other less expensive foundation designs. The crawl space is insulated so that the utility connections withstand Minnesota’s extreme temperatures. The 36-inc h crawl space allows the underside of the home to be well-maintained. The homes offer an internal access hatch to enter the crawl space. Are these homes safe in severe weather? We understand the concerns about safety. The image many people have is homes built before the extensive requirements found in the new HUD Code. The fact is, when today’s modern homes are installed correctly, the facility-built home is as safe as any other home. Homes in St. Peter’s New Leaf neighborhood will be to a standard beyond the rules specific to weather in this region. Can you get rid of the chassis? Almost. You won’t even know it’s there once the home is installed in the neighborhood. The hitch is removed and the chassis will recess into the crawl space. In addition, HUD requirements include a chassis. And it’s the most cost- efficient way to move the home from the facility where it is built to the neighborhood. 26 ## New Leaf Neighborhood FAQ: 1/6/2025 15 Does the chassis interfere with attaching the home to a permanent foundation? No. The chassis is recessed within the foundation walls. Just like a home that’s built on site is attached to its foundation using sill plates and through-bolts, these homes will be attached in a similar way with through-bolts through its bottom-facing framing. Do these homes have an energy rating? How can carbon goals of the climate action plan be met? How do the long-term costs of energy factor into the homeowner costs? We plan to use the new US Department of Energy’s Zero Energy Ready Home (ZERH) standards as the specification for the home build. These include higher than normal R-values for insulation in the walls, ceiling, and floor. Additional energy efficiency components include: ● Solar- ready roof ● Electric heat pump or high efficiency gas furnace ● Heat pump water heater ● Energy-star appliances ● LED lighting ● Low- E windows ● Smart thermostat All of these combine to make the home more energy efficient than most comparable homes with savings of approximately $70-100/month in utility bills. 27 ## New Leaf Neighborhood FAQ: 1/6/2025 16 ## Miscellaneous What’s the anticipated timeline? The project is in the planning and pre- development phase. After groundbreaking, the site work, streets, and utilities will likely take about six months. Home sales for the first phase will also take about six months. Building and installing the homes will take another six months. Once NCF has secured the land and financing, the physical development phase can begin. It will likely take 18 months from groundbreaking to getting all residents in the first phase moved in. How will NCF use local builders and contractors? NCF and our partners will work with city officials to meet or exceed all local policies, rules, and expectations regarding the use of local builders and contractors. How would this neighborhood compare to a mobile home park, a land trust, or a “traditional” single-family neighborhood subdivision with a Homeowners’ Association? In a “traditional” subdivision with an HOA the homeowners must pay for the land. This makes ownership unaffordable for too many families. Resident homeowners set the rules and the fees in cooperatives. Fees typically cover expenses and sound fiscal management responsibilities. The dues do not include profit for landowners or shareholders. 1970s Mobile ## Home Park ## New Leaf ## Neighborhood ## Land ## Trust ## Other Single Family ## Homes Little up-front cost to homeowner    Real Property home title    Stable annual expenses    Home appreciates, owner builds wealth  (  )  Cooperative homeowners association  Ongoing expert advice, education  28 ## New Leaf Neighborhood FAQ: 1/6/2025 17 ## Homebuyer Financing & Resources What lenders will provide a mortgage for the homeowner? NCF is working to bring forward several lending options for homebuyers to have choices that match their family’s needs. To do that, NCF will seek a combination of national and local lenders. NCF is partnering with NeighborWorks Home Partners to create a lending product similar to those offered in New Hampshire, Vermont, and Maine. NeighborWorks created these products specifically for resident-owned communities like the New Leaf neighborhood. Key features include fixed rates, low down payments, and terms up to 30 years. In addition, NCF has started outreach to local banks to understand their existing lending programs for manufactured housing and adapt them for this purpose. Once the project moves forward, these options will be finalized. Will the home be titled as real property or as personal property? Minnesota law now allows for cooperatively-owned homes to be titled as real property. This has not happened yet, however. NCF is working with title companies and legal experts to ensure this is an option for New Leaf homes. 2 How do community members without a social security number qualify? Cooperative memberships don’t require a social security number. The goal is to have multiple financing options for New Leaf homeowners. These options will include a home financing product that allows buyers with an Individual Taxpayer Identification Number (ITIN) to qualify. An Individual Taxpayer Identification Number (ITIN) is a 9-digit number the Internal Revenue Service (IRS) issues to people filing a tax return who are not U.S. citizens and who do not have or are not eligible for a Social Security number. What examples or evidence is there that manufactured homes will appreciate in value like traditional site-built single-family homes and offer the chance for families to build generational wealth? A New York Times report found that manufactured homes actually appreciated at a higher percentage over a period of time than traditional site-built homes (From 2014-19, U.S. Census data found 2 https://www.revisor.mn.gov/statutes/2021/cite/168A.1411 29 ## New Leaf Neighborhood FAQ: 1/6/2025 18 manufactured homes rose 39% over their median value, as compared to 33% for traditional homes). 3 ## A more recent National Public Radio report confirmed no significant difference in the appreciation rate of manufactured homes versus site-built homes, showing manufactured home values rose 34.6% from 2016- 21, compared to 35.4% for traditional homes. 4 Simply put, facility-built homes appreciate in value equal to site-built homes. Further, the academic research from New Hampshire shows that manufactured homes in cooperatives (like New Leaf) appreciate in-line with site-built homes. 5 However, this body of work indicates that the most important aspect of appreciation is homeowner control of the land and access to affordable financing. With the cooperative model and the financing options that will be available for this project, the New Leaf neighborhood will incorporate those two essential components. 3 Kolomatsky. M. (2021, September 12). Mobile home values have been migrating upward at breakneck speed. New York Times. https://www.nytimes.com/2021/12/09/realestate/mobile-home-values-have-been-migrating- upward-at-breakneck-speed.html 4 Yang, M. (2022, October 27). Mobile homes are rising in value but current residents can't cash out. National Public Radio. https://www.npr.org/2022/10/27/1129699328/mobile-homes-housing-prices-value-inflation-houses- rent 5 Ward, French, Giraud. (2006). Building Value and Security for Homeowners in “Mobile Home Parks:” A Report on Economic Outcomes. Carsey Institute at the University of New Hampshire. https://static1.squarespace.com/static/51149157e4b00dcd7b6e0e8a/t/5114d505e4b0f297c4870bfc/13603197493 04/Building_value_and_security_2006.pdf 30 ## New Leaf Neighborhood FAQ: 1/6/2025 19 ## Project Financing Can you share a draft pro forma? What are the sources and uses for the project? Please see below for preliminary sources and uses as of January 2025 . Who will finance the construction costs and how? NCF will take out a construction loan just like any other subdivision developer. The construction loan gets paid off as homes are sold and title transferred to the new owners. How does NCF make money? Is there a financial incentive for NCF in doing this project? NCF is a non-profit organization whose mission is to provide affordable housing solutions, just like other nonprofits you may be familiar with like Habitat for Humanity, Southwest Minnesota Housing Partnership, Beacon Interfaith Housing Collaborative, or CommonBond. NCF’s primary income comes from philanthropic supporters such as the McKnight Foundation, the Otto Bremer Trust, and the Bush Foundation. This public support greatly reduces the cost of NCF’s services ## Units64 ## SOURCESTOTALPER UNIT Homebuyer mortgages9,725,800 151,966 Downpayment Assistance640,000 10,000 [TBD Gap Fundi ng]3,520,000 55,000 St Peter - Land Contribution320,000 5,000 St Peter - Infrastructure Loan3,200,000 50,000 ## TOTA L17,405,800 271,966 ## USES Acqui si ti on320,000 5,000 Home purchases5,140,000 80,313 Setting and Finishing1,820,800 28,450 Foundation2,165,000 33,828 Driveways, Car Ports, Garages1,240,000 19,375 Site work, streets, utilities3,200,000 50,000 Soft costs (legal, finance)2,200,000 34,375 Community center1,000,000 15,625 ## TOTA L17,085,800 266,966 31 ## New Leaf Neighborhood FAQ: 1/6/2025 20 that it provides to the communities it supports. NCF charges modest annual fees to each cooperative it supports as well as a modest placement fee for each home it supplies. What financial support is expected from the St. Peter City Council? NCF has asked the community to contribute the land. In addition, we will ask for an infrastructure loan from the city to pay back the costs of city-owned road, water, and sewer lines over time. Like in any other development, ongoing operations and maintenance of the streets, water and wastewater infrastructure, etc. will be part of city operations. What is the City's contribution to the project? Land, site improvements for roads and utilities, etc.? The City of St. Peter owns land located near Klein Street, which NCF would ask to be donated for the site of the new neighborhood. NCF would construct the neighborhood to St. Peter municipal specifications, covering the construction costs of roads, utilities, etc. What can the City of St. Peter do to make this project happen? ● Enter into a development agreement with NCF. ● Donate the land in support of affordable housing. ● Consider other options that would help make the homes more affordable. This could include streamlining or lowering permitting costs and inspection fees, sewer and water access charges, etc. . 32 ## New Leaf Neighborhood FAQ: 1/6/2025 21 ## Definitions Area Median Income | Area median income — often referred to as simply “AMI” — is a key metric in affordable housing. Area median income is defined as the midpoint of a specific area's income distribution and is calculated on an annual basis by the Department of Housing and Urban Development (HUD). Affordable Housing | Affordable housing is generally defined as housing on which the occupant is paying no more than 30 percent of their gross income for housing. Blanket Mortgage | A loan taken out by a cooperative that covers all the property’s debt. Comprehensive Plan | The comprehensive plan, sometimes also referred to as a master plan or a general plan, is the foundational document of long-term planning and zoning in the United States. A comprehensive plan is an essential feature of long-term planning for cities and counties all over the United States, as both the process and the documentation for creating a broad, long-term vision for future land uses and the built environment of communities. Cost -Burdened | According to the Department of Housing and Urban Development (HUD), a household is considered cost-burdened when it spends more than 30% of its income on rent and utilities and severely cost-burdened when it spends more than 50% of its income on these expenses. Debt Service | The amount of money paid to a lender for a loan, including both interest and repayment of the loan itself. Equity | The difference between the market value of property and the total amount of all mortgages and liens against the property, which reflects the dollar value of the owner’s interests. In accounting terms, equity equals assets less liabilities. Expenses | The costs of operating the co-op, which usually fall into a few main areas: loan payments, administration, taxes, insurance, utilities, maintenance, and reserves. Facility-built or Factory-built home | “Facility-built” or “Factory-Built Home” is a generic term that refers to any home that has been predominantly designed and constructed in a controlled factory or plant environment. Homeowners Association (HOA) | A Homeowners Association (HOA) is a legal entity created within a residential community, such as a neighborhood, condominium complex, or planned development, to manage and govern the common areas and shared amenities of the community. Homeowners who purchase property within the community automatically become members of the HOA and are typically required to pay dues or fees to cover the costs of maintaining and managing the common areas and services. 33 ## New Leaf Neighborhood FAQ: 1/6/2025 22 Housing Cooperative | A housing cooperative forms when people come together to own and control the buildings in which they live. Residents form a cooperative corporation, to which they pay a monthly amount to cover operating expenses. The cooperative owns the land, the buildings, and any common areas. Members buy shares in the cooperative. HUD Manufactured Home Building Code (aka: HUD Code) | The HUD Manufactured Home Building Code, also known as the HUD Code, is a set of construction and safety standards established by the U.S. Department of Housing and Urban Development (HUD) for manufactured homes. This code regulates the design, construction, performance, and quality of manufactured homes to ensure they meet specific safety, durability, and energy efficiency requirements. The HUD Code was enacted in 1976 as part of the National Manufactured Housing Construction and Safety Standards Act in response to concerns about the quality and safety of manufactured homes. Prior to the HUD Code, manufactured homes were commonly referred to as mobile homes and were subject to varying state and local building codes, resulting in inconsistencies and potential safety hazards. The HUD Code establishes uniform standards for manufactured homes across the country, covering aspects such as structural integrity, fire safety, electrical systems, plumbing, thermal insulation, and overall construction quality. Homes that comply with the HUD Code receive a certification label indicating their compliance, which is required for financing, insurance, and resale purposes. The HUD Code has evolved over the years to incorporate technological advancements, energy efficiency standards, and improved construction practices, ensuring that manufactured homes continue to provide safe and affordable housing options for millions of Americans. Homes are installed to local building code requirements, which vary from state to state and are codified in the appropriate building code. In Minnesota, the current standard is the 1997 Uniform Building Code and all homes must follow that standard. Limited Equity Housing Cooperative | A limited equity housing cooperative (often referred to as an “LEC” or “LEHC”) puts restrictions on a unit’s sale price, with the restrictions outlined in the cooperative’s bylaws. This type of cooperative is designed to maintain long-term housing affordability. While most public sector programs have limited timelines—after which affordability disappears—a limited equity cooperative can continue offering benefits forever. Limited equity cooperatives ensure long-term affordability in a number of creative ways, including limits on resale price. Condos and single-family homes, on the other hand, are always priced at market rate, and may lose affordability over time. Transaction costs for buying or selling are also much lower for cooperative members, since separate title searches and title insurance are unnecessary. Finally, cooperatives can borrow collectively for major improvements, pledging the building as collateral, and avoiding large special assessments common to condo ownership. 34 ## New Leaf Neighborhood FAQ: 1/6/2025 23 Limited Equity Formula | The formula describing how member equity may appreciate, and which affects the price at which the member may attempt to sell their co-op unit. Market Rate Housing Cooperative | A market rate housing cooperative sells shares at full market value in the original sale and permits future unit sales at market value. Much like conventional real estate, a unit’s sale price is determined by the market, allowing for potential accumulation (or loss) of equity by the members. Membership Joining Fee (aka: Subscription Funds) | Money paid along with a Membership Agreement. ## Membership Agreement (aka: Subscription Agreement) | The Membership Agreement (sometimes referred to as a “Subscription Agreement”) is a written agreement between a person and the cooperative (in a form approved by the board of directors, and as specified in the co-op’s bylaws) in which such person agrees to execute an Occupancy Agreement, make the required down payment, assume monthly carrying charges, and become a member of the cooperative. Membership Dues | The monthly fee paid by each member of the cooperative. The money goes to cover the operating expenses of the cooperative. Proprietary Lease | The lease signed by a cooperative and a co-op member, which gives the member the right to occupy a specific lot or unit within the co-op. Resale | The process of transferring co-op shares from a member who is selling their share(s) in the co- op to a member who is purchasing share(s) in the co-op. Reserves | Money set aside from net income to meet expected or unexpected expenses; usually kept in a form (like a savings account) that is easily converted to cash. Reserves are commonly set up in housing cooperatives to cover maintenance and operating expenses. Share | Sometimes called a certificate, a share represents an individual’s right to occupy a specific space in the housing co-op. Workforce Housing | Workforce housing is generally understood to mean affordable housing for households with earned income that is insufficient to secure quality housing in reasonable proximity to the workplace. 35 ## City of St. Peter February 3, 2025 ## New Leaf Neighborhoods Affordable housing options 36 ## Today 1.Goals 2.Co-op overview 3.Housing Types 4.Cooperative HOA 37 ## NCF Programs & Services Development.We help new and existing co-ops assess project feasibility, secure financing, and develop strong organizational and management structures Technical Assistance. We help ensure cooperatives thrive by providing tailored technical assistance, training, continuing education, and peer to peer engagement opportunities. Advocacy. We work with co-op leaders to advocate for legislation that advances cooperative ownership. ## Lending. We provide customized financial tools to help cooperatives and their members improve their homes and communities. ## Cooperative Loan Fund ## Factory-Built Home Retailer ## NorthcountryHolding ## Real Estate Development & Holding. We hold and develop/redevelop property for eventual co-op ownership. ## Home Sales. We acquire, place, and sell high-quality, factory-built homes in new and existing manufactured home cooperatives. 38 ## Track Record •Midwest Resident-Owned ## Communities (ROCs) Program •16 existing parks (1,151 units) converted to co-op ownership since 2004 in transactions valued at over $33.5 million •A founding member of the ROC ## USA® Network •Strong industry relationships 39 40 ## Gaps in Affordable Housing Options Subsidized apartments (30% -60% AMI) Subsidized single family (50% AMI) Market rate single family (Over 115% AMI) Home ownership at 60% -115% AMI) ## MLS Number:7036351 41 ## Gaps in Affordable Housing Options Subsidized apartments (30% -60% AMI) Subsidized single family (30% -50% AMI) Market rate single family (Over 115% AMI) Home ownership at 60% -70% AMI) ## MLS Number:7036351 42 ## Homeowners •All ages, incomes •First-time buyers to retirees 43 ## Specific goals: •Homeownership attainable at workforce incomes ($60k-80k / yr) •Manageable mortgages starting at $135,000 •Safe, long-lasting 44 ## Cooperative Structure 45 ## Ownership Structure ## •Co-op Owns The Community (the commercial property) •Holds title to and manages the commercial property (including all land, common areas, co-op owned infrastructure, etc.) •Individual member owns their home + 1 co-op membership share •Each member has a proprietary lease with the cooperative for the lot their home is affixed to •Each homeowner has a membership interest in the co-op •One home = one vote 46 Different Delivery gives more options LAND and ## STREETS ## $80K ## HOME ITSELF ## $120K ## BASEMENT ## GARAGE ## New Leaf Delivery LAND and ## STREETS ## $80K ## HOME ITSELF ## $200K ## BASEMENT ## $35K ## GARAGE ## $55K ## Traditional Delivery ## Mortgage: $2462/mo ## Mortgage: $795/mo ## Add-On Options $465/mo TOTAL: $1261/mo 47 ## Cooperative ## Homeowner Association •Owners elected to the Board of ## Directors •Monthly membership dues (similar to HOA) •Common maintenance •NCF’s ongoing support oNew homeowner education oBoard recruiting and development oRules & regulations oProperty maintenance oOperations, governance, budgeting oBulk purchasing oNetwork of other coops oAnnual conferences 48 ## Cooperative HOA ## Strengths •Financial stability •Improved safety •Self-determination •Community with neighbors •Support from the co-op 49 ## Homes 50 ## Facility-Built Home Types 1300 sq ft 3 bedroom 2 bathroom 1600 sq ft 3 bedroom 2 bathroom Attached garage 1100 sq ft 3 bedroom 2 bathroom 51 ## Quality Home ## Good Financing Options ## Homebuyer Education & ## Support ## Land Security ## Successful Homeowner 52 ## Quality Home ## Good Financing Options ## Homebuyer Education & SupportLand Security ## Successful Homeowner ## NCF’s Factory-Built Retailer NCF’s in-house home retailer ## NeighborWorks Home Partners (NWHP) Home financing and down payment assistance ## Minnesota Homeownership Center + NWHP Homebuyer education + counseling Cooperative corporation Long-term stewardship of the land 53 ## Home Financing •Welcome Home loan program •30-year term, competitive interest rate •Initial source of capital for the program was a $10 million MN Legislative appropriation in 2023 •Paired with homebuyer education + counseling •Working on ITIN eligibility •Down Payment Assistance program(s) •Unity DPA program –0% interest, 10-year, deferred, forgivable loans to eligible households. Up to 80% AMI, up to $20K per homebuyer •Additional down payment assistance pending 54 55 ## Factory-Built Homes •Climate-controlled construction •Rigorous inspection process •Same materials as site-built •High efficiency –baseline R-rating is R- 19 (site built homes range from R-13 to ## R-23) •Customization •Fast construction (7-10 weeks on average) 56 ## Neighborhood Design •Walkable •Like many other traditional neighborhoods •Regular city streets •Sidewalks •Front porches •Individual driveways 57 ## A A ## Neighborhood •Community Center and ## Playground •City owned streets, utilities •Connected to the broader community 58 ## Timeline •2025 -planning and securing funding •2026 –construction of Phase I •2027 –construction of Phase II •2028 –construction of Phase III ## Phase I 59 ## Team 60 ## Thank You 61