Housing Crisis in Cass Lake, MN

Background

Cass Lake is small town (population 625) in north-central Minnesota with an immediate need for 500+ housing units.

Approximately 40 years ago, Cass Lake was a thriving community with nearly 2,000 residents whose population crashed with the closing of the pressure treated lumber plant and the subsequent discovery of contamination. Half of the community housing was demolished as a response to a super-clean-up site designation. The ground remains contaminated and half of the city is unbuildable without remediation.

The community declined over the years. Hopeful progress developed a few years ago when the Leech Lake Tribe established the headquarters for the Minnesota Chippewa Tribes in Cass Lake and a new high school was built. A new elementary school is currently under construction.

In early 2022, the Leech Lake Band constructed and opened a new casino in Cass Lake. The operations of that casino brought to the community 100 high paying, new positions. Many of the positions remain unfilled as applicants discover there is no housing available in or near Cass Lake. The Leech Lake Housing Authority completed a housing study and found a housing deficit of 500 units. Many existing units were in disrepair and overcrowded, sometimes serving as a home for as many as 3 or 4 families.

Response

The Cass County Administrator and Commissioners recognized the critical need for housing in Cass Lake. One approach to address this crisis was the set-aside of funding from the American Rescue Plan Act (ARPA) and to find a means to deliver that funding to Cass Lake. Additionally, the County Administrator and the Commissioners identified Lakes Area Habitat For Humanity (LAHFH) as the housing builder who could bring affordable homeownership to this community. The county awarded LAHFH $250,000 from their ARPA allocation with the understanding that award would be matched and that LAHFH would commit to building homes in Cass Lake (one previous build completed in 2017).

LAHFH accepted the award and the challenge to match the funding. From that outreach:

  • One local foundation committed $150,000
  • Another local foundation committed $50,000
  • Another local foundation committed $10,000
  • The city of Cass Lake committed to waiving permit and SAC/WAC/hookup fees
  • The city of Cass Lake committed to helping identify building sites (nearly $0 acquisition)
  • A local utility provider committed to $25,000 of in-kind materials and professional services.

With money secured and lots secured, LAHFH hosted an application meeting in Cass Lake for the first four homes proposed to be built. In December 2022, over 60 families attended the meeting and nearly 30 applied for the first builds. All four selected families are members of the Leech Lake Band of Ojibwe Tribe.

LAHFH hired a permanent, FT construction manager in the summer of 2023 to lead the builds and by September, 2023, site work for the first homes began. As of today, all four homes are under construction with an anticipated completion timeline of Spring, 2025.

Unexpected Outcomes

  • Another local entity committed to building 15 homes in the next 2-3 years to be sold on the open market
  •  The county acquired dilapidated commercial properties (4) and demolished them bringing an instant improvement to the appearance of the downtown area
  •  A local business owner, in partnership with the local Housing and Rehabilitation Authority, are working to acquire the above noted commercial properties to develop a place for 3-4 local street level businesses (laundromat, coffee shop, restaurant have all been identified as possible businesses) with 2-3 stories of market-rate rentals above the businesses
  •  The local school district is exploring developing 75 acres of property to open up additional build sites for developers and builders