PIPESTONE -- Prospective homeowners can find some relief in a housing market tightened by the arrival of 275 Suzlon Energy employees through a new homeowners' incentive plan offered by the City of Pipestone.
The city set aside $15,000 from its general fund, to be given to homeowners who apply for it in $2,500 increments.
"It's a fairly simple application," said Pipestone Administrator Jeff Jones. "We tried to keep it very user-friendly so we can get some folks to utilize the program."
Money will be offered on a first-come, first-served basis, and the city is not obligated to put additional money into the program, although it may if it chooses to later on. Home-buyers must have a low-to-moderate income in order to qualify for the incentive. For a two-person household, up to $50,000 would be considered a low-to-moderate income, but the standards vary based on factors like number of dependents.
After the homeowner buys a house, the city will provide the $2,500 toward either the purchase cost of the home or the lot.
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The money must be repaid to the city when the house is sold again.
Suzlon Energy is also offering an incentive plan to its employees, for $2,000 toward the purchase of a home or $1,000 for rent.
A housing study, commissioned from Maxfield Research at the cost of $16,700 and partly paid for by the Southwest Minnesota Housing Partnership, identified a need for 32 rental units and up to 60 new homes in Pipestone. The homes-needed figure includes entry-level homes, move-up homes and executive level houses.
Maxfield Research also projected a five percent growth in Pipestone's population.
"That was a very nice part of their findings, that we felt was happening, but it was nice to hear an outside agency confirm that we are poised for growth," Jones said.
Currently, the pressure on the rental market in particular means that apartments are snapped up as soon as they come up for rental, making it difficult for newcomers to find a place to live.
So far no developers have stepped up to build new rental housing. Pipestone's city council will meet Thursday to discuss options for rental development. The city may offer incentives to a private developer or attempt to fund the project itself through an essential functions bond.
"I think the community is still adjusting to the fact that Suzlon is here and is still reacting to the demands it is putting on the market," Jones said. "Landlords simply don't have rentals left, and are telling us we need to do something to create availability here."
