The Free Press, Mankato, MN

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March 1, 2009

First to benefit: public housing

Mankato in line for $400,000 from stimulus

By Dan Linehan

Money to public housing agencies, including about $400,000 for Mankato, is the first stimulus funding to be allocated to this region.

The stimulus bill, called the American Recovery and Reinvestment Act, gives $4 billion to housing agencies across the country, Mankato housing programs coordinator Patti Ziegler said. Three-fourths of that is allocated using normal methods, and the rest is competitive.

Ziegler said Mankato’s share of the housing stimulus will be spent on improvements to 80 of the city’s public housing units. That means new roofs as well as repairs and renovation to the units.

The 101-unit Orness Plaza may not get its long-planned repairs from the new cash because the $10 million project is using another source of money.

“We’re thrilled at the opportunity to provide safe, decent and affordable housing for working families in Mankato,” she said.

Congressman Tim Walz used similar language in a press release marking the allocation.

“I am thrilled that just two weeks after I voted for the economic recovery package we are beginning to see funds flow directly to local communities,” he said.

But it will be at least April 10 before the money is spent, Ziegler said, because local governments have to send their budgets to the federal government for approval.

Much of the stimulus money will go toward remodeling existing housing units.

Blue Lion Cabinetry, Inc., a Madison Lake contractor with three employees, has been “fairly busy” with remodeling, owner Karl Wendland said.

“Just because people are staying in their house longer, I think that’s kind of a trend,” he said.

Still, some other contractors are struggling to find work.

“It’s kind of a survival of the fittest type thing,” Wendland said.

The housing boom made it easy to start a building company, but some of those newer businesses might not survive the recession, he said.

He’s also noticed home builders bidding renovation jobs they wouldn’t do in the past.

There were two housing starts in January in Mankato and North Mankato.

New Ulm is slated to receive $89,455, which will be used to remodel public housing units, mostly in the 40-unit Broadway House, said Tom Macaulay, assistant executive director for the New Ulm economic development authority.

“Just to give ’em a facelift,” he said.

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