Minnetonka Soon to Be Home to More Affordable Housing

Minnetonka will soon be home to a new 65-unit affordable housing complex, Sunset Hill Apartments. The Minnetonka City Council gave the plan the green light at their last meeting, and according to Minnetonka Community Development Director Julie Wischnack, the development is sorely needed.

"Say you work at [the Ridgedale] Macy's" or another area service industry job,” Wischnack said. "Usually, a market-rate rental could beyond what you could afford."

According to a national report released by the National Low Income Housing Coalition and the Minnesota Housing Partnership, about 55 percent of renters in the state don’t make enough to afford a two-bedroom unit at a fair market rent. But as it stands, 90 percent of Minnetonka's housing stock is at that market rent, said Wischnack. That means that the ability to live in Minnetonka is out of reach for many people who work within the city. 

The new 65-unit, four-story building, located at 12720 and 12708 Wayzata Boulevard, would include 48 units that will be designated "affordable," meaning someone making $24,000 per year would not pay more than 30 percent of their monthly income in rent.  Renters making more than $58,000 per year would not be allowed to rent a designated "affordable" unit.  

Developer John Duffy estimated "affordable" unit rents will be $750 rent for a one-bedroom, $850 for a two-bedroom, and $950 for a three-bedroom apartment. Minnetonka-based, Duffy Development Company currently operates residential properties in Iowa, Wisconsin and Minnesota.

Wischnack said affordable housing developments, like this one, are most often placed near large numbers of jobs and in the city's most walkable village centers that are served by mass transit. This new complex would be located on the north side of I-394, a short distance to .

"We try to pinpoint redevelopment in places where it makes sense," she said, adding that several large companies could also move into the area in coming years.

Of the 12 states in the Midwest, Minnesota ranks the worst for rental affordability among low-wage workers. The city hopes to see between 250 and 350 affordable units built in Minnetonka by 2020. Sunset Hills Apartments will account for almost one-fifth of that affordable housing goal.