Case Study: Dakota Heights

Dakota County Community Development Agency (CDA) has experienced great success by using a variety of methods to build and sustain affordable housing. The CDA uses levied funds for its Senior Housing Development Program. Levied funds are used for development related expenses including land and construction costs, as well as for debt service on the bonds issued to finance the buildings. What makes this program noteworthy is the buildings are owned and managed by the CDA.

As a government entity, the CDA does not pay sales tax on building materials and pays a payment in lieu of taxes, both of which allows the CDA to maintain the buildings at lower operating costs; because of this the CDA is able to pass the savings on to tenants through lower rents.

The CDA’s Senior Housing Development Program is designed for those 55 years of age and older. Developments are moderately sized and have a mix of one and two bedroom floorplans as well as handicapped accessible units. All buildings are beautifully decorated and include amenities such as a community room with kitchen, sitting and library areas, laundry facilities, underground heated parking, and emergency call systems.

The Dakota Heights is a 59-unit senior housing development built by the Dakota County CDA and is located in West Saint Paul, MN.