Developer Creates Needed Family Housing in Rural Minnesota

When Skip Duchesneau, president of D.W. Jones Development, saw an article about 85 homeless children enrolled in Minnesota’s Detroit Lakes School District, he became interested in building an affordable housing project in this rural city.

“It touched something in me, and I wanted to create some housing there,” says Duchesneau. “It was highly warranted and in need.”

New households face a tight housing market in Detroit Lakes as rental vacancies remain low. Duchesneau saw that need firsthand as his firm has third-party managed two tax credit developments in the community that were built at least 15 years ago and are always occupied.

To add to the housing stock, Apex Townhomes was completed in October 2019, leased within three months, and has been full since that time. The development features 30 two- and three-bedroom units across five townhome-style buildings, with two units that are handicapped accessible and a manager’s unit. In addition, four units are reserved as permanent supportive housing for families experiencing long-term homelessness. These four households receive project-based vouchers, and services are provided by the Mahube-Otwa Community Action Partnership.

The developer also focused on sustainability. The steel siding mimics natural wood grain and is noncombustible with a 35-year warranty. Building features include water-conserving fixtures in all units and common areas, aiming to reduce consumption by 30%, LED lighting, high-efficiency furnaces, and water heaters.

“We do the best for the residents. It helps lower their utility costs, and people will want to stay,” Duchesneau says. “It’s a win-win.”

The $7.1 million development, which utilized 4% housing credits and bonds, benefited from both state and city support.