HRA advances housing trust fund, discusses funding for local projects

Kalli Hawkins | November 1, 2026

The Cook County Housing Redevelopment Authority (HRA) is continuing its efforts to establish a local housing trust fund, a project in development for more than a year.

The fund is intended to help support the development, preservation, and rehabilitation of housing in Cook County.

At the Oct. 28 meeting, the HRA board approved a housing trust fund ordinance, guidelines, and other measures to establish the fund.

HRA Executive Director Jeff Brand said the local housing trust fund will give the HRA more opportunities to provide resources for first-time homebuyer financing, development costs, rent subsidies, and other housing-related initiatives.

Establishing the fund will also open doors for the HRA to look for funding from philanthropic organizations or other entities, Brand said.

The fund will initially be supported through contributions to the HRA from Cascade Vacation Rentals’ 1% voluntary fee. For the past four years, the property management group based in Lutsen has included a 1% HRA workforce fee per booking or reservation. Brand said the HRA plans to use that seed money to then seek matching state funding and explore other avenues to continue growing funds for the local housing trust fund.

Developer request to apply for IRRR grant funds

Wednesday’s meeting also included a discussion regarding a developer’s request that the HRA apply for an Iron Range Resources and Rehabilitation (IRRR) grant to help cover development costs for a 12-lot housing project.

The developer, Howard Hedstrom, is requesting that the HRA apply for a grant of up to $400,000 to help cover costs associated with the proposed housing project, including infrastructure, broadband, and related lot development. Hedstrom is currently working to develop Little Creek Woods, a project consisting of 12 vacant, undeveloped parcels that will be sold individually. The project is located directly north of Hedstrom’s Mill up the Gunflint Trail.

HRA Commissioner Bill Hansen questioned the request during Wednesday’s meeting, asking whether the HRA had any assurance about the anticipated sale price of the parcels.

“Usually, when we support somebody’s IRRR grant, we are looking for some kind of an assurance that the housing is attainable, and I don’t see anything in this case or anything in my conversations with Howard that led me to believe that’s the issue,” Hansen said.

Hansen said he wants to ensure the HRA maintains its credibility with the IRRR and preserves access to future funding for housing projects, particularly if Hedstrom’s lot development project could be marketed as second homes or priced beyond what Cook County residents can afford. Rather than approve the request during the meeting, he said he would support learning more about the proposal from the developer before applying for grant funds.

Commissioner Ann Sullivan also said she would like additional clarity on the anticipated pricing and price range for the homes.

HRA Commissioner Bill Gabler and the other HRA commissioners agreed.

The HRA Board agreed to table the discussion and resolution until next month to allow time to speak with the developer and gather additional information.

Minnesota Department of Employment and Economic Development Grants

Another item discussed and approved by the HRA Board on Wednesday was to move forward with applying for two separate Minnesota Department of Employment and Economic Development grants related to housing rehabilitation and other projects.

In the first grant application, the HRA will request up to $600,000 to support housing rehabilitation for existing housing stock in Cook County. The funds will support initiatives in the HRA’s energy and envelope program, which provides homeowners with funds to improve livable spaces and energy efficiency.

The second grant application includes several components and focuses on the City of Grand Marais. The HRA will apply for funds up to $600,000 to support housing rehabilitation projects within city limits. The grant application will also request funds for improvements needed for the city’s wastewater treatment facility, a project the city has been working on for the past several years.

WTIP’s Kalli Hawkins spoke with HRA Executive Director Jeff Brand following the Wednesday, Oct. 28 meeting. Audio below.