Value Gap Grant Supports Construction of New Homes in Otter Tail County

December 7, 2022 – Otter Tail County, MN– The need for housing in local communities has led to many innovative solutions. Realizing the demand for additional owner-occupied housing Otter Tail County Housing and Redevelopment Authority (HRA) will construct three homes in the Hidden Meadows Development in Battle Lake. The cost of construction will be covered by the Minnesota Housing Finance Agency through an Impact Fund Value Gap Grant and the sale proceeds.

In 2020, the City of Battle Lake contacted the Otter Tail County HRA to assist in addressing a need for new homes within the community.

“We are appreciative of the HRA’s willingness to work with us on this project,” said Val Martin, City Clerk-Treasurer and Economic Development Agency (EDA) Director. “We hope this fills a gap in our housing shortage. It’s another great project in Battle Lake.”

The Otter Tail County HRA reached out to stakeholders to find possible funding partners. In 2021, the Otter Tail County HRA applied to the Minnesota Housing Finance Agency for an Impact Fund Value Gap Grant to construct homes in Battle Lake. A Value Gap Grant of $516,582 was awarded and HighPoint Construction was named as General Contractor to construct the homes in two phases.

Randy Dorn, Battle Lake EDA president, reflected on the impact of the grant funding. “This project is offering new homes in Battle Lake at affordable prices. Teaming up with the HRA to obtain these grant dollars to keep the purchase price down during this period of rising costs was the key to making this a reality for home ownership in Battle Lake.”

house rendering
3 Bedroom House Rendering

Phase I will see the construction of one two-bedroom, two-bath slab-on-grade home and one three-bedroom, two-bath home on an unfinished basement. The unfinished basement will feature two egress windows for future bedroom options as well as laundry hookups and a roughed-in bathroom.
HRA Commissioner, Kurt Mortenson expressed the importance of the expansion of housing opportunities as a county-wide priority that is critical in addressing community housing needs. “The new homes in Battle Lake will appeal to those who need a two-bedroom slab-on-grade home or a three-bedroom home with an unfinished basement,” Mortenson remarked. “This effort is a great example of how partnerships are key in creating housing in the county.”

house under construction
3 Bedroom House | Looking Into Kitchen

Interested buyers must meet annual income guidelines of $104,000 or less for households of 1-2 people and $119,600 or less for households of 3 or more. If identified early in the construction process, qualified home buyers with a signed purchase agreement can choose color options for various finishes. For more information, please contact Ryan Hanson with Ryan Hanson Homes at 218-205-7351 or visit


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