Mixed Income Cottage Rentals Coming to Duluth

DULUTH, Minn. — A new option for rental housing is coming to the northland, and it’s not one size fits all. Cottage villas will be up for rent, priced for mixed income households.

Tucked within the trees of a West Duluth neighborhood, the Fairmount Cottage Development is planting multiple new housing seeds.

“There’s one word that I know that we need right now, and I know the chamber should support. That’s housing, housing, housing. Of all types; housing right now and housing for everybody. We need it to stabilize our community, we need it for population growth, we need it to support economic opportunity, we need it for tax pace growth, we need it to support workforce, we need housing,” said President of the Duluth Area Chamber of Commerce, Matt Baumgartner.

While Duluth has apartment complex’s across the city, project coordinators say this will be like a village of cottages.

Each renter will have their own, small home within the same plot of land.

“When the city council passed the new use of a cottage park, we new this was something people would be interested in. They like having their own home, their own space, their own porch, their own storage room, and to not share a wall with their neighbors,” said HRA Executive Director, Jill Keppers.

The development will have 18 units, 6 one-bedroom rentals and 6 two-bedrooms.

HRA says the rental price will range from $800 to $1,600 depending on household income.

“In 2019, the city of Duluth updated the zoning code to allow for this type of use and our intent was to encourage denser residential development that had the potential to lower development and construction costs, while still fostering a sense of community amongst neighbors,” said Duluth Chief Administrative Officer, Noah Schuchman.

The development is supported by three sets of funds:

  1. $1.5 million of HRA funds
  2. $1.15 million from the city of Duluth through its American Rescue Plan Act fund allocation
  3. $2.5 million in housing revenue bonds from North Shore Bank

Community partners involved in the project include the city of Duluth, Fryberger Law Firm, Northland Securities, Northland Homes/Dirt, Inc., and North Shore Bank.

The cottages are expected to be move-in ready by the end of next summer.

Categories: Minnesota, News, News – Latest News