CHISHOLM — On a quiet residential street in Chisholm, representatives from local and state groups gathered for an open house.
The three-bedroom, two-bathroom, 1,520-square-foot house boasted new siding, fresh carpet and updated appliances.
But it didn't always look this way.
According to Dave Johnson, director of housing at the Arrowhead Economic Opportunity Agency, or AEOA, renovating the house's utilities was the most expensive part of the build.
His team installed new electrical, plumbing and heating systems to the home before turning their attention to other matters.
"Then of course, you've got the rehab, the two-by-fours, the plywood, that kind of stuff," Johnson said.
The restored home in Chisholm is the first successful renovation of the Second Chance Homes pilot program, which aims to turn tax-forfeited houses on the Iron Range into affordable renovated homes.
The program came about from a collaboration between AEOA, St. Louis County and the Minnesota Department of Iron Range Resources and Rehabilitation, or IRRR. Since then, communities have also pitched in, along with the state Department of Employment and Economic Development.
More than $1.2 million have been contributed to the fund, according to IRRR.
In its first phase, the program purchased four vacant homes in Chisholm, Eveleth and Aurora. The three other first phase homes will be completed in the next few months.
At the open house on Tuesday, Nov. 12, local and state leaders spoke about the importance of the program amid a costly housing market and a shortage of available homes for workers and families.
IRRR Commissioner Ida Rukavina was among them.
"When you look across the Range at our towns, you see smaller lot sizes and homes built decades ago. We didn't want to lose those homes that could be preserved and saved with some rehabilitation," Rukavina said. "Instead of leaving empty lots behind, why not give those homes a second chance?"
Several members of IRRR's legislative advisory board attended the open house. State Sen. Rob Farnsworth, R-Hibbing, and state Rep. Roger Skraba, R-Ely, spoke at the event about their roles in getting the program started.
Farnsworth said when he first came to office in 2023, he met with Rukavina about how to prioritize housing.
"Out of that, the IRRR created the $6 million housing fund that goes to cities across the Taconite Assistance Area, and so it helps to fund projects like this," Farnsworth said.
"I think it's easy," Skraba added, "for me to go back to the Capitol and say we're going to support this again and again and again."
Chisholm Mayor Adam Lantz applauded the collaboration.
"We got to rely [on] and push our elected officials to come up with projects like these, and they've been successful in doing so," he said.
Johnson said the house will now go to market. He said the listing price would likely be around $220,000. This is less than the total restoration price, which Johnson said would likely end up between $280,000 to $290,000.
"That's where the IRRR funding and some of the other funding comes in. They pay that down so it's affordable," he said.
Johnson said the organizations are working on other restrictions to keep the home affordable down the line, too.
"It's to remain affordable [for subsequent buyers]," he said. "It can't be turned into a rental property, or a big corporation can't come along and buy it up and rent it out."
Rukavina said the program will now turn its attention to Phase Two, where it will purchase and renovate four additional homes — three more in St. Louis County, and one in Itasca County.
"That's eight homes being restored and eight opportunities for families to build their futures here," she said.
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