ST. PETER — U.S. Sen. Tina Smith walked through freshly renovated hallways at Maplewood Apartments on Tuesday, pausing to examine updated kitchens, modern flooring and the new safety features installed across the 30-unit affordable housing complex in St. Peter.
The visit was Smith’s first to the site since 2018 — when renovations were just beginning — and her return came as the project nears 94% occupancy and serves as an example of rural housing preservation.
The project, initiated in 2016 and completed in phases beginning in 2018, was led by the Southwest Minnesota Housing Partnership in collaboration with Minnesota Housing, USDA Rural Development, SMR Management and support from Smith. The project is breathing new life into rural housing, demonstrating how strategic investment and community partnerships can create sustainable, affordable living spaces for residents.
Smith said what makes communities work is the availability of affordable places to live. Across the country, there is a shortage of between 3½ million and 7 million housing units for residents nationwide, she said.
“The challenge is just as deep, and sometimes in some communities, even deeper in small towns and rural communities. And so what that means is folks, especially folks that might be elders, people working in low-wage jobs, people experiencing some sort of disability or just cannot find a place to live. And that is a real problem for them in their lives, but it’s also a real problem for the whole community,” she said.
Southwest Minnesota Housing Partnership is a nonprofit community development corporation, serving 30 counties in southwest and south-central Minnesota. The corporation owns 68 apartments, representing over 2,000 units across the state, CEO Chad Adams said.
The $3.8 million project has transformed the complex with modern upgrades including energy-efficient improvements, safety enhancements and interior renovations. The complex now offers one-, two- and three-bedroom apartments with an average rent of $934. Representatives from those involved in the collaboration as well as from the city joined the tour.
The project carefully managed tenant transitions, moving residents in batches to minimize disruption and ensure comprehensive unit preparation, said Joleen Pfau, president of complex management company SMR.
Lisa Gallegos is a tenant who moved from Arizona after her husband died and said the appeal is the apartment’s safety and comfort. She previously applied for housing through the state and then was able to find a two-bedroom apartment at Maplewood.
“It’s beautiful and it’s safe,” Gallegos said. “I’d say there were three other places that I went to, and they were all in Mankato, but I didn’t feel safe.”
Smith’s visit came just weeks after the Rural Housing Service Reform Act — legislation she sponsored with Sen. Mike Rounds — passed unanimously out of the Senate Banking, Housing and Urban Affairs Committee. The bill aims to protect and extend affordable housing in rural areas through USDA programs, addressing aging infrastructure and housing supply shortages. It would ease refinancing for nonprofits to preserve affordability, modernize agency technology for better data sharing and update neglected homelessness programs. The bill is now being reviewed and voted on by the Senate.
Smith talked about the unique vulnerabilities of rural communities and the need for innovative solutions to sustain local populations.
“The work that these partnerships are doing to help solve that problem and to demonstrate that it doesn’t have to be that way, that there are things that we can do, such that we can take actions that actually address that challenge is really inspiring to see.”
Amy Benda, Housing Partnership director of property and asset management, said the underlying, powerful part of the project is the complexity that comes with working under multiple sets of federal regulations, audits, reporting systems, oversight, compliance monitoring and financial review to ensure success.
“At the end of the day, Maplewood shows us what’s possible when we invest wisely and work together. Where families have a safe, stable home they can afford and thrive. Children have the quiet spaces they need to learn. Parents can focus on building careers and seniors can age in place, surrounded by trusted neighbors and communities, as we heard from the residents.”
Looking forward, Smith stressed the need for continued partnership and investment. The success of Maplewood serves as a blueprint for other rural communities facing similar housing challenges.
“Everybody knows that you need a safe, decent, affordable, comfortable place to live,” Smith said. “That’s like the foundation for your life. If you don’t have that, nothing else in your life works, and that’s what you all are providing here.”