New St. Cloud housing promises to be right size for immigrant families

ST. CLOUD — Five years ago, a new nonprofit started here with goals to support residents in four areas: equitable education, workforce development, community health and housing.

Then the pandemic happened.

And as much of the nonprofit CAIRO's focus shifted to helping families suddenly overwhelmed with navigating school at home, its mission became clearer: Success in all other areas begins with proper housing.

"Everything we were trying to address previously was at the periphery of housing," said Abdikadir Bashir, executive director of CAIRO (Center for African Immigrants and Refugees Organization). "Without truly addressing the housing needs of families, we were not able to talk about inequities in education or community health or other aspects like workforce."

That realization spurred the nonprofit's biggest project to date: creating a first-of-its-kind workforce housing development in a bustling area on the city's north side.

The nonprofit recently purchased for $1.2 million a 3.6-acre site at 33rd Avenue N. and N. Third Street that houses a vacant Wells Fargo branch. Nearby are several malls and businesses that cater to residents of East African descent. The plan is to raze the bank building and start construction on a new structure — with community space on the first floor and housing above — in the next year or two.

"This is still in its infancy stage. We just got our keys," said Sabrin Ali, CAIRO's workforce development and partnership coordinator.

Project partners include state housing agencies, local banks, and nonprofits including the Initiative Foundation in Little Falls, which recently approved a $500,000 loan for the development.

"What's really cool for us is it's a mission-driven project," said Bob McClintick, communications director at the foundation. "This is part of our philosophy and mission — to reach into underserved communities as we work to create equity and prosperity."

The lack of affordable housing in the state — especially in greater Minnesota — is well-documented. In a recent report, the Minnesota Housing Finance Agency found that about 70% of new rental units built in the last five years are not affordable to low-income renters.

But housing prospects are even more dire for many refugee or immigrant families, who often have larger-than-average and multigenerational households. Bashir said the families CAIRO works with have on average six to eight members, compared to the national average of about three.

"There's an inadequacy of right-sized units for the large-sized families we work with. There isn't enough stock," Bashir said, noting a majority of houses and apartments have only two bedrooms and many of the units with additional bedrooms are small and designed for college students. "Our project will be different. It's going to be housing designed and dedicated for families — bigger rooms, more spacious, with new construction."

Don Hickman, vice president for community and workforce development at the Initiative Foundation, said developers have not had to be creative or flexible in designing different spaces because the demand for housing is so acute.

"Whatever they've got, somebody is willing to rent it," he said. "And the costs of building new housing that is within reach of an entry-level or working family is not a moneymaker for developers."

Bashir said he hopes the project, which will be tailored to working-class families, will serve as a model in the region: "This project will set the tone for other developers because development should always cater to the needs of the renters."