RED WING, Minn. (September 28, 2026) – The Red Wing City Council voted unanimously to approve Goodhue County Habitat for Humanity’s Development Agreement for HOPE Heights, a new affordable housing development that will bring 26 homes to Red Wing over the next eight to nine years.

As Goodhue County Habitat for Humanity’s largest project to date, HOPE Heights will expand affordable homeownership opportunities and help working families continue to live and thrive in the community.

The approved development agreement authorizes construction of Phase 1 of the former St. John’s property development. At the suggestion of the City of Red Wing, Goodhue County Habitat for Humanity revised its original plan to complete all infrastructure work at once and instead divided the project into two phases.

Phase 1 includes infrastructure improvements on the undeveloped, grass-covered portion of the property and construction of the first 14 homes in that area, and the twin home currently under construction on Minnesota Street.

The City Council approved the Development Agreement with several amendments requested by Goodhue County Habitat for Humanity, including:

· Funding stormwater and sanitary sewer line improvements from the alley to Fifth Street through city enterprise funds.

· Funding sidewalk and curb-and-gutter improvements through Statewide Affordable Housing Aid (SAHA) funds.

· Absorbing city engineering and attorney fees associated with the project.

· Waiving park dedication and utility connection fees for the homes included in Phase 1.

By this time next year, infrastructure work for Phase 1 is expected to be complete, except for the final pavement wear coat.

The HOPE Heights development represents a significant investment in affordable homeownership and will help address Red Wing’s growing housing needs while creating opportunities for local families to build stability and generational wealth.