COMING DOWN TO TELL US ABOUT IT.

>> THANK YOU BOTH SO MUCH.

>> CATHY: WHILE ST.

CLOUD IS LOOKING TO HELP PEOPLE WITHOUT HOMES FIND A PERMANENT PLACE TO LIVE, MANY BUSINESSES IN GREATER MINNESOTA ARE HAVING DIFFICULTY HIRING EMPLOYEES BECAUSE THEY CAN'T FIND ADEQUATE HOUSING.

BUT FEW DEVELOPERS ARE WILLING TO BUILD IN AREAS WITH LOW POPULATION DENSITY.

KAOMI LEE FOUND ONE WEST CENTRAL BUILDER TRYING TO HELP, ONE DUPLEX AT A TIME.

>> WE DO OPEN CONCEPTS.

JUST MAKE IT FEEL BIGGER, YOU KNOW?

SO WE HAVE THE KITCHEN, DINING ROOM, LIVING ROOM, ALL KIND OF WITHIN ONE, MAXIMIZES SPACE.

>> Cathy: SAUK CENTRE BUILDER CODY NELSON WALKS ME ME THROUGH AN APARTMENT.

IT'S PART AFRICAN-AMERICAN A FOUR DUPLEX HOUSING DEVELOPMENT, IN CYR SUNK.

>> TYPICALLY WE HAVE A RETIRED COUPLE IN HERE AND/OR A WIDOWER.

>> NELSON SPECIALIZES IN ONE LEVEL HOMES THAT ARE ACCESSIBLE BY WHEELCHAIR.

>> SUPER WIDE AND ANOTHER THING THAT WE DO THAT PEOPLE REALLY LIKE IS WE ROUND ALL OF OUR CORNERS.

LIKE THIS HERE HAS GOT A LITTLE 15-DEGREE ON IT.

>> THE NITS RUN FROM ANYWHERE FROM $1,100 TO $1,500 A MONTH AND ARE ALREADY SPOKEN FOR.

SO FAR, NELSON AND HIS WIFE SARA HAVE BUILT ABOUT 75 TO 100 BUILDINGS IN 15 RURAL COMMUNITIES.

THEY GO INTO SMALLER TOWNS AND CITIES FEW OTHERS WOULD.

AND THEY CAN'T KEEP UP WITH DEMAND.

>> ANY TIME I BUILT, THEY COME.

IT'S KIND OF LIKE THE FIELD OF DREAMS.

>> Cathy: IF IT WERE THAT SIMPLE, HIS PHONE IS RINGING OFF THE HOOK.

>> I'M AT THIS MOMENT BOOKED OUT ABOUT SIX YEARS.

>> Cathy: HIS APARTMENTS THE KIND NOT OFTEN FOUND IN OLDER HOUSING STOCK.

THEY HAVE GARAGE ACCESS AND HAND RAIL ASSISTS.

THEY GIVE ELDERLY RESIDENTS SOMEWHERE TO DOWN SIZE INTO.

WITHOUT HAVING TO LEAVE THEIR COMMUNITY.

>> YOU KNOW, IN THESE SMALLER TOWNS, IT'S NOT AVAILABLE FOR A COUPLE DIFFERENT REASONS.

A DEVELOPER LIKE E WOULD BE A LITTLE OUT OF THEIR MIND TO COME INTO THESE SMALLER TOWNS BECAUSE THE RISK IS LARGE.

>> Cathy: NELSON SAYS DEVELOPMENTS LIKE THIS IN CYRUS ARE ONLY POSSIBLE WITH LOCAL GOVERNMENT ASSISTANCE.

>> WE'VE DONE TWO STUDIES SINCE I'VE BEEN ON THE BOARD AND EVERY TUDY GETS WORSE.

BY SAYING THAT WE'RE JUST IN SO MUCH NEED.

AND I THINK THAT'S THE PART OF GREATER RURAL MINNESOTA THAT WE ARE IN SUCH NEED OF HOUSING, I WOULD SAY RIGHT NOW, WE PROBABLY, F WE COULD EVEN DO ANOTHER 100 HOMES UP FAST, THEY WOULD BE TAKEN.

>> Cathy: POPE COUNTY HAS WORKED WITH NELSON ON SEVERAL PROJECTS, IN CYRUS, THE CITY SOLD TO THE PROPERTY TO THE COUNTY FOR ONE DOLLAR, THEN THE COUNTY SOLD IT TO NELSON FOR A DOLLAR.

LOAM GOVERNMENTS BENEFIT FROM AN INCREASE IN TAXABLE LAND VALUE AND HIS TENANTS WILL SPEND MONEY LOCALLY.

>> FOR A DEVELOPER LIKE MYSELF TO COME INTO THESE SMALLER TOWNS, WITHOUT THAT HELP FINANCIALLY, I CANNOT MAKE IT WORK.

IT'S IMMOB.

>> Cathy: IT'S KIND OF LIKE THEY UNDERSTAND YOU'RE DOING KIND OF A PUBLIC SERVICE.

>> VERY MUCH SO.

>> TO MAKE IT MORE COST EFFECTIVE AND TO ESSENTIALLY ATTRACT OR ENTICE DEVELOPERS TO COME IN, YOU'LL SEE A LOT OF COMMUNITIES, SMALL TOWNS SAY, HEY, WE WILL PAY FOR ALL THE INFRASTRUCTURE.

YOU DON'T HAVE TO WORRY ABOUT THAT.

WE HAVE THIS PIECE OF LAND.

WE'LL GIVE IT TO YOU SUPER CHEAP TO BUILD ON SO YOU DON'T HAVE TO HAVE THAT OVERHEAD COST.

WE'VE EVEN SEEN THE USE OF T.I.F.

DISTRICTS FOR PROPERTY TAX KIND OF INCENTIVES TO BE PUT IN PLACE TO HELP DEVELOPERS MAKE THIS WORK.

AND SO, YEAH, YOU'RE SEEING A LOT OF LOCAL SOLUTIONS AND THAT'S KIND OF WHAT WE CALL LIKE PUBLIC-PRIVATE PARTNERSHIPS TO MAKE THESE WORK.

>> Cathy: SENIOR RESEARCHER KELLY ASH SAYS THESE APARTMENTS ARE HELPING TO MEET THE DEMAND FOR WORKFORCE HOUSING TOO, BECAUSE THEY GIVE RETIREES OPTIONS.

>> WE CAN'T GET THEM TO LEAVE THOSE HOMES TO GO INTO SOMETHING THAT'S MAYBE MORE AGE APPROPRIATE TO OPEN UP HOUSING FOR WORKFORCE TO GO INTO.

WE THEN GET THIS KIND OF STUCK CHURN IS WHAT WE WOULD CALL IT.

IT DOESN'T TURN OVER.

WE'RE NOT SEEING PEOPLE MOVE IN AND OUT OF APPROPRIATE HOUSING.

>> Cathy: NELSON IS FINISHING UP MORE DUPLEX ONE LEVEL APARTMENTS.

THE MONEY HE MAKES WILL FUEL HIS NEXT PROJECT.

FINANCIAL PAYOFF IS FAR DOWN THE ROAD.

FOR NOW, HE KNOWS HE'S APPRECIATED.

>> THERE'S A NEED THAT VERY FEW ARE WILLING TO PUT FORTH.

AND I AM WILLING TO PUT FORTH IT.

AND EVENTUALLY, FINANCIALLY,