33 Minnesota Towns Get $20.7 Million For Improvements

Minnesota (MinnesotaNow) -- The Minnesota Department of Employment and Economic Development (DEED) is investing more than $20.7 million in projects across Greater Minnesota to improve housing, infrastructure, and local businesses.

The funds come through DEED’s Small Cities Development Program (SCDP), which supports small cities and rural counties with community development needs. The latest round of grants will benefit 33 cities and counties (see the full list below) and help rehabilitate nearly 300 homes, apartments, and commercial properties.

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“Funding through DEED’s Small Cities Development Program enables cities to undertake projects that promote economic vitality and quality of life in their communities,” said DEED Commissioner Matt Varilek. “These grants ensure all Minnesotans feel the benefits of economic development and have a safe, healthy community and home, regardless of where they live.”

The SCDP focuses on projects that directly benefit low and moderate-income residents. 92% of this year’s recipients serve those populations. Funding can be used for residential and commercial property rehabilitation or public facility improvements such as streetscapes, water systems, and wastewater projects.

Cities and counties with smaller populations qualify for the program, which is funded by the U.S. Department of Housing and Urban Development and administered by DEED. The next round of SCDP funding is already accepting preliminary proposals.

2025 Minnesota Small Cities Development Program Grant Awards

Annandale – $875,440
Rehabilitation of 15 owner-occupied homes, 12 multi-family units, and six commercial buildings.

Appleton – $1,200,000
Rehabilitation of 42 multi-family units and storm sewer improvements.

Barnesville – $1,198,000
Rehabilitation of 21 owner-occupied homes and 13 commercial buildings.

Brainerd – $600,000
Public facility improvements to the streetscape.

Canby – $1,069,500
Rehabilitation of 18 owner-occupied homes and 12 commercial buildings.

Eden Valley – $600,000
Public facility improvements to water distribution lines.

Elizabeth – $600,000
Public facility improvements to the watermain.

Erskine – $600,000
Public facility improvements to the water tower.

Fairfax – $600,000
Public facility improvements for watermain looping.

Flensburg – $600,000
Public facility improvements to wastewater lines.

Fulda – $1,155,654
Rehabilitation of 21 owner-occupied homes and streetscape improvements.

Hackensack – $600,000
Public facility improvements to the streetscape.

Hanley Falls – $600,000
Public facility improvements to water distribution lines.

Hendrum – $600,000
Public facility improvements to water distribution lines.

Kennedy – $600,000
Public facility improvements to water distribution lines.

Lake Lillian – $600,000
Public facility improvements to water distribution lines.

Lamberton – $600,000
Public facility improvements to water distribution lines.

Lancaster – $143,750
Rehabilitation of 10 multi-family units.

Mentor – $425,500
Rehabilitation of 10 owner-occupied homes and three commercial buildings.

Nerstrand – $600,000
Public facility improvements to water distribution lines.

Norwood Young America – $600,000
Public facility improvements to the streetscape.

Plainview – $599,982
Rehabilitation of 21 owner-occupied homes.

Russell – $600,000
Public facility improvements to water distribution lines.

Sebeka – $582,650
Rehabilitation of the wastewater treatment plant.

South Haven – $600,000
Public facility improvements to the watermain.

St. Joseph – $287,500
Rehabilitation of 10 owner-occupied homes.

Tracy – $600,000
Rehabilitation of the water plant.

Walnut Grove – $600,000
Public facility improvements to water distribution lines.

Wanamingo – $345,000
Rehabilitation of 12 owner-occupied homes.

West Union – $600,000
Public facility improvements to wastewater lines.

Winger – $598,000
Rehabilitation of 15 owner-occupied homes and four commercial buildings.

Kanabec County – $575,000
Rehabilitation of 20 owner-occupied homes.

Lake of the Woods County – $575,000
Rehabilitation of 20 owner-occupied homes.

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