City seeks proposals for developing affordable housing
City News March 20, 2026
The City of Albert Lea is inviting developers, builders and other interested parties to submit proposals for developing affordable housing on several properties owned by the city or the Albert Lea Economic Development Agency. This initiative is part of an ongoing effort to expand housing options and strengthen neighborhoods throughout the community.
The Request for Proposals (RFP), released today, March 20, outlines opportunities to construct single-family homes, twin homes, or duplexes on designated sites.
Under the RFP guidelines, new construction should blend with existing neighborhoods while offering variety in design.
To support development, the city is offering the following incentives:
- Up to $5,000 for design work
- Up to $5,000 for water and sewer hookups
- Up to $20,000 for demolition of hazardous structures where applicable
Instead of setting a minimum purchase price for properties, the city will evaluate proposals based on overall quality and community impact. Key considerations include:
- Long-term tax benefits
- Environmental impact
- Housing needs
- Developer experience
- Ability to complete projects on schedule
Proposals are due April 16. For details, see the RFP online or contact City Manager Ian Rigg by email or 507-377-4330.
