The Minnesota Department of Employment and Economic Development (DEED) has announced Small Cities Development Program (SCDP) grants totaling nearly $19 million for infrastructure and rehabilitation projects in 32 of Minnesota’s communities.

Among the recipients is the City of Redwood Falls, which has been awarded a grant in the amount of $864,800.

According to Keith Muetzel, Redwood Falls city administrator, the grant funds will be used to assist with rehabilitating housing and commercial buildings.

The SCDP grants are part of the Community Development Block Grant Program administered by the U.S. Department of Housing and Urban Development (HUD).

The grants pay for rehabilitating housing and commercial buildings and updating public infrastructure in small cities and counties.

“These grants will help small Minnesota cities move forward with essential improvements to housing and public infrastructure,” said Steve Grove, DEED commissioner.

The funding comes at a good time to assist rural Minnesota communities in their recovery from the economic impacts of COVID-19, added Grove.

Cities and townships with populations under 50,000 and counties with populations under 200,000 can apply for SCDP grants.

Eligible projects must meet one of three objectives:

• Benefit people who are of low and moderate incomes

• Eliminate slum and blighted conditions

• Eliminate an urgent threat to public health or safety. 

Projects must be completed within 30 months. Extensions due to extenuating circumstances must be requested four months in advance.

One can find out more about SCDP grants online.

The grant awards announced recently represent both rounds of SCDP grants to be announced in 2020. A number of other area communities also received an SCDP grant:

• Lake Lillian in the amount of $600,000 for public facility improvements.

• Springfield in the amount of $531,300 for owner occupied housing.

• Lamberton in the amount of $782,000 for owner occupied housing and commercial.

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development.

For more details about the agency and its services, visit the DEED Web site at mn.gov/deed.