Passive home project in north Minneapolis aims to provide buyers affordable, environmentally friendly living

Passive house principles can help residents save $200 to $300 on energy bills every month compared to an average home, Lassiter said. In the summer, the solar panels will likely generate more power than the home uses, giving future residents potential earnings on their energy bill.

Urban Homeworks focused on remodeling projects until about 2017, said Anne Ketz, the nonprofit’s real estate development director. After the economic crash and mortgage crisis in the late 2000s, the group could buy homes in north Minneapolis for $1, she said. But when the housing market rebounded, the group began focusing on new construction.

Urban Homeworks always tried to incorporate energy efficiency into its projects, including working with the University of Minnesota to construct net-zero homes, which use solar energy but have less stringent energy-efficiency standards than passive homes.

In 2021, Minneapolis solicited bids for the passive home project. Urban Homeworks jumped at the opportunity. Passive homes cost about 20% more to build than standard new housing, Ketz said, so city funding provided a chance for the organization to try it.

The nonprofit sells directly to buyers, and markets its homes towards residents of color who live in north Minneapolis. But the homes are available to anyone meeting income criteria. The first five passive homes are eligible to buyers who earn up to 80% of the area median income; that’s $97,800 for a family of four in Hennepin County.

Four of the five homes are being sold in coordination with the City of Lakes Community Land Trust, which allows families to build equity in homes while controlling the underlying plot to keep the property affordable in perpetuity.