MARSHALL — Developers are still trying to get an affordable housing project built in Marshall. But this week, Tim Trimble of Tapestry Companies, said Tapestry would be scaling back its proposal in an effort to get help with financing the project.

“Our plan originally was to build a 60-unit project. We’re now going back and scaling that down to a 42-unit,” Trimble said.

A smaller project would need less funding, and might be more likely to get support from the Minnesota Housing Finance Agency, he told commissioners.

Trimble, the executive vice president of Tapestry, spoke to Lyon County commissioners Tuesday during the county board’s regular meeting. Commissioners heard three different proposals for the use of State Affordable Housing Aid (SAHA) funds in Lyon County. Tapestry Companies, United Community Action Partnership and Habitat for Humanity all made short presentations.

Over the past few years, Tapestry Companies has applied several times to the state for funding to help build affordable family housing in Marshall. Trimble said the proposal was to build one, two, three and four-bedroom apartments for residents with incomes that were 50% or less of the area median income.

“Over the last year or two, construction costs have increased substantially. That’s not really any news to most folks,” Trimble said.

Tapestry was now going back and scaling down its housing proposal to 42 units.

“The main reason being is, the larger the project, the bigger the financial gap that’s created. Therefore, you’re asking the state to put in more money, and they get to a certain point where even if you score well, they still don’t have that kind of dollars to allocate.”

Trimble said Tapestry was working with a consultant and a nonprofit organization that might possibly sponsor the project. Tapestry is also working with the city of Marshall, which will provide the land for the project and seeking support from Lyon County.

“I think last year you agreed to contribute $153,500. If we could get that amount re-contributed or re-applied this year, we would be extremely grateful,” Trimble said.

Applications for Minnesota Housing would be in July, he said. Funding is awarded in December.

On Tuesday, commissioners also heard SAHA proposals from UCAP and Habitat for Humanity. Angela Larson, family services director at UCAP, said the organization was asking for SAHA funds to help support emergency rental assistance in Lyon County. Larson said the funding would help “bridge the gaps” to prevent homelessness for Lyon County residents and families.

Larson said in the past UCAP had received funding through the Family Homeless Prevention and Assistance Program. However, as of October 1, that program received an 80% reduction in funding statewide.

“We went from having about $5 million in our service area for two years, to $1 million for two years. And that sounds like a lot of money, but when you spread it across 18 counties, it really doesn’t add a lot,” Larson said. She said it sounded like the organization would be getting some additional grant dollars from the FHPA program, but at this point she didn’t know how much.

Habitat for Humanity also told commissioners that State Affordable Housing Aid funds could be used by its organization. Executive Director Kayla Klein said Habitat is planning to break ground on a new house in Marshall later this month.

“You’ve got some unique projects in front of you,” Lyon County Administrator Loren Stomberg told county commissioners.

Commissioner Todd Draper said the State Affordable Housing Aid funding would likely be on the board’s June 16 agenda for commissioners to decide how to use the available funding.