Builder Of Duluth’s $195,000 Tiny Home Reportedly Filing For Bankruptcy
The company behind the nearly $200,000 tiny home that made headlines earlier this year is reportedly filing for bankruptcy.
Simply Tiny Development LLC, who built the 205-square-foot tiny home on 6th Avenue East in Duluth, is reportedly dealing with financial difficulties that are leading the company to pursue filing for bankruptcy according to KBJR TV.
The "move-in ready" tiny home was initially listed at $195,000 this spring, being dropped in price by $10,000 about a month after hitting the market before eventually being taken off the market altogether.
The one-bedroom, one-bathroom home was built on a previously vacant lot by the Colorado-based company Simply Tiny Development LLC as part of the City of Duluth's "Rebuild Duluth" program. According to documentation about this city program, a handful of smaller parcels of land in the city would be made available to developers to construct housing, with a focus on affordable housing.
Some criticized the price tag of this tiny home, questioning the "affordability" of a nearly $200,000 home - especially one so small. The home, which received national media attention, was also picked apart by some critics online, including a video from this TikToker:
Members of the community offered concerns last fall, as reported by WDIO. While community members questioned the price point, especially considering the size of the home, the company touted the sustainable construction of their design being a big selling point.
FOX 21 reported on the cost concerns as well, sharing comments from the City of Duluth's Chief Administrative Officer. In their report, they shared the text of an email from CAO Noah Schuchman to the City Council. In the email (which you can read all of here), Schuchman explained that the spirit of the Rebuild Duluth program included a number of factors, including affordable housing as well as "density, timeline/feasibility, landscaping and stormwater retention, and energy efficiency." As noted in the paragraph above, energy efficiency and sustainability were selling points for this home built by Simply Tiny Development.
Simply Tiny Development did acquire additional lots around Duluth with the intent of constructing homes on those properties as well, however, KBJR reports work never got underway at any of those other lots.
Following this news, the company's website is now simply a white page with the text "Private Site. This site is currently private. If you’re the owner or contributor, log in." Furthermore, their social media accounts have either been removed or set to private.
KBJR said in their report that they attempted to contact the company, but calls were limited due to "poor reception" and subsequent text messages were not returned. The TV news outlet was also informed that the City of Duluth is now reviewing its agreements with the company for the other properties that were acquired with the intent to construct housing.
As more develops with this story, we'll provide additional updates.
Here's a look at photos from the house's real estate listing: