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Rochester, MN (KROC-AM News) - Plans to convert a portion of a southeast Rochester apartment building into a Housing Stability Center have suffered a major setback.

Olmsted County has been notified that its application for a $10 million state grant to fund the project was not selected by the Minnesota Department of Human Services. The state agency earlier announced it was making nearly $100 million available for projects addressing homelessness, but county officials say the state received nearly 100 proposals seeking $365 million in funding for projects throughout the state.

The Olmsted County Housing and Redevelopment Authority applied for the funding to establish a Housing Stability Center on the lower level of the Residences of Old Town Hall along East Center Street just east of Mayo Field. The facility would provide emergency shelter services, housing support, and supportive housing to assist county residents dealing with or facing the specter of homelessness.

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County Housing and Planning Director Dave Dunn says the denial by the state "does not signal the end of the road." He says the county will continue exploring options and working with community partners to provide assistance to the homeless population.

“Our shelters are at capacity,” said Olmsted County Board of Commissioners Chair Gregg Wright. “Everyone deserves a safe space to rest their head at night, and we are committed to working with our community partners as we move forward with finding shelter and housing solutions.”

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It was announced on Friday that the Rochester Salvation Army has agreed to provide up to 25 beds of overflow space to help the Rochester Community Warming Center address a demand for emergency shelter that often far exceeds the facility's capacity during the winter months.

Amazing Church-Turned-Home for Sale Just 40 Minutes from Rochester

A church that was turned into a home, with the possibility of it being a duplex, is currently for sale. It's a short distance from Rochester, MN in the town of Altura, MN.

Gallery Credit: Carly Ross

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