Summer 2025

Borrower Feature: North St. Louis County Habitat for Humanity

A nonprofit's strategic approach to sustainable growth

Nathan Thomson, Marnie Maki, Tucker Nelson, Tim Officer, and Isaac Mathison-Bowie staff NSLCHFH with strategic guidance from a strong volunteer Board of Directors and support from the community.

When Nathan Thompson was hired as executive director of North St. Louis County Habitat for Humanity (NSLCHFH) 22 years ago, the organization was building two homes per year. In the next 12 months, the Iron Range-serving nonprofit aims for five new builds, two home rehabs, and fitting in a start on two additional houses. It's big-time growth at a time when "affordable housing" is a term on everyone's tongue.

Thompson explains that when, early last year, budget work for the new fiscal year began, the otherwise thriving nonprofit was staring down the most difficult funding year he could recall. A loan from the Northland Foundation helped NSLCHFH move from shortfall to success.

We sat down with Thompson to talk about a recent $150,000 working capital loan—NSLCHFH's second time as a Northland Foundation borrower—which has helped Habitat navigate a cash crunch and reach for an anticipated record year for "simple, decent, affordable" Iron Range homes.

Northland: How did this working capital loan fit into the bigger picture for NSLCHFH?

Nathan Thompson: "Looking back, our first loan from Northland Foundation 10 years ago was pivotal. We had just finished building our office and storage facility in Mountain Iron. We had the funds to complete it but our cash position was, temporarily, thin. The 2014 loan put us on solid footing. We didn’t have to scale back on serving the community to achieve long-term stability, and it proved to be a great decision.

"Fast forward to early 2024 and laying out our 2025 fiscal year budget. There were cuts to USDA funding as well as reductions in Habitat Minnesota’s Rapid Asset Recovery program, both of which had been reliable, cornerstone resources. With our 2014 Northland Foundation loan nearly paid off, we took a chance and approached their loan team once again in 2024.

"Having that cushion of a $150,000 loan with flexible terms, as well as grant support from Northland Foundation and from the IRRR gave us the boost we needed to meet our home-building goals last fiscal year. The difference is having those critical partners who stand in the gap. The ultimate beneficiary is not so much our organization but the people in Aurora, Hibbing, Virginia, Chisholm, and across the Iron Range who can get their feet under them in a home of their own."

"More than anything, we did not want to scale back on home-building projects that we had the capacity to complete, provided we could fill in the funding." —Nathan Thompson, Executive Director

Northland: How did you use the loan and what impact did it have?

Thompson: "The $150,000 loan which we closed last fall provided the working capital to proceed with our planned projects. We successfully helped five households last fiscal year, and we didn’t have to compromise on our goals or services. This year, our goals are even more ambitious. We are planning five new homes, two rehabs, and getting a start on two more by July 1, 2026. Funding-wise, I know we can meet our stretch goal provided we can find the volunteer labor to make it happen.

"It’s somewhat unusual for a nonprofit to carry debt—to qualify for a significant loan. Northland Foundation’s willingness to work with us in this way has been incredibly beneficial for Habitat and for the communities we serve. Their flexibility allowed us to keep building—literally and figuratively."

Northland: Why do you think NSLCHFH is able to be so successful in such a rural area?

In exchange for sweat equity, HFH homeowners receive an affordable mortgage and the keys to their new home.

Northland: What’s next for Habitat?

Thompson: Rents and home prices have increased over the past five or so years, and incomes have not kept up. A huge percentage of households are cost-burdened, spending 40, 50, 60 percent of wages just to be housed. Seeing what a difference genuinely affordable homeownership makes, not just for individuals but for community stability, is more than enough motivation. We want to keep growing, and with strategic support we can."

By continuing to partner with organizations like the Northland Foundation, NSLCHFH is securing a more sustainable future for northeastern Minnesota. Habitat has been able to navigate tough financial times, expand its capacity, and ultimately keep providing individuals and families with the stability and hope they deserve. It’s a win for the region and a model for how community-driven organizations can thrive, even in the face of uncertainty.

“We have worked with Nathan for a long time and have a trusted relationship—which helps when we advocate for loan approvals,” stated Michael Colclough, VP of Business Services at the Foundation. “Also, we appreciate the great work that NSLCHFH does in the region and realize how critical flexible loan capital is to ensure affordable housing projects go forward.”

Michael Colclough

Vice President of Business Services

Amanda Vuicich

Small Business

Lender

Suzanne Rauvola

Systems

Manager

northlandfdn.org