Minnesota’s first multifamily, passive energy homes go on sale in Minneapolis’ Phillips neighborhood

The sounds of high-pressure nail guns and hammers working away on 10 new townhomes in the Phillips neighborhood was quickly silenced when architect and passive house consultant Elizabeth Turner shut the thick, air-tight door of one unit. 

The project, known as Green on 14, is the first multifamily passive house construction in Minnesota. The site, at 29th St. E. and 14th Ave. S., is slated to be completed in November, with homes hitting the market this month. 

Passive house is a rigorous construction standard that emphasizes energy efficiency and comfort. Builders seeking to achieve a passive house designation have their construction process thoroughly audited by third-party inspectors to ensure all benchmarks are met. The result is a meticulously built home that ensures residents will have minimal energy bills. 

“This is the model for the future,” Lisa Kugler of Trio Development Group told Sahan Journal. 

Elizabeth Turner, Osborne Strickland, and Lisa Kugler, pictured August 6, 2026, are behind the design, marketing, and development of the Green on 14 Townhomes. Credit: Aaron Nesheim | Sahan Journal

The 10 homes at Green on 14 will be sold at affordable prices to qualified buyers through a partnership with the City of Lakes Community Land Trust, a nonprofit group that keeps housing affordable in perpetuity by maintaining ownership of the land a home stands on, while allowing buyers to build equity on the structure.

The $5.5 million project launched with a 2021 city of Minneapolis request for redevelopment proposals on three lots near the Midtown Greenway that once housed a community garden, Kugler said. It received support from the city of Minneapolis Homes Program, the Hennepin County Affordable Housing Fund and the Minnesota Housing Impact Fund.

Green on 14 estimates residents in two-bedroom units will pay $8 monthly in energy bills, savings boosted by rooftop solar for each unit. The average utility cost for a two-bedroom townhome in the Minneapolis Public Housing Authority system is $163 per month. 

Building a passive house 

Passive homes apply five construction principles to maximize build quality and energy efficiency: thermal insulation from thick walls, air tight assembly, thermal bridge reduction that minimizes cold spots, highly rated triple-pane windows and quality ventilation. Together, the principles create new construction practices that are on the cutting edge of energy efficiency, a key to reducing greenhouse gas emissions. 

Those principles are on display on the Green on 14 construction site. The walls are lined with thick insulation that is wrapped in a breathable membrane. The windows and doors easily cancel out noise when shut. Windows are placed in a way to enhance the efficiency of the home, Turner said, with larger windows facing the south and smaller windows to the north.  

The result is enhanced comfort and build quality, Turner said. Thick walls wrapped in breathable materials prevent moisture that can lead to rotting wood and integrity problems down the line. That means fewer warranty issues for builders in the long run and reduced maintenance costs for homeowners. 

The Green on 14 Townhomes, pictured August 6, 2026, feature extra insulation to help the buildings attain very low outside energy input. Credit: Aaron Nesheim | Sahan Journal

Passive homes require continuous air ventilation. The Green on 14 project is using a heat recovery ventilation system to acclimatize, clean and spread fresh air throughout the homes. The result is high indoor air quality, improved by electric powered appliances, water heaters and HVAC systems. 

“This is a higher level of sustainability,” Kugler said. 

Increasing energy efficiency in buildings is needed to meet Minnesota’s climate goals. Greenhouse gas emissions from residential buildings are up 38% from 2002 levels, according to a 2025 state report, driven by natural gas use for heating and appliances. 

Setting buyers up for success 

The project includes one, two and four-bedroom units, Kugler said. The goal is to have a mix of units that attract people at varying stages of life: young professionals, families with children, and retirees. 

“There aren’t very many four bedrooms built in the affordable housing market,” Kugler said. 

Osborne Strickland, a realtor with City of Lakes Community Realty, is selling the units. He expects a lot of interest. 

Those interested in purchasing a home through the land trust must apply to ensure they qualify with income requirements. They also have to attend an orientation session to learn how a land trust works. Otherwise, the homebuying process is fairly standard. Buyers apply for mortgage preapproval, tour properties and make offers. 

“It’s not too complicated,” Strickland said. 

For buyers in the affordable housing market getting the home is just one hurdle. The next major source of financial strain is typically utilities, Strickland said. Affordable housing stock tends to be older, less energy efficient buildings, and buyers who manage to buy a property can be stressed by high utility bills. Projects like Green on 14 flip that, allowing people to breathe and fully pursue other goals without a looming bill over their heads. 

“They can solve their housing issue and move on to something else,” Strickland said. 

The City of Lakes Community Land Trust has provided an affordable housing model in Minneapolis for 24 years. By retaining control of the home, the trust is able to ensure perpetual affordability while allowing homeowners to build equity. The goal is long-term affordable housing options, City of Lakes Community Land Trust Operations Director Staci Horwitz said. 

Triple pane doors, pictured on August 6, 2026, help the GREEN on 14 Townhomes maintain their interior climate with very low energy input. Credit: Aaron Nesheim | Sahan Journal

People who buy through the land trust must earn 80% or less of the area median income ($105,000 for a family of four). Most buyers through the City of Lakes Community Land Trust earn closer to 50% of area median income ($65,750 for a family of four), Horwitz said. There are about 470 Minneapolis homes in the land trust today. 

Rising energy costs in the past decade have made utilities a larger part of affordable housing conversation, Horwitz said. The land trust works to rehabilitate older homes it purchases, and is increasingly partnering with architects, developers and builders specializing in energy efficiency on new builds. 

“I’m seeing more and more conversation about the overall affordability, not just the ability to afford a home,” Horwitz said.

The land trust mostly finds new buyers through word of mouth, Horwitz said. About 66% of homeowners through the land trust are people of color, according to its 2025 annual report. 

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