Rachel's Light, Hospitality House merge to form one nonprofit entity fighting against homelessness

By Annie Harman, Owatonna People's Press,

In a groundbreaking move to address homelessness more effectively, two well-established nonprofit organizations in Owatonna — Rachel’s Light and Hospitality House — are officially merging into one unified entity.

The new organization will be known as The Lighthouse of Southern Minnesota, with a mission to provide comprehensive, inclusive, and compassionate services to those experiencing homelessness in the community.

Rachel’s Light was founded as a nonprofit in 2018 as transitioning shelter for women and children following the July 2017 closure of Lily Sparrow House, an organization that ran on the same mission. The nonprofit formally opened doors in September 2019, located just outside of Meriden next to St. Paul’s Lutheran Church.

Hospitality House, now located at 250 E. Main, was founded in 2008 at a different location in Owatonna, eventually growing to serve up to 17 men facing homelessness at one time. The nonprofit was founded by former Owatonna Mayor Pete Connor, after he encountered a former student of his who was living at Dartts Park.

This merger, effective Jan. 1, represents a long-awaited collaboration between the two nonprofits, which have separately served the homeless population for years. The decision, announced in a joint letter from both organizations, was not made lightly, according to Rachel’s Light Executive Director Amanda Starks. After months of research, discussion and consideration of each group’s rich history in the community, the merger was seen as a necessary step to streamline resources, reduce duplication and better meet the evolving needs of the homeless population.

“This is a really exciting time for us,” said Starks, who will take the helm as executive director of The Lighthouse. “For so long, we’ve worked alongside each other, but we found ourselves unintentionally competing for funding, volunteers and leadership. By merging, we can combine our strengths and build something that is much stronger for the community.”

Hospitality House has gone without a director since spring 2024, and Maureen Schlobohm, chair of the Hospitality House Board, said finding and keeping qualified staff has long been an obstacle for the organization. Moving into the merger, Schlobohm is confident in Starks ability to lead.

“Amanda’s heart is so into this mission of what we are doing, she is so qualified and capable to manage and run this organization,” Schlobohm said. “I am excited for her, and for us to have her in a leadership position.”

Describing many conversations and a lot of intentional thought between the two organizations, Schlobohm said combing to become The Lighthouse makes sense for the community and the people they serve.

“Together, I just feel like we are stronger, and definitely a stronger resource for the community,” she said.

Bringing together resources

While both Rachel’s Light and Hospitality House have long provided vital shelter and services, the merger will allow the newly formed Lighthouse of Southern Minnesota to offer an expanded range of programming for families, single parents and individuals. One of the most significant benefits of the merger is the ability to cross-train staff, collaborate more efficiently and create a stronger support system for the people they serve.

“We’re really focused on breaking down the barriers and offering a unified system of support,” said Starks. “Instead of working in silos, we’ll be able to offer much more comprehensive programming — everything from therapy and life skills training to housing mentorship and job readiness workshops.”

Funding competition is unfortunately a real think, too, Schlobohm added. By being one organization, she believes programs for men, women, families, and single parents will all be adequately funded and be able to thriive.

“With homeless men, there is a stigma around that, and unfortunately they suffer because of that,” she said. “I think that by coming together and pooling our resources, this new organization is going to impact the homelessness in our community, and the community itself, not based on gender or any other stigma that is out there.”

When it comes down to it, Schlobohm said that the missions of Rachel’s Light and Hospitality House have always remained similar: to serve with compassion and care, with an emphasis on self sufficiency and improving a person’s circumstances.

Future expansion

Despite the merger, the physical locations of both Rachel’s Light and Hospitality House will remain operational. The home on main will still be the Hospitality House and continue to serve as the permanent home for its clients, adult men, while Rachel’s Light will stay at its current location for now, serving women and children. However, Starks noted that Rachel’s Light is also planning for a major expansion. By the end of 2025 or early 2026, they will move into a new facility as part of a collaborative transitional housing project led by Oak Hill Community Connections.

The new project, set in the former Mayo Clinic building on Oak Avenue near Fareway Meat and Grocery, will provide much-needed space for women, children and families. Starks emphasized this expansion is an exciting development, as it will allow Rachel’s Light to serve a broader population and offer more comprehensive services.

It will also be the first time Owatonna will have a transitional shelter for men with children, couples and entire families to be housed together and not be separated.

A vision for the future

For Starks, the merger is more than just an operational decision — it’s a chance to fulfill a long-standing vision of creating a more collaborative, cohesive effort to combat homelessness in the region. The Lighthouse will operate with a focus on meeting each person’s unique needs, offering a safe and supportive environment to help them transition into stable housing and independent living.

“We’re going to provide not just a bed, but the tools people need to rebuild their lives,” Starks said. “With our combined resources, we’ll be able to provide in-house therapy, life skills groups, and even job training programs. This is about empowering people to take control of their lives again.”

With the merger comes a new name, logo, and brand identity. The Lighthouse is symbolic of hope and guidance — providing a beacon of light for those in need. The name also represents the coming together of Rachel’s Light and Hospitality House, as each organization brings its unique strengths to the new entity.

“Rachel’s Light has always been about shining a light in the darkness for those in need. Now, we’re combining that light with the welcoming, warm spirit of Hospitality House,” Starks said. “It’s a house with the light on, saying, ‘You’re welcome here. We’re ready to help.’”

The Lighthouse is already looking ahead to the future, with plans for a new website and ongoing community outreach efforts. Though the transition will take time, the organization is committed to keeping the community informed and involved.

“We’re excited about what’s ahead, and we want our supporters to be part of this journey,” said Starks. “We couldn’t do this without the incredible generosity of our community. We’re stronger together, and this merger is a testament to what can be accomplished when we all work toward the same goal.”

As of now, both Rachel’s Light and Hospitality House will maintain their current websites and services, but updates will be shared as the transition progresses. The Lighthouse of Southern Minnesota is poised to make a lasting impact on the region’s homeless services, and its leaders are optimistic about the future.

“We’re setting ourselves up for success,” Starks concluded. “By uniting our resources, expertise and networks, we will be able to help more people, more effectively, and create lasting change in our community.”