The primary focus of the meeting was the decision to support hemple real estate in its endeavor to maintain and upgrade 236 affordable housing units. The financial backing from the HRA includes a 15-year deferred loan sourced from the city’s affordable housing trust fund. This move is aimed at limiting rents and capping resident income levels to 60% of the area median income for one and two-bedroom units and 70% for three-bedroom units.

The meeting also discussed the integration of resident feedback and the acceptance of various rental assistance programs. The developer agreed to engage with residents regularly and to accept assistance programs like Section 8. Additionally, the inclusion of language to anticipate the forthcoming state rent assistance program, Bring It Home Minnesota, was highlighted.

Concerns were raised regarding potential property tax increases affecting other residents. However, the compelling need to preserve affordable housing for nearly 500 individuals outweighed these concerns, as expressed by a member who was initially hesitant but eventually supported the resolution. The emotional impact of displacing residents was a factor in the decision-making process.

The Economic Development Authority (EDA) also played a role by authorizing additional remodeling loans, exceeding previous program guidelines due to the anticipated benefits for the community. The funds for these loans will be recycled from repayments made by the current property owner upon the sale.

The meeting concluded with an outline of the next steps, including the developer’s aim to close the purchase by the end of March to meet the 4D tax status deadline. This timeline is critical for the preservation efforts, and the city plans to enforce a three-month tenant protection period post-closing.