The most pressing topic at the meeting was the state of housing affordability in Bloomington. The Annual Housing Report, presented by city planners, provided an overview of the current housing landscape, highlighting the city’s growing population, which is expected to surpass 95,800 by 2040. The report underscored the city’s increasing racial and ethnic diversity, with Black, Indigenous, and People of Color (BIPOC) making up 33% of the population. This diversity is credited with enriching the community culturally and economically.

The report detailed the median household income in Bloomington, which has risen to $90,677, although it remains below that of the broader Hennepin County and metropolitan area. Despite the increase in income, the median rent in Bloomington is $1,526, exceeding both metro and state averages, illustrating a challenge in housing affordability. The report revealed alarming disparities in homeownership, with nonwhite households, particularly Black and African American families, more likely to rent than own their homes. This is attributed to historical inequities, such as discriminatory lending practices, which continue to impact these communities. Notably, over 74% of Black households in Bloomington rent their homes.

The Homeowners Association (HOA) study highlighted the 5,681 units within HOAs, representing over 13% of taxable housing in Bloomington. A new legislative measure aims to support unit owners in resolving disputes with associations, potentially offering relief in these often-contentious situations. The study also emphasized the issue of affordable housing, with nearly half of all renter households spending 30% or more of their income on housing costs. The gap between available housing and affordability for moderate-income families continues to widen, posing a challenge for city planners.

It was noted that Bloomington’s median rent is below the affordable rent level for a two-bedroom unit at the 60% AMI for the metro area. However, this does not align with affordable housing costs based on Bloomington’s median income, largely due to skewed benchmarks influenced by wealthier neighboring communities.

Another issue addressed was the escalating costs of construction, exacerbated by the COVID-19 pandemic. The commission reviewed how rising interest rates have inflated project expenses, with a hypothetical $40 million development facing over $2 million in interest costs at current rates. This financial pressure has stalled many potential projects, despite continued interest in development within the city. The discussion noted the broader economic factors affecting housing, including inflation and monetary policies, raising concerns about the sustainability of affordable housing solutions without increasing taxpayer burdens.

The commission also explored the effectiveness of Bloomington’s housing policies. The Opportunity Housing Ordinance was highlighted as a proactive measure to tackle affordable housing challenges. It was acknowledged that while many strategies discussed at national levels are already in place in Bloomington, ongoing efforts are needed to expand opportunities for affordable homeownership. The challenges of creating new housing units at lower costs were acknowledged, with concerns that current policies might inadvertently lead to the replacement of existing affordable homes, further driving up housing costs.

The meeting concluded with administrative updates and acknowledgments. Planning Manager Johnson announced upcoming planning commission meetings, including the swearing-in of new commissioners and discussions on development projects and zoning entitlements. Outgoing commissioners, including Dan Curry, were recognized for their considerable contributions to the commission.