The board’s approval of the emergency maintenance contract with Tuck Technical LLC, valued at $200,000 for the year starting January 1, 2026, was a key highlight of the meeting. The contract, chosen through a competitive RFP process, allows for an extension for an additional year. Tuck Technical was selected for its extensive experience with rental properties and affordable housing, as well as its onboarding process and reporting framework designed to keep staff informed during emergencies. The decision was made following inquiries about the contract’s financial basis and reporting procedures. A staff member assured that real-time updates would be provided during emergencies, supplemented by monthly reports and an annual update to the board. A suggestion for quarterly updates was also considered for future incorporation.

The meeting further delved into the Bloomington Affordable Homeownership Program, funded by a $3.19 million grant from Minnesota Housing. This pilot program aims to develop 27 owner-occupied homes by March 2027, targeted at families earning 80% of the area median income. The developers, Magnolia Homes and Outlaw Development, were selected based on their ability to complete the project on time and within budget, with a focus on sustainability and accessibility.

Significant discussions also revolved around budget allocations and levy amounts for the upcoming year. The board considered whether to adopt a higher levy to support long-term investments or a lower one that would necessitate cutting some investments. This debate was intensified by anticipated federal funding cuts for permanent homeless housing, potentially impacting about 5,000 Minnesotans. One commissioner advocated for a lower levy, citing current economic struggles among residents and the need to maintain affordability while continuing essential work. The board acknowledged that these financial challenges necessitate careful consideration of Bloomington’s housing needs.

The board approved a final levy amount of $2,769,133, an alternative to the initially proposed $3.2 million. This decision, passed unanimously, also included corresponding budget reductions. The board expressed the need to prepare for future challenges while addressing current issues, especially given the potential impact of federal funding changes on local services.

In the context of the 2026 budget, the meeting highlighted a projected increase of 13.6% in anticipated expenditures, totaling $11.7 million. A significant portion of this budget relies on federal sources, such as the Housing Choice Vouchers and Community Development Block Grant. Staff detailed efforts to utilize funding, including state money and additional grants. Concerns were raised about the sustainability of housing programs in light of possible federal cuts, which could affect around 1,000 residents. The necessity of ensuring essential services, particularly for individuals with disabilities and housing stability, was emphasized.