A major highlight of the meeting was the approval of a corrected 2024-2025 Community Development Block Grant (CDBG) Annual Action Plan and Budget. This correction addressed a past misunderstanding related to double-allocating prior year funds. A public comment period was held from August 30 to October 2, but no comments were received. The board unanimously approved the revised plan, fulfilling the citizen participation plan requirements and preparing it for submission to the city council.

The board also focused on affordable housing developments, notably approving a development and purchase agreement with Twin Cities Habitat for Humanity for four units of affordable homeownership at 9030 and Park Avenue South. The initiative, described as “years in the making,” was met with enthusiasm and unanimous support from the board. Additionally, the discussion included a project on Park Avenue South, involving the construction of two single-family homes with accessory dwelling units, in collaboration with Homes Within Reach and Habitat for Humanity. The project seeks to offer affordable homeownership opportunities and preserve the neighborhood’s existing architectural style. Funding for this project includes a grant from Minnesota Housing and financial assistance from the HRA, with a focus on maintaining affordability.

In another significant decision, the board approved new payment standards for the Housing Choice Voucher Section 8 rent assistance program. The updated standards followed HUD’s annual setting of Fair Market Rents, allowing for a 4% increase in payment standards for larger units, particularly three-bedroom units. The board approved the new standards unanimously, effective October 1, 2024, providing needed relief to families requiring larger living spaces.

The board also approved the 2025 Housing Choice Vouchers Section 8 five-year annual and administrative plans. The plans outline the agency’s achievements over the past five years and set goals for operational efficiency and expanding housing opportunities. Despite outreach efforts, no public comments were received during the comment period for these plans.

A report on the Opportunity Housing Ordinance provided an update to the City Council, detailing the ordinance’s impact on affordable housing initiatives. The ordinance offers benefits such as increased development flexibility and tax increment financing for developers who meet affordability requirements. The report highlighted that all developments since the ordinance’s inception have taken advantage of reduced restrictions, promoting deeper affordability. It also noted the full utilization of the Affordable Housing Trust Fund, which was initially funded with a $15 million loan from Old National Bank. The 700 American Boulevard project exemplified the success of these funds, transitioning from a 60% AMI to a 50% AMI housing tax credit project through local funding and project-based vouchers.

The meeting addressed compliance issues with the Opportunity Housing Ordinance, revealing mixed results among developments. Some older projects faced non-compliance, requiring actions such as back pay for overcharged residents. This prompted discussions on improving compliance monitoring, possibly with external partners’ help. An upcoming Housing Nexus Study was also mentioned, aimed at reassessing the ordinance’s relevance and securing $45,000 from the Met Council to support the initiative.