A issue addressed was the impact of tax reductions on TIF revenue, which has negatively affected funding for various housing projects. Specifically, projects like Village Club and Lindo Flats have seen decreased revenue due to county-level tax reductions and classification errors. While the latter issues have been corrected for future years, the immediate financial impact prompted the Board to closely monitor repayments and explore options to replenish the Affordable Housing Trust Fund. This fund has been instrumental in supporting multiple projects, with its establishment in 2019 as part of the Opportunity Housing Ordinance leading to significant investments. However, the current accumulated balance remains allocated to existing projects, limiting the availability of funds for new initiatives.

The Board identified two potential avenues to restore the Trust Fund: a local affordable housing aid proposal funded by a metro area sales tax, projected to bring in approximately one million dollars annually, and a matching grant program from Minnesota Housing. The Board emphasized the importance of these funds, intending to split them evenly between affordable homeownership programs and development and preservation projects. This structured allocation aims to support both multifamily projects and potentially expand to single-family housing.

In addition to financial strategies, the Board approved an agreement with Habitat for Humanity to continue housing support efforts following the depletion of American Rescue Plan Act (ARPA) funds. With hopes of securing over $1 million in funding and more than 100 vouchers, this program represents a sizable expansion in resources aimed at supporting Bloomington’s housing needs.

The meeting also touched on the appointment of bond and economic development counsel, reflecting continuity in ongoing projects despite changes in legal representation. The Board swiftly approved interim contracts with the same attorney who moved to a different firm. These appointments were part of the consent agenda, which passed unanimously without further discussion.

Officer elections took place during the meeting, resulting in a unanimous vote for Commissioner Mueller as chairperson, Commissioner Wooten as vice chairperson, and Commissioner Issa as secretary after some initial hesitation. The election process concluded smoothly, allowing the Board to proceed with its 2025 work plan, which was subsequently approved. The work plan’s presentation highlighted the Housing Choice Voucher Program’s administration of over 680 vouchers. The plan also reported $1.2 million invested in property repairs over the past year.

Further, the Residential Development Services team reported on the success of rehabilitation programs, approving 33 loans totaling $1.2 million in 2024. These loans addressed urgent housing needs through the Housing and Environmental Loan Program, with additional down payment assistance provided to 21 households. The discussions acknowledged the challenges posed by rising home prices.

The Board also discussed improvements for city-owned affordable housing and potential amendments to the Affordable Housing Trust Fund guidelines to include single-family housing. This flexibility could enhance the city’s ability to address diverse housing needs, recognizing the importance of maintaining city-owned facilities with updated amenities for residents.