The Heroes Program, set to launch in November, is designed to provide up to $100,000 in down payment assistance for educators, healthcare workers, and municipal employees seeking homes priced up to $600,000. This program responds to the growing need for affordable housing options for essential service workers whose salaries often do not align with Edina’s housing market. By easing the financial burden of homeownership, the Heroes Program aims to reduce the number of commuters traveling into the city for work, thereby addressing traffic congestion and promoting environmental sustainability.

Stephanie Hawkinson, Edina’s affordable housing development manager, highlighted the city’s multifaceted strategy to tackle housing affordability. The city aims to preserve and enhance the quality of existing affordable housing, diversify housing stock through targeted redevelopment, and strengthen renter protections. Hawkinson underscored the detrimental impact of the current housing landscape on community outcomes, such as educational performance and job stability.

The meeting also delved into the city’s Affordable Ownership Preservation Program, which employs a community land trust model. This approach separates the ownership of homes from the land they sit on, allowing a nonprofit to maintain land ownership while selling homes at reduced costs. By retaining affordability for 99 years, this model ensures that homeowners can capture only a portion of the equity increase upon sale, maintaining a stock of affordable homes for future generations.

The Housing Authority discussed the city’s partnership with community land trusts to preserve homes valued up to $425,000. Since 2007, this collaboration has successfully preserved 36 homes, with a resurgence in activity since 2021. This effort not only maintains affordable housing options but also preserves the history and memories associated with these properties, offering homeowners alternatives to straightforward sales.

Despite these efforts, Edina faces significant challenges in its affordable housing endeavors. The “Come Home to Edina” program, previously providing down payment assistance, has been suspended due to insufficient funds. Operational since the mid-1980s and revamped in 2007, this program has helped 183 households purchase homes. However, rising housing costs have outstripped income growth, leading to a reliance on assistance without adequate recycling of funds. The program’s suspension will persist until approximately $2 million in old loans are repaid.

The state also contributes funding through a sales tax formula, anticipated to provide over $8.8 million by 2025.

Audience members raised questions regarding the implications of affordable housing on school enrollment and community dynamics. Concerns were voiced about the 40,000 workers commuting into Edina. This commuter dynamic underscores the necessity of initiatives like the Heroes Program to attract essential workers to live within the city.

The discussion further explored the availability of single-family homes for purchase, noting that current homeowners often choose to sell to developers rather than the Housing and Redevelopment Authority. This tendency, coupled with fluctuating building material costs and market demand, complicates efforts to maintain and expand affordable housing options in Edina.