Bloomington City Council — Transcript
Tuesday, July 23, 2024
Story
Bloomington HRA approves affordable housing projects, passes clean audit
Affordable Housing Preservation and Rehabilitation (Southview Estates)
Affordable Homeownership Development (93 Park Avenue South)
Housing Choice Voucher Waiting List and Administrator Appointment Update
Votes (3)
External Auditors Report on 2023 Annual Financial Report
Moved by Commissioner Wooten [11:03] · Seconded by Commissioner Moua [11:08]
Andy Herring from Redpath and Company presented the results of the 2023 audit for the HRA, City, and Port Authority. The audit resulted in an unmodified or 'clean' opinion, with no internal control or legal compliance findings. The organizations collectively received the Certificate of Achievement in Financial Reporting for the 52nd year. The audit focused on material misstatements and assessed global risks like management override and unauthorized disbursements, none of which were noted as issues. A summary of 2023 financial activity was provided, noting a $2.5 million increase in fund balance to $21 million, primarily restricted for housing programs. Notable activities included a $1.4 million contribution to the Port Authority Development Fund and payoff of $6.45 million in bonds from the Days Inn property sale.
Request for Extension of Maturity Date for Loan Agreements between the Housing Redevelopment Authority and Bloomington Southview Limited Partnership and Metropolitan Council Local Housing Incentive Account Local Match Related to Substantial Rehabilitation of Southview Estates
Moved by Commissioner Wooten [1:06:10] · Seconded by Commissioner Dollinger [1:06:18]
SAN Companies, developer of Southview Estates, requested HRA support for its $3.4 million rehabilitation project. The project aims to extend affordability, deepen rent levels (30%, 50%, 60% AMI), and include set-asides for high-priority homeless and people with disabilities. Requests included extending two HRA deferred loans (one $465k, one $150k) by 30 years and committing to a dollar-for-dollar match for a Metropolitan Council grant ($100k-$500k). Discussion included the significant accrual of interest on the deferred loan (up to $840k by 2063) and the desire to renegotiate terms for future debt service. Staff also presented proactive strategies for affordable housing preservation. The Board expressed strong support for extending affordability and deepening income levels, ultimately directing staff to communicate support for the application with specific conditions on the loan terms and local match strategy.
Public Hearing Contract for Private Development with West Hennepin Affordable Housing Trust for Sale and Redevelopment of 93 Park Avenue South
Moved by Commissioner [1:41:04] · Seconded by Chair Who, Kim [1:41:11]
Staff and partners (Homes Within Reach, Twin Cities Habitat for Humanity) presented the redevelopment plan for 93 Park Avenue South. The HRA-owned property, previously a substandard structure, is being split into two lots for two new single-family homes, each including an attached accessible dwelling unit (ADU). The ADUs are ground-level to ensure accessibility for multi-generational families or individuals with disabilities. Construction standards emphasize energy efficiency (Energy Star, solar-ready), durability, and radon mitigation. Funding includes a land write-down, City support for soil testing, and grants from Minnesota Housing. The Board, after a public hearing with no comments, approved the contract, acknowledging the project's long development process and importance for affordable homeownership and multi-generational living.
Notable Quotes (10)
A quick overview of the results and unmodified opinion or a clean opinion was issued no internal control or legal compliance findings and just standard communications with those charged with governance. So overall you passed good news nothing major to report.
were awarded a Certificate of Achievement in Financial Reporting so very few I think it might be just five other organizations in the United States have received the award for that many years so it's something you can definitely be proud of .
MOST PROJECTS THAT ARE RENOVATION DON'T GET FUNDED BY MINNESOTA HOUSING IN THE FIRST YEAR SO IT MIGHT TAKE MAYBE ANOTHER YEAR. WE'RE HOPEFUL THAT THAT'S NOT THE CASE BUT WANT TO JUST BE REALLY HONEST WITH WHERE WE'RE AT IN THE PROJECT.
I THINK OVERALL I DO WANT TO SUPPORT THE DEVELOPER EVEN AT 60% AM I THAT'S THE STARTING SALARY FOR ONE OF OUR NEW POLICE OFFICERS HERE IN TOWN. So WHEN WE'RE TALKING ABOUT AFFORDABILITY WE'RE NOT TALKING ABOUT YOU KNOW, VASTLY DIFFERENT INCOMES LIKE THAT'S OUR OR POLICE OFFICERS OR FIRST YEAR FIRST RESPONDERS WHO CAN'T IN BLOOMINGTON.
What it would do in the current application is it would just have additional requests from Minnesota Housing because it would be debt service versus deferred which like I said we'd rather have the answer now than a year from now when we come in and we're like get the projects all ready to go.
I I ALSO WANT TO STATE THAT I COME I COMMEND THE CITY TO FOR THE PROACTIVE MEASURES THAT WE'RE TAKING NOW GOING FORWARD. I THINK THIS STARTS A DISCUSSION OF WHAT WE CAN DO IN THE FUTURE TO PREVENT IT FROM GETTING TO WHERE WE ARE TODAY WHERE WE CAN INTERVENE SOONER.
EXCELLENT OPPORTUNITY CREATE AFFORDABLE HOMEOWNERSHIP USING A NEW APPROACH.
So THANK YOU FOR THE WORK YOU DO PROVIDING FAMILIES THE OPPORTUNITY TO CREATE GENERATIONAL WEALTH AND STABILITY WITHIN THEIR FAMILY.
THE 80 USED WERE ADDED AT THE REQUEST OF STAFF AT THAT TIME SINCE IT WAS A NEW ZONING ALLOWING ALLOWANCE THEY HAD COME TO US AND ASKED IF WE WOULD BE FIRST TO ATTEMPT THIS TYPE OF A PROJECT
I HAVE ONE COMMENT TO MAKE AND THAT IS AS I WILL SAY AND I HAVE SAID TIME AND TIME AGAIN I ACTUALLY VIEW THIS PROPERTY FROM MY HOUSE. So I'M VERY FOR THIS TO BE MOVING FORWARD AND I THANK YOU FOR YOUR TIME AND DEDICATION IN AND THE LONG HAUL OF THIS.
Ordinances & Resolutions (13)
Report on the HRA's financial activities for the calendar year 2023.
Award received by the City, HRA, and Port Authority for 52 consecutive years.
Report verifying HRA's compliance with state statutes.
Report on compliance with federal programs; HRA dollars not involved for 2023.
Standard letter from the auditor summarizing key audit highlights.
Original deferred loans from HRA to Southview Estates in 2002, subject to extension requests.
Grant program that provided initial funding to Southview Estates and for which new funding is being sought.
Competitive funding application process for rehabilitation projects, which SAN Companies is applying to.
Legislation under which the Metropolitan Council Local Housing Incentives Account operates.
Official action to approve the sale of 93 Park Avenue South and the development contract with Habitat for Humanity.
Document for 93 Park Avenue South specifying conditions for ADU use and affordability.
Program that provided initial assistance for Southview Estates in 2002 and is central to the project's affordability terms.
City fund that could be allocated for preservation measures.