November 10, 2026 Housing and Redevelopment Authority Meeting
Tuesday, November 10, 2026
Story
Bloomington HRA Forgives $438,947 in Interest on 35-Year-Old Affordable Housing Loan
CommonBond sought forgiveness or extension on a 1991 $46,000 deferred HRA loan now totaling about $832,767 with ~$438,947 accrued interest. Staff recommended extending maturity to Dec. 1, 2038, 0% interest, forgiving accrued interest, deeper AMI restrictions and 50% of positive cash flow to HRA.
Story
Bloomington HRA Unveils First Two-Year Budget, Anchored by $2.6M Bring It Home Program
Staff presented the 2027-2028 HRA budget and levy, the first under the city's two-year budget model, reviewing programs including Bring It Home ($2.6M over two years), 700+ housing choice vouchers, home rehab loans, and 27 owner-occupied affordable homes.
Consent business: October 13, 2026 minutes and partial release of regulatory agreement at 8200 Humboldt Avenue South for MnDOT sale
Two consent items: October 13, 2026 minutes and a resolution authorizing partial release of the regulatory agreement and project documents for a portion of 8200 Humboldt Ave S to allow sale to MnDOT. No items pulled; approved 5-0.
New staff introduction: Assistant HRA Administrator
Staff introduced Hillary Benson as new Assistant HRA Administrator for the housing stability and home ownership team overseeing Bring It Home, the voucher program and HRA-owned properties. She worked 9 years for Bloomington and 2 years at Metro HRA.
Areas of Interest (6)
- A 1991 $46,000 HRA loan ballooned to $832,767 with zero payments in 35 years — examine how common such deferred affordable-housing loans are and whether they are ever repaid.
- Bloomington needs 450 units at 30% AMI by 2030 but only 40 have been built since 2021 — track why production has stalled.
- Commissioner Wooten's abstention signals board unease about forgiving interest with no repayment prospects; follow the 2027 LAHA request from CommonBond.
- Overleveraged affordable properties across the metro are struggling with cash flow; investigate the financial health of Bloomington's 2,500 publicly supported units.
- MnDOT purchase of part of 8200 Humboldt Ave S — what is the project and does it affect affordable units?
- Bloomington's first two-year budget model and its effect on HRA levy and programs.
Topic analysis (5)
Approval of agenda
Chair Mueller called the Nov. 10, 2026 HRA board meeting to order; agenda approved unanimously after a brief exchange about whether attendance is taken separately from roll call votes.
- Agenda approved 5-0
Consent business: October 13, 2026 minutes and partial release of regulatory agreement at 8200 Humboldt Avenue South for MnDOT sale
Two consent items: October 13, 2026 minutes and a resolution authorizing partial release of the regulatory agreement and project documents for a portion of 8200 Humboldt Ave S to allow sale to MnDOT. No items pulled; approved 5-0.
New staff introduction: Assistant HRA Administrator
Staff introduced Hillary Benson as new Assistant HRA Administrator for the housing stability and home ownership team overseeing Bring It Home, the voucher program and HRA-owned properties. She worked 9 years for Bloomington and 2 years at Metro HRA.
Bloomington Family Town Homes loan renegotiation request
CommonBond sought forgiveness or extension on a 1991 $46,000 deferred HRA loan now totaling about $832,767 with ~$438,947 accrued interest. Staff recommended extending maturity to Dec. 1, 2038, 0% interest, forgiving accrued interest, deeper AMI restrictions and 50% of positive cash flow to HRA.
- Resolution approving renegotiation adopted 4-0 with Commissioner Wooten abstaining
- Staff to draft revised loan agreement with four required terms plus cash-flow stipulation
- CommonBond expected to apply for HRA LAHA funds in 2027
HRA 2027 budget and levy and 2028 budget
Staff presented the 2027-2028 HRA budget and levy, the first under the city's two-year budget model, reviewing programs including Bring It Home ($2.6M over two years), 700+ housing choice vouchers, home rehab loans, and 27 owner-occupied affordable homes.
Votes (3)
Approve the agenda
Moved by Commissioner Hooim · Seconded by Commissioner Robertson
Approve consent business (Oct. 13, 2026 minutes; partial release of regulatory agreement at 8200 Humboldt Ave S for MnDOT sale)
Moved by Commissioner Dolinger · Seconded by Commissioner Robertson
Adopt resolution approving renegotiation of the loan between Bloomington Nord Limited Partnership and the Bloomington HRA
Moved by Commissioner Hooim · Seconded by Commissioner Robertson
Notable Quotes (6)
So in essence, what you're asking for is an additional eight years of no payment.
Why why extend? Why not just forgive at this point? If we're not expecting payments, why extend it? What's the point?
When a property is overleveraged, it has no equity. So we don't have equity to put into the project. So, by forgiving debt on the property, it opens up avenues further down the line for us to reinvest in the property.
The Met Council projects that Bloomington will need to develop 450 such units by 2030... since that time only 40 30% AMI units have been constructed.
I'm honored to be returning to the city of Bloomington in this role as assistant HRA administrator. I have a passion for serving the residents of Bloomington.
The HRA's [mission] is to create a stable and inclusive community through safe and dignified housing choices.
People (9)
MuellerChair, Bloomington HRACalled meeting to order, led votes and questioned loan terms
Called meeting to order, led votes and questioned loan terms
DolingerHRA CommissionerQuestioned why the loan wasn't simply forgiven outright
Questioned why the loan wasn't simply forgiven outright
RobertsonHRA CommissionerSeconded multiple motions
Seconded multiple motions
HooimHRA CommissionerAttended via WebEx; asked about rehab funding and affordability conditions
Attended via WebEx; asked about rehab funding and affordability conditions
WootenHRA CommissionerPressed on 35 years of no payments; abstained on loan resolution
Pressed on 35 years of no payments; abstained on loan resolution
Hillary BensonAssistant HRA AdministratorOversees housing stability and home ownership team; former Metro HRA coordinator
Oversees housing stability and home ownership team; former Metro HRA coordinator
Ryan SoulbergHousing Development SpecialistPresented Bloomington Family Town Homes loan renegotiation
Presented Bloomington Family Town Homes loan renegotiation
Caitlyn PlenaryCommonBond Communities representativeExplained rehab funding competition and overleveraging
Explained rehab funding competition and overleveraging
SarahHRA staffPresented 2027 budget/levy and 2028 budget
Presented 2027 budget/levy and 2028 budget
Places Mentioned
Events & Meetings (5)
- Bloomington HRA board meeting, Tuesday, November 10, 2026
- October 13, 2026 HRA meeting (minutes approved)
- August 2026: 10 Bring It Home vouchers awarded to property; preliminary budget action
- Loan maturity date December 1, 2026; proposed extension to December 1, 2038
- CommonBond LAHA application anticipated 2027
Ordinances & Resolutions (2)
Partial release of regulatory agreement and project documents for a portion of 8200 Humboldt Ave S to allow sale to MnDOT.
Approves renegotiation of HRA loan with Bloomington Nord Limited Partnership: maturity extended to Dec. 1, 2038, 0% interest, forgiveness of ~$438,947 accrued interest, 4 units at 30% AMI and 16 at 50% AMI, matching CommonBond debt forgiveness, and 50% of positive cash flow paid to HRA.