Bloomington City Council — Transcript
Tuesday, May 12, 2026
Affordable Housing Development and Financing
Community Development Block Grant (CDBG) Allocation and Amendments
HRA Programs and Development Project Updates
Board Meeting Cadence and Communication
Votes (3)
Approval of term sheet for Lyndale Apartments
Dissent: None
Moved by Commissioner Carter [0:25:34] · Seconded by Commissioner Doblinger [0:25:40]
Staff presented a term sheet for a 180-unit fully affordable housing project, seeking a 'soft yes' for Tax Increment Financing (TIF) assistance ($1.2M net present value). Commissioners questioned the potential need for Local Affordable Housing Act (LAHA) funds if other grants were not secured, and the binding nature of the term sheet. Staff clarified it was a non-binding initial step to allow the developer to pursue other financing, with further approvals and public hearings required later. Accessibility and sustainability features of the project were highlighted as impressive.
General amendment to the annual action plan public services 2025
Dissent: None
Moved by Commissioner Hookeim [0:34:03] · Seconded by Commissioner Robertson [0:34:06]
Staff presented a general amendment to the 2025 CDBG Annual Action Plan to increase the public services award to Senior Community Services by $10,000, bringing their total to $19,970. This was an accounting adjustment, drawing funds from the rehab loan budget, which was clarified to have adequate funding from program income. A minor discrepancy in the resolution's dollar amount was noted and verbally corrected for staff to amend.
Community Development Block Grant public services for 2026
Dissent: None
Moved by Commissioner Robertson [0:41:40] · Seconded by Commissioner Doblinger [0:41:43]
Staff proposed the allocation of $70,000 in CDBG public services funds for the 2026 program year, recognizing the previous year's oversubscription. Awards were recommended for VEAP ($35,000 for rental assistance), Bridging ($15,000 for furniture), and Home Line ($20,000 for tenant legal services). The rigorous reporting and monitoring requirements for sub-recipients of federal CDBG funds were detailed in response to a commissioner's inquiry.
Notable Quotes (8)
The proposed development is with Real Estate Equities. They're proposing a 180 unit development on Lindahl Avenue between 98th and 102nd, otherwise known as the former Wickes and Jewelers site. It is technically a fully affordable building, but 25 of the units are the 75 are 70% AMI, so that'd be a little bit above what the OHO requires.
So really what we're requesting at this point is a determination on if this body is comfortable with committing a soft yes of that tip assistance. So this is not the public hearing for that approval. We would have to take additional steps in the future.
I really honestly don't recall seeing any other proposals before us in the past that are just so explicitly designed for accessibility, like the audio-visual units, the type B adaptable units. Um, I just really, really impressed with, um, the length that they're going to not only meet the income requirements, but also really around accessibility and the sustainability pieces, too.
The community development block grant uh one of the components is public service dollars that is capped at uh 15% of the grant uh allocation. Um so last year in 2025, we did an RFP for proposals for that public service allocation or pot of the allocation.
we because we receive program income, which we can't budget for because it's variable according to the market, it varies per year. So, this this because of the accounting function, we basically have to move it, but we are receiving more than enough program income to fund our program fully, so it's not like a loan is being dropped from the program.
This year we were fortunate enough to have ahead of time a little more advanced notice of what that annual allocation is, so that for 2026 we have $477,190. We approved in our budget for the annual action plan $70,000.
Bridging comes in. They receive donated furniture, and they help move that to individuals who are moving from homelessness into those affordable units.
we have to do sub recipient monitoring on an annual basis. So at the end of the year we'll go in and spot check their files to make sure that they're complying with all the CDBG regulations and getting into those details.
Ordinances & Resolutions (10)
Approval of a non-binding term sheet for TIF assistance for a new affordable housing project.
Original budget for Community Development Block Grant public services for the 2025 program year.
Amendment to increase funding for Senior Community Services by $10,000 using CDBG funds.
Allocation of CDBG funds for public services for the 2026 program year.
Approval to enter into agreements with various non-profits for 2026 CDBG public services.
Document identifying goals and activities that CDBG public services must align with.
Governs the process for amendments to the Annual Action Plan, classifying the $10,000 adjustment as a 'general amendment'.
Funding source applied for by the Lyndale Apartments developer via Minnesota Management and Budget.
Approved by City Council on April 13th, outlining CDBG activities.
Code amendment for cell towers approved by City Council on May 4th, related to the St. Mark's site.