Bloomington City Council — Transcript

Tuesday, June 23, 2026

Adora Apartments Development Proposal and Financial Commitment

Down Payment Assistance Agreement with Habitat for Humanity

Future of 2720 West 108th Street (Mint House)

St. Mark's Property Redevelopment and Developer Training Program Update

HRA Administrator Updates and Legislative Overview

Votes (6)

Approval of June 9th, 2026 Meeting Minutes

4-0 Passed

Dissent: None

Moved by Commissioner Wooten [00:05:44] · Seconded by Commissioner Robertson [00:06:05]

Commissioners requested to pull the June 9th, 2026 meeting minutes for discussion. Commissioner Wooten sought more detail on the decision and process to table the down payment assistance agreement, specifically noting the original focus on foundational black families and the shift due to federal compliance. Commissioner Hooim requested her email submission on the record be noted. The attorney clarified options for amendment or tabling. The board decided to table the minutes for amendments.

Adora Apartments Development Proposal

4-0 Passes

Dissent: None

Moved by Commissioner Wooten [00:33:04] · Seconded by Commissioner Hooim [00:33:10]

Kevin Kase, Assistant Port Authority Administrator, presented the Adora Apartments project, a 52-unit low-income housing tax credit development on city-owned property. It aims to provide deeply affordable units, with 10 units at 30% AMI, and seeks up to $300,000 from the HRA and $900,000 in TIF over 26 years. Developer Johnny Opara of Jo Companies emphasized high-quality, sustainable affordable housing and community engagement. Commissioners discussed the flexibility of LAAHA funds, the competitiveness required for tax credits, and community concerns like green space, parking, and potential aircraft noise, which the staff clarified as minimal. The project's alignment with city code for property disposition and prior City Council support were also noted.

Down Payment Assistance Agreement with Habitat for Humanity

4-0 Passes

Dissent: None

Moved by Commissioner Robertson [00:38:39] · Seconded by Commissioner Wooten [00:38:46]

Staff presented the Down Payment Assistance and Services Agreement, outlining parallels between the new contract and the original 2023 MOU. Key clarifications in the new contract include funding source (LAAHA), payment structure, administrative fees, and annual reporting requirements. Commissioners discussed the reporting frequency, with the Chair and Commissioner Hooim requesting bi-annual presentations to the board instead of just written reports. The new agreement allows HRA to terminate at any time.

2720 West 108th Street

4-0 Passes

Dissent: None

Moved by Commissioner Wooten [00:55:04] · Seconded by Commissioner Hooim [00:55:09]

Mike, Staff, presented options for the 2720 West 108th Street property (Mint House), acquired in 2023 with known issues that escalated significantly in cost (beam, foundation). Staff outlined two main options: demolish the property (using CDBG funds) for future redevelopment into affordable housing, or proceed with costly rehabilitation. A third option was to table the decision for more information. Commissioners debated the financial risks of rehabilitation versus the benefits of demolition and holding for future affordable use. Commissioner Wooten preferred rehabilitation with rebidding, citing demand for 3-bedroom units, while Commissioner Robertson and Hooim leaned towards demolition due to escalating costs and unknowns, advocating for the property to remain under HRA control for future affordable housing projects. The Chair also supported demolition, emphasizing the high costs of upkeep and hidden issues in renovation.

Update on development of St. Mark's property and developer solicitation and training program

Discussion Item - No Vote

Staff provided an update on the St. Mark's property redevelopment under the Bloomington Affordable Home Ownership Program. A revised concept leveraging the Missing Middle Housing Ordinance was presented, proposing increased density (up to 24 units including triplexes and detached townhomes) to address development gaps and maximize affordable opportunities. Commissioners raised concerns about HOAs, ensuring adequate parking and green space with increased density, and potential neighborhood opposition. Staff acknowledged these issues would be explored further during the engineering design phase. An update was also given on the emerging developer training program, outlining critical topic areas and selection criteria.

HRA Administrator Updates

Discussion Item - No Vote

The HRA Administrator provided updates on various programs and legislative developments. The Wixon project secured $900,000 in county funding. The free home energy squad program continued successfully. Progress was made on the LIRA program for renter energy efficiency upgrades. A temporary halt in emergency maintenance services created short-term staffing challenges. Emergency rental assistance distribution was slow, likely due to partner and recipient concerns over reporting requirements. The Heights project completion is anticipated by September. Finally, federal legislative updates included the bipartisan '21st Century Road to Housing Act' and proposed revisions to federal financial assistance rules, both of which are being monitored for potential impacts on HRA programs and reporting.

Notable Quotes (17)

So, what I want what I wanted to make sure was highlighted is that the reason for the um tableabling to this particular um session was because our original which was approved in 2023 um was changed and the new policy brought forth um was changing the um focus or the particular um objective for that particular uhou which was to to invest uh in marginally representative um uh black foundational families because of the disparity in um home ownership. And so based on supposedly federal compliance, we were being instructed to to make that change.

Commissioner Wooten [00:02:11]
Approval of June 9th, 2026 Meeting Minutes

So, either you could we could just reflect the record with kind of those simple amendments um and and have that corrected. You can adopt it as amended or we could come back with an amended u minutes and have you approve those. It either way I think will work.

Rachel/Attorney [00:04:47]
Approval of June 9th, 2026 Meeting Minutes

At this point, the developer would be applying for the tax credits and it's a very competitive application process. So, it requires us as a city to commit to providing financial assistance through that process if the funds are awarded. So, that's really what we're asking you to do today.

Kevin Kase/Assistant Port Authority Administrator [00:10:49]
Adora Apartments Development Proposal

My only concern is, and Administrator Aves knows that this is probably coming, but I really need, and I'm going to ask for this again, is I'd really like to see a current spend of LAA, a already projected spend, and what we've committed already, just because I know that this is LA is something that they're stating is guaranteed, but I don't want to say anything is guaranteed anymore.

Commissioner Hooim [00:14:04]
Adora Apartments Development Proposal

I've always said this and I continue to say this. Um if I can't live there, then I don't want to be a part of it. It's it's really simple. It's pretty black and white. So, you know, when I look at a project like uh the Adora, I see a lot of potential, a lot of opportunity.

Johnny Opara/Developer [00:26:08]
Adora Apartments Development Proposal

So this formally identifies a funding source for the program which is local affordable housing aid or LAAHA dollars. Um it spells out the funding flow. So, it would allow us to issue that first annual payment to Habitat upon execution and then release future installments, not more than annually, but once Habitat submits evidence of qualifying expenditures.

Sarah/Administrator [00:36:20]
Down Payment Assistance Agreement with Habitat for Humanity

Is it just annually or can we adjust that to be bianually?

Chair Mueller [00:37:34]
Down Payment Assistance Agreement with Habitat for Humanity

So, you can see we kind of quite a range that we could have for this potential project. And we've really come up with two options that we've taken our time and gone through the bids of what we can do with this property.

Mike/Staff [00:46:13]
2720 West 108th Street

primarily the benefit of a third bedroom uh in this marketplace right now based on what I'm hearing and I've experienced and and trying to place people in in in housing who have been homeless. The need is there.

Commissioner Wooten [00:47:33]
2720 West 108th Street

I'm good with demolishing. I do think it's going to end up costing a lot more um just with costs. I don't think they're going to I wish that I could say that they were going to get cheaper. I just and once you get into foundation, being a construction worker's daughter, you just never know what you're going to get into once you start working with that foundation. So, that does terrify me a little bit.

Commissioner Hooim [00:50:49]
2720 West 108th Street

I want this property to remain with the city with the H and it remain an affordable lot, however property, however it is done. So that I think meets our mission statement and and everything.

Chair Mueller [00:53:57]
2720 West 108th Street

However, since that time, um, the city has passed a missing middle housing ordinance that allows for some some new housing types to be built in the city. And so some of those include triplexes, detached town homes. Um there are various other housing types that are now opportunities that were not opportunities at the time of those discussions.

Sarah/Administrator [00:59:09]
Update on development of St. Mark's property and developer solicitation and training program

Can you explain what the difference is with a detached townhouse versus I mean, I understand they're detached. I get that, but what what what makes it a detached townhouse versus just a single family home?

Commissioner Hooim [01:03:07]
Update on development of St. Mark's property and developer solicitation and training program

I do have a bit of a concern with the triplexes and you know when you have shared the shared walls but you don't have an HO and I don't want it the city to get into an HOA. I I don't think that's the direction we need to go. But when you have the upkeep and it comes time to it needs a new roof, what if two out of three parties can't afford it or you know there's just and having sold some twin homes that don't have an HOA? It's just it's a concern for those owners and are those houses going to be as wellkept as you know the single family one is the detached one who's not relying on someone else for money.

Chair Mueller [01:05:44]
Update on development of St. Mark's property and developer solicitation and training program

I know it's been a while since we've updated on this one. So, I just wanted to give you a quick update that the H approved moving forward with five contracts. One of the groups did decline because of the um state the reporting requirements. However, we are actively working with four partners. It's been a little bit slower than we expected to get those funds out the door. So, we're going to be working with our partners to determine what the barriers are and you know what we can do to respond.

Administrator [01:16:32]
HRA Administrator Updates

I know one of the major issues that I've heard about is the fact of the reporting is the fact that, um, whether citizenship or not, um, there is a marginalized community that really does not want any their names documented anywhere. Um, I don't know how we get around that, but I'm I'm putting a challenge out there to see is there anything that is there anything that can be done um to help with that. I I I understand we have to report I it's a catch you know it's such a tough situation but I know that that's one of the biggest impacts is um there's a big fear in reporting whether no matter immigration status there's just a huge fear of going into a database.

Commissioner Wooten [01:17:16]
HRA Administrator Updates

So, the 21st Century Road to Housing Act is federal legislation, and the goal on that is to address the growing housing crisis, and it's a these days rare bipartisan bill that's received a lot of support.

Administrator [01:21:04]
HRA Administrator Updates

Ordinances & Resolutions (33)

Low-income housing tax credit projectOther

Adora Apartments is proposed as a LIHTC project on city-owned property.

RFP processOther

City code requirement for marketing properties, bypassed by city council approval for Adora.

TIFF financial assistanceOther

Proposed financial assistance for Adora Apartments from the city.

HR loanOther

Proposed financial assistance for Adora Apartments from the HRA.

city codeOrdinance/Regulation

Governs the marketing and sale of city-owned properties.

Tax increment financingOther

Proposed financing mechanism for Adora Apartments through a housing tiff district.

housing tiff districtOther

Specific type of district to generate TIF for the Adora project.

PGO noteOther

Mechanism for increment payment over 26 years for TIF.

resolution indicating support for tax increment financingResolution

Required city council action for the Adora Apartments project.

letter of intent to purchaseOther

Required city council action to obligate the property to the developer for Adora Apartments.

June 9th, 2026 meeting minutesOther

Minutes discussed and tabled for amendments to include more detail on the down payment assistance agreement.

down payment assistance agreementAgreement

Formal contract with Twin Cities Habitat for Humanity Lending, replacing a previous MOU.

original MOUAgreement

Memorandum of Understanding from 2023 for down payment assistance, superseded by the new contract.

current proposed contractAgreement

The revised agreement for down payment assistance discussed and approved.

Local Affordable Housing Aid (LAAHA) dollarsOther

Primary funding source for the down payment assistance program and potentially Adora Apartments.

rental homes for future home buyers programProgram

HRA program intended to house the 2720 West 108th Street property.

structural engineer reportReport

Initial report on known issues with the support beam at 2720 West 108th Street.

time of sale reportReport

Report that called out known issues at 2720 West 108th Street prior to purchase.

community development block grant fundingOther

Potential funding source for the demolition of 2720 West 108th Street.

action planPlan

Annual plan that includes acquisition and demolition as activities, relevant for 2720 West 108th Street.

Bloomington Affordable Home Ownership ProgramProgram

Large initiative to develop 27 affordable owner-occupied homes, including the St. Mark's property.

CV dollarsOther

Community Development Block Grant COVID-19 relief funds, used for rehab and some upgrades.

HRA levyOther

Funding source that would cover significant renovation costs for 2720 West 108th Street if rehabbed.

missing middle housing ordinanceOrdinance

City ordinance allowing new housing types like triplexes and detached townhomes, influencing St. Mark's redevelopment.

Minnesota Housing Impact Fund dollarsOther

Grant funding received for the affordable home ownership program at St. Mark's.

RFP (Request for Proposals)Other

Process to be used for engineering design for the St. Mark's site and developer selection.

HUD letterOther

Communication from HUD reminding of obligations to report fraudulent activities under federal funding.

Wixon projectOther

Apartment project that received county funding and is seeking additional sources.

free home energy squad visits programProgram

Partnership with the sustainability team offering energy efficiency visits.

LiRA/LER (Low-income rental efficiency) programProgram

Energy efficiency program for income-qualified renter households.

emergency rental assistanceProgram

City and HRA approved program facing barriers in funds distribution due to reporting requirements.

21st Century Road to Housing ActLegislation

Federal, bipartisan legislation addressing the housing crisis, potentially affecting HCV inspections and environmental reviews.

governmentwide rules for federal financial assistanceRegulation

Proposed federal revisions that could affect how federal agencies design, award, and oversee grants.

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