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March 10, 2026 Housing and Redevelopment Authority Meeting
Bloomington City CouncilWednesday, March 11, 2026
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[music] [music] Hey. Hey.[music] Hey. >> [music] [music] [music] >> I would like to call to order theTuesday, March 10th H board meeting. The uh first item on the agenda is theapproval of the agenda. Are there any edits or changes?Hearing none, may I have a motion to approve the agenda?>> Second. >> Motion um moved by Commissioner. Did yousay it first? Okay. Commissioner Wooten first, sorry. And Commissioner Hooimsecond. All in favor? I >> I mo motion passes seven to zero. Uh nowwe have three consent um items on the agenda. The February 24th, 2026 H boardmeeting minutes, the 2025 year-end H budget adjustments, and the MetropolitanCouncil livable communities demonstration account grant applicationresolution of support. Would anyone like to pull an item for discussion? >> Yes, Commissioner Carter.>> I have a question on I>> think I'm used to that. Um I have a quick question onthe 3.3. >> Okay.>> Um and so I would hold that one. Should I move to approve items 3.1 and3.2? >> I think you hold item first.>> We have to. >> Okay. So somebody else would need to Oh,we would just >> So typically in the council meeting, wewe pat we approve the ones that are not being held and then we revisit the beingthe ones being held. >> Okay.>> Yes. >> So I can make the motion to approve 3.1through 3.2. >> Okay.>> Second >> and second by Commissioner Hooim. All infavor? >> I. Motion passes 70. So now we willdiscuss item 3.3. >> Yeah. So just a quick question. Um, sothis is for the St. Mark's affordable housing project and I know part of thebig state grant that we got also is helping. So is this just to kind of Iknow that there was like a little bit of a gap I think for each unit I this itwas a while ago so I'm I'm kind of like going by pure memory here. And so isthis to try to help fill that remaining gap?>> Yeah, chair and commissioners this is we're mostly applying for the publicinfrastructure. So the the culde-sac and then storm sewer connections is whatwe're looking for there. Yeah. >> Awesome. Okay. So the previous financingand all that that we saw was just for the structures themselves.>> The financing did include costs for the road. So it would be part of it would beaddressing part of the total overall gap. That's correct.>> Awesome. Okay. That's all I had. So with that, I would move to approve item 3.3.>> Second. >> And second by Commissioner Wooten. Allin favor? >> I.>> Motion passes. 70. >> So, next item is our organizationalbusiness, the program year 2026 community development block grantproposed budget. May we have the staff report? >> Thank you, chair, commissioners. Yep.We're here today to talk about the community development block grant or CBCDBG. Uh the annual action plan. Uh it's that time of year where we start tothink about next year. Uh and I'll let's see if this works. There we go. Uh so uh on an annual basisthe city of Bloomington receives uh we are an entitlement community from thedepartment of housing urban development receive community development blockgrant or CDBG. As you recall we uh do a five-year kind of strategic plan calledthe consolidated plan which we approved in 2025. So we'll be entering the secondyear of that five-year plan. uh on an annual basis, we're required to thenfigure out this is what we're going to do for this year. Looking back towardthat 2025 plan, we reference goals and how we're achieving those goals in thatfive-year plan. We're estimating for 2026 that we will have uh similar budgetto last year. So, the federal budget was approved uh at similar uh allocation aslast year. So, we're running with the estimated amount of 465,000.that may shift a little bit up or down depending on how uh things shake out. Umthere is a formula that is uh used to figure out that. So it's not an exactscience until we know we're notified. But for the purposes of our budget,we're going to utilize what we used last year.And we want to acknowledge too that we have funding carryover from the previousyear. And you'll see that in the budget. Um, so 2025 budget, uh, we've hadchallenges spending that money down quickly due to new regulations that HUDhas put in and new, uh, requirements and how to navigate that. So, we're hopingthat as we enter this new program year, we'll be able to spend that money downquickly and start spending the 2026 money as that program year begins. So that five-year consolidated plan weoutlined kind of it was a big assessment of the city and outlined the needs ofthe city. Um so we have these overarching goals that we look toachieve. So homeowner rehab was one of them, public services, develop homes forhome ownership, acquisition and demolition. So looking at bladedstructures, uh financial literacy, thinking about home ownershipopportunities and giving people resources to understand uh the financialaspect of that uh building and improving public facilities or infrastructure. Weinclude that uh as a kind of potential as projects sometimes pop up throughthose five years. And then economic development and business assistance. Uhand lastly, fair housing activities. So this being uh the federal funding itis very processoriented. So I'll kind of walk you through all the steps that wehave to do. So like we had mentioned we have the five-year consolidated plan andthis is the annual action plan. So we uh will start here with the budget reviewand kind of the activities with the HA. Um we will enter into our uh publiccomment period for the action plan starting on Thursday. They'll run for 30days. We have a public hearing with city council on uh April 13th. So this fundfunding actually comes to the city. It's is city dollars. So the city councilcontrols them. But as you recall uh at the annual meeting, we uh are the H'sdelegated the authority to kind of manage on the day-to-day basis thefunding. And then after that uh Henman Countyactually holds a public hearing as well. We are part of the Henipin CountyConsortium and then we submit with Henipin County uh and the goal is by uhMay 15th. So uh a few slight changes this yearthat we're proposing. Uh we have carryover funding. Like I said, we havesome remaining funds still from 2025. Uh we're uh targeting that towards therehab loan program. We also continue to get program income. So those two pots offunding will be sufficient to uh utilize for the rehab loan program and thatfrees up that funding that we have used which wasn't a ton of money but about150,000 that we had kind of used from our direct allocation. We are proposingto use that for an acquisition and demolition knowing that there are a fewproperties out there that are blighted. um working with our environmental healthdepartment. That might be an opportunity for us to purchase and remove that anactivity we've done in the past. And then we also are proposing to increaseour budget for public services. So as you recall in 2025 we approved forpublic services working with VEP for uh rental assistance, housing link for uhfair housing assistance and senior community services which does um kind ofchore and light maintenance of homes uh uh for seniors so they can age in placeand we were overprescribed for that. So, uh, we are, uh, proposing to up that alittle bit because we weren't maxing that out. There is a cap that you cando, but, uh, just acknowledging that there's more need than we can fund andwe should we have the funds available for that. So, getting into the details a littlebit here with the budget. So, you could see there with the homeowner rehab, weutilize carryover funds and program income. Uh that program income is anestimate. 300,000 is actually probably a conservative estimate. Um it's one we'veused over five years, but it seems like the last couple years have been a littlebit higher than that. So, uh it's a good program to be flexible in and is one wecontrol. So, we have more funding, we issue more loans. Uh homeowner rehab, wejust talked about the acquisition and demolition. Uh but for the acquisitionand rehab, this is a partnership that we have with Homes Within Reach. Uh we havefunded them for several years where they acquire a property, rehab it, improveit, and then it's a land trust. So they continue to own the land and then sellto a qualified buyer. That helps keep that affordability long term. So we'reproposing to utilize the funds for two homes.Uh that public services, we are just keeping it generic for now. We have arequest for proposals and we'll be eval evaluating that. Um, and we'll see uhwho uh proposes on that. And then this fair housing, you'll see $5,000 inthere. We are part of the fair housing implementation council, which is aregional body that works on fair housing. Uh, under our requirements,we're uh required to further fair housing. Um, and this is kind of a waythat we do that and do it more effectively. Uh, staff capacity to dofair housing, it can be time intensive. It can be very involved and it works alot better to kind of pull our money with a larger organization and kind ofprovide greater resources and have a greater reach um than we would be ableto do just staff ourselves. And then beyond that, we also have justadministration of the grant that we can uh fund.So all in all you can see that yellow column is that 465 which we areanticipating. Um but the carryover estimate and then the program incomeestimate we're looking at about just over a million dollars for next year'sprogram year. And with that, um, any questions? I'mhere to answer. Um, and with suggested motion, >> questions or comments? >> Commissioner Carter.>> Thank you. Um, for [clears throat] the acquisition and rehab and theacquisition and demolition, the 150 each, um, is that like supplemental toother funding? It just doesn't feel like very much money. Yep.>> If we were to acquire and demo a house. >> Yep. Uh, Chair, Commissioner Carter, um,for the acquisition and demolition, we're anticipating these houses areblighted. So, you're basically purchasing for the land. So, we knowland value it's anywhere from 120ish. Uh, and then demolition's another20,000. So, 150 should be about enough. If we need to supplement, we cansupplement. But um we're that's for that activity and then for the acquisitionand rehab uh homes within reach uh they have multiple funding sources. So theyget funding from the state, they get uh home funding from Henipin County. Sothey combine those sources and so by us putting money into it that brings thoselarger pots from the county and the state back to Bloomington. So, it's abenefit for us to actually put into a project because we're funding inBloomington and not another location. >> Okay, that's helpful. And then the 150.So, that would be planned for one one property>> um for the >> for the demolition.>> For the demolition. >> Yes. Okay.>> Yep. >> Awesome. Okay. Thank you,[clears throat] >> Commissioner Hooim.>> Thank you, Chair. Um just to clarify um when discussing or when talking aboutthe public uh service the public service is that like forexample is that like VEP and things like that like I just want to be clear um ifI'm understanding that correctly that's what we're thinking>> chair commissioner Hooim yeah public services are a specific designation thatwe can fund but it it caps out at um 15% of our allocationum and so those tend to be directly to a household or an individual. So, uh, afood shelf could be an example. Um, it's not physical like a building that we'reputting funding into or a unit. It's a service going to a person. So, um,that's where it gets a little uh there are distinctions. There are sometimessometimes where they fall in two categories, but generally it's you'rethinking of an activity that's helping a person navigate a situation or kind ofsomething that's not physical. >> Thank you, Commissioner Wooten.>> Just a clarification on the lighted properties that are purchased. In mostcases, are those uh properties owned or are they forfeited?uh chair commissioner ruin. They're they're owned in those cases. Um wedon't get a lot of tax forfeit land in Bloomington. Um but uh it does happenfrom time to time, but generally um people who are getting to thatsituation, they they they're usually able to find a buyer before it gets tothe point where they're forfeiting. So Bloomington land is very desirable. Sowe would be uh approaching an individual. Um, we have, like I said, wework with our environmental health department and they kind of keep trackof houses that are not in great shape. Um, and and we've done this in the past,too, so that it's not unprecedented. Some of the lots that we had used forthe BA program were purchased and demolished in similar manner with CDPGfunds. Am I correct in that we had a 300,000carryover that wasn't spent from last year or explain that a little moreplease? >> Yep, chair. Um, weuh, like I said, have not been able to spend as we want because of justmuddling through new regulations. Um we do receive some program income that weneed to utilize as well. So that adds to that pot a little bit. Um this is anestimate of where we think we'll be um in a couple of months here as we startto enter into the new program year. Um but yeah, because we haven't been ableto launch some of these programs yet due to figuring out our contracting with newrequirements um and more program income coming in. We do anticipate that largeamount of carryover income. >> Is that going to affect future money? Imean, are they going to say, "Oh, you don't need this.">> Uh, Chair Mueller, um, they it it gets complicated. Um, we actually have athing called the timeliness test where if we do carry too much money becausesometimes it happens that you know projects or whatever didn't get off theground and you end up not having being able to spend that um you they havewhat's called the timeliness test. So within uh at a certain point if you haveover a year and a half's worth of your allocation in funding unspent you haveto sit with HUD and create a a basically a spendown plan. And so they'll workwith you for a year to kind of make sure that you get back to spending thatmoney. Um, but the way that the program is set up, there is a formula to it. Soit's not as simple as when we're doing our budgets and we say, "Hey, youhaven't spent this money. Why are we continuing to fund it at this level?"It's more complex than that. It's based on population. It's based on need. Thereare other factors that go into that. >> Thank you.Other questions or comments? Okay, thank you. So, we will um move onto getting a motion to recommend approval of the proposed program year2026 community development block grant budget to the city council. So>> moved by Commissioner Dolinger and second by Commissioner Wooten. All infavor? >> Motion passes 70.Uh next we are on there's no new business is discussion items.All right chair and commissioners I have just a couple of updates for you thisevening. Um first of all we have our home fair coming up this year. It's onApril 25th. Time will be from 10 to 3. Um, vendor registration is open. So, ifyou know someone who might be interested in having a booth, they can sign up forthat online. Um, there will also be an opportunity for commissioners to join abooth. So, if anyone is interested in that, we can send out the information tosign up for that closer to the event. Um, our next meeting, we do not have asecond meeting in March. So, our next meeting is on April 14th. And then Ileft the best for last, which is that uh we've made progress on St. Mark's site.We were working through some issues with the cell tower, but we are now um we'vebeen able to resolve those issues and we're headed towards closing in lateMarch is the goal. So, we can continue to move forward with that that site.That's it. >> Wonderful.All right. Well, we have come to the end of our agenda. So, uh may I have amotion to adjourn the Tuesday, March 10th H board meeting?>> So moved. Motion moved by Commissioner Robertsonand second by Commissioner Wooten. All in favor?>> I. >> Motion passes 70. Thank you. [music]