The Bloomington City Council took significant strides this week to advance its Affordable Home Ownership Program, unanimously approving resolutions that greenlight new housing developments and critical down payment assistance for prospective homeowners. These actions underscore the city's commitment to creating and preserving affordable housing opportunities across the community.

Among the key approvals was a resolution for gap assistance and a development contract with Outlaw Development LLC for properties located at 8313 Blazedale Avenue South and 1210 West 82nd Street. These properties, acquired by the HRA in 2023, are slated for new residential construction. The HRA's assistance for these projects is structured as a deferred loan, a common mechanism to ensure affordability without immediate financial burden on new homeowners.

The Council also approved a formal contract and the use of local affordable housing aid for a down payment assistance program in partnership with Habitat for Humanity. This collaboration, which saw its Memorandum of Understanding approved in December 2023, is designed to further support families in achieving homeownership, particularly those facing financial barriers. The program aims to limit monthly mortgage payments to 30% of a family's income, making homeownership more attainable.

Habitat for Humanity's involvement specifically addresses the existing racial homeownership gap within the Twin Cities metro area, a goal highlighted by Director of Lending Bethany Negan. The contract for this down payment assistance program is set to span from 2026 to 2030, offering long-term support to the community.

During discussions surrounding the development agreements, the topic of construction costs and potential solutions arose. Developer Sean Divine of Outlaw Development highlighted that prevailing wage requirements could increase construction costs by 25 to 40%. He noted that modular housing, built offsite, often falls outside these restrictions, potentially offering a cost-effective alternative for future projects.

Looking ahead, HRA Administrator Sarah also hinted at innovative approaches for future developments, including potential designs for the St. Marks site. She suggested exploring “demonstration projects for the newly passed missing middle ordinance,” which would represent an innovative use of the site beyond traditional single-family homes.

With these decisive actions, the Bloomington City Council has moved closer to achieving the goals of its Affordable Home Ownership Program, providing tangible pathways to homeownership and contributing to a more equitable housing landscape within the city.