Bloomington HRA approves three housing assistance initiatives
The Bloomington Housing and Redevelopment Authority unanimously approved three measures on November 26 aimed at expanding affordable housing options and supporting low-income residents, including a new assistance program for The Heights development and updated utility cost calculations that are expected to lower housing expenses for voucher program participants.
The HRA's board voted 4-0 to adopt an updated utility allowance schedule effective January 1, 2025, which determines how much tenants in the Housing Choice Voucher Program can afford to pay for rent. The new schedule, based on Metropolitan Council data, reflects a 10% change from the previous year, primarily driven by decreased natural gas costs and slight increases in electricity. Staff said the overall effect will lower utility allowances for most households, potentially expanding housing options for residents searching for rentals in the coming year.
In a second unanimous vote, the board approved a six-month, $88,000 property maintenance agreement with Renew Homes Inc. to service the HRA's 42 single-family rental units. The contract provides 24-hour emergency and non-emergency maintenance services—addressing what staff described as a critical service gap. The six-month structure allows the HRA time to develop a comprehensive maintenance and capital improvement plan before deciding whether to extend or renegotiate the agreement in 2025. Staff emphasized that timely emergency response will be the primary measure of the contractor's success.
The board also unanimously approved a direct income-based assistance program for residents of The Heights, a residential development facing new infrastructure fees that have increased housing costs. The program targets households earning 60% of the area median income or less and offers a one-time, 20-year forgivable loan that reduces prepayment fees, thereby lowering the total amount assessed and the interest owed. Priority will be given to households with the greatest financial need. The program requires City Council approval and an initial $250,000 funding allocation, though staff acknowledged uncertainty about whether this amount will be sufficient without complete household income data. If residents sell or transfer their units before the 20-year period ends, they must repay the assistance to the HRA.
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Votes (3)
Adoption of utility allowance schedule for Bloomington H rent assistance programs
Dissent: none
Moved by Commissioner Mueller [6:14] · Seconded by Commissioner Mua [6:16]
Staff presented the need to adopt an updated utility allowance schedule due to a 10% change from the previous year, with natural gas costs dropping and electricity costs increasing slightly. The HRA uses the Metropolitan Council's schedule to avoid duplication of work. The overall expected decrease in utility allowances is anticipated to benefit tenants by expanding housing options, especially for single-family rentals. The schedule is effective January 1, 2025.
Property maintenance service agreement
Dissent: none
Moved by Commissioner Mua [13:48] · Seconded by Commissioner Mueller [13:52]
The HRA is restructuring its property management for 42 single-family rental units. Renew Homes Inc. was selected through an informal bidding process to provide 24-hour on-call, emergency, non-emergency, and preventative maintenance services. The initial agreement is for six months, not to exceed $88,000, allowing HRA staff time to develop a comprehensive preventative maintenance and capital improvement plan before potentially extending or renegotiating. Discussions covered evaluation criteria focusing on timely emergency response and cost-effectiveness, and clarified procedures for repairs exceeding $1,000.
Direct income-based assistance program for The Heights
Dissent: none
Moved by Commissioner Carter [33:35] · Seconded by Commissioner Mueller [33:40]
The proposed program aims to support households at The Heights earning 60% AMI or less, particularly those facing housing costs exceeding 30% of their income due to the HIIA fee. Administered similarly to existing HRA programs using HUD's framework, the assistance is a one-time, 20-year forgivable loan that reduces the prepayment fee, thereby lowering the assessed amount and saving interest. Rental property owners receiving aid must adhere to affordable rent restrictions. The program's needs-based methodology prioritizes households with the highest gap-to-income ratio. Staff acknowledged uncertainty about the adequacy of the proposed $250,000 funding without collected household income data.
Notable Quotes (13)
is an important component of the gross rent calculation used in the housing Choice Voucher Program
Bloomington H utilizes the util utility allowance adopted by the Metropolitan Council just because we are in the same market area rather than duplicating that work
overall a total utility allowance we anticipating for most households is actually going to go down which means their gross rent calculation would go down which actually especially for households that are moving in the next year could mean that more housing options are available to them
the goals with this agreement are to have a provider who can provide that first L layer of service to tenants especially for emergency situations
what ultimately means that they were successful um how do we categorize that and then is this an ongoing thing if they are effective in what they're doing
critically is ability to respond in a timely manner to the 24-hour emergencies
so at this time staff is proposing a six-month agreement with the option to extend for an additional six months and this six-month structure would give us the opportunity to expand or renegotiate Services once we have those plans in place in 2025
this program is recommended by staff to close the gap between what's considered an affordable housing cost relative to the amount of income that a household brings in
once we determine eligibility that funding gets allocated to a household they're we are then able to lower what their prepayment fee is and the remaining balance is what is assessed and the interest would only be on that remaining balance
if the homeowner decides to sell their unit or transfer their unit before that 20-year period they would be expected to repay that assistance back to the city back to the HRA
this is a direct and needs-based assistance program and so priority will be given to households that have the highest demonstrated need
is it this is one time time right so we would not be requiring them to provide um proof of eligibility in an ongoing way
because staff haven't been uh we haven't begun collecting data on the household's income the there isn't a stronger estimation for what the need actually will be from uh unit owners at the Heights
Ordinances & Resolutions (8)
Schedule adopted for use in Housing Choice Voucher and rent assistance programs.
Authorizing staff to enter into a property maintenance agreement with Renew Homes Inc.
Approving a direct income-based assistance program for The Heights.
Federal housing program impacted by utility allowance calculations.
Housing Infrastructure Impact Assessment request related to The Heights financing.
Existing HRA program whose administrative framework will be used for the new assistance program.
Federal housing program whose income verification framework is utilized by HRA.
Standard or program relevant for property maintenance timelines for emergent situations.
Source document
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Other Topics from This Document
Property Maintenance Service Agreement
Direct Income-Based Assistance Program for The Heights
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