StoryRental Homes for Future Homebuyers Program AmendmentsJune 13, 2026

Bloomington housing board approves rent increases, loan deferral

The Bloomington Housing and Redevelopment Authority approved changes to an affordable housing program and granted a loan deferral to a struggling nonprofit on January 14, balancing the need to maintain affordable housing with the financial realities of property management and pandemic recovery.

Meeting date: Jan 15, 2025

Published Jun 13, 2026

The authority voted 5-1 to approve amendments to the Rental Homes for Future Homebuyers Program, which helps low-income residents build savings while renting with a path to homeownership. The changes expand eligibility from households earning 50% of the area median income to 60%, while implementing a 5% annual rent increase to cover necessary building improvements and maintenance costs.

Staff emphasized that rent increases are essential to "guarantee we could continue to maintain safe and quality housing," according to Anna Salvador, a program administrator. However, commissioners raised concerns about the real-world impact on tenants. One commissioner, drawing on personal experience in low-income housing, urged staff to speak directly with tenants about unexpected costs they face beyond their reported income. Another commissioner criticized the timing, suggesting the authority had deferred maintenance too long and was now burdening current residents with the cost of overdue improvements.

In a separate 6-0 vote, the board unanimously approved a one-year deferral of $395,445.66 in loan payments from AON, a nonprofit managing the Blooming Meadows affordable housing complex. AON cited severe pandemic-related losses—the organization lost roughly 63% of its revenue due to unpaid rent during the eviction moratorium—along with increased turnover costs and ongoing refinancing efforts. Staff warned the decision carries financial risk, noting the HRA holds a secondary position as a lender. One commissioner supported the deferral but issued a clear warning: "I will support this one this year but if things start falling apart...it's really hard to justify the continued public support."

The meeting also included discussion of a new citywide sewer fee—$2,026 per unit—adopted by the City Council to address $55 million in needed sanitary sewer improvements by 2040, particularly in the North Central and South Central areas. The fee, effective January 1, 2025, is expected to increase development costs and may require additional public subsidies for affordable housing projects.

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Also from this meeting

Housing Authority Approves Rent Increases, Defers Loan Payments
Jan 15, 2025

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Votes (2)

Proposed Changes to the Rental Homes for Future Homebuyers Program

5-1 Approved

Dissent: One commissioner voted against the motion, though the specific identity or detailed reasons for dissent beyond general concerns raised earlier were not explicitly recorded for the vote.

Moved by Doubling [25:29] · Seconded by Carter [25:36]

The proposed amendments include increasing program eligibility for new households to 60% AMI (from 50%), while maintaining the 80% AMI ceiling, and incorporating the Met Council's 50% AMI rent as a new threshold for rent setting and increases. Staff emphasized the need for rent increases to cover significant capital improvements and maintain housing quality, balancing this with the program's goal of homeownership readiness. Commissioners raised concerns about the real-world impact of a 5% increase on low-income tenants, the timing of improvements, and the potential impact on the program's success rate in achieving homeownership. Staff confirmed that current policies allow a 5% annual increase and that financial readiness education is part of the program.

AON Loan Deferral Request

6-0 Approved

Dissent: None, the motion passed unanimously, although a commissioner voiced strong reservations prior to the vote.

Moved by Commissioner Wooten [45:52] · Seconded by Commissioner Say [45:52]

AON requested a deferral of their 2025 biannual loan payments for the Blooming Meadows South project, citing significant revenue loss during the pandemic, increased unit turnover costs, and ongoing efforts to refinance and secure funding for comprehensive rehabilitation. The HRA staff noted the financial risk given the HRA's secondary position as a lender and the potential for future subsidy requests. Dr. Johnson from AON explained the severe financial challenges faced by the organization and emphasized their commitment to the project and partnership with the city. Commissioners debated the long-term assurances for repayment and the opportunity cost of using the HRA levy, with one commissioner expressing conditional support for this one-time deferral.

Notable Quotes (8)

The purpose of the Rental Homes for Future Homebuyers Program is to offer affordable rents to support a pathway to homeownership for income qualifying households.
— Anna Salvador [3:58]

Proposed Changes to the Rental Homes for Future Homebuyers Program

rents needed to increase to guarantee we could continue to maintain safe and quality housing.
— Anna Salvador [4:36]

Proposed Changes to the Rental Homes for Future Homebuyers Program

I think it's really it would be a really good idea to actually speak to the tenants and where they're at because I understand you know there's the paperwork where their income is at but you know like I grew up in low income housing and know that the reality can be very different in the sense that there can be so many unexpected costs...
— Commissioner [14:18]

Proposed Changes to the Rental Homes for Future Homebuyers Program

Ordinances & Resolutions (5)

Resolution 7 2020 5-01Resolution

Approving amendments to the Rental Homes for Future Homebuyers Management and Admission Policies.

Affordable Housing Trust Fund loanOther

Loan provided by the HRA to AON for the acquisition and improvements of Village Club/Blooming Meadows.

Housing TIF DistrictOther

Established by the HRA to support the Blooming Meadows project, capturing increases to property value.

City SAC Fees (Sewer Availability Charge)Other

First city-wide fee adopted by Bloomington to fund sanitary sewer improvements, effective January 1, 2025.

Capital Improvements ProgramPlan

Program outlining necessary sewer improvements between now and 2040, totaling $55 million.

THE BLOOMINGTON RECORDER

Bloomington housing board approves rent increases, loan deferral

Other Topics from This Document

AON Loan Deferral Request for Blooming Meadows

Sanitary Sewer Funding Update

Also from this meeting

Housing Authority Approves Rent Increases, Defers Loan Payments

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Votes (2)

Notable Quotes (8)

Ordinances & Resolutions (5)

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