The Bloomington Housing and Redevelopment Authority approved a $104,000 contract with Daedalus Advisory Services to conduct a comprehensive feasibility study of the city's Opportunity Housing Ordinance during a joint meeting with the Port Authority on Tuesday.

The study, funded through a $45,000 Metropolitan Council grant with remaining costs split between the HRA and Port Authority, will evaluate the ordinance's effectiveness since its 2019 implementation. The ordinance currently requires new residential developments to include 9% of units at 60% area median income or pay an in-lieu fee of $9.60 per square foot.

HRA Administrator Sarah Abe said the study will include stakeholder feedback from developers and housing advocates, financial feasibility analysis for different housing types, and an updated nexus study reflecting current market conditions. The final report and implementation roadmap are scheduled for delivery in November.

The meeting also featured a legislative update from Darryl Darman of the Economic Development Association of Minnesota, who outlined challenging state budget conditions. Minnesota faces a minimal $456 million surplus compared to previous years' multi-billion dollar surpluses, with potential cuts to economic development programs including the Minnesota Investment Fund and redevelopment grants.

Staff presented preliminary findings from the annual housing report, showing Bloomington's aging population, rising housing costs, and construction challenges due to high material costs and interest rates. The city's median age of 40.8 years exceeds metro and state averages, while 29% of households now spend more than 30% of income on housing, up from 22% in 1992.