Minnetonka City Council — Transcript
Thursday, May 8, 2025
Villas at Chasewood Housing Improvement Area (HIIA) Proposal
Staff Report: City Updates
Votes (1)
Villas at Chasewood Housing Improvement Area (HIIA) Recommendation
Dissent: None
Moved by Raka [21:55] · Seconded by Heg [22:15]
Staff presented a proposal for an HIIA for Villas at Chasewood, a 1989 condo development with 188 units, requiring extensive repairs due to original poor construction (no water barrier, non-waterproof sheathing) and deferred maintenance. The association failed to secure private financing and was blacklisted by Fanny May and Freddy Mack. The city would issue taxable General Obligation Housing Improvement bonds over a 20-year term, with fees levied on individual owners (not the HOA) and collected via property taxes. This model, used successfully in other cities, provides low-risk financing for the city. Commissioners expressed support for the project as a vital tool for preserving naturally occurring affordable housing, noting its low cost per square foot compared to new affordable housing developments, and the high resident support (84% petition signatures). Concerns about property sale impact on fees were addressed by noting fees transfer with the property, and the city's low risk due to fees preceding mortgages.
Notable Quotes (3)
Shane, can you maybe a little bit more careful on the words we're using because it really isn't a special assessment that's a different part of the state statute and I want to be clear for the record not because it really matters but it's a fee that's um collected so I just want to makeing Improvement fee is the technical name for the fee so when you get your tax statement it shows a separate line item that says housing Improvement fee right not an assessment Fair Point.
The need for this work primarily is not a lack of Maintenance it is mostly poor designing construction... it was constructed with no water barrier behind the siding so any water that managed to get through the siding got to the sheathing which was non-waterproof sheetrock so it went straight through um the sheetrock and has started to deteriorate the structure...
I like this project because I saw it met all of the criteria... I like the project because we're talking about affordable housing and we all know we need to do more with affordable housing... so I just think there's a lot of good things here and I think it might be a good match for the hiia approval.
Ordinances & Resolutions (20)
City Council policy adopted in 2011 allowing establishment of Housing Improvement Areas (HIAs).
Authorizes cities to arrange and finance rehabilitation for common areas in owner-occupied residential buildings through HIAs.
Submitted by Villas at Chasewood in July 2024 for HIIA.
Proposed financing mechanism for the Villas at Chasewood HIIA.
Agreement to be approved by City Council in early 2025 for the HIIA project.
Technical name for the fee collected from property owners for HIIA projects.
Document reviewed by EDAC regarding the HOA's financial reserves.
Metro Transit's full plan for service through 2027, available online for public comment.
Study being conducted by Nelson Nygaard for Minnetonka to identify transit gaps and alternative service methods.
Citywide survey to be conducted in early 2025 to gauge the status of local businesses post-pandemic.
Program that emerged from feedback from a previous business survey.
Grant program that emerged from feedback from a previous business survey.
Issued for People's Organic building due to structural truss problems.
City initiative to completely rewrite the zoning code over 18-24 months to align with the Comprehensive Plan.
City document guiding development goals, including affordable housing and equitable development, which the zoning code update aims to meet.
Ongoing city program for registering rental units.
City program providing assistance to Minnetonka residents experiencing homelessness.
Program with remaining funds to be administered by His House Foundation.
Successful city program providing down payment assistance, recently approved for additional funding.
Digital resource compiled by staff detailing the city's housing work and policies.