Richfield City Council — Transcript
Monday, September 21, 2026
Inclusionary Housing Policy (IHP) Updates
Affordable Housing Project Funding (Habitat for Humanity)
Future Development and Funding for American Legion Site
Votes (4)
Open Forum - Public Comment on Inclusionary Housing Policy (HRA)
Numerous residents and advocates spoke, primarily expressing strong opposition to weakening the Inclusionary Housing Policy (IHP) by increasing the minimum unit threshold from 5 to 15. Speakers emphasized the need for affordable and accessible housing, the city's leadership role, and the importance of community involvement in policy-making. They also supported strengthening the policy by eliminating payment-in-lieu options for accessible units and extending the affordability period to 20 years or more. Economic realities, developer incentives, and social equity were central themes.
Consideration of a resolution authorizing the execution of an acquisition and rehabilitation funding agreement with Twin Cities Habitat for Humanity for the acquisition, rehabilitation, and sale of 7039 Fth Avenue South (HRA)
Moved by Commissioner Supple [N/A] · Seconded by Unknown [N/A]
Staff presented the resolution to fund Habitat for Humanity's project. The home at 7039 Fifth Avenue South, originally part of the HRA's new home program, is being repurchased and renovated by Habitat to create a 4-bedroom home for a low-to-moderate income family (50-80% AMI). The land will be placed into the West Hennepin Affordable Housing Land Trust for long-term affordability. Habitat requested $80,000 from the Affordable Housing Trust Fund and the reinvestment of a $40,000 loan repayment, totaling $120,000 in city funds. An additional $80,000 will come from Minnesota Housing Impact funds and private funds. Commissioner Young raised a question about handling potential construction cost overruns, to which Habitat indicated their volunteer model allows for flexibility and budget adjustments.
Continuation of the consideration of an update to the inclusionary housing policy (HRA)
Dissent: Commissioner Supple [N/A] (voted Nay)
Moved by Commissioner Hayford Olirri [N/A] · Seconded by Commissioner Young [N/A]
This item continued the debate from a previous meeting regarding proposed IHP updates. Staff reiterated the recommendation to increase the minimum project size triggering IHP from 5 to 15 units, citing high construction costs, challenges for small projects, and consistency with zoning changes. They also pointed to comparisons with other cities where 10-15 units is a common threshold. Commissioners debated the impact of this change on housing diversity and developer behavior. While public sentiment strongly favored maintaining the 5-unit minimum, several commissioners expressed concern that a 5-unit trigger might prevent any small projects from being built due to current economic realities. The HRA ultimately decided to adopt the 15-unit minimum while extending the affordability period to 20 years and removing the in-lieu payment option for accessible units.
Consideration of items removed from the consent calendar - Inclusionary Housing Policy Update (EDA)
Dissent: Commissioner Supple [N/A] (voted Nay)
Moved by Commissioner Hayford Olirri [N/A] · Seconded by Commissioner Young [N/A]
This item was pulled from the consent calendar to allow for a vote mirroring the HRA's decision. The discussion was brief, acknowledging the prior debate and decision made by the HRA. The EDA confirmed the changes to the Inclusionary Housing Policy, including setting the minimum trigger at 15 units and extending the affordability period to 20 years for both rental and owner-occupied housing.
Notable Quotes (13)
I'm here today to encourage the HR to not weaken this policy by increasing the minimum number of units. But I'm also here to speak in support of eliminating the payment in LW clause for accessible units... and in support of strengthening the Richfield policy to require affordable units to remain affordable for at least 20 years.
People with lower incomes and people with disabilities should be able to choose where they live just like anyone else. Which means they should have the option of being able to live in a five or 10 unit building and shouldn't be forced to only live in big apartment buildings because that's where the affordable accessible units are.
People with disabilities should not have to be shoved into an institution or preferred places of to live that the city deems appropriate for them. They should be able to have choices as the ADA states and the Scotas decision of 1999 also known as the Mstead decision which is that people with disabilities have the right to live, work, learn, and participate in the community of their choice.
The idea that we're bringing to your attention today is doesn't have to be uh by replacing us. It doesn't have to be by removing choice from people to live in accessible or affordable housing units. We believe that the city can find better and more creative ways to incentivize development...
I want and I feel that Richfield we could do the same thing if we advocate how keeping this inclusionary policy will benefit our community benefits the developers and we promote ourselves as an accessible city. People are going to want to move here. People are going to want to be our neighbors. Developers are going to want to develop here.
I am happy to subsidize affordable homes for my neighbors, even at a much higher per unit rate if that is what requ what is required for it to pencil out. I am uninterested in subsidizing a private equity firm's investment property where they profit off cost burdening my neighbors.
Habitat is asking the HA for funds to assist with rehabilitating and ensuring the long-term affordability of the home as they did not budget to repurchase or rehab the home this year. They are requesting $80,000 from the city's affordable housing trust fund and that the HA reinvest the $40,000 loan repayment into the home.
our biggest cost savings come in using our volunteer model for doing a lot of the work. So, we are able to be fairly nimble in um in making those adjustments. Habitat is um contributing to the cost of the rehab as well and we can, you know, make those adjustments in our budget as well.
So, 15 units continues to be staff's recommendation for a revised project size, but it is ultimately a policy choice um for you.
I'm trying to get my head around this idea of a five-unit multifamily rental building being built in Ridgefield or anywhere for that matter because construction costs are really high, interest rates are high, and to make to make it work, rents have to be much higher in order to pay the debt service. ... it's almost impossible.
The only situation in which this change, what's proposed by staff and what I support, would be a detriment to people who need accessible housing or affordable housing would be if either we were getting so many projects that we were running out of money... or if these projects were going to be built anyway and they're not doing the affordable units because of the policy change. And I don't think either of those is the case.
I am on the H because I support affordable housing. It's deeply personal to me. the comments that were made tonight deeply resonated with me. So, I appreciate people showing up and advocating for what matters to them. ... Even with those changes, Richfield remains a leader in this space.
I think 15 is still too high. Like I said, I originally was thinking to propose 10 because we have a lot of units that are buildings that are like 10 to 12 buildings and I think that we need to have that accessibility and that affordability there. ... I can't vote for 15.
Ordinances & Resolutions (11)
The city policy encouraging affordable housing in development projects, subject to proposed updates.
Public documents referenced for information on submitting comments.
Report cited for housing wage data in the Minneapolis St. Paul metro area.
Federal law guaranteeing rights for people with disabilities, referenced in public comment.
Supreme Court decision referenced for rights of people with disabilities to live in the community of their choice.
Specific agreement with Twin Cities Habitat for Humanity for 7039 Fifth Avenue South.
Official action for the Habitat for Humanity project.
Official action for the IHP update.
Tax classification for affordable housing, mentioned in context of IHP changes and potential tax burden shift.
City ordinance amended to encourage missing middle housing, referenced in IHP discussion.
Documentary recommended by Ben Whan about illegal discrimination at Crossroads.