At the April 30, 2025, Council Workshop, the Council discussed the Housing Action Plan and directed staff to develop a policy establishing an HRA development assistance program to advance City housing goals by facilitating the development of new affordable housing. The development assistance program would be funded primarily through the City’s annual disbursements of Local Affordable Housing Aid (LAHA).

As of 2026, the 55129 ZIP code is no longer designated as a DDA. It is unclear whether or when Woodbury will receive this designation again, and the loss of the DDA incentive may result in larger financing gaps for future affordable housing developments and an increased need for local financial assistance. As a result, strategies such as the proposed Affordable Housing Development Assistance Policy will become increasingly important to attract and facilitate affordable housing development.

The Development Assistance Program provides subordinate, low-interest, or deferred loans to qualified affordable housing developments. Assistance is designed to close financial feasibility gaps for developments that meet City affordable housing priorities and demonstrate that all other reasonable financing sources have been pursued.

Support the production of affordable housing units with priority for units serving lower-income households equal to or less than 50 percent of Area Median Income (AMI) and up to a maximum of 60 percent AMI with approval by the HRA Board of Commissioners.