## Housing and Redevelopment Authority Meeting ## Council Chambers June 24, 2026 This Housing and Redevelopment Authority (HRA) meeting is taking place virtually and at Woodbury City Hall in the Council Chambers. Meetings are recorded by TrueLens Community Media and are broadcast live and replayed on cable channel 799. Meetings are also available on the City of Woodbury’s YouTube channel. Members of the public may attend the meeting in person and may also join the meeting using a computer, tablet, or smartphone and accessing the virtual meeting link at woodburymn.gov/VirtualMeetings. Public comments will be accepted during the meeting both in person and virtually. Virtual questions should be submitted via the online Q&A feature within the virtual meeting link. Questions regarding the meeting will also be taken between the hours of 8:00 a.m. to 4:30 p.m. at 651-714-3524 or at council@woodburymn.gov. Questions received after 4:30 p.m. will be responded to in the next three to seven business days. Please note that all agenda times are estimates. 1.Call to Order 2.Roll Call 3.Consent Agenda All items listed under the consent agenda are considered to be routine by the HRA Board and will be enacted by one motion and an affirmative vote by roll call of a majority of the members present. There will be no separate discussion of these items unless a Commissioner or citizen so requests, in which event, the items will be removed from the consent agenda and considered a separate subject of discussion by the Board. 3A.Approval of HRA Minutes - April 8, 2026 Staff recommends Council approve the HRA meeting minutes from April 8, 2026. 4.Public Hearings ## No Items Scheduled ## Watch the Live Meeting ## Woodbury Housing and Redevelopment Authority Agenda June 24, 2026 | 7:30 PM 5.Discussion ## 5A.Consider Adoption of HRAD-1.7: Housing and Redevelopment Authority (HRA) ## Affordable Housing Development Assistance Policy 26-05 Staff recommends HRA adopt Resolution 26-04, a resolution adopting HRAD- ## 1.7: Housing and Redevelopment Authority (HRA) Affordable Housing Development Assistance Policy. 6.Adjournment The City of Woodbury is subject to Title II of the Americans with Disabilities Act, which prohibits discrimination on the basis of disability by public entities. The City is committed to full implementation of the Act to our services, programs, and activities. Information regarding the provisions of the Americans with Disabilities Act is available from the Administration office at 651- 714-3500. Auxiliary aids for disabled persons are available upon request at least 72 hours in advance of an event. Please call the ADA Coordinator at 651-714-3500 (TDD 731-5796) to make arrangements. ## MINUTES ## WOODBURY HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 08, 2026 Page 1 of 2 ## 3A Pursuant to the due call and notice thereof, a regular meeting of the Woodbury Housing and Redevelopment Authority was duly held at the ## Woodbury City Hall, 8301 Valley Creek Road, on the 8 th day of April 2026. ## Call to Order Chair Anne Burt called the meeting to order at 7:30 p.m., and she welcomed those attending the meeting both in person and virtually. Chair Burt explained that members of the public may attend the meeting in person and may also join the meeting using a computer, tablet, or smartphone. She stated public comments will be accepted during the meeting both in person and virtually. Virtual questions should be submitted via the online Q&A feature within the virtual meeting link. Questions regarding the meeting will also be taken between the hours of 8:00 a.m. and 4:30 p.m. via email at council@woodburymn.gov or at 651-714-3524. Questions received after 4:30 p.m. will be responded to in the next three to seven business days. ## Roll Call Upon roll call the following were present: Chair Anne Burt, Kim Wilson, Steve Morris, Jennifer Santini. Absent: Donna Stafford. Others Present: Janelle Schmitz, HRA Clerk; Jeffrey Dahl, HRA Executive Director, Kevin Sandstrom, Woodbury City Attorney; and Jamie Fritts, ## Housing and Economic Development Coordinator ## Consent Agenda ## Item AApproval of Minutes – January 28, 2026 HRA Meeting Item BTo adopt the following resolutionHRA Resolution 26-03 HRA Resolution of the Housing and Redevelopment Authority of the City of Woodbury, Washington County, Minnesota authorizing application for 2026 Livable Communities Act Development grant funds. Member Santini moved, seconded by Member Morris, to approve the Consent Agenda items. Voting via voice: Kim Wilson – aye Donna Stafford – absent Steve Morris – aye Jennifer Santini - aye Anne Burt – aye ## Public Hearings No items scheduled ## Discussion No items scheduled ## Adjournment Chair Burt moved, seconded by Member Wilson, to adjourn the April 08, 2026 Housing and Redevelopment Authority meeting. ## Voting in Favor:Wilson, Morris, Santini, Burt ## Absent: Stafford ## MINUTES ## WOODBURY HOUSING AND REDEVELOPMENT AUTHORITY Wednesday, April 08, 2026 Page 2 of 2 Chair Burt adjourned the meeting at 7:33 p.m. _________________________________________ ## Anne W. Burt, Chair Approved by the Woodbury Housing and Redevelopment Authority on June 24, 2026. ## 5A ## City of Woodbury, Minnesota ## Office of the HRA Executive Director ## HRA Letter 26-05 June 24, 2026 ## To:The Honorable Chair and Commissioners of the HRA ## From:Jeffrey J. Dahl, Executive Director ## Subject:Consider Adoption of HRAD-1.7: Housing and Redevelopment Authority (HRA) ## Affordable Housing Development Assistance Policy ## Summary 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). Adoption of the proposed development assistance policy by the HRA would formally establish the program and define the parameters for providing financial assistance to affordable housing developments. ## Recommendation Staff recommends HRA adopt HRA Resolution 26-04 adopting HRAD-1.7: Housing and Redevelopment Authority (HRA) Affordable Housing Development Assistance Policy. ## Fiscal Implications ## None ## Policy ## 2021 Housing Action Plan ## 2040 Comprehensive Plan ## Public Process March 13, 2024 –Council Workshop August 28, 2024 –Council Workshop April 30, 2025 –Council Workshop June 24, 2026 – HRA Meeting ## HRA Letter 26-05 June 24, 2026 Page 2 ## Background Since the creation of the Local Affordable Housing Aid (LAHA) metro area sales tax by the Minnesota Legislature in 2023, a series of Council workshops have been held to determine the most effective and impactful use of these new funds. Staff recommended several program concepts aimed at expanding opportunities for both affordable homeownership and rental housing within the City. These recommendations were based on strategies to address market barriers to the development of new affordable rental housing and attainable homeownership opportunities for first-time buyers. Following consideration of these recommendations, Council directed staff to develop the affordable housing development assistance policy described in this letter. ## Affordable Housing Development Assistance The purpose of the proposed Affordable Housing Development Assistance Policy is to establish clear guidelines and eligibility criteria for providing financial assistance to support the development of affordable housing in Woodbury. The policy prioritizes new rental housing serving households earning no more than 50 percent of the area median income (AMI). It establishes program objectives, outlines procedures for issuing low-interest loans, and includes safeguards to ensure properties are properly managed, developments are consistent with the City's Comprehensive Plan, and long-term affordability is maintained for projects financed in part through the program. Assistance will be provided in the form of low-interest subordinate loans; grant requests will not be accepted. Loan terms will be determined on a case-by-case basis through an analysis of each project's financial need. Funding requests will be submitted through an application process and will be subject to a comprehensive underwriting review prior to the issuance of any funds. All requests for assistance must receive approval from both the HRA Board and the City Council. In addition, four recent developments in Woodbury, totaling nearly 1,000 affordable rental units, were made possible in large part by the 55129 ZIP code's designation as a Difficult Development Area (DDA) by the U.S. Department of Housing and Urban Development (HUD). Affordable housing projects located within a DDA are eligible for increased Low-Income Housing Tax Credit (LIHTC) subsidies, which enhanced financing for Woodbury's two most recent developments by nearly $10 million each. DDA designations are reviewed and updated annually by HUD; however, 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. ## Written By:Jamie Fritts, Housing and Economic Development Manager ## Approved Through:Janelle Schmitz, Community Development Director/HRA Clerk ## Attachment:1. HRA Resolution ## 2. Housing and Redevelopment Authority (HRA) Affordable Housing ## Development Assistance Policy ## HRA Resolution 26-04 ## Resolution of the Housing and Redevelopment Authority in and for the City of Woodbury, Washington County, Minnesota ## Adopting HRAD-1.7: Housing and Redevelopment Authority (HRA) Affordable Housing ## Development Assistance Policy WHEREAS, the Housing and Redevelopment Authority in and for the City of Woodbury (the “HRA”) is a municipal housing and redevelopment authority governed by Minnesota Statutes, Sections 469.001 through 469.047; and WHEREAS, the powers granted to the HRA by Minnesota Statutes include the authority to provide financial assistance for purposes including redevelopment, removal of blight, and the production of affordable housing; and WHEREAS, in 2023, the Minnesota State Legislature established a Local Affordable Housing Aid (LAHA) metro area sales tax to be distributed annually to metropolitan counties and municipalities, including the City of Woodbury; and WHEREAS, at its April 30, 2025 Council Workshop, the City Council directed staff to develop affordable housing production strategies to be funded in part with LAHA funds, including said HRA Affordable Housing Development Assistance Policy. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Woodbury, Washington County, Minnesota, that ## HRAD-1.7: Housing and Redevelopment Authority (HRA) Affordable Housing Development Assistance Policy is hereby approved. This Resolution was declared duly passed and adopted and was signed by the Chair and attested to by the Executive Director this 24th day of June, 2026. ## Attest:Anne W. Burt, Chair ______________________________ ## Jeffrey J. Dahl, Executive Director(SEAL) Adopted: 6/24/2026 ## Revised: ## Number: HRAD-1.7 ## Chair: ## Anne Burt ## Executive Director: ## Jeffrey Dahl ## For: Housing and Redevelopment Authority Board ## Housing and Redevelopment ## Authority Directive ## Subject: Housing and Redevelopment Authority (HRA) ## Affordable Housing Development Assistance Policy ## Purpose This policy is to establish guidelines and procedures for the City’s Affordable Housing Development Assistance Program. The program is intended to support the creation of affordable housing units within the City of Woodbury by providing financial assistance to fill the funding gap between total development costs and the amount that can be supported through conventional financing and equity contributions. This policy aligns with the City’s broader Housing Action Plan guiding principles to: Provide a variety of housing styles, sizes and prices that lets people of all ages and incomes live in Woodbury today, adapts to future changes in demographics, and meets local labor force needs. Provide a fair share of the region’s need for affordable quality housing. Integrate affordable workforce housing into the larger community. Support and create housing opportunities for senior citizens. ## Policy 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. ## Objectives The primary objectives of the policy are to: 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. Use City resources to attract and leverage additional federal, state, and private financing, including Low-Income Housing Tax Credits (LIHTC), Minnesota Housing Finance Agency (MHFA) programs, or other public subsidies. Ensure assisted units remain affordable for a minimum of 30 years through recorded affordability covenants or land use restrictions. Support housing that aligns with the City’s Comprehensive Plan, Housing Action Plan, local housing needs and a balanced geographic distribution of affordable units. ## HRA Directive ## HRAD 1.7 ## HRA Affordable Housing Development Assistance Policy Page 2 of 4 ## HRAD-1.7 HRA Affordable Housing Development Assistance Policy Ensure fiscally responsible lending best practices are utilized for the disbursement of program funds. ## Anticipated Funding Sources Metropolitan Local Affordable Housing Aid (LAHA) Minn. Stat. § 477A.35. Leveraging additional federal, state, local funding, and grants with HRA Board of Commissioners authorization. ## Procedures ## Eligible Applicants Nonprofit or for-profit housing developers; Public housing authorities; and Community land trusts or mission-driven organizations with housing development capacity. Applicants must demonstrate development experience, financial capacity, and compliance with all applicable local, state, and federal regulations. ## Eligible Activities and Uses A housing development applying for funds which receives a public or non-profit subsidy, tax credits or other assistance under a state or federal program may contain market rate units, insofar as permissible under those Funds. However, Woodbury funds may not be used to support market rate units. Eligible uses of development assistance may include: Land acquisition; Site preparation; General construction costs; Sustainability and energy efficiency features and systems; Resident amenities, parks, and open space related to the development; or Soft costs directly related to project development (e.g., architectural, engineering, environmental). Development assistance may not be used for: Operating subsidies; Refinancing existing debt; Soft costs not directly related to project development (e.g., fees associated with other funding sources, permits, and insurance) Market rate units; or Non-housing-related amenities. Verification of how development assistance funds were applied to a project will be required upon project completion. Failure to use funds on an eligible use or not providing proper verification will result in noncompliance and accelerated repayment of the assistance funds. ## HRA Directive ## HRAD 1.7 ## HRA Affordable Housing Development Assistance Policy Page 3 of 4 ## HRAD-1.7 HRA Affordable Housing Development Assistance Policy ## Funding Structure and Terms The City’s funding terms and amounts will be determined on a case-by-case basis, which will be determined by analyzing the individual need for a project and the amount of funding available at the time of the application. Funds will be available on a first-come, first-served basis. Negotiated loan terms may include the following: ## Low-Interest Subordinate Loans; Deferred Payment Loans; or Forgivable Loans. Forgivable loans will only be negotiated for a project when justified by deep affordability or exceptional public benefit. Financing requests in the form of a grant will not be accepted for this program. Loan terms will be a maximum of 30 years or co-terminus with the affordability period mandated by another public funding source or senior lien. Projects assisted with Woodbury funds must remain affordable for a period of not less than 30 years. Loans will be secured by a recorded mortgage, note, and declaration of land use restrictive covenant to ensure compliance with affordability requirements. Developers shall be responsible for all costs associated with the issuance of the loan to be paid at closing. At its discretion, the City may seek reimbursement from the applicant for costs in excess of the required closing fee, including extraordinary legal fees. ## Underwriting and Feasibility Standards Projects must undergo a comprehensive financial review demonstrating the following: The project is infeasible without City assistance (“but-for” test); Industry standard per-unit construction costs; Developer fees and operating assumptions are consistent with industry standards; Confirmed funding commitments from other sources; Sufficient cash flow projections consistent with industry standards; A debt coverage ratio within acceptable underwriting ranges (typically 1.10–1.25); and Sustainable operating budgets and reserve policies. City staff or an independent financial consultant will perform an underwriting review before recommending a project for funding approval. ## Application and Review Process Developers requesting assistance shall submit a complete application, including but not limited to, a project pro forma, sources and uses, development timeline, and affordability mix. Projects submitted for consideration must have City Council approval prior to applying for assistance. Developers must also ## HRA Directive ## HRAD 1.7 ## HRA Affordable Housing Development Assistance Policy Page 4 of 4 ## HRAD-1.7 HRA Affordable Housing Development Assistance Policy demonstrate with their application that all other public funding sources have been pursued or are not feasible for the project. Applications must be accompanied by an application fee as identified within the City’s fee schedule. Except when an application is withdrawn by a developer prior to review by City staff, application fees shall be nonrefundable. City staff or a financial consultant will evaluate the project application for financial feasibility, alignment with City goals, project readiness and conformance with this policy. Final funding awards will require City Council authorization through resolution. ## Monitoring and Compliance Recipients of City development assistance financing are subject to ongoing compliance monitoring by the City for the duration of the affordability period. Requirements will include: Ongoing compliance with the City of Woodbury Code of Ordinances. Annual reporting on occupancy, income eligibility, and rent levels. oIncome restrictions will be established according using HUD/MTSP AMI guidelines for the Minneapolis/St. Paul metropolitan statistical area. oRents must be limited to the most current HUD/MTSP AMI rent schedule (e.g., Low-Income Housing Tax Credit Rent Limits) less the applicable utility allowance. Annual reporting to confirm compliance with federal, state, and other public financing programs such as LIHTC and tax-exempt multifamily revenue bonds. City approval prior to transfer, sale, or refinancing. Enforcement mechanisms for noncompliance, including repayment or legal remedies. oRecorded Mortgage and Note; oLoan Agreement; and oDeclaration of Land Use Agreement.