Housing and Redevelopment Authority Meeting Material
Housing and Redevelopment Authority
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Housing and Redevelopment Authority Meeting Material
Published Wednesday, June 24, 2026
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Affordable Housing Development Assistance Policy
Full Document Analysis
Votes (2)
Consent Agenda
Dissent: None
The consent agenda, including the approval of HRA Minutes from April 8, 2026, was considered routine and enacted by one motion and an affirmative roll call vote by a majority of members present. No separate discussion was requested.
Consider Adoption of HRAD-1.7: Housing and Redevelopment Authority (HRA) Affordable Housing Development Assistance Policy
Dissent: None indicated
Staff recommended the adoption of HRAD-1.7, a policy establishing a development assistance program to facilitate new affordable housing using Local Affordable Housing Aid (LAHA) funds. The policy defines parameters for providing financial assistance through low-interest subordinate loans, prioritizing rental housing for households at 50% Area Median Income (AMI) and ensuring long-term affordability. This initiative is critical given the recent loss of the Difficult Development Area (DDA) designation for Woodbury’s 55129 ZIP code, which previously enhanced financing for affordable housing projects.
Notable Quotes (4)
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.
Ordinances & Resolutions (11)
The new policy adopted by the HRA to establish guidelines for financial assistance to affordable housing developments.
The resolution formally adopting HRAD-1.7.
A staff report from the HRA Executive Director recommending the adoption of HRAD-1.7.
Resolution from the April 8, 2026 meeting authorizing application for 2026 Livable Communities Act Development grant funds, approved as part of the consent agenda on June 24, 2026.
City plan providing guiding principles that the new policy aligns with.
City plan whose objectives the new policy supports, especially regarding housing development.
State statutes governing municipal housing and redevelopment authorities.
Metro area sales tax established by the Minnesota Legislature in 2023, serving as a primary funding source for the new development assistance program.
Grant funds for which the HRA applied as per Resolution 26-03.
A federal program providing subsidies for affordable housing, which the new policy aims to leverage.
Federal act prohibiting discrimination on the basis of disability, noted regarding meeting accessibility.