The Housing and Redevelopment Authority approved the HRA Land Banking Policy (HRAD-1.6), which establishes a program to buy and hold land specifically for affordable housing targeting households earning no more than 50% of the area median income. Member Kim Wilson cast the sole dissenting vote.

The policy is funded through Local Affordable Housing Aid (LAHA), a sales tax created by the state in 2023 and collected across the metro area. Housing and Economic Development Manager Jamie Fritts explained that these funds come with strict spending deadlines—if Woodbury doesn't use the money, it reverts to the state. "The money has spending timelines attached to it, so if the money is not spent, it goes back to the State," Fritts said.

Wilson opposed the plan, stating she didn't want the city "owning, buying, or holding real estate" and objected to using taxpayer dollars "to sit on properties until it is the right time to resell the land." Commissioner Santini raised concerns about potential conflicts of interest and the need for clearer language to assure the public that the council wasn't immediately approving land purchases. However, Members Morris and Stafford supported the policy as an essential tool for addressing Woodbury's affordable housing shortage, noting the city had successfully used land banking in the past for developments like City Walk.

In a separate action, the authority unanimously approved applying for a $333,474 Livable Communities Development Grant from the Metropolitan Council. The grant would fund Two Rivers Community Land Trust's efforts to acquire and rehabilitate single-family homes in Woodbury, creating permanently affordable homeownership opportunities through the Community Land Trust model. Fritts noted this grant is critical for making the model work in a high-cost area like Woodbury. The authority will serve as the grant sponsor and manage compliance with the program requirements.