Housing and Redevelopment Authority Meeting Date: April 21, 2026
To: Members of the Housing & Redevelopment Authority (HRA)
From: Melissa Hanson, Housing Coordinator
Scott Wopata, Community Development Director
Title
Staff Updates
Body
Action Requested:
No action requested. There are several outstanding items related to Community Development and the HRA. A summary update on each item is provided below. Staff will also provide a verbal update during the meeting, and the Board may discuss any item individually as desired.
Summary Report:
City Redevelopment Projects, EDA, HRA, Planning Applications & Related Updates
See hyperlink in the attachment of this agenda item.
• Cleanup update
Staff have met with the management of Viking Terrace to discuss site-specific needs and ensure alignment with this year’s cleanup approach. Viking Terrace expressed satisfaction with their current cleanup efforts and indicated interest in potential City financial support to help offset associated costs that are passed on to their residents. Staff are exploring this option and working with JunkTruck MN to obtain cost estimates. JunkTruck is a part of this year’s City Cleanup and is facilitating trash and recycling diversion.
• Development updates
Harvest Hills includes 70+ units of housing and is under TIF consideration for affordability.
Heritage Lofts includes 138 units of housing and is working through final reviews under an approved 2023 TIF agreement.
Cedar Meadows has a signed development agreement and put shovel to dirt in preparation for building. Cedar Meadows is a proposed residential development located directly east of the Northfield Hospital. A development agreement for Phase I is now in place. Phase I includes a mix of 45 market rate single family homes and townhomes, as well as a 45-unit, age restricted (55+) senior cooperative called Gracewin.
• Property Updates
2330 Elianna Drive - The listing price has been reduced to $299,000. Showing activity has increased, with five showings occurring over the past two weeks. Commissioner Beumer toured 2330 Elianna Drive with staff on March 18. Minor maintenance items are being addressed, including light cleaning and caulking, with a handyman engaged for this work.
The most comparable recent sale is 2414 Elianna Drive, which was listed for sale at $290,000 and sold for $285,000. Staff remains in regular communication with the listing agent to monitor activity and market feedback.
Cherry/Linden - 308 Cherry - The previous owner had allowed a friend and his family live in the home without collecting rent, so there was no rental license. In 2024, HRA and Building staff developed a scope of work to bring the home up to code. Scope included: rewiring the home (wiring had been removed), light fixtures, smoke/CO detectors, foundation repair, reroofing, etc. and reported to the HRA that full demolition was recommended due to three concerns:
1. Critical structural repairs would have been needed making it cost prohibitive to do rehab;
2. Asbestos abatement and other code related issues exacerbate the cost challenges of rehab;
3. New construction offered an opportunity to increase density appropriate for the neighborhood.
308 Cherry was tested for asbestos on April 8 and are waiting on test results to determine if mitigation is necessary prior to demolition. Three demolition estimates have been received and the anticipated cost is estimated to be $17,000. Demolition of the existing structure could be as early as May 1.
706/716 2nd St - Trees have been trimmed and sick trees removed.
• Other Updates
Staff participated at housing Day at the Capitol with members of the Minnesota National Association of Housing and Redevelopment Officials (NAHRO). City HRA and County HRA had meetings with Rep. Pursell, Sen. Lieske, Rep. Allen, and Sen. Jasinski. These conversations focused on the importance of supporting critical housing needs and highlighting housing efforts that our local governments can achieve with State support through State Affordable Housing Aid and Local Housing Trust Fund grants.
City Staff have received letters and postcards from city residents in support of HF 2381 and SF 2691 which is Manufactured Home Park Resident Bill of Rights. Attachment 2.
City Staff is participating in Rice County Public Health’s Community Health Improvement Plan (CHIP) Housing Work Group. Attachment 3. The Rice County CHIP recognizes that all people in Rice County live in housing that is affordable to them, healthy, safe, stable and suitable for the household needs. They are in the Action Planning phase to develop plans for addressing the selected priorities. The March 30, 2026 meeting had representatives from insurance companies, health clinics, regional and local nonprofit housing providers. Each group shared what resources are currently available, the path, and what referrals look like. Next meeting May 13.
Viking Terrace management has asked that HRA, Building Staff and Three Rivers Community Action (TRCA) come to a resident meeting that they are planning to have in May. They would like their residents to be more informed regarding city processes for obtaining permits and what other resources that could be available to them.
The funding for HRA’s single family rehabilitation loans and manufactured home repairs through the Community Development Block Grant (CDBG) have been depleted. Since 2020, the HRA has processed 38 applications, approved 25 homes and has deployed $263,117 in our community.
In March 2025, the HRA entered into a Memorandum of Understanding (MOU) to provide certain manufactured home repairs. The MOU was for $50,000 and $4,447 remain. Staff is in conversations with TRCA, who is working on developing a more robust manufactured home repair program and process, to potentially take on all manufactured home repairs. More information will be coming in the following months.
There is approximately $65,000 available through CDBG to provide 2 Down Payment Assistance (DPA) Loans. One DPA is allocated and will close in May.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
N/A