HRA Meeting Date: August 7, 2025
To: Members of the Housing and Redevelopment Authority
From: Jake Reilly, Community Development Director
Melissa Hanson, Housing Coordinator
Title
2025-2026 HRA Budget Update
Body
Action Requested:
HRA discusses funding and budgeting for 2025-2026.
Summary Report:
The HRA has committed funding to several non-profit housing partners in the 2025 budget cycle. They are:
• $20,000 - Northfield Union of Youth to maintain existing programming.
• $15,000 - Northfield Union of Youth to expand programming to incorporate transitional housing in the form of rental assistance for qualified participants under age 26.
• $50,000 - Rice County Habitat for Humanity to be set aside for down payment assistance associated with two of its Ford Street homes.
• $50,000 - CAC for ongoing rent and utility stabilization efforts in Northfield.
Since the beginning of the year, staff have received additional requests for assistance. They are to be considered, in part, at this meeting. They include:
• $43,900 to Rice County Habitat for Humanity (RCHFH) to move the existing property at 515 Kraewood Dr. to another lot on the site. This request has been rescinded by the requestor.
• $25,000 in down payment assistance to support a family to purchase that property. This request has been rescinded by the requestor.
• A request from RCHFH for $30,000 to help purchase and rehab 315 Poplar St. S. and a future request of $25,000 for down payment assistance for the purchasing family. Request is included in this packet.
• Subsidy of $137,249 for the development of 307 Sumner by Oberto Properties LLC and RCHFH.
• An open-ended request from Lincoln Woods Townhomes for the resurfacing of their private driveway. Update is included in this packet.
• An open-ended request from Neighbors United to resurrect a Free Cleanup Day for residents from Viking Terrace, Riverside, and Northfield Estates. Staff is working with the Streets Department to determine what a joint HRA/Streets Department partnership and cleanup day could look like. An update will be provided at a future meeting.
The State of Minnesota is launching new programs to fund local government initiatives this year, to implement the more than $30 million of housing funds established in the 2021 and 2023 budget cycles. This includes the matching grant program for local Affordable Housing Trust Funds. HRA staff applied for and was awarded the maximum available match of $150,000. At the same time, there is uncertainty regarding Federal funding, particularly to states that take a “progressive” approach to affordably housing vulnerable populations. This includes the HRA’s Community Development Block Grant (CDBG) allocation through the Dakota County Community Development Agency (CDA) beyond fiscal year 2025. Federal funds are allocated in July, following passage of a budget by Congress. The requested amount of CDBG funds budgeted in the HRA budget for 2025 is $54,066. The HRA will fund a portion of the Land Development Code update and two down payment assistance loans from CDBG. These down payment assistance loans are separate from Rice County Habitat for Humanity’s request for down payment assistance for their builds.
Staff is also tracking a new bill coming out of committees in the U.S. Senate the “ROAD to Housing Act of 2025.” The draft legislation covers many areas, including manufacturing housing, disaster recovery, veterans’ housing, housing supply, homeownership, and program reform. This is notably the first bipartisan housing-related bill to come out of the Senate Banking Committee in over a decade. Read the draft bill text here <http://bit.ly/4f5IXb7>. Staff is also tracking local and national housing and planning policy programs’ analyses of the bill and its potential impact on local government policy and practice and low- and moderate-income residents.
The HRA Board has chosen to fund all partner requests for 2025, leaving $55,886 remaining to continue to support the HRA’s existing initiatives: predevelopment activities, including survey costs, and Rehab grant and loan programs.
Attachments: The HRA Budget Report provided in 2024.
The HRA 2025 revenue, expenses, and funding requests provided in 2024.
The Resolution allocating funds to partner requests, approved in 2024.
The CDBG estimated funds letter.
A copy of the City’s CDBG Application to Dakota County.
Alternative Options:
Revise the 2025 budget.
Delay additional decisions until additional information is available from the CDA, MN Housing, and/or the Federal government.
Financial Impacts:
To be determined/discussed during this item.
Tentative Timelines:
The City of Northfield and HRA fiscal year began January 1, 2025.
The Federal fiscal year begins July 1, 2025.