Housing and Redevelopment Authority Meeting Date: July 7, 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.
• Viking Terrace 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. Viking Terrace held their spring cleanup on Friday, May 22 & Saturday, May 23.
• Development updates
The Harvest Hills preliminary plat for 71 units of housing has been approved. Final plat and TIF agreement will be presented to Council in July for approval.
Heritage Lofts includes 138 units of housing and is working through final reviews under an approved 2023 TIF agreement.
The Archer Project has started through the Site Plan Review process. Certificate of Appropriateness has been approved. A height variance has been approved by the Zoning Board of Appeals and a conditional use permit has been approved by the Planning Commission. It is anticipated that the developer will apply for TIF.
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. Gracewin is still in the Pre-Application Review phase.
• Property Updates
2330 Elianna Drive - The property has been relisted at $290,000.
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.
308 Cherry Street - Staff is preparing an application to the Minnesota Housing Finance Agency’s Impact Fund to support development of a homeownership opportunity on the HRA-owned Cherry Street lot. The application is due July 9, 2026, with award announcements anticipated in November 2026. Pending a successful award, construction could commence shortly thereafter or begin as late as spring 2027. A related item authorizing submission of the application is included on the City Council consent agenda immediately following this HRA meeting.
706/716 2nd St - Trees have been trimmed and sick trees removed.
• Other Updates
On May 5, HRA and Building Department staff along with staff from Three Rivers Community Action (TRCA) participated in a community meeting hosted by management that included burgers and hot dogs. Staff shared information on the permit process for repairs on their manufacture homes and other resources available for community residents.
Omnibus Housing Budget and Policy Bill (Chapter 100 of the 2026 Minnesota Session Laws. Highlights of Housing Related Provisions Enacted During 2026 Legislative Session. Attachment 2. Also of note, Chapter 82, the “Homeowners Association Bill of Rights,” passed. The new legislation includes broad consumer protections and limits on homeowners association practices, along with a provision affecting local development approvals.
City Staff is participating in Rice County Public Health’s Community Health Improvement Plan (CHIP) Housing Work Group. 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 May 13, 2026 meeting focused on Housing Cost Burden in Rice County.
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. Staff is exploring leaning into TRCA to administer the Down Payment Assistance Program from the Local Housing Trust Fund (LHTF). TRCA has specialized and dedicated staff who’s only job is to administer down payment assistance programs through various sources. The funds will be restricted for use in the LHTF boundary.
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. TRCA continues to develop a more robust mobile (manufactured) home repair program and weatherization program. More information is in this packet.
For FY 2025, there is approximately $15,000 available through CDBG for Down Payment Assistance (DPA) Loans. An additional $52,516 for FY 2026 will be available after July 1, 2026.
Alternative Options:
N/A
Financial Impacts:
N/A
Tentative Timelines:
N/A