HRA Meeting Date: August 7, 2025
To: Members of the Housing and Redevelopment Authority
From: Melissa Hanson, Housing Coordinator
George Perry, Housing Intern
Title
The HRA to Consider an Accessory Dwelling Unit (ADU) Tax Abatement Strategy.
Body
Action Requested:
The HRA to hear a presentation about how to incentivize ADU creation within the city.
Summary Report:
The Northfield HRA’s mission is to be a partner in providing a sufficient supply of affordable, adequate, safe and sanitary dwellings in Northfield. Our goal is to create a community with housing opportunities available along the entire housing spectrum: from renters to homeownership, first-time homeowners, to senior living, workforce housing and empty-nesters. We strive to create affordable housing opportunities and strengthen our neighborhoods utilizing:
• Sustainability
• Innovation
• Partnerships
• Community Input
HRA Chair Malecha has requested that the HRA explore recommending to City Council adoption of a tax abatement program to incentivize Accessory Dwelling Unit (ADU) production in Northfield.
Attachment 1 - Draft ADU Incentive Program with analysis
Attachment 2 - Northfield ADU Incentive Program Power Point Presentation
Alternative Options:
N/A
Financial Impacts:
The total Financial Impacts to the City and HRA are unknown at this time. There will need to be dedicated staff time specific to this initiative. This includes, but isn’t limited to, working with the finance department on internal processes for startup, setup and tracking, outreach and education, working with residents to determine feasibility and construction, and determine the dollar amount of the actual abatement.
Tentative Timelines:
August 2025 - HRA to be provided with information and to provide feedback.
November 2025 - HRA to be provided with an update.
Quarter 1-2026 - Council presentation and adoption.