City Council Meeting Date: February 17, 2026
To: Mayor and City Council
From: Ben Martig, City Administrator
Scott Wopata, Community Development Director
Brenda Angelstad, Finance Director
Title
Consider Resolution Dedicating Source of Public Revenue for the Local Housing Trust Fund.
Body
Action Requested:
The Northfield City Council approves Resolution Dedicating Source of Public Revenue for the Local Housing Trust Fund.
Summary Report:
City staff provides the following summary and recommendation regarding Statewide Affordable Housing Aid (SAHA) and the 2025 Local Housing Trust Fund (LHTF) Grant Program. The Statewide Affordable Housing Aid to Cities program was established by the Minnesota Legislature in 2023 as an ongoing state aid program to support local affordable housing preservation and production. Funds may be used for a broad range of eligible housing activities, including gap financing for new construction, rehabilitation, rental assistance, homeownership assistance, infrastructure necessary to support affordable housing, and other locally determined housing strategies consistent with statutory income limits.
Separately, the City applied for funding under the 2025 Local Housing Trust Fund Grant Program, which is a competitive state program intended to match locally committed housing trust fund dollars on a dollar-for-dollar basis. Eligible uses are generally limited to activities serving households at or below specified income thresholds and must comply with additional program requirements established in the grant agreement. Northfield has been preliminarily awarded $150,000 under this program; however, the award remains contingent upon execution of a final grant agreement with the State.
Staff recommends that future Statewide Affordable Housing Aid allocations be deposited into the HRA General Fund (Fund 295) rather than the HRA Local Housing Trust Fund (Fund 296). While both funds support affordable housing activities, the Housing Trus...
Click here for full text