HRA Meeting Date: June 30, 2025
To: Housing and Redevelopment Authority
From: Jake Reilly, Community Development Director
Melissa Hanson, Housing Coordinator
Title
Update on Grant Application to Minnesota Housing for Infrastructure for Potential Homes Adjacent to Meadows Park.
Body
Action Requested:
The HRA receive an update on City Council Resolution 2025-060 authorizing application to the Greater Minnesota Housing Infrastructure Grant Program for up to $800,000 to support the infrastructure needed to develop up to 40 units of housing affordable to Northfield's workforce.
Summary Report:
Staff worked with the Community Action Center to develop a grant application to Minnesota Housing's new Greater Minnesota Housing Infrastructure Grant program. The program uses general obligation infrastructure bonds to support cities, counties and Tribal Nations creating sites for workforce and affordable housing in Greater Minnesota.
Grant funds can be used to cover up to 50% of the capital costs of physical public infrastructure necessary to support a qualifying housing development. This may include sewers, water supply systems, utility extensions, streets and more, necessary to support single-family, multifamily, homeownership and rental housing development. Capital costs to develop the infrastructure for the homes is estimated at $1,200,000 based on existing projects let for bid in 2024 and 2025.
Applicants' matching funds may include in-kind contributions, such as donation of land. The land in question for this grant application is adjacent to Meadows Park in the southeastern corner of the City. The match must be committed in the grant application. Staff identified the following methods for generating the required $800,000 in matching funds:
* Selling or gifting the land at estimated market value (currently expected to be $78,700 per lot) for a total of at least $1,416,600 to address the required match.
* Downpayment assistance funds at $25,000 per home for ...
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