City Council Meeting Date: July 7, 2026
To: Mayor and Members of Council
City Administrator
From: Melissa Hanson, Housing Coordinator
Title
Consider Resolution Authorizing Submission to Minnesota Housing Finance Agency's Impact Funds - Cherry Street Redevelopment.
Body
Action Requested:
The Northfield City Council is being asked to approve a Resolution authorizing submission of a grant application to Minnesota Housing Finance Agency to support redevelopment of the Cherry Street property into four new affordable homeownership units.
Summary Report:
Staff of the City's Housing & Redevelopment Authority (HRA) is seeking Council authorization to apply for Minnesota Housing Impact Funds to support redevelopment of the HRA-owned parcel at 308 Cherry Street. The grant would assist with the creation of four energy-efficient, net-zero, factory-built homes affordable to households earning between 80%-115% Area Median Income (AMI) - for a family of four income levels between $86,700 - $124,660, this demographic is considered low- to moderate-income households. Council approval is required prior to grant submission due to the City's Grant Management Policy, which mandates governing body approval for certain grant applications.
The recommended concept aligns with neighborhood feedback, which favored lower-density, single-family homes over higher-density alternatives. Project Overview for Cherry Street Infill Redevelopment:
* Development of four single-family, factory-built modular homes on Cherry Street
* Each home is planned to be 3 bedrooms, 2 bathrooms, with basements and garages
* Homes constructed to Green Communities Standards and designed to be net-zero
* Homes targeted to households at 80%-115% AMI
* Partnership with Rice County Habitat for Humanity as builder (builder-only role)
* Down payment assistance and financial education administered through Three Rivers Community Action
Staff met with nearby residents on two occasions to review conceptual opti...
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