Housing and Redevelopment Authority — Bloomington, MN
Date: 2025-12-10

Housing and Redevelopment Authority
 AGENDA


 HOUSING AND REDEVELOPMENT AUTHORITY MEETING
 TUESDAY, NOVEMBER 25, 2025
 CURRENTLY MEETS ON WEBEX
 NORMAL MEETING LOCATION:
 COUNCIL CHAMBERS
 BLOOMINGTON CIVIC PLAZA
 1800 W. OLD SHAKOPEE RD.
 BLOOMINGTON, MN 55431
 6:00 PM
 HRA Commissioners: Jenna Carter Blake Doblinger
 Vicki Hoogheem Jennifer Mueller
 Rod Wooten Chao Moua
 Samiira Isse


ANNOUNCEMENT

This meeting will be held in person and electronically via Webex. Some members of the Housing and
Redevelopment Authority, testifiers, and presenters may participate electronically as permitted by Minnesota
Statutes. Members of the public may participate in person or electronically. Directions are provided below.



To watch or listen to the meeting or provide testimony:

 Attend in person
 Watch online on the City's YouTube channel blm.mn/youtube
 Participate via phone (testimony for public hearing only): 1-415-655-0001, Access Code: 263 250 45613
 (Note: long-distance call. Consider calling methods to reduce or eliminate long-distance
 charges.)
 Participate via computer (testimony for public hearings only):
 Link: https://logis.webex.com/logis/j.php?MTID=mc537e4b6e5424bfcb7c3d865b9993b1d Event
 number: 263 250 45613; Event password: MhEmJS3m6n4



Note that no testimony is taken on non-public hearing items


To aide in the smooth running of the meeting, the HRA recommends pre-registration for remote testimony for
public hearing items: e-mail HRA@BloomingtonMN.gov or call 952-563-8937 any time prior to 4:30 p.m. on the
date of the meeting to register and receive instruction.


1. CALL TO ORDER

2. APPROVAL OF AGENDA
3. CONSENT BUSINESS

 3.1 October 28, 2025 HRA Board Meeting Minutes

4. ORGANIZATIONAL BUSINESS

 4.1 HRA Owned Rental Properties 2026-2027 Emergency Maintenance Contract

 4.2 Bloomington Affordable Homeownership Program Pilot Selection of Developers

 4.3 2026 Budget and Final Levy Discussion

5. NEW BUSINESS

6. DISCUSSION ITEMS

 6.1 HRA Administrator Updates

7. ADJOURNMENT

BloomingtonMN.gov: A yearly meeting schedule, agendas, and the official minutes once approved are available. If you require a
reasonable accommodation, please call 952-563-8733 (MN Relay 711) as soon as possible, but no later than 9:00 a.m. one business day
before the meeting day.

 Our mission is to cultivate an enduring and remarkable community where people want to be.

Bloomington Housing & Redevelopment Authority Commission
 Approved Minutes


 Housing And Redevelopment Authority
 Tuesday, November 25, 2025
 Council Chambers
 Bloomington Civic Plaza
 1800 W. Old Shakopee Rd.
 Bloomington, MN 55431
 6:00 P.M.
 Webex Virtual Meeting


 CALL TO ORDER Chair Jennifer Mueller called the HRA Board meeting to order at 6:03 p.m.


 HRA Commissioners Present: Chair J. Mueller, Commissioner R. Wooten (present
 on Webex), V. Hoogheem, B. Doblinger, and C.
 Moua.

 Staff Present: Sarah Abe, HRA Administrator
 Anna Salvador, HRA Assistant Administrator
 Melissa Manderschied, City Attorney (present on
 Webex)
 Maricruz Hernandez, Program Specialist I
 Mike Palermo, HRA Assistant Administrator
 Jeff Bots, Accountant

 Also Present: Rachel Tierney, Kennedy and Graven
 Alex Franks, Owner of Magnolia Homes, LLC
 Dalton Outlaw, President of Outlaw Development,
 LLC.

 Staff Absent: Commissioners J. Carter, and S. Isse.

 APPROVAL OF AGENDA
 Item 2.1
 Approval of November M/Moua, S/Hoogheem, and all present HRA Commissioners voting aye, motion to
 25, 2025, Agenda approve the November 25, 2025, agenda. Motion passed 5-0. Agenda approved.

 CONSENT
 Item 3.1
 October 28, 2025, HRA M/Hoogheem, S/Moua, and all present HRA Commissioners voting aye, motion to
 Board Meeting Minutes approve the October 28, 2025, HRA Board Meeting Minutes. Motion passed 4-0-1
 abstention by R. Wooten.


 ORGANIZATIONAL
 BUSINESS
 Item 4.1

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 HRA Owned Rental Salvador presented a request for authorization for staff to enter into an Emergency
 Properties 2026-2027 Maintenance Agreement with Tuk Technical LLC for the City’s rental properties. The
 Emergency Maintenance proposed agreement would be for a one-year term beginning January 1, 2026, with an
 option to extend for an additional year. The total contract amount would not exceed
 Contract
 $200,000. Tuk Technical LLC was selected through a competitive Request for Proposals
 (RFP) process and received the highest overall evaluation score based on criteria
 including cost, qualifications, and proposed approach. Their application stood out due to
 their extensive experience working with rental properties, particularly within the
 affordable housing sector. The selection committee was especially impressed with Tuk
 Technical’s proposed onboarding process, their approach to emergency maintenance
 work, and their well-established reporting framework, which will support staff in staying
 informed when emergencies occur.

 Salvador concluded the presentation and returned the item to the Chair for questions or
 comments.

 Commissioner Wooten asked how the contract amount was determined, specifically
 referring to the proposed total of $200,000.

 In response to Commissioner Wooten’s question about how the contract amount was
 determined, Salvador explained that the $200,000 total aligns with the 2026 budget for
 emergency maintenance across both the Assisted Rental and Rental Homes programs.
 This amount represents the maximum anticipated need for the upcoming year.

 Commissioner Wooten then asked whether the temporary company that had previously
 provided services submitted a bid. Salvador noted that they could not disclose the
 names of any proposers due to the closed bidding process but confirmed that a total of
 four proposals were received through the RFP process.

 Commissioner Wooten also inquired about the reporting process related to emergency
 maintenance activities and how information would be shared with staff and the Board.
 Salvador responded that, in the event of an emergency situation, real-time updates
 would be provided to staff as incidents occur. Additionally, monthly reporting from the
 contractor would outline actions taken to address emergencies. A summary of
 maintenance activities would continue to be presented to the Board during the annual
 maintenance update provided each summer.

 Commissioner Wooten requested that the Board receive quarterly updates to better
 track contractor performance, given prior challenges. Salvador agreed that quarterly
 updates could be explored and incorporated into next year’s reporting timeline.


 M/Doblinger, S/Wooten, and all present HRA Commissioners voting aye, motion to
 approve a HRA Owned Rental Properties 2026-2027 Emergency Maintenance Contract.
 Motion passed 5-0.

 Item 4.2


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 Bloomington Affordable Assistant HRA Administrator Mike Palermo provided an overview of the Bloomington
 Homeownership Affordable Homeownership Program. He explained that this initiative is being funded
 Program Pilot Selection primarily through a $3.19 million grant from Minnesota Housing, along with additional
 local sources, to support the development of 27 owner-occupied homes. The goal is to
 of Developers
 complete all units by March 2027. Homes will be affordable to households earning up to
 80% of the Area Median Income.

 Palermo noted that the HRA has several vacant, developable lots, some previously
 identified for partnership with Habitat for Humanity. An RFP for additional developers was
 released in October and closed on November 5.

 He highlighted that the evaluation process focused on applicants’ ability to deliver
 projects on time and within budget, given the tight timeline and potential need for
 supplementary funding. Proposals were also assessed for compliance with Minnesota
 Housing Impact Fund requirements, including visibility standards, Enterprise Green
 Communities sustainability standards, and potential prevailing wage requirements.

 Following review and interviews, the selection committee recommended awarding
 development of two larger lots—10117 First Avenue and 8935 Stevens Avenue South,
 which can each accommodate a two-family home—to Magnolia Homes LLC. Two smaller
 lots—8313 Grays Dale and 1210 West 82nd Street, suitable for single-family homes—
 were recommended for Outlaw Development LLC.

 Next steps include entering negotiations and drafting development and purchase
 agreements with both developers. A public hearing will be held at a future meeting prior
 to the conveyance of any HRA-owned land, as required.

 Palermo presented a suggested motion to approve the selection of the recommended
 developers.

 Commissioner Moua asked staff to clarify the 80% Area Median Income (AMI) level for
 Bloomington. Staff responded that for a family of four, 80% AMI is approximately
 $115,000, noting that this reflects typical household incomes for the neighborhoods
 where the lots are located.

 Commissioner Moua invited the developers present to share their interest in the project
 and their relevant experience.

 Alex Franks, Magnolia Homes LLC, introduced himself and explained that his work focuses
 on creating attainable “missing middle” housing. He has partnered with the City of
 Minneapolis through the Minneapolis HOMES program on twin homes and other small-
 scale projects, and is also active in Golden Valley through the HOPE program. Mr. Franks
 expressed interest in expanding this work in Bloomington, noting that he also trains
 emerging developers and looks forward to continuing that work as part of this initiative.

 Dalton Outlaw, Outlaw Development LLC, introduced himself and shared that he and his
 business partner have more than 15 years of combined development experience,
 specializing in small-scale, single-family projects in St. Paul. They recently completed two

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 Approved Minutes


 duplexes funded through the Impact Fund, both sold to owner-occupant households
 within 12 months. Mr. Outlaw expressed appreciation for the opportunity to support
 Bloomington’s affordable housing efforts and emphasized their commitment to
 mentoring emerging developers.

 Commissioner Hoogheem asked staff about future updates on program progress. Palermo
 stated that updates will be provided throughout each phase of the project. The combined
 Habitat for Humanity and developer-selected phases will produce approximately 12 units,
 with more phases to follow. Palermo also noted that signatures for the Habitat lot sales
 are expected soon and that commissioners may have opportunities for site tours as
 construction proceeds.

 Commissioner Moua asked how the city secured state funding for the program. Palermo
 explained that Bloomington applied for Minnesota Housing’s Impact Fund in 2023,
 identifying approximately 27 feasible units across several City-controlled lots. The grant is
 competitive and intended to help fill development funding gaps, given that total
 development costs exceed the eventual sale price of the homes. Palermo acknowledged
 that internal staffing transitions temporarily slowed progress, but work is now moving
 forward. Commissioners thanked staff for successfully obtaining state funds and ensuring
 that state tax dollars return to Bloomington to support local affordable housing needs.


 Item 4.2
 2026 Budget and Final The Chair opened the discussion on the 2026 Budget and Final Levy. The Chair noted that
 Levy Discussion public testimony would not be taken during the meeting; however, community members
 are encouraged to submit written comments for inclusion in the official public record.

 Sarah, HRA Administrator, presented the staff report and an overview of the 2026
 proposed budget and levy. She summarized the following key points:

 • The HRA previously approved the preliminary levy of $3,298,465, the maximum
 amount allowed, at the August 26 meeting, with additional discussion held in
 October.
 • A primary topic of discussion has been the potential federal budget cuts to major
 housing programs that support the majority of the HRA budget.
 • The goal for the evening was to adopt the final 2026 budget and levy, which will
 be forwarded to the City Council for final approval.

 Budget Overview

 • The total 2026 proposed budget is $11.7 million, of which $3.2 million is levy-
 supported. The remaining revenue primarily consists of federal funding, rental
 income, and grants.
 • Approximately $7.5 million in federal funding is allocated annually through the
 Housing Choice Voucher (Section 8) and Community Development Block Grant
 (CDBG) programs.
 • The total budgeted increase for 2026 is 13.6%, which includes increases in both
 revenue and expenditures.

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 • Staff noted that HRA programs continue to leverage significant outside funding,
 including state grants, federal programs, rental income, and a recent $2.6 million
 state-funded voucher award.

 Cost Efficiencies and Program Adjustments

 Staff highlighted several cost-saving and efficiency strategies, including:
 • Leveraging City resources such as finance, communications, and legal services.
 • Bringing property management in-house, which improved service quality at
 similar cost.
 • Streamlining contracts through competitive RFP processes.
 • Pausing certain programs, such as rehab loans, when funds were at capacity.
 • Completing priority-based budgeting and cross-training staff to support high-
 demand programs such as Housing Choice Vouchers.

 Federal Funding Context

 • Staff reported that Congress passed a continuing resolution extending 2025
 funding levels through January 30, 2026.
 • Although current federal proposals show minor reductions, changes to related
 programs—such as Continuum of Care funding administered by the County—may
 impact Bloomington residents.
 • HRA is coordinating with the County regarding potential impacts to residents who
 depend on rental assistance funded through these programs.

 Rationale for Levy Increase

 Staff outlined reasons for maximizing the levy:
 • Increased property maintenance costs and deferred maintenance following the
 COVID period.
 • Continued investment in affordable housing, including Opportunity Housing
 Ordinance projects.
 • Expanding strategic partnerships and service contracts that provide housing
 navigation and other supportive services.
 • Strengthening the development fund balance to support long-term housing
 initiatives.
 Revenue and Allocation Summary

 Staff provided charts illustrating:
 • Revenue sources, showing the distribution between federal funding, levy funds,
 and other revenue.
 • Expenditure categories, with Section 8 as the largest program area.
 • How levy dollars are allocated across HRA programs.
 Next Steps
 • The HRA levy is scheduled for City Council consideration on December 8, the
 same date as the Truth in Taxation public hearing.
 • The City’s final levy approval is expected on December 15.
 • The approved budget must then be submitted to Hennepin County.

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 Recommended Action

 Staff presented two levy options for consideration:
 1. Maximum levy of $3,298,465, restoring pre-2023 levy levels and supporting long-
 term investments.
 2. A reduced levy option of $2,769,133 that would decrease strategic initiative
 capacity.
 Staff requested the Board adopt a final levy and budget for 2026.

 Commissioner Hoogheem asked for clarification regarding recent news reports about
 federal funding cuts. She asked whether the discussion referenced the State of
 Minnesota’s response to federal HUD cuts affecting permanent supportive housing. Abe
 confirmed that the reference was aligned with recent reporting, including an NPR article
 noting that the changes could impact approximately 5,000 Minnesotans statewide.

 Commissioner Moua reiterated his continued advocacy for adopting the lower levy
 option. He noted that the City Council has asked all departments to consider reductions
 and stated that residents are struggling now. He acknowledged the strong work of staff in
 securing outside funding and bringing resources back to Bloomington but emphasized he
 belief that the lower levy still allows the HRA to meet its commitments while maintaining
 affordability for residents.

 The Chair reminded attendees that public testimony could not be taken during the
 meeting because this item was not noticed as a public hearing. Community members
 were encouraged to attend on December 8, where public comment would be accepted.

 Commissioner Hoogheem stated for the record that the HRA has maintained the lowest
 levy levels for the past few years and has made sacrifices to reduce costs. She
 recommended staff for securing external resources and encouraged other City bodies to
 pursue similar efforts. She added that while she is open to compromise, it is also
 important to invest responsibly for the future and avoid deferring costs to future
 generations.

 Commissioner Wooten stated that he has consistently supported not increasing the levy
 and remains opposed to raising it.

 Abe restated that the resolution as written reflected the higher levy option. To adopt a
 different amount, commissioners would need to specify the alternative amount in their
 motion.

 Motion 1:
 Commissioner Dollinger moved to adopt the higher levy recommendation of $3.2 million.
 The motion failed for lack of a second.

 Motion 2:
 Commissioner Wooten moved to adopt the alternative levy option in the amount of
 $2,769,133, with a corresponding reduction to the overall 2026 annual budget.

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 Bloomington Housing & Redevelopment Authority Commission
 Approved Minutes


 Commissioner Hoogheem seconded the motion.

 Legal counsel clarified that the motion should explicitly reflect both the alternative levy
 amount and the corresponding budget adjustment.

 The Chair restated the motion for clarity:

 • Approve the resolution authorizing a special benefit tax levy of $2,769,133, and
 • Approve a corresponding reduction to the total 2026 annual budget consistent
 with the alternative levy amount.



 M/Wooten, S/Hoogheem, and all present HRA Commissioners voting aye, motion to
 approve A RESOLUTION AUTHORIZING THE FINAL LEVY OF A SPECIAL BENEFIT TAX LEVY
 PURSUANT TO MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6 AND APPROVAL
 OF BUDGET FOR FISCAL YEAR 2026. Motion passed 5-0.



 NEW BUSINESS

 DISCUSSION ITEMS
 Item 6.1 The HRA Administrator provided the following updates to the Board:
 HRA Administrator
 Updates • Introductions: Rachel Tierney from Kennedy & Graves, the HRA’s new General
 Counsel selected through the RFP process, was introduced. Her contract was
 approved at the previous meeting. Jeff Botts, the new accountant replacing the
 former HRA accountant who departed in August, also joined the team earlier this
 month.

 • Emergency Maintenance Provider: In response to Commissioner Wooten
 question, the Administrator confirmed that the names of RFP respondents is
 public per Statute and that the current emergency maintenance provider did
 submit an application during the selection process.

 • Upcoming City Council Items (December 8):
 o Several items related to the HRA will be on the consent agenda and public
 hearing, including the CDBG/CDBG-COVID funds public hearing. This
 pertains to federal dollars allocated during COVID for improvements to
 HRA-owned properties, requiring an amendment to the annual action plan
 approved in 2020.
 o Annual contracts going to City Council include the staff services contract,
 the CDBG mutual agreement, and the 2026 levy amount recently
 approved by the HRA.

 • St. Mark’s Property Acquisition and Redevelopment: The Administrator noted an
 issue with the cell tower site plan, which is under dispute. Efforts are ongoing to
 reach a resolution. The contingency date for this project has been extended
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 through the end of the year, which may slightly delay plans.

 • Next HRA Meeting: The final HRA meeting of the year is scheduled for December
 9, and commissioners should anticipate a longer agenda.

 Commissioner Wooten inquired about the status of the HOA parking structure project.
 The Administrator responded that notices were issued for winter parking. The building
 permit was approved this week, and construction is expected to begin soon. The first step
 will be demolition of the existing structure, with construction of the new structure
 anticipated in the spring. There may be minimal activity over the winter following
 demolition.

 Commissioner Hoogheem requested an introduction to the new City Manager at an
 upcoming meeting. The Administrator confirmed that this is on the City Manager’s
 onboarding list and that an introduction will be scheduled in the future.

 ADJOURNMENT M/Hoogheem, S/Moua, and all present HRA Commissioners voting aye, motion to adjourn
 the November 25, 2025, HRA board meeting at 6:58 pm. Motion passed 5-0.

Maricruz Hernandez, HRA Meeting Minute Secretary




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