Bloomington Affordable Homeownership

The HRA will coordinate redevelopment of current HRA-owned parcels of land as well as the purchase of additional parcels that are land or have unoccupied blighted structures on them to be cleared for redevelopment throughout the city. 27 new units of homeownership will be developed throughout the City of Bloomington.

The purpose of the funds from MN Housing will be to provide value gap subsidy, this is the difference between the cost to build a house and purchase price to homebuyer) of $118,500 per unit. The funding is used to make sure that the newly constructed house will be affordable to end homebuyers at or below 80% of area median income (AMI) and for at least 15 years. 

This is a development program using HRA owned land, local funds and state funds allocated to increase the number of adequate affordable homes for owner-occupied purchasers in the City of Bloomington. It will serve households at or below 80% AMI which, according to   Metropolitan Council 2023 affordability limits, is a mortgage of no more than $304,700; preserve long-term affordability with deed restrictions for required owner occupancy; and a resale restriction for owner occupant purchasers at or below 80% AMI for a minimum of 15 years. New construction homes will be built in accordance with City Zoning Code, City residential construction guidelines, as well as Minnesota Housing requirements of Enterprise Green Communities, and visitability as required by Minnesota Statute §462A.34.

The Bloomington Affordable Homeownership program is new and the construction and availability of homes are expected to take place over a three-year period, starting in 2024. It is estimated that the earliest a newly constructed home would be available for purchase by an eligible household would be 2025.

The Bloomington Affordable Homeownership program will create and provide opportunities to small and emerging developers that have been historically underutilized and/or underrepresented, for the development/construction of the 27 new homes. More information will be added when a process for selecting developers has been approved.

Creating more opportunities for affordable homeownership has consistently been a City Council priority, is one of the responsibilities of the HRA and was identified as a key priority through our community based strategic plan, Bloomington. Tomorrow. Together. The strategic plan was developed with intentional and authentic community engagement and input. The City's continued action towards Affordable Housing is a key touchpoint for all priorities within the strategic plan and the Racial Equity Business Plan

• Racial Equity Business Plan
  • to develop strategies to eliminate racial disparities including, but not limited to, inequitable access in housing
• Bloomington. Tomorrow. Together. 
  • Housing is a primary wealth-building tool, inequitable access to this opportunity prevents the City from living out it's values as the community desires
  • A lack of affordable housing exacerbates existing inequalities in all three areas: a Connected, Healthy, and Equitably Economic Community

The awarded grant funds mark a pivotal moment for the Bloomington Affordable Homeownership project, reflecting a commitment to address housing needs in our community. The strategic integration of Bloomington’s specific plans underscores a holistic commitment to building a connected, healthy, and economically equitable community. This funding not only supports the construction of homes but represents an investment in the well-being and future of Bloomington residents.

The Community Homeownership Impact Fund (Impact Fund) Program is the umbrella name for a variety of Minnesota Housing’s limited funding resources for single family housing, including the Economic Development and Housing Challenge Fund, Workforce and Affordable Homeownership Development Funds, Agency funds, and other resources when available. The goal of the Impact Fund is to increase the supply of affordable, owner-occupied, single-family housing, while maintaining the safety and habitability of existing owner-occupied, single-family homes in communities throughout Minnesota.  Impact Fund dollars are generally offered annually through a competitive Request for Proposal (RFP) process.