In a substantial financial boost to the city's housing efforts, Bloomington has been earmarked nearly $3.2 million for the construction of affordable homes. The Bloomington Housing and Redevelopment Authority (HRA) was awarded the grant on December 14, according to a report by the City of Bloomington's website. The funds will be used to build 27 new single-family homes under the city’s inaugural Bloomington Affordable Homeownership program, which aims to make it easier for families to own a house and to close the racial homeownership gap.
The program, which also forms part of the city's Racial Equity Business Plan, is designed to tackle disparities in the housing market. It will specifically target households earning at or below 80% of the median income in the area. In each of these new homes, prospective owners will receive a subsidy of $118,500 to help bridge the affordability gap, Bloomington HRA Administrator Aarica Coleman said, as part of the program's strategy to "create and preserve affordable housing," according to a city press release.
Moreover, the initiative stipulates a 15-year minimum period of deed restrictions which include owner occupancy and resale constraints. This ensures the homes will remain affordable in the long term. "Inequitable access to homeownership opportunities prevents the City from living out its values, which is why creating and preserving affordable homeownership opportunities is a focus for the HRA," Coleman told the city's website.
Supporting local small-scale and emerging developers is an additional benefit of this program – particularly those who have previously been overlooked or underrepresented. Designed adhering to Minnesota Housing criteria, these dwellings will incorporate elements of Universal Design and accessibility, such as larger doorways and at least one no-step entrance, which will be built through the Bloomington Affordable Homeownership program. City Manager Jamie Verbrugge highlighted these efforts embody the "Bloomington. Tomorrow. Together." strategic priorities, aiming to promote a community that is "connected," with "equitable economic growth," Verbrugge explained in a statement released by the city.
The expansive project is a part of the Community Homeownership Impact Fund (Impact Fund) Program under Minnesota Housing. The Impact Fund aims to increase the supply of affordable, owner-occupied single-family homes and maintain existing housing quality across Minnesota communities. The 2023 funding cycle of the program saw 78 proposals recommended for approval, which, when combined, will create or preserve 1,314 affordable homeownership opportunities, totaling an investment of $120,841,644 as reported by the City of Bloomington's announcement.
