Commissioners voted 7-0 to approve a Metropolitan Council Livable Communities Demonstration Account grant application for the St. Mark's affordable housing project, targeting funding for a cul-de-sac and storm sewer connections. Staff noted this addresses part of the remaining funding gap not covered by earlier project financing.
The HRA voted 7-0 to recommend the Program Year 2026 Community Development Block Grant (CDBG) budget, roughly $465,000 in new federal allocation plus about $1 million total with carryover and program income, to the City Council for an April 13 public hearing. Notable shifts: about $150,000 previously used for the rehab loan program is being redirected to acquisition/demolition of blighted properties (now funded via carryover and program income instead), and the public services allocation is being increased after 2025 funding for VEAP rental assistance, HousingLink fair housing services, and Senior Community Services' chore/maintenance program was oversubscribed.
Staff acknowledged the city has been unable to spend down 2025 CDBG funds quickly due to new HUD regulations, resulting in an estimated $300,000+ carryover into 2026. Commissioner Wooten raised concern about whether unspent funds could trigger reduced future allocations; staff explained HUD's "timeliness test" could eventually require a spend-down plan if carryover exceeds 1.5 years of allocation, though funding levels are formula-based (population, need) rather than directly tied to spending pace.
Staff announced the Home Fair will be held April 25 from 10 a.m. to 3 p.m., with vendor registration now open and an opportunity for commissioners to staff an informational booth.
Staff reported that outstanding issues involving a cell tower at the St. Mark's site have been resolved, and the project is now on track to close in late March, allowing the affordable housing development to move forward.
