Work is underway on the 2 vacant lots the Bloomington Housing and Redevelopment Authority (HRA) spent years lining up. At the groundbreaking with Outlaw Development, the builder said the project had been in the works for about 9 months. Once construction wraps up, the homes go up for sale.
City of Bloomington@CityofBloomingtonMNThe builder says the project took about 9 months to plan and gives a spring or early summer 2027 finish.10/30
The houses are part of the city's affordable homeownership program, which aims to build 27 owner-occupied homes over the next few years. Speakers at the groundbreaking pointed to housing costs that keep rising and have put buying a home out of reach for many families here.
City of Bloomington@CityofBloomingtonMNSpeakers explain where the 2 houses fit in the city's plan for 27 affordable homes.10/28
Here's how the math works. A $3,199,500 state grant from Minnesota Housing pays for the program. It serves households earning at or below 80% of the area median income, which the city puts at about $105,000 a year. Each home gets a $118,500 subsidy to close the gap between what it costs to build and what a qualifying buyer can pay. The city's own limit caps the mortgage at $304,700. Deed restrictions require owners to live in the homes and keep resale prices affordable for at least 15 years.
It started with the dirt. In June 2023, the HRA met in closed session to discuss offers to buy 8313 Blaisdell Avenue South. In July, staff told commissioners the lot was vacant and that its private owner had offered to sell it to the HRA. A first amendment to that purchase came before the board in September.
City of Bloomington@CityofBloomingtonMNStaff describe the vacant Blaisdell lot and say its owner offered to sell it to the HRA.07/25
In November 2025, staff recommended Outlaw Development for the 2 smaller lots in the program. Each one has room for a single-family home.
City of Bloomington@CityofBloomingtonMNStaff recommend Outlaw Development for the Blaisdell and West 82nd Street lots and lay out the next steps.11/25
In February 2026, the HRA held a public hearing on selling both lots to Outlaw Development. In June, the board took up a motion to approve gap assistance and a contract for private development with the company. That was the deal that let the shovels in.
City of Bloomington@CityofBloomingtonMNThe board takes up the motion approving gap assistance and the development contract with Outlaw Development.06/09
For the builder, the work is personal. A speaker for Outlaw Development said they had experienced homelessness and lived in social housing, so building homes that low-income residents can afford matters to them.
City of Bloomington@CityofBloomingtonMNThe Outlaw Development speaker talks about rising prices and their own experience with homelessness.10/30
Next comes construction. Applications aren't open yet. The city expects buyers to be able to apply in late 2026 or early 2027, says the developers will likely handle qualifying and choosing buyers, and promises to post updates and interest-list details on its Let's Talk Bloomington program page. Mike Palermo, the assistant HRA administrator, takes questions at 952-563-8924.
From the meetings: HRA and Outlaw Development break ground on affordable housing, Bloomington HRA and Outlaw Development break ground on affordable housing and HRA and Outlaw Development break ground on affordable housing, Bloomington HRA and Outlaw Development break ground on affordable housing.
