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Burnsville outlines plans to spend local affordable housing aid; council-directed priorities include rehab loans and down‑payment assistance
Summary
City staff proposed using initial LAHA funding to expand homeowner rehabilitation and senior deferred loan programs, create a down-payment assistance product and explore buying and rehabbing long-vacant homes.
Travis Bestadue, deputy director of Community Development, presented the City of Burnsville’s proposed use of Local Affordable Housing Aid (LAHA) at the Economic Development Commission meeting on June 6, describing staff recommendations and seeking commissioner feedback. No vote was required; the item was informational.
Bestadue said LAHA revenues stem from a new 0.25% metro-area sales tax that is pooled across the seven-county Twin Cities region and then allocated to cities based on need. Burnsville received about $405,000 for the half-year in 2024; staff estimate ongoing annual receipts of roughly $800,000 as sales-tax collections grow.
City Council directed staff to retain and administer Burnsville’s LAHA allocation rather than delegate it to Dakota County. Bestadue said the council asked the city to prioritize additional investment in existing rehab and senior programs, require energy audits for loan recipients, and to explore a radon mitigation option.
Staff overviewed existing housing programs that LAHA would complement: Community Development Block Grant (CDBG)-funded…
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