Woodbury HRA approves conduit revenue bonds for two affordable housing projects

The Woodbury Housing and Redevelopment Authority on April 16 adopted two resolutions authorizing conduit multifamily housing revenue obligations to finance two affordable rental developments, the HRA’s staff said.

Jamie Fritz, senior HRA staff, told commissioners the board was being asked to approve issuance of $22,250,000 in tax-exempt conduit revenue bonds for Reserve at Settlers Ridge phase 2 and a separate financing package totaling $55,000,000 (part tax-exempt, part taxable) for Meadows at Prairie Ridge. Fritz said because the bonds are conduit obligations “the city and the HRA are not liable for the repayment of the proceeds of the bonds.”

Why it matters: both approvals clear a key financing step that developers need to combine tax-exempt bonding with low-income housing tax credits and other equity. HRA staff and outside counsel explained the projects competed for limited state volume cap and for federal tax-credit incentives tied in part to a HUD “difficult development area” designation for zip code 55125.

Reserve at Settlers Ridge: Fritz described Reserve at Settlers Ridge as an affordable multifamily workforce development; phase 1 is already under way, and the HRA approved HRA Resolution 25-03 to authorize bonds for phase 2. Developer Blaine Barker of Real Estate Equities told the board phase 1 broke ground in January and will start leasing as construction completes; he said phase 2 is expected to break ground in late May or early June and open in late summer 2026. HRA staff said each phase at that site contains 26 units.

Meadows at Prairie Ridge: For Meadows at Prairie Ridge staff recommended adoption of HRA Resolution 25-04. Mike Hudson, an owner of Broadway Street Development and representative for LSBD Woodbury Manning LLC, said the Meadows project is a single-phase, 237-unit affordable multifamily building; he estimated construction would take about 22 months and leasing would begin about three months before opening. Hudson said the project will offer one-, two- and three-bedroom apartments, with the bulk being two- and three-bedroom units.

State volume cap and tax credits: HRA staff and counsel described why the public hearings were required and the financing sequence: tax-exempt bond authority is allocated to states through a “volume cap” that competitive affordable projects must secure; projects designated by HUD as difficult development areas receive additional tax-credit equity, which can be decisive for feasibility. Fritz said the competition for volume cap has delayed some projects in prior cycles, and that winning allocations had allowed these two projects to proceed.

Votes at a glance

- HRA Resolution 25-03 (Reserve at Settlers Ridge phase 2): Motion adopted by roll call — Commissioner Wilson: Aye; Commissioner Santini: Aye; Commissioner Stafford: Aye; Chair Burt: Aye. Outcome: approved. Notes: $22,250,000 conduit, tax-exempt; HRA/city not liable for repayment.

- HRA Resolution 25-04 (Meadows at Prairie Ridge): Motion adopted by roll call — Commissioner Stafford: Aye; Commissioner Santini: Aye; Commissioner Wilson: Aye; Chair Burt: Aye. Outcome: approved. Notes: $55,000,000 conduit (portion tax-exempt), developer responsible for repayment; project 237 units.

What was not decided: The HRA action authorizes the bond financing steps and related documents; it does not make the city indebted (conduit bonds) and does not substitute for other approvals developers must obtain (construction permits, tax-credit award confirmations, loan closings). HRA staff and bond counsel remained available to answer technical questions during the public hearings.

Taper: Developers at the meeting gave project timing and unit-mix details; staff said winning the state allocation and the HUD designation were important to securing tax-credit equity that makes the projects feasible.