Clay County commission approves $300,000 HRA levy to fund housing programs

The Clay County Board of Commissioners voted to allow the Clay County Housing and Redevelopment Authority (HRA) to levy a special benefit tax of $300,000 for 2026, the HRA’s executive director told the board on Tuesday.

The levy was presented by Dara Lee, executive director of the Clay County HRA, who described the proposal as “approximately 17% of the maximum HRA levy of almost $1,800,000” and said the request would amount to “a cost of $3.11 per $100,000 in taxable market value.” Lee said most households would pay less than $10 a year for the levy, which the HRA uses to support housing programs across Clay County.

Lee told commissioners the HRA uses levy dollars to expand access to the Minnesota Cities Participation Program through Minnesota Housing, which the HRA administers countywide. “This year, we’re on pace to do $8,000,000 in first-time loans and other assistance through Minnesota Housing through this program,” Lee said. She also said levy funds support homeowner rehabilitation loans that can make up to $27,000 in repairs using state and local leverage.

Lee described work to prevent child homelessness through a program called Homework Starts with Home that the HRA administers with partners including CAPLP (Churches United for the Homeless) and local school districts. “We are the only entity to be continuously funded under that program,” she said, and added the HRA and partners recently increased local investment to more than $1 million per year in that effort.

Commissioners asked how frequently the HRA has requested a levy. Lee said the board of HRA commissioners carefully evaluates the need and that the HRA has not asked every year, coming to the county “in years that it was really critical and when there were program opportunities to leverage significant resources.” Lee also said the HRA typically operates with low administrative overhead—about 5%–7%—and leverages roughly $15–$20 of outside funding for every $1 raised locally.

Commissioners and HRA representatives discussed related local contributions and partnerships. Lee said the City of Moorhead contributed more than $150,000 toward Riverview Heights improvements and that the HRA has partnered with local banks to administer homeowner loan products.

After discussion, the board voted to grant the HRA consent to levy the special benefit tax of $300,000 for 2026. The motion passed by voice vote.

Why it matters: HRA levy funds are designed to be small on an individual tax bill while enabling the HRA to apply for and match larger state and federal housing grants, fund homeowner repairs, provide rental assistance and maintain locally administered programs that target homelessness and housing stability.

Looking ahead: HRA staff said they will also seek consent from city-level governing bodies where required and will appear on city agendas in the coming days as part of the statutory consent process.