Carver County CDA presents 2026 budget and requests 6.8% levy increase to county board

The Carver County Community Development Agency (CDA) presented its proposed 2026 budget and a levy request to the Carver County Board during a work session, outlining housing projects underway, new programs, revenue sources and risks tied to potential federal funding cuts.

Allison Scribe, executive director of the Carver County CDA, introduced the agency’s leadership team and Greg Anderson, chair of the CDA board, explained that the early review is intended to align CDA and county planning. The CDA described 2024–27 strategic-plan priorities and presented program updates in community development, business support, homeownership and rental housing.

Key highlights the CDA presented: - Community Growth Partnership grants: since inception the CDA has awarded pre-development and community development grants to cities and townships and reported these have leveraged substantial local investment. - Next Stage business assistance: program support and an expansion (CEO 1.5) to help existing businesses scale; Next Stage reported assisting 69 clients and investing about $2.4 million in financing in the prior four quarters. - Local Housing Trust Fund: established in 2024 with $100,000 in 2024 and further levy support in 2025; staff said the CDA seeks to restore fund levels and expand partnerships. - Community Land Trust: the CDA manages a land trust for permanently affordable homeownership. The CDA reported 42 homes currently in the trust (in Chaska, Cologne, Mayer, Waconia and Watertown) and five additional homes in development; a homebuyer initiative funded by Minnesota Housing will add six homes. - Down-Payment Assistance (DPA): launched in June 2025. The pass-through program provides forgivable 0% loans up to 25% of purchase price (not to exceed $50,000) with a 20-year term and 5% forgiveness annually; the CDA anticipates $1,000,000 in DPA to assist roughly 20 households and reported 32 applications, three reservations and two closings in process. - Multifamily developments: Carver Place (60 units) and Carver Oaks (43 units) are under construction; Carver Place is scheduled to open Sept. 1 and Carver Oaks in March (year unspecified in presentation). Trails Edge senior was being revised from 76 to 43 units for competitiveness in Minnesota Housing funding, with a planned application on July 10.

The CDA described property- and program-level revenue and expenses, explaining that housing operations constitute the bulk of CDA revenue while the levy funds administrative costs (salaries and benefits). The CDA said it is eligible for a maximum levy under Minnesota statute of 0.0185% of estimated market value (stated as a maximum levy of $4,160,545). For 2026 the CDA board approved a requested levy of $3,827,073 (a 6.8% increase, or $243,671 more than the 2025 levy). The CDA presented that levy funds would cover payroll and benefits pressures and that the levy request equates to $72.67 per year on an April-value home as presented to the board.

CDA staff warned of federal funding uncertainty: the presentation summarized an administration budget proposal under which HUD rental assistance programs could be consolidated into a state block grant and cited a potential 43% reduction in certain HUD rental-assistance funding levels; staff said such reductions would be devastating to residents served and are the subject of contingency planning. As a result, the CDA said it is limiting capital projects in 2025 to those deemed necessary and will further review line items for the 2026 budget.

The CDA explained other revenue changes that support program restoration: management fees from new properties (Carver Place and Carver Oaks) and projected rent increases partially offset administrative cost pressures. The CDA proposed restoring Community Growth Partnership grant levels and the Local Housing Trust Fund to 2024 levels given expected new revenue sources.

Board members asked questions and gave generally supportive feedback. Commissioners commended the CDA for program development and the proposed approach to expand services while containing costs. Several commissioners praised the decision to absorb office expansion costs by renovating leased retail space currently occupied by Subway and using proceeds from housing asset sales to fund that renovation rather than taking new debt.

The board did not vote on the levy at the work session; the CDA will ask the county board to approve the levy at the board meeting scheduled for Sept. 2. The presentation closed with a request for commissioner input and affirmation that staff will return with any additional information requested during the work session.