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City staff previews Economic Improvement Plan and housing funding; path to May EDAC draft and September council review
Summary
Staff previewed the City of Minnetonka's Economic Improvement Plan timeline, housing initiatives including Pathways to Homeownership (up to $75,000 down-payment assistance), an approximate $5M housing trust, HRA levy details and program risk points (CDBG/HUD uncertainty). Commissioners were invited to submit feedback for the May draft.
Alicia (community development staff) presented a preview of Minnetonka’s Economic Improvement Plan (EIP) to the EDAC on March 20 and outlined a schedule for EDAC input and council consideration: a May EDAC draft, a June study session, an August follow-up and final council action in September.
Housing and funding highlights: staff said the HRA levy typically ranges from about $250,000 to $300,000 and has a current balance on hand of approximately $1.2 million. The city’s affordable housing trust was cited at roughly $5 million in available funding sources (a combination of repaid loans, TIF pooling and federal funds). Staff described the Pathways to Homeownership program that has provided up to $75,000 in down-payment assistance and said the program had seen heavy utilization; the city committed roughly $400,000 for the program in 2025 with prior commitments totaling about $500,000 in the prior 18 months.
Other program notes: staff described the local rental registry rollout and how it revealed previously untracked rental units inside owner-occupied condo projects, and noted ongoing projects (Mills Twin Homes, Amani Twin Homes). Staff also flagged grant and funding risks, especially CDBG/HUD uncertainty, while describing new local sources (the first LAHA payment ~ $322,000) and ARPA-funded business loan programs (commercial code compliance loans).
Why it matters: these programs and funding lines underpin the EIP and the city’s ability to support affordable housing, rental assistance and community redevelopment. Commissioners asked about state grant applications for development gap funds and whether the city has undertaken development directly; staff said direct development by the city has been limited and that larger projects typically need state or regional financing partnerships.
Next steps: staff asked commissioners to return EIP comment sheets so staff can incorporate suggestions into the May draft. A first EIP draft will be circulated to EDAC ahead of the May 8 meeting and then follow the schedule toward council review in September.
