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Chaska council approves $394,000 letter of intent to help finance housing for young mothers
Summary
The Chaska City Council authorized a letter of intent to provide up to $394,000 toward an affordable housing project run by Community Asset Foundation to create four affordable units focused on young mothers; the organization said the project is close to fully funded.
The Chaska City Council on March 16 approved a letter of intent to provide up to $394,000 to the Community Asset Foundation to help complete financing for an affordable housing project at 1201 and 1207 Yellow Brick Road.
Council members heard from staff and from Dave of Community Asset Foundation, who said the project — part of the foundation’s New Beginnings program for young mothers — has secured roughly half of its roughly $1.2 million target and is seeking the city’s contribution to close the remaining gap. "We're within about $102,000 of hitting our $1,225,000 in funds," Dave said, adding he is confident the project will break ground this spring if funding is approved.
The foundation told the council it has submitted building plans and will seek a planned-unit development amendment at the planning commission; it also said the building would enter a land trust and that a county CDA would hold a first purchase option, with financing that includes a federal Home Loan Bank requirement for long-term affordability. Council members asked about parking, ownership and timing; Dave said site setbacks are being addressed and the project anticipates a land‑trust ownership structure with long‑term affordability in place for the first 15 years.
Mayor Hubbard and other council members described the project as a cost‑effective way to create affordable units, noting staff had reviewed alignment with the city’s strategic goals. Council member Hatfield moved to approve the letter of intent; the motion was seconded and approved by voice vote.
Next steps: staff will return with final agreements and a recommended funding source (staff said multiple funding sources were under consideration, including local housing allocation dollars and TIF-related funds). The council’s approval establishes the city’s intent to help close the project’s financing gap but does not yet commit specific fund balances until the final agreement is brought back to the council.
