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Minnetonka transfers pooled TIF funds to Affordable Housing Trust, approves forgivable repair loans
Summary
The council approved transferring about $5.1 million in pooled tax-increment (TIF) funds into the city's Affordable Housing Trust Fund and adopted guidelines for a "Homes Within Reach" forgivable-loan repair program (up to $10,000 per household; roughly $140,000 estimated). Votes were unanimous where recorded.
The Minnetonka City Council on Feb. 23 adopted a resolution transferring pooled tax-increment financing (TIF) funds into the city's Affordable Housing Trust Fund and approved a forgivable-loan repair program aimed at homeowners in the Homes Within Reach program.
Housing staff described balances in several pooled TIF districts and identified roughly $5.1 million available for transfer into the Affordable Housing Trust Fund. Staff said the special legislation enabling pooled-TIF transfers allows Minnetonka greater flexibility to fund a wider range of affordable-housing activities than traditional TIF. The council voted to adopt the transfer resolution.
Council then considered a renewal of the Homes Within Reach repair forgivable-loan program. Staff said the program would provide up to $10,000 per household for eligible repairs, estimated at a $140,000 total allocation, and set eligibility at up to 120% of area median income (AMI) with an asset limit of $25,000. The loans would be forgiven upon timely completion and inspection of the work (forgiveness based on compliance and completion rather than multi-year forgiveness schedules). Council adopted the program guidelines and authorized the transfer of funds from the Affordable Housing Trust Fund.
EDA members took matching actions in a subsequent Economic Development Authority session to align the authority's projects with the city action. The measures passed on roll calls during the meeting.
