Arden Hills planning commission recommends inclusionary housing ordinance with deeper affordability targets

The Arden Hills Planning Commission voted unanimously on April 8, 2026, to recommend approval of Planning Case 26-006, a zoning amendment to add Section 1320.16 to Chapter 13 of the City Code establishing an inclusionary housing requirement for new residential projects of 20 units or more. Commissioner Jessica Birken moved the recommendation and Commissioner Patrick Burlingame seconded it; the motion passed 7-0.

Community Development Director Jacob Reilly framed the proposal as a response to what staff described as a growing affordability challenge in Arden Hills: about 21% of all households are cost-burdened and 52% of renters are cost-burdened; the median home sale price in the city is $465,000 and average rents exceed $1,800 per month. Reilly said the ordinance aligns with the Comprehensive Plan and staff recommended approval “as presented (or as modified by Planning Commission).” Reilly confirmed the measure would apply to residential projects of 20 units or more and said planned changes could be addressed through a PUD process where appropriate.

At a public hearing residents urged the commission to pursue deeper affordability and a mix of tools. Kristine Poelzer said ADUs help seniors age in place and asked the commission to study them as part of broader options. Mary Henry said 60% AMI would be more realistic than 80% AMI for serving retail and assembly-line workers. Lynn Diaz recommended a housing trust or land trust and said, “the 80% AMI was useless,” and urged the city not to eliminate minimum parking requirements to avoid overnight street parking. David Radziej urged the city to speed permitting, limit fees and explore state and city tools such as land trusts and targeted funding.

Commissioners spent a worksession portion of the meeting examining approaches used by nearby cities (including Shoreview and Bloomington), and discussed funding tools such as Local Affordable Housing Aid (LAHA), tax increment financing and the city’s economic development authority (EDA). Reilly explained LAHA is a state allocation intended to support municipal affordable housing production and that Arden Hills may qualify if its population is reevaluated.

After deliberation the commission coalesced around amended affordability targets and preserved regulatory incentives. Commissioners discussed a proposed unit-percentage table (examples discussed during the meeting included: 80% AMI — 10% of units; 60% AMI — 7.5%; 50% AMI — 5%; 30% AMI — 5%) and expressed support for maintaining density bonuses to make deeper affordability feasible. Commissioners also asked staff to provide additional information about LAHA, TIF and EDA options as the ordinance moves to the City Council.

The commission’s recommendation will be transmitted to the Arden Hills City Council for final consideration and any formal ordinance adoption. The amendment requires council action after a public hearing; staff and commissioners noted that the ordinance language could be refined as Council and staff develop programmatic funding and implementation tools.