Bloomington, MN Affordable Housing Nexus and Inclusionary Housing Policy

City of Bloomington, MN

The of City of Bloomington, Minnesota, retained BAE to prepare an affordable and workforce housing nexus study and to help in the development of an innovative new inclusionary housing policy that represents the most progressive such policy in the Twin Cities region.

What sets the City of Bloomington’s approach apart from other such policies in the region is that City drew upon the findings from the analysis to ensure that the policy is based on a well-documented quantitative nexus between new market rate development and induced demand for affordable housing, rather than a more political and subjective policymaking process.

BAE’s work on the City’s behalf also included extensive financial feasibility testing to ensure that the new policy does not create undue financial burdens on new development that would inhibit new market rate housing development and recognizes the potential to leverage other state and federal funds based on the strategic application of housing trust fund revenue generated through the payment of in-lieu fees. The policy also balances new requirements on market rate development with certain incentives designed to help offset the financial impact of incorporating below market rate units into projects.

Pursuant to the study, the City Council adopted the Opportunity Housing Ordinance and the City has retained BAE to assist with implementation.