III.3. Housing Plan Update; Needham
CITY OF HOPKINS
Memorandum
To: Honorable Mayor and Council Members
Planning & Zoning Commission Members
Mike Mornson, City Manager
From: Revée Needham, Community Development Manager
Date: July 21, 2026
Subject: Update on Housing Plan
_____________________________________________________________________
PURPOSE
To provide an update and gather feedback on the Housing Plan.
INFORMATION
Affordable Housing Funding
In 2024, the State Legislature created a new source of direct, local affordable housing
funds, Local Affordable Housing Aid (LAHA). LAHA was funded with a new 0.25%
metropolitan area sales tax on retail sales. The City Council has identified exploring
affordable housing policies and program utilizing these new funds as a goal within the
Strategic Plan. In 2025, the City Council established an Affordable Housing Trust Fund
(AHTF), in part to take advantage of a Minnesota Housing Local Housing Trust Fund
Matching Grant.
The City has received $641,916 in LAHA funds to date (the 2026 disbursements will be
sent in July and December 2026). The City established the AHTF with an initial seed
balance of $150,000 and a $150,000 matching grant from Minnesota Housing. Multiple
organizations have requested LAHA funding from the City. In 2026, the City Council
approved $50,000 in LAHA funding to ICA Food Shelf for emergency rental assistance.
In order to efficiently use LAHA and other sources of affordable housing funding to meet
community needs, the City applied for and received a $50,000 Housing Policy and
Program Development Grant from the Metropolitan Council. This grant is being used to
hire a consultant, Everlong Consulting, to complete a housing needs assessment and
recommend effective uses of limited affordable housing funding. The Housing Plan
began in April 2026 and is scheduled to concluded in December 2026.
Existing Housing Needs Assessment
The first part of the Housing Plan involves an assessment of existing housing stock and
Planning & Economic
Development Department
needs. This portion analyzes the housing stock in Hopkins including, but not limited to:
• Income
• Household Size
• Tenure (Owner-occupied v. renter-occupied)
• Affordability
• Housing Age and Quality
The housing needs assessment will also provide the data necessary for the housing
chapter of the 2050 Comprehensive Plan.
The next steps of the Housing Plan include a future housing needs assessment, review
of City policies/plans related to housing, and recommendations for the strategic funding
plan.
Community Engagement Process
The housing assessment process includes a mix of both quantitative and qualitative
data. Staff are jointly engaging on the 2050 Comprehensive Plan, Housing Plan, and
Safe Streets for All Plan at community events. Staff have attended a variety of
community events including but not limited to: Hopkins Pride, the Farmer’s Market, and
Activity Center Open House. Staff plan to table at future events including: the Sunset
Series, National Night Out, Fire Department Open House, and more.
Specifically for the Housing Plan, targeted engagement has included or will include:
developers, realtors, property managers and owners, low-income residents, social
service organizations, and more. There will be dedicated in-person housing
engagement opportunities in multiple languages (English, Spanish, and Somali) this fall
as well as housing survey. Additional updates on community engagement and events
will be posted online at: https://www.hopkinsmn.com/1257/Hopkins-Housing-Plan.
FUTURE ACTION
Staff will bring an update to the Planning and Zoning Commission and City Council later
this fall.