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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.