If a developer builds apartments in Bloomington, the Opportunity Housing Ordinance decides how many of those units have to be affordable. The city adopted this inclusionary zoning rule in 2019. On Oct. 20, staff brought the Port Authority a proposed overhaul. It would raise the fee developers can pay instead of building affordable units, add new affordability tiers, and base requirements on whether a project is rental or ownership. Staff said the ordinance has produced 693 units affordable at 60% of area median income or below so far.
City of Bloomington@CityofBloomingtonMNStaff lay out the proposed changes and the ordinance's track record of 693 affordable units.10/20
Commissioners didn't just nod it through. The ordinance already covers existing buildings of 20 or more units: once improvements exceed 20% of a building's value, the building has to meet affordability requirements. Several commissioners said that trigger could discourage owners from keeping up their buildings.
City of Bloomington@CityofBloomingtonMNCommissioners question whether the 20%-of-value rehab trigger gives owners a reason to put off maintenance.10/20
1 commissioner went further and asked whether the mandate's added costs are driving market-rate development away. The commissioner argued that if they are, Bloomington loses some of the "filtering" effect, where new housing eases prices further down the market.
City of Bloomington@CityofBloomingtonMNA commissioner asks whether the affordability mandate is holding back the overall housing supply.10/20
None of this is new territory. The last full round of amendments was before the Port Authority on Feb. 20, 2024, when staff explained what had changed since commissioners first saw it. The City Council held a public hearing on those amendments on March 18, 2024.
City of Bloomington@CityofBloomingtonMNStaff walk commissioners through how the 2024 amendments were revised after the January study session.02/20
Other housing changes kept pulling the ordinance back in. In June 2024, Planning Commission members discussed amending it to fit separate code changes, and at least 1 commissioner questioned whether that was needed. In January 2025, staff listed it among the year's "heavy hitters" in code amendments.
City of Bloomington@CityofBloomingtonMNStaff tell the council the ordinance gets another look nearly every year.01/06
The proposal is still at the review stage. Nothing has been adopted. The formal notice says the Planning Commission will take up an ordinance amending Chapter 9 of city code, Housing Opportunity and Preservation, under case PL2026-182. It covers affordability requirements, building performance incentives and updated language and formatting. The hearing is Thursday, Nov. 12, at 6 p.m. in the Council Chambers at Civic Plaza, 1800 W. Old Shakopee Road. In past rounds, changes then went to a City Council public hearing before taking effect.
To weigh in, show up in person or join by Webex. Call 1-415-655-0001, enter access code 2861 147 2756 and password 7526#, then press *3 to ask to speak. Email or voicemail testimony is due by noon on Nov. 12. Questions go to Housing Development Specialist Ryan Solberg at 952-563-3764 or [email protected].
From the meeting: Port Authority Meeting, October 20, 2026.
