Woodbury approves financing for two new affordable housing projects

The Woodbury Housing and Redevelopment Authority (HRA) and City Council convened on April 16, 2025, to discuss significant developments in affordable housing within the city. The meeting focused on the approval of financing plans for two major multifamily housing projects, which aim to address the growing need for affordable living options in the area.

The session began with a presentation on the designation of certain Woodbury zip codes as Difficult Development Areas (DDA) by the U.S. Department of Housing and Urban Development (HUD). This designation allows for increased tax credit equity, making it financially viable to develop affordable housing in regions where construction costs are high. Notably, Woodbury's 55125 zip code is one of only three such areas in Minnesota, highlighting the unique opportunity for development.

The council approved HRA resolution 2025-04, which authorizes financing for the Meadows project, a multifamily housing development consisting of 237 units. The financing plan includes housing revenue obligations for LSBD Woodbury Manning LLC. The council expressed enthusiasm for the project, emphasizing its potential to provide high-quality, affordable housing that competes with market-rate apartments.

Mike Hudson, one of the developers from Broadway Street Development, shared insights about the Meadows project, stating that construction is expected to take approximately 22 months, with leasing beginning three months prior to completion. The units will primarily feature two and three-bedroom layouts, designed to accommodate families.

Additionally, Blaine Barker from Real Estate Equities provided an update on the Reserve at Settlers Ridge project. Phase 1 of this development broke ground in January 2025 and is set to open in late April 2026, with leasing anticipated to start in January. Phase 2 is expected to commence construction in late May or early June 2026, with a projected opening in late summer of the same year. This project will offer a mix of one, two, three, and some four-bedroom units.

The meeting concluded with a positive outlook on the future of affordable housing in Woodbury, as both developers expressed their commitment to delivering high-quality living spaces that meet the community's needs. The council's approval marks a significant step forward in addressing housing demands in the city.