The City of Burnsville's Special Economic Development Commission convened on June 4, 2025, to discuss the implementation of the Local Affordable Housing Aid (LAHA) program, which aims to enhance affordable housing options in the community. The meeting highlighted the allocation of funds received through a new metro area sales tax, which is expected to generate approximately $800,000 annually for affordable housing initiatives.

Travis Bestadue, the Deputy Community Development Director, presented the plans for utilizing the LAHA funds, emphasizing that the city intends to manage these resources internally rather than delegating them to Dakota County, a decision that sets Burnsville apart from many neighboring cities. The commission discussed the importance of targeting low-income homeowners, specifically those earning 80% or less of the area median income (AMI), with many programs being offered at no cost to eligible participants.

The commission outlined existing housing programs funded by federal Community Development Block Grants (CDBG) and the Economic Development Authority (EDA). These programs include rehabilitation loans for low-income families and home improvement loans for slightly higher income brackets. The demand for these loans is significant, with waiting lists indicating a strong need for financial assistance in maintaining and improving homes.

A key focus of the meeting was the proposed investment of $300,000 into the homeowner rehabilitation program, which aims to support 6 to 12 additional projects annually. Additionally, the commission plans to allocate $100,000 to the senior deferred loan program, which assists low-income seniors with home repairs.

The commission also discussed the potential for a radon mitigation program and the necessity of energy audits for loan applicants to ensure energy efficiency improvements are considered alongside home repairs. The overall goal is to enhance the quality of housing in Burnsville while addressing the needs of its most vulnerable residents.

As the city prepares to implement these initiatives, the commission remains committed to ensuring that the funds are used effectively to support affordable housing and improve living conditions for low-income families in Burnsville. The next steps will involve finalizing the program details and continuing to engage with the community for feedback and support.