Bloomington, Minn., Code of Ordinances § 9 § 9.26
DEVELOPMENT FEE DEFERMENT (Bloomington Housing Opportunity and Preservation Ordinance)
Operative Text
(a) The city may consider development fee deferrals from the Affordable Housing Trust Fund for zoning application fees, building permit fees, park dedication fees, sewer availability charge (SAC) fees and related infrastructure fees to a qualifying development under the following circumstances: (1) When a residential development includes more than the required 9% of its total dwelling or co-living units as opportunity housing affordable to households at or below 60% of AMI, when calculated before any applicable density bonus, the development may be eligible to defer up to the full amount of its development fees until 12 months after the development obtains its certificate of occupancy. The city will charge an annual interest of 5% during the deferral period. (2) When a residential development includes at least a 20% of its total dwelling or co-living units as opportunity housing affordable to households at or below 60% of AMI, when calculated before any applicable density bonus, the development may be eligible to defer up to the full amount of its development fees until 24 months after the development obtains its certificate of occupancy. The city will charge an annual interest of 5% during the deferral period. (b) The interest paid to the city during the deferral will be deposited into the Affordable Housing Trust Fund. (Ord. 2019-16 , passed 2-25-2019; Ord. 2019-30 , passed 8-5-2019; Ord. 2021-1 , passed 3-8-2021; Ord. 2024-5 , passed 3-18-2024; Ord. 2025-07 , passed 4-28-2025)
Bloomington, Minn., Code of Ordinances § 9.26 establishes a program through which the city may defer certain development fees — including zoning, building permit, park dedication, SAC, and related infrastructure fees — for residential projects that include above-threshold levels of affordable housing. A development with more than 9% of its units affordable at or below 60% of AMI may defer fees for up to 12 months after receiving a certificate of occupancy, while a development with at least 20% of such units may defer for up to 24 months. In either case, the city charges 5% annual interest during the deferral period, and that interest is deposited back into the Affordable Housing Trust Fund.
Plain English — not legal advice.
Developers and property owners pursuing affordable residential projects in Bloomington should be aware that § 9.26 creates a potential pathway to defer the full amount of qualifying development fees, easing upfront capital requirements. A compliant operator generally structures the affordable unit mix — calculated before any applicable density bonus — to meet or exceed the 9% or 20% thresholds at or below 60% AMI in order to qualify for the 12- or 24-month deferral windows respectively. Operators typically account for the 5% annual interest accruing during the deferral period when modeling project finances, and plan for repayment within the applicable post-certificate-of-occupancy window.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
For tenants and housing advocates, § 9.26 reflects Bloomington's policy of incentivizing developers to include more affordable units — those priced for households at or below 60% of AMI — by reducing the immediate financial burden of development fees. The provision's thresholds (more than 9% or at least 20% of units as opportunity housing) are tied to the overall unit count before density bonuses, which can affect how many affordable units a project ultimately delivers. Tenants seeking to understand how this provision shapes the supply of affordable housing in their community may find it useful to consult local tenant-rights organizations or review public records of projects that have applied for deferrals under this ordinance.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 15, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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