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By Christopher Kleman, 651-296-8959 <br />Housing Improvement <br />Areas <br />February 2020 <br />What are housing improvement areas? <br />A housing improvement area (HIA) is a defined area in a city in which housing improvements in <br />condominium or townhome complexes may be financed with the assistance of the city, or the city’s <br />economic development authority (EDA) or housing and redevelopment authority (HRA). <br />Prior to 1996, cities needed special legislation to establish an HIA. In 1996, cities were granted the <br />authority under general law. The general law, codified in Minnesota Statutes, sections 428A.11 to <br />428A.21, sunsets June 30, 2028. <br />What improvements can be made in an HIA? <br />The improvements that can be made under this law include improvements to the common elements in a <br />condominium complex or townhome development. Examples include roofing, siding, landscaping, <br />roadways, and walkways. <br />How is an HIA established? <br />At property owners’ request. An HIA can only be established at the request (petition) of at least 50 <br />percent of the owners of the housing units in the proposed area. If the petition is filed, then the city <br />prepares an ordinance that: <br />describes the area specifically; <br />states the basis for imposing fees and the number of years the fees will be imposed; <br />makes a finding that without the HIA, the proposed improvements could not be made; and <br />specifies if the city, the EDA, or HRA will implement the ordinance. <br />In addition, the city must fully disclose the public expenditures and financing for the projects, and <br />determine whether the association or the implementing agency will contract for the work. <br />Notice, public hearing, ordinance. Before adopting the ordinance, the city must hold a public hearing at <br />which the proposed improvements, affected housing units, and the exempt units are listed. Potentially <br />affected property owners may testify at the hearing. <br />Objection and appeal. Prior to the adoption of the ordinance or at the hearing, a property owner may <br />file a written objection with the city clerk to the imposition of a fee for the reason that the property will <br />not benefit from the improvements. The city must make a determination regarding the exclusion of the <br />property in the HIA within 60 days. Within 30 days after that determination is made, a property owner <br />may appeal the city’s decision to the district court. <br />The ordinance may be adopted within six months after the conclusion of the public hearing. If 45 <br />percent or more of the affected residents file an objection, the HIA is not established.