Sponsor: Community & Economic Development
Title
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Acceptance of Pathways to Removing Obstacles to Housing Funding from the Metropolitan Council
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Recommendation
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1. Accept Pathways to Removing Obstacles to Housing funding from the Metropolitan Council in the amount of $1,300,000.
2. Authorize the County Manager to establish a project for Pathways to Removing Obstacles to Housing funded projects within Community & Economic Development.
3. Authorize the County Manager to enter into the necessary grant or other agreements and execute amendments to grant or other agreements, in a form approved by the County Attorney’s Office.
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Background and Rationale
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Pathways to Removing Obstacles to Housing (PRO Housing) is a federal grant from the U.S. Department of Housing and Urban Development (HUD) to help reduce barriers to housing production across the country. In late 2023, the Metropolitan Council as lead grantee applied for PRO Housing in partnership with Hennepin and Ramsey Counties as direct grant subrecipients. Ramsey County’s portion of the grant application focused on funding for the new construction of deeply affordable housing units as the availability of funding is a major barrier to housing production. Other partner agencies applied with a focus on land use policies. In 2024 the partnership learned that the application was awarded a partial award of $4,000,000 with Ramsey County set to receive $1,300,000 of the total awarded grant. Upon approval, Ramsey County will enter a subrecipient agreement with the Metropolitan Council for these funds. Funds will be obligated through existing 2025 or 2026 development solicitations at a later date. Any obligation of funds will be brought to the Housing and Redevelopment Authority for approval.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
PRO Housing funds will be used to implement eligible strategies from the ECI Plan by investing in projects and programs that specifically aim to reduce racial disparities in housing. These strategies include increasing the supply of deeply affordable rental units, the preservation of naturally occurring affordable housing, and increasing homeownership opportunities for residents of color.
Ramsey County has large racial disparities between residents of color and white residents in the housing sector. These disparities include a disproportionate number of African American and American Indian residents experiencing homelessness compared to white residents as described in Heading Home Ramsey’s 2024 Needs Assessment. Generally, residents of color are more likely to rent than own their own home and be cost-burdened by housing costs compared to white residents. This includes a 47-percentage point gap between the white homeownership rate and African American homeownership rate. To undo these historical and lasting inequities, investment is needed in communities where disparities exist.
Community Participation Level and Impact
CED implemented a robust community engagement process in the creation of the ECI Plan and approval of the Housing and Redevelopment Authority (HRA) levy. This included engagement with residents, businesses, community organizations, other governmental agencies, elected officials, and local municipalities. Community was informed about the competitive solicitation, one step towards the implementation of the community driven ECI Plan. Additional engagement with housing organizations that directly serve residents facing housing instability and homelessness occurred during the planning stage of the Deeply Affordable Housing Initiative. A community meeting was also hosted at Maplewood Community Library to provide information on the 2025 Housing Development Solicitation.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The Metropolitan Council is the direct grantee of PRO Housing funds with HUD. Ramsey County is a direct subrecipient of $1,300,000 with the Metropolitan Council. $1,200,000 of the funds will be obligated to housing development projects at a later date. The remaining $100,000 of PRO Housing funds will be used for administrative costs associated with the management of the grant and implementation of the recommended project. This could include staff salaries, legal costs and other professional service costs. PRO Housing Funds have not yet been incorporated into the Community and Economic Development department’s 2026-2027 budget.
Last Previous Action
None.
Attachments
None.