Sponsor: Community & Economic Development
Title
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Obligation of Pathways to Reducing Obstacles to Housing Funding for Housing Development Projects
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Recommendation
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1. Approve the obligation of Pathways to Reducing Obstacles to Housing funding for the construction of affordable housing in the amount of $1,300,000.
2. Authorize the County Manager to enter into the necessary loan or other agreements and execute amendments to loans or other agreements in a manner consistent with local regulations and requirements, in a form approved by the County Attorney’s Office.
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Background and Rationale
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Ramsey County has an urgent and evident need for affordable housing, especially for individuals and families with household incomes less than 30% of the area median income (AMI). According to Ramsey County’s Economic Competitiveness and Inclusion (ECI) Plan, the county has a deficit of 15,000 units affordable to those at 30% AMI or below. The lack of affordable housing supply leads to greater housing instability for residents and exacerbates homelessness.
In 2023, Ramsey County, in partnership with the Metropolitan Council as the lead applicant, applied to the Pathways to Reducing Obstacles to Housing (PRO) grant from the U.S. Department of Housing and Urban Development (HUD). The intent of the grant funding is to reduce barriers to affordable housing production and increase housing supply.
In Ramsey County local cities have made great strides to amend their zoning codes to allow for more density and housing types. Community and Economic Development (CED) staff identified that one of the greatest barriers in Ramsey County is the lack of funding available to meet the need of the current affordable housing pipeline. Thus, Ramsey County’s portion of the grant application focused on funds for deeply affordable housing development. The Metropolitan Council portion of the grant application focused on providing additional technical assistance, planning and policy resources for local cities to increase housing production and reduce regulatory barriers.
In late 2024 the Metropolitan Council, with Ramsey County as a direct subrecipient, was awarded PRO funds from HUD. In early 2026, Ramsey County entered a subrecipient grant agreement with the Metropolitan Council. The funding was then available for projects from the 2026 Housing Development Solicitation. To obligate PRO funds for deeply affordable housing development, private, non-profit and governmental developers were encouraged to apply to the competitive 2026 Housing Development Solicitation which was published on April 13, 2026, and responses were due on May 26, 2026. The 2026 Housing Development Solicitation was modeled after Ramsey County’s previous solicitations and the existing process for obligating funding from HUD. Ramsey County marketed the solicitation on the Ramsey County website, through the CED newsletter, an in-person community meeting, and direct outreach to partner organizations and municipalities.
A total of 45 eligible applications were received. Staff reviewed and scored each application. One project totaling $1,300,000 is recommended for PRO funds. The project will be funded in a manner consistent with federal and local regulations and requirements in a form approved by Finance and the County Attorney’s Office. A declaration will be recorded against the property’s title that requires rental affordability for at least 30 years. Affordability will be monitored through an annual compliance review to ensure that property owners are maintaining income and rental limits.
Summary of Proposed Distribution of PRO funds for 2026 Housing Development Projects
F2F@Arcade, Face 2 Face, Saint Paul $1,300,000
Total Proposed Uses: $1,300,000
Sources of Funds
PRO Funds $1,300,000
Additional awards from projects that applied to the Housing Development Solicitation will be recommended with other funding sources. Each funding source will go to the appropriate authority as a separate request for board action.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
PRO 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 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 action 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 2026 Housing Development Solicitation
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
CED recommends a $1,300,000 award of PRO funds. This will obligate the entirety of the Ramsey County portion of the PRO Housing grant. F2F@Arcade also received an HRA levy award through the 2023 Emerging and Diverse Developers Solicitation.
Last Previous Action
On June 23, 2026 the Housing and Redevelopment Authority approved the recommended housing development projects in the amount of $6,400,000 of 2026 HRA levy funds and reallocated funds from previous years (H2026-011).
On January 13, 2026 the Housing and Redevelopment Authority accepted the PRO Housing award and authorized the County Manager to enter into a grant agreement with the Metropolitan Council (H2026-004).
Attachments
1. Narrative Project Descriptions.