Sponsor: Housing Stability
Title
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Allocate Local Affordable Housing Aid for Joint Property Acquisition
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Recommendation
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Authorize the County Manager to transfer $1,000,000 from 2024 Local Affordable Housing Aid fund to the 2025 joint property acquisition with the Interfaith Action of Greater Saint Paul in partnership with the state of Minnesota.
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Background and Rationale
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The Local Affordable Housing Aid (LAHA) is a funding program provided by the state of Minnesota to support affordable housing initiatives in all metropolitan counties and select metropolitan cities. Governed by state statute, the funds are designated for affordable housing projects, programs led by nonprofit housing providers, and rental assistance. The program is financed through a sales tax collected across the seven-county metropolitan area.
In July of 2024, Ramsey County received $6,011,039 in LAHA funds. The 2024 allocation included tax revenue collected between October 2023 and February 2024, with future aid amounts reflecting revenue collected throughout the year. Ramsey County allocated $5 million of the funds received to stabilize existing housing units, while approximately $1 million was directed toward housing stability programs and assistance.
Interfaith Action, a key partner in Ramsey County’s Continuum of Care, has long provided family shelter through partnerships with local churches. During the COVID-19 Pandemic, they secured a stable location with the Sisters of Carondelet on the campus of St. Catherine, allowing them to expand capacity to 100 beds.
Over a year ago, Interfaith Action received $5.2 million in state capital funding to enhance their site. However, when its lease was not renewed, they could no longer meet the state’s requirement to remain in place for six years. As a result, the funds were reclaimed. Through advocacy efforts, Governor Walz announced in November 2024 that Interfaith Action would receive $6 million in remaining ARPA funds to replace the recouped amount to acquire property within Saint Paul.
To establish a permanent family shelter in Ramsey County, Interfaith Action is working to acquire property within St. Paul to operate as a shelter. The state of Minnesota has awarded $6 million to support this purchase, and Ramsey County Housing Stability is seeking to provide an additional $1 million in gap funding. By reallocating this funding toward the project, Ramsey County can help ensure the successful acquisition and operation of the shelter by Interfaith Action, addressing the urgent needs of families experiencing homelessness.
Under the LAHA statute, funds may be used for "Qualifying Projects," as defined in Minnesota Statute 477A.35, Subdivision 4, which includes the preservation and creation of affordable housing to meet the needs of Ramsey County residents. Qualifying projects may also include the creation, purchase, and support of sheltering programs for homeless individuals and families.
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County Goals (Check those advanced by Action)
☒ Well-being ☐ Prosperity ☒ Opportunity ☐ Accountability
Racial Equity Impact
Ramsey County faces significant racial disparities in housing between residents of color and white residents. African American and American Indian residents experience homelessness at disproportionately higher rates than white residents. Additionally, residents of color are more likely to rent rather than own a home and are more often burdened by housing costs. Addressing these historical and ongoing inequities requires targeted investment in communities where wealth has been systematically extracted over time.
Community Participation Level and Impact
The Housing Stability Department (HSD) actively engages community through Heading Home Ramsey and other collaborative decision-making groups. HSD engaged with the Stable Housing is Priority (SHiP) Collaborative to learn more about emergency rental assistance and other prevention needs and presented the learnings to the County Board in November 2023 and August 2024.
☒ Inform ☒ Consult ☒ Involve ☒ Collaborate ☒ Empower
Fiscal Impact
Funding for the Local Affordable Housing Aid is included in the 2025 Housing Stability department budget.
Last Previous Action
On March 11, 2025, the Ramsey County Board of Commissioners hosted a board workshop to discuss recommended uses of LAHA funds.
On October 15, 2024, the Ramsey County Board of Commissioners approved the acceptance of 2024 LAHA funds and the creation of a project code for the stabilization of affordable housing providers (Resolution B2024-205).
Attachments
None.