Sponsor: Community & Economic Development
Title
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Obligation of Housing and Redevelopment Authority Levy for 2025 Housing Development Projects
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Recommendation
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1. Approve the obligation of Housing and Redevelopment Authority levy for recommended projects and funding amounts for the preservation and construction of affordable housing in the amount of $6,152,025.
2. Authorize the County Manager to enter into the necessary loan or other agreements and execute amendments to loan or other agreements in a manner consistent with local regulations and requirements, in 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 the county’s ongoing homelessness crisis.
On June 22, 2021, the Housing Redevelopment Authority (HRA) approved the area of operation for the HRA levy, which includes the entire county except the city of North Saint Paul. As determined by state statute, HRA levy funding can be used for the preservation and development of affordable housing, redevelopment activities or blight removal.
To obligate HRA levy funds for this use, private, non-profit and governmental developers were encouraged to apply to the competitive 2025 Housing Development Solicitation which was published on April 25, 2025, and responses were due on May 29, 2025. The 2025 Housing Development Solicitation was modeled after Ramsey County’s previous solicitations and the existing process for obligating funding from the U.S. Department of Housing and Urban Development (HUD). Ramsey County marketed the solicitation on the Ramsey County website, through the Community & Economic Development (CED) newsletter, an in-person community meeting, and direct outreach to partner organizations and municipalities.
A total of 47 eligible applications were received, staff reviewed and scored each application. Ten projects totaling $6,152,025 are recommended for HRA levy awards and will be funded with $4,500,000 of 2025 HRA levy funds and $1,652,025 of reallocated HRA levy funds from previous years. In 2022, $495,000 of HRA levy funds was awarded to the Canalbrook Townhomes proposal by Rondo Community Land Trust for the new construction of affordable owner-occupied units. In 2023 and 2024 $1,157,025 was awarded to the Amber Flats proposal by Buhl Investors. The developers of these projects decided not to move forward with the award and the award will be reallocated to projects from this solicitation that have existing awards and have a remaining funding gap.
All projects 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 each property’s title that requires rental affordability for 30 years. Affordability will be monitored through an annual compliance review to ensure that property owners are maintaining rental limits at 30% AMI.
The following projects are recommended for HRA levy funding:
Summary of Proposed Distribution of HRA Levy Funds for 2025 Housing Development Projects
University 40, Outlaw Development (Saint Paul) $400,000
Rice Line Crossing, 651 Sustainable LLC (Saint Paul) $400,000
Aragon, Beacon Interfaith (Saint Paul) $450,400
VEER, GRO LLC (Saint Paul) $1,000,000
Hamm’s Brewery East End, JB Vang (Saint Paul) $1,151,625
F2F@Arcade, Face 2 Face (Saint Paul) $500,000
Larpenteur Senior, MWF Properties (Falcon Heights) $1,070,000
Roseville Community Land Trust, Roseville EDA (Roseville) $620,000
Homeowner Initiated Program,
Rondo Community Land Trust (Suburban Ramsey County) $360,000
Duluth St. New Construction,
Twin Cities Habitat for Humanity (Maplewood) $200,000
Total Uses: $6,152,025
Sources of Funds
2025 HRA Levy Funds $4,500,000
Reallocation of Levy Funds $1,652,025
Total Sources: $6,152,025
Additional information on each project can be found in the attachment titled “Narrative Project Descriptions.”
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
HRA levy 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 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 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 ten projects recommended for HRA levy awards have a total funding amount of $6,152,025. $4,500,000 will come from unallocated 2024 HRA levy funding and $1,652,025 in reallocated HRA levy funding from previous years. The remainder of the 2025 HRA levy will be recommended for allocation to other eligible housing and redevelopment programs and projects throughout the year.
Last Previous Action
On May 14, 2024, the Ramsey County Housing and Redevelopment Authority approved recommended housing development project awards in the amount of $4,600,000 of HRA levy funding from 2024 HRA funds and reallocated funds from previous years (Resolution H2024-006).
Attachments
1. Narrative Project Descriptions