Sponsor: Property Tax, Records & Election Services
Title
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First Amendment to Memorandum of Understanding for Sale of Tax-forfeited Property Located at 1179 Seminary Avenue West with Housing and Redevelopment Authority of the City of Saint Paul, Minnesota
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Recommendation
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1. Approve the first amendment to the memorandum of understanding for the sale of the tax-forfeited property located at 1179 Seminary Avenue West to the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota.
2. Authorize the Chair and Chief Clerk to execute the first amendment to the memorandum of understanding.
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Background and Rationale
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Minnesota Statutes, section 282.01, subdivision 1a (d) allows the county board to sell tax-forfeited land for less than its market value to a government subdivision of the state if it believes that a reduced price will lead to the development of affordable housing. The government subdivision must document its specific plans for developing affordable housing and the specific law or laws that empower it to acquire real property in furtherance of the plans.
On September 6, 2022, the Ramsey County Board of Commissioners approved the sale of the tax-forfeited property located at 1179 Seminary Avenue West, to the Housing and Redevelopment Authority (HRA) of the City of Saint Paul, Minnesota for less than market value, and for the development of new affordable rental housing. A memorandum of understanding between Ramsey County and the HRA was entered into setting forth the terms of this sale.
The HRA now seeks an amendment to the memorandum of understanding. This amendment changes the planned use of the property from affordable rental housing to affordable homeownership, replaces the existing rental affordability, income, rent, and Section 8 requirements with requirements focused on owner-occupancy by a qualified homebuyer or continued use of the property as affordable housing, updates corresponding enforcement and recapture provisions to ensure that the County’s discounted sale benefit remains protected if the property is not used as required, and allows the HRA to sell the property to a qualified homebuyer or convey it to Dayton’s Bluff Neighborhood Housing Services for development, replacing Community Action Partnership of Ramsey and Washington Counties as its development partner for this project.
In effect, this amendment seeks to provide greater flexibility in the development and disposition of the property while maintaining restrictions designed to preserve the affordable housing benefit associated with the County’s discounted sale. This amendment also aligns with Ramsey County’s Intergenerational Wealth and Economic Justice initiative by supporting pathways to affordable homeownership and long-term financial stability for residents. By creating an opportunity for the property to be developed as affordable homeownership, the amendment supports wealth-building opportunities and expands access to housing for qualified homebuyers. The continued affordability and enforcement provisions help preserve the public benefit of the county’s discounted sale and support the county’s commitment to aligning resources and decisions to reduce barriers to economic opportunity across generations.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☐ Opportunity ☐ Accountability
Racial Equity Impact
There is a large disparity in homeownership rates between White and non-White households in the City of Saint Paul, with less than 29% of non-White households living in a space they own and control, as opposed to paying rent. Homeownership has been shown as an effective way to transfer wealth/prosperity between generations and the lack of homeownership has future implications on the prosperity of these households. For non-White, low-income households, the recent increases in rent indicates there is limited affordable rental housing available. The increase in home value means that there are fewer options for affordable home ownership as a choice or as an alternative to renting. While the numbers are relatively small, the program of selling tax forfeited property for the development of owner-occupied and affordable rental housing helps to increase the number of properties available for low-income families, including non-White families.
Community Participation Level and Impact
The community is informed about this action through County Board documentation, which is published on the County’s website at https://www.ramseycounty.us/your-government/leadership/board-commissioners/board-meetings-information.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Revenue from sales of tax-forfeited property is deposited into the Tax Forfeited Land Sale Fund. Net proceeds from this sale in the Fund, after paying administration costs and assessments, are distributed 40% to the county, 40% to the Saint Paul Area School District # 625 and 20% to the city of Saint Paul on an annual basis.
Last Previous Action
On September 6, 2022, the Ramsey County Board of Commissioners approved the sale of the tax-forfeited property located at 1179 Seminary Avenue West, to the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota of (Resolution B2022-209).
On August 20, 2019, the Ramsey County Board of Commissioners lowered the maximum qualifying threshold for the owner-occupied affordable housing discount from 115% of the area median household income as adjusted for family size to 80% AMI (Resolution B2019-202).
On October 24, 2017 the Ramsey County Board of Commissioners approved the amended terms of sale and enforcement requirements for the sale of non-conservation tax-forfeited property for less than market value to a governmental subdivision of the state for the development of affordable housing and expanded the program to allow for the development of rental property for affordable housing (Resolution B2017-274).
On July 23, 2013 the Ramsey County Board of Commissioners adopted a policy establishing the terms and conditions to sell tax-forfeited property for less than market value to a governmental subdivision of the state if it believes that a reduced price will lead to the development of affordable housing (Resolution 2013-210).
Attachments
1. Memorandum of Understanding between the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota and Ramsey County.
2. Amendment 1 to Memorandum of Understanding