Sponsor: Community & Economic Development
Title
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Obligation of State Affordable Housing Aid for 2025 Housing Development Projects
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Recommendation
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1. Approve the obligation of State Affordable Housing Aid for recommended projects and funding amounts for the preservation and construction of affordable housing in the amount of $739,478.
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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Homeownership remains a key tool for individuals and families to create wealth and pass wealth on to future generations. Ramsey County residents, particularly racially and ethnically diverse residents, experience barriers to affordable homeownership including high home prices, high interest rates as well as disparities in income, employment and access to capital. Additionally, lack of income or access to capital creates a barrier for homeowners to complete repairs that are needed to keep their homes in safe working order. Historical barriers to achieving and maintaining homeownership for racially and ethnically diverse residents was founded on practices such as, “redlining,” restrictive covenants and the destruction of neighborhoods in the urban renewal era. The historic exclusion of residents from achieving and maintaining homeownership threatens the region’s economic growth and well-being.
Ramsey County’s Economic Competitiveness and Inclusion Plan lays out strategies to “ensure place-based inclusion and create resilient and equitable communities.” To actualize this goal Ramsey County aims to “expand affordable homeownership opportunities and improve housing stability for communities that have experienced historic wealth extraction.”
To obligate State Affordable Housing Aid (SAHA) 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. Two projects totaling $739,478 are recommended for SAHA awards and will be funded with $401,081 of 2024 SAHA funds and $338,397 of 2025 SAHA funds.
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 affordability for 30 years.
The following projects are recommended for SAHA funding:
Summary of Proposed Distribution of SAHA Funds for 2025 Housing Development Projects
Serenity Townhomes, Amani Construction (Saint Paul) $401,081
1036 Marshall Townhomes, Rondo Community Land Trust (Saint Paul) $338,397
Total Uses: $739,478
Sources of Funds
2025 SAHA Funds $338,397
2024 SAHA Funds $401,081
Total Sources: $739,478
Additional information on each project recommended for award from the 2025 Housing Development Solicitation 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
SAHA 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 experiences large racial disparities in homeownership. According to Ramsey County’s 2022 Community Indicators, approximately 69% of non-Hispanic White households own a home, 47% of Asian households, 41% of Hispanic/Latino households, 38% of American Indian households and 20% of Black/African American households. The gap between White households and Black/African American households is 49 percentage points and is a main contributor to the racial wealth gap. In addition, renters, who are more likely to be racially/ethnically diverse, are also more likely to be cost-burdened by their housing costs.
Community Participation Level and Impact
CED implemented a robust community engagement process in the creation of the ECI Plan. 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 two projects recommended for SAHA awards have a total funding amount of $739,478. $401,081 will come from unallocated 2024 SAHA funding and $338,397 from unallocated 2025 SAHA funding.
Last Previous Action
On January 21, 2025, the Ramsey County Board of Commissioners approved a recommended housing project by an emerging developer in the amount of $401,010 from 2024 SAHA funds (Resolution B2025-016).
On December 23, 2023, the Ramsey County Board of Commissioners approved recommended housing development project awards in the amount of $802,121 from 2023 SAHA funds (Resolution B2023-006).
Attachments
1. Narrative Project Descriptions