Sponsor: Community & Economic Development
Title
title
Approval of the Sale of 735 Margaret Street to a Qualified Homebuyer
end
Recommendation
recommendation
1. Approve the sale of and Purchase and Sale Agreement for the home located at 735 Margaret Street on Parcel #322922110017 with a qualified homebuyer, in the amount of $341,600.
2. Authorize the County Manager, Ling Becker, to approve and execute the Purchase and Sale Agreement and non-substantive amendments thereto, settlement statements and other closing documents, and other related real estate documentation associated with the sale of 735 Margaret Street (Parcel #322922110017), in a form approved by the County Attorney’s Office.
3. Authorize the Chair of the Ramsey County Housing and Redevelopment Authority and the Ramsey County Chief Clerk to execute and deliver the deed conveying the property described in the Purchase and Sale Agreement to the qualified homebuyer thereunder.
end
Background and Rationale
body
On August 15, 2023, the Ramsey County Housing and Redevelopment Authority (HRA), working with the Community and Economic Development (CED) department, acquired the tax-forfeited property located at 735 Margaret Street in Saint Paul, Minnesota. The property was previously rehabilitated by Property Tax Records and Elections Services’ (PTRES) Productive Properties Division in collaboration with Workforce Solutions and Goodwill Easter Seals. The Ramsey County Board authorized the execution the Memorandum of Understanding for Ramsey County to sell this property and for the Ramsey County HRA to purchase this property.
CED then worked with eligible nonprofits to find potential buyers, including Twin Cities Habitat for Humanity. CED subsequently worked with a real estate agent to list and market the home on the open market. After three open houses in 2024 an offer was received from a qualified first-generation homebuyer. The purchase agreement has been drafted by the real estate agent in a form reviewed and approved by the Ramsey County Attorney’s Office.
For this sale, CED defines a qualified buyer as a first-generation homebuyer who continuously occupies and homesteads the property and whose household income does not exceed 80% at the time of application in alignment with Minnesota Statutes, section 282.01, subdivision 1a (d) and Section 4.57.60.b.1. of Ramsey County’s Administrative Code. The qualified homebuyer will also access downpayment assistance made available through CED’s existing First Home program.
end
County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☐ Accountability
Racial Equity Impact
Residents of Ramsey County experience 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% 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.
Wealth creation initiatives, like connecting the 735 Margaret Street property to an eligible first-generation homebuyer and down payment assistance, is one tool to help undo these disparities. CED tracks borrowers by race and ethnicity and aims to increase the number of diverse borrowers. Additional investments in the housing supply of owner-occupied units are needed to further reduce these disparities.
Community Participation Level and Impact
Ramsey County staff have engaged with nonprofit partners, lenders, city staff, government partners and nearby neighbors throughout the rehabilitation of the tax-forfeited property at 735 Margaret Street. This project will contribute towards wealth creation in an area that has seen historical disinvestment. The strategy to expand housing supply and create homeownership opportunities for racially and ethnically diverse residents is detailed in Ramsey County’s Economic Competitiveness and Inclusion (ECI) Plan. Robust community engagement with residents, businesses, city partners, and nonprofit organizations occurred in the planning stages of the ECI Plan and inform CED’s actions. The action to approve the sale is only informational for the general public.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
CED, on behalf of the HRA, purchased the property for $88,750, which was 25% of the appraised value at the time of purchase. HRA funds set aside for wealth generation initiatives were used to complete the purchase from Ramsey County PTRES and provide a down payment assistance loan to the qualified homebuyer. Proceeds from the sale of the property will return to the accounting project as program income to be used for additional First Home loans.
Last Previous Action
On August 15, 2023, the Ramsey County Housing and Redevelopment Authority purchased the tax-forfeited property for the subsequent sale to a first-generation homebuyer (Resolution H2023-012).
On July 11, 2023, the Ramsey County Housing and Redevelopment Authority placed the tax-forfeited property on hold for the subsequent sale to a first-generation homebuyer (Resolution H2023-009).
On April 4, 2023, the Ramsey County Housing and Redevelopment Authority allocated $1.5 million of HRA funds for wealth creation initiatives (Resolution H2023-005).
Attachments
1. Purchase Agreement and Amendment