Sponsor: Housing Stability
Title
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Transfer Local Affordable Housing Aid Funds from Community and Economic Development to Housing Stability.
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Recommendation
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1. Authorize the County Manager to transfer $4,000,000 from the Community and Economic Development department’s Local Affordable Housing Aid fund to the Housing Stability operating budget.
2. Authorize the County Manager to adjust LAHA project budgets that have been established in the Community and Economic Development and Housing Stability departments to reflect the transfer noted above.
3. Authorize the County Manager to move funding within the LAHA project in the Housing Stability department from the 2026 budget year to the 2025 budget year to align with the year the LAHA funding was received.
4. Authorize the County Manager to enter into agreements and execute amendments to agreements in accordance with the county’s procurement policies and procedures, provided the amounts are within the limits of the grant funding.
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Background and Rationale
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The Local Affordable Housing Aid (LAHA) program is a state-funded initiative designed to support the development, preservation, and stabilization of affordable housing across all seven metropolitan counties and select metropolitan cities. Governed by Minnesota state statute, LAHA funds are restricted to uses that advance affordable housing outcomes, including capital investments in affordable housing projects, programs administered by nonprofit housing providers, and rental assistance serving low- and moderate-income households. The program is financed through a dedicated metropolitan-area sales tax, providing a consistent and regionally shared revenue source to address housing needs. Each year, the Minnesota Department of Revenue certifies preliminary distribution factors for eligible counties and cities by August 1, in accordance with statutory requirements. These certifications determine each jurisdiction’s annual LAHA allocation.
In 2025, Ramsey County Community and Economic Development (CED) received a total allocation of $15,929,046.06 in LAHA funds. Of this amount, $11,900,000 was awarded to 17 affordable housing development projects through a competitive Housing Development solicitation process administered by CED. These investments support the creation and preservation of affordable housing units throughout Ramsey County and advance countywide housing goals.
Four million of the 2025 LAHA allocation was also committed by CED through a Ramsey County board workshop to Housing Stability (HSD) in March of 2025, but funds were not formally transferred to the HSD’s operating budget. Housing Stability is asking to transfer these funds to address critical housing needs among individuals and households experiencing homelessness or housing instability.
The determined use of 2025 LAHA funds reflect community-identified priorities and ongoing engagement with housing stability and homelessness response partners. As illustrated in the table below, Housing Stability intends to strategically allocate LAHA funding across multiple program areas over the 2025-2027 period, with investments supporting Ramsey County Housing Court; the Shelter Entry Diversion (SHED) program for prevention/rental assistance; Interfaith Action of Greater Saint Paul, for Project Home; Housing Support, as permitted by statute 462A.37, subdivision 1; and emergency shelter operations at the Emerald Inn.
Transferring of these funds is designed to address both immediate housing crises and longer-term housing stability needs by providing prevention services, diverting households from shelter, supporting access to housing, and sustaining critical shelter capacity.
2025 Housing Affordable Housing Aid Fund Allocation
AREA______________________2025_______2026________2027________2028____TOTAL___
Housing Court $1,000,000 $1,000,000 $2,000,000
SHED $257,500 $515,000 $257,500 $1,030,000
Interfaith Action of Greater $300,000 $500,000 $800,000
Saint Paul
Housing Support - $32,000 $32,000 $64,000
Statute 462a.37, Subdivision1
Emerald Inn $106,000 $106,000
TOTALS____________________$363,500___$1,847,000____$1,789,500__________$4,000,000_
The multi-year distribution of funds allows Housing Stability to provide continuity for key programs while maintaining flexibility to respond to changing community needs and system pressures. This fund transfer will allow Housing Stability to respond to ongoing system pressures, support housing interventions for residents with the highest needs, and strengthen the continuum of housing and shelter options within Ramsey County.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
Ramsey County experiences significant racial disparities in housing stability outcomes, with residents of color-particularly African American and American Indian residents-experiencing homelessness at disproportionately higher rates than white residents, as documented in Heading Home Ramsey’s 2024 Needs Assessment.
Housing Stability’s use of LAHA funds is intended to directly address these inequities by investing in housing interventions that serve populations most impacted by housing instability and homelessness. The proposed transfer of LAHA funds will prioritize supportive housing and emergency shelter, which disproportionately serve residents of color and individuals with intersecting barriers related to disability, health, and income.
Community Participation Level and Impact
Housing Stability’s approach to community participation is grounded in ongoing engagement with residents, service providers, and system partners who are directly involved in preventing and responding to homelessness. Housing Stability relies on continuous collaboration with nonprofit housing providers, supportive service organizations, and community-based partners who work closely with residents experiencing housing instability and homelessness.
☒ Inform ☒ Consult ☒ Involve ☒ Collaborate ☐ Empower
Fiscal Impact
Funding will be transferred to the Housing Stability Department from 2025 Local Affordable Housing Aid Fund in the amount of $4,000,000. The Local Affordable Housing Aid is included in the 2026-2027 Housing Stability department budget.
Last Previous Action
On March 18, 2025, the Ramsey County Board of Commissioners approved allocation of Local Affordable Housing Aid for the support and Stabilization of Affordable Housing (Resolution B2025-058).
On October 15, 2024, the Ramsey County Board of Commissioners approved the acceptance of Local Affordable Housing Aid for the Community Economic Development department. (B2024-205).
Attachments
None.