Sponsor: Community & Economic Development
Title
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Issuance of Conduit Revenue Bonds for Affordable Housing Projects for Wilder Square Apartments Project - Hold Public Hearing
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Recommendation
recommendation
Hold a public hearing to afford the public an opportunity to comment on the Issuance of Conduit Revenue Bonds for Affordable Housing Projects for Wilder Square Apartments Project
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Background
background
CB Wilder Square GP LLC, a wholly owned affiliate entity of CommonBond Communities, a Minnesota nonprofit corporation has proposed that the Ramsey County Housing and Redevelopment Authority (HRA) issue its revenue bonds in the approximate aggregate principal amount of up to $17,000,000.
The proceeds of the bonds are proposed to be loaned by the HRA to the CB Wilder Square GP LLC to be applied by the CB Wilder Square GP LLC to (i) finance the acquisition, renovation, and equipping of an approximately 136-unit multifamily rental housing development and functionally related amenities known as Wilder Square Apartments Project. Wilder Square Apartments Project is located at 750 Milton Avenue North in Saint Paul, Minnesota.
Preliminary approval is required before submitting the application to State of Minnesota Management and Budget. Ramsey County HRA must hold a public hearing and adopt a resolution granting approval of the project for allocation from Minnesota Management and Budget to be completed.
Once the project has been notified that there is sufficient bonding capacity for the project to proceed, Ramsey County HRA will follow the procedures established in the conduit policy and procedure guide adopted in February 2004. During this time, the HRA will conduct due diligence and work with Bond Counsel to assure issuance requirements are met. Prior to issuance, the HRA Board will need to approve a final resolution of authorization. The closing on the sale of the bonds must occur within 180 days of award.
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County Goals (Check those advanced by Action)
☐ Well-being ☒ Prosperity ☒ Opportunity ☐ Accountability
Racial Equity Impact
There is an existing gap of or need for more units for households at or below 30% of the Adjusted Median Income (AMI). Currently, households/individuals earning 30% AMI or less, outnumber the total number of units that are affordable to them by roughly 15,000 in Ramsey County based on the latest data available.
What we know: Households of black, indigenous, and people of color that are cost-burdened are overwhelmingly earning 50% AMI or lower. The majority of cost-burdened households are white, but black, indigenous, and people of color households are more likely to be cost-burdened (e.g. 48% of African American households outside Saint Paul are cost-burdened, but they account for only 4 percent of the cost-burdened households in Ramsey County.)
Additionally, the median white household in Ramsey County can afford roughly $1,000 more in housing costs per month than the median African American household in Ramsey County. This income inequality translates into inequality in affordable housing options for all nonwhite households.
To increase production of housing and deepen affordability of housing units in Ramsey County, an additional resource for affordable housing, especially one with incentives for developers, lends itself as a tool to reduce inequalities in housing opportunities experienced by minority households.
The county has flexibility to set parameters on projects financed through conduit bonds to ensure the most critical needs are addressed with priority (e.g. 30% AMI units).
Community Participation Level and Impact
Ramsey County residents have consistently expressed concern about a lack of affordable housing in the County. The community is informed of this action through the County Board documentation, which is available 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
Acting as an issuer of Conduit Bonds bears no financial risk for the County. Administrative fees will be collected as part application submittals to offset internal review costs by Finance and Community and Economic Development staff.
County Manager Comments
Under Minnesota Statutes Section 462C.04, subdivision 2 of the Act, a public hearing must be held on the housing program.
Last Previous Action
On November 24, 2020, the Ramsey County Housing and Redevelopment Authority approved the setting of a public hearing regarding the issuance of conduit revenue bonds for affordable housing projects for the Wilder Square Apartments Project for December 15, 2020 (Resolution H2020-013).
On November 24, 2020, the Ramsey County Board of Commissioners provided preliminary approval for the issuance of conduit revenue bonds for affordable housing projects for the Wilder Square Apartments Project (Resolution B2020-237).
On November 17, 2020, the Ramsey County Board of Commissioners approved an amended policy and procedures summary supporting participation in a conduit bond financing program for affordable housing (Resolution B2020-233).
On October 26, 2020, the Ramsey County Housing and Redevelopment Authority received an update on conduit bond financing for affordable housing projects.
On February 3, 2004, the Ramsey County Housing and Redevelopment Authority approved a prior summary of policies and procedures for conduit bonds (Resolution H04-002).
Attachments
1.Draft Resolution of Preliminary Approval