Sponsor: Community & Economic Development
Title
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Allocation of 2026 Housing and Redevelopment Authority Levy for Wealth Generation Programs
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Recommendation
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1. Approve the allocation of 2026 Housing and Redevelopment Authority levy towards wealth creation initiatives in the amount of $2,350,000.
2. Authorize the County Manager to enter into the necessary loans or other agreements and execute amendments to loans or other agreements in a manner consistent with local regulations and requirements, in a 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.”
Since the 2022 addition of the first-generation model to Ramsey County’s existing down payment assistance (DPA) program, there has been a steady increase in the number of DPA loans to eligible homeowners. Additionally, the program expanded to include non-traditional types of mortgages, such as Islamic (interest free) and individual taxpayer identification number (ITIN) loans. In 2025, Ramsey County approved 38 loans with:
• 77% of borrowers being racially or ethnically diverse.
• 84% of borrowers qualifying as first-generation buyers.
• An average homebuyer income at 67% of the area median income (AMI).
In 2022 CED began partnering with the non-profit agency Slipstream Inc to administer the Critical Repair Program and the Single-family Rehab Loan Program to low-income homeowners in suburban Ramsey cities. Wealth creation initiatives, like these are important tools to help improve housing stability for low-income communities that have experienced historic wealth extraction. In 2025, additional investments in the housing supply of owner-occupied units have helped to maintain affordable homeownership for 60 households with:
• 25 homeowners receiving Single-family rehab loans.
• 35 homeowners receiving critical Repair grants.
o 15 critical repair grants were used to repair manufactured homes.
Additional HRA levy funds dedicated to wealth generation initiatives will allow staff to continue the success of programs and initiatives like these and connect eligible buyers and homeowners to other opportunities.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
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.
Wealth creation initiatives, like the First Home DPA program, Critical Repair Program and the Single-Family Rehab Loan Program are vital tools 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
CED staff actively and regularly engage with residents, lenders, real estate agents, city staff, as well as nonprofit organizations and safety net programs to promote homeowner assistance programs. CED staff will continue to partner with staff from other local and state agencies as they implement new homeowner assistance programs that can be layered or combined with ours. This will ensure maximum wealth creation opportunities across the entire county.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The 2026 HRA levy has approximately $14,016,819 available for eligible housing and redevelopment projects and programs. Of this total, $2,350,000 will be used for wealth generation initiatives including the First Home downpayment assistance program. The remaining funds available for programming will go towards recommended projects from the 2026 Development Solicitation, Emerging and Diverse Developers program and the Critical Corridors program.
Last Previous Action
On January 21, 2025, the Ramsey County Housing and Redevelopment Authority allocated $2,350,000 of HRA levy towards wealth generation initiatives including the First Home downpayment assistance program (Resolution H2025-004).
Attachments
None.