Sponsor: Community & Economic Development
Title
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Obligation of 2026 Local Affordable Housing Aid for Housing Development Projects
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Recommendation
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1. Approve the obligation of Local Affordable Housing Aid for recommended projects and funding amounts for the preservation and construction of affordable housing in the amount of $8,194,000.
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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Ramsey County has an urgent and evident need for affordable housing, especially for individuals and families with household incomes less than 30% of the area median income (AMI). According to Ramsey County’s Economic Competitiveness and Inclusion (ECI) Plan, the county has a deficit of 15,000 units affordable to those at 30% AMI or below. The lack of affordable housing supply leads to greater housing instability for residents and exacerbates the county’s ongoing homelessness crisis.
To obligate Local Affordable Housing Aid (LAHA) funds for use, private, non-profit and governmental developers were encouraged to apply to the competitive 2026 Housing Development Solicitation which was published on April 13, 2026, and responses were due on May 26, 2026. The 2026 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 45 eligible applications were received; staff reviewed and scored each application. 10 projects are recommended for awards and will be funded with $8,165,000 of 2026 LAHA funds and $29,000 of unallocated 2025 LAHA 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 rental affordability for 30 years. Affordability will be monitored through an annual compliance review to ensure that property owners are maintaining rental limits.
The following projects are recommended for LAHA funds funding:
Summary of Proposed Distribution of LAHA Awards for 2026 Housing Development Projects:
1339 Sherburne Acquisition-Rehabilitation, YO Holdings $850,000
1074 York Rehabilitation, Encephalo Investments $1,000,000
Alfond Apartments New Construction, Outlaw Development $1,000,000
Jamestown Apartments Exterior Rehabilitation, TCHDC $390,000
Crane Ordway/Renaissance Box Rehabilitation, AEON $500,000
Wilson Hi-Rise Renovations, Saint Paul Public Housing $1,859,000
Ross Acquisition-Rehab, Kizart NextGen Development $350,000
Division Street Acquisition-Rehab, 612 651 Properties $900,000
7th Street Apartments Rehabilitation, Encephalo Investments $1,000,000
Maria Acquisition-Rehab, Thurmond Holdings $345,000
Total Proposed Uses: $8,194,000
Sources of Funds
2026 LAHA Funds $8,165,000
2025 LAHA Funds $29,000
Total Sources: $8,194,000
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
LAHA 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 has large racial disparities between residents of color and white residents in the housing sector. These disparities include a disproportionate number of African American and American Indian residents experiencing homelessness compared to white residents as described in Heading Home Ramsey’s 2024 Needs Assessment. Generally, residents of color are more likely to rent than own their own home and be cost-burdened by housing costs compared to white residents. This includes a 47-percentage point gap between the white homeownership rate and African American homeownership rate. To undo these historical and lasting inequities, investment is needed in communities where disparities exist.
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.
Specifically, in planning out the use of LAHA funds, Ramsey County consulted affordable housing providers and supportive service providers to learn about the issues that they are facing in the operations of supportive and affordable housing. This led to the creation of the Support and Stabilize Solicitation which allocated 2024 LAHA funds to distressed residential properties and the continued use of 2025 and 2026 LAHA funds for the preservation and rehabilitation of existing affordable housing buildings, as well as the new construction of deeply affordable housing units.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The 10 recommended projects from the 2026 Housing Development Solicitation have a total funding amount of $8,194,000 from unallocated 2026 LAHA and 2025 LAHA funds designated for the preservation and construction of affordable housing projects. 2026 LAHA funding will arrive in two payments from the State of Minnesota’s Department of Revenue. The first payment was received on July 20, 2026 and the second will arrive on December 20, 2026.
Last Previous Action
On April 14, 2026 the Ramsey County Board of Commissioners hosted a board workshop to discuss the planning and implementation of LAHA funds across the housing continuum.
On July 22, 2025 the Ramsey County Board of Commissioners approved recommended housing development project awards in the amount of $11,900,000 of 2025 LAHA funds (Resolution B2025-145).
Attachments
1. Narrative Project Descriptions