Sponsor: Community & Economic Development
Title
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Obligation of 2026 Housing and Redevelopment Authority Levy for Housing Development Projects
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Recommendation
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1. Approve the obligation of Housing and Redevelopment Authority levy for recommended projects and funding amounts for the preservation and construction of affordable housing in the amount of $6,400,000.
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.
3. Authorize the County Manager to establish a project for Housing and Redevelopment Authority program income funded projects within the Community and Economic Development department.
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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 homelessness.
On June 22, 2021, the Housing Redevelopment Authority (HRA) approved the area of operation for the HRA levy, which includes the entire county except the city of North Saint Paul. As determined by state statute, HRA levy funding can be used for the preservation and development of affordable housing, redevelopment activities or blight removal.
To obligate HRA levy funds for this 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. Five projects totaling $6,400,000 are recommended for HRA levy awards and will be funded with $4,950,000 of 2026 HRA levy funds and $1,450,000 of HRA funds that were previously obligated in prior years. 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 income and rental limits. Additional information on each project can be found in the attachment titled “Narrative Project Descriptions”.
The following projects are recommended for 2026 HRA levy funding:
Summary of Proposed Distribution of HRA Levy Awards for 2026 Housing Development Projects
Gloryville, Gloryville LLC, Saint Paul $2,500,000
Fairway Commons, Velair, Falcon Heights $1,361,215
Aragon, Beacon Interfaith, Saint Paul $1,200,000
Edison III, TTT Housing , Roseville $623,785
Rondo Revitalize, RME, Saint Paul $715,000
Total Proposed Uses: $6,400,000
Sources of Funds
2026 HRA Levy Funds $4,950,000
Reallocated 2025 HRA Funds $400,000
Reallocated 2024 HRA Funds $250,000
Reallocated 2023 HRA Funds $500,000
Reallocated 2022 HRA Funds $300,000
Total Sources: $6,400,000
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
HRA levy 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 and approval of the Housing and Redevelopment Authority levy. This included engagement with residents, businesses, community organizations, other governmental agencies, elected officials, and local municipalities. Community was informed about the competitive solicitation, one action 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 2026 Housing Development Solicitation.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
The projects recommended for HRA levy awards have a total funding amount of $6,400,000. $4,950,000 is from unallocated 2026 HRA levy funding. $1,450,000 is reallocated from past projects that were awarded 2025, 2024, 2023, and 2022 HRA levy funds that are no longer moving forward. The reallocations will come from the following awards:
- $400,000 was awarded to Rice Line Crossing in the 2025 Housing Development Solicitation.
- $250,000 was awarded to Arcade Apartments in the 2024 Critical Corridors Solicitation.
- $500,000 was awarded to Enclave Apartments in the 2023 Critical Corridors Solicitation.
- $300,000 was awarded to 7th Street Gardens in the 2022 Critical Corridors Solicitation.
Last Previous Action
On July 1, 2025 the Ramsey County Housing and Redevelopment Authority approved recommended housing development project awards in the amount of $6,125,025 of HRA levy funding from 2025 HRA funds and reallocated funds from previous years (Resolution H2025-011).
Attachments
1. Narrative Project Descriptions