Sponsor: Community & Economic Development
Title
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Issue Conduit Revenue Bonds for the Wilder Square Apartments Project
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Recommendation
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Approve the issuance of conduit revenue bonds to finance the Wilder Square Apartments Project
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Background and Rationale
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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 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 was given on November 24, 2020 by the Ramsey County Board of Commissioners and the Ramsey County HRA (Resolutions B2020-236 and H2020-012). Ramsey County HRA held a public hearing on December 15, 2020. Approving the use of conduit bonds allows the project to seek approval of an 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 and later revised on November 17, 2020. During this time, the HRA will conduct due diligence and work with Bond Counsel to assure issuance requirements are met. 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
Prior to COVID-19 home values and rents were rising across the County. Not enough housing was being provided across all income levels or housing types. Too many Ramsey County households are cost burdened, meaning they are paying more than 30% of their annual income on housing. The market is also not building enough housing to meet the demand individuals and families who make less than $25,000 annually (i.e.30% of the area median income). 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. This challenge is anticipated to grow, placing further strain on the housing market and county services for all households.
The research conducted through the County’s ongoing Economic Competitiveness and Inclusion Vision Plan <https://www.ramseycountymeansbusiness.com/about/ecip> finds that black, indigenous and households of color face the greatest disparities in terms of housing cost burden, homeownership, and income levels.
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-
☒ 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 of the 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 after one publication of notice in a newspaper circulating generally in the HRA at least 15 days before the hearing.
Last Previous Action
On December 17, 2020, the Ramsey County Housing and Redevelopment Authority held a public hearing on the issuance of conduit bonds for the Wilder Square Apartment project.
On November 24, 2020, the Ramsey County Board of Commissioners preliminarily approved the issuance of conduit bonds for the Wilder Square Apartment project (Resolution B2020-236)
On November 24, 2020, the Ramsey County Housing and Redevelopment Authority preliminarily approved the issuance of conduit bonds for the Wilder Square Apartment project (Resolution H2020-012)
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
2. 2020-2021 Ramsey County Tools for Creation & Preservation of Affordable Housing
3. Affidavit of Public Notice