Sponsor: Economic Growth and Community Investment
Title
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Housing Endowment Fund - Sibley Cove Loan Payoff of a Housing Endowment Fund
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Recommendation
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Authorize the County Manager to transfer and appropriate $312,242 from a loan receipt in the General Fund to the Community and Economic Development and the Housing Stability departments.
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Background and Rationale
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In 2021, Ramsey County received an early payoff of a Housing Endowment Fund loan that was set to mature on July 1, 2033. The Housing Endowment Fund program ended in 2008 and all loan receipts since then have been receipted to the general fund.
Proceeds from the sale of surplus real property or the net revenues generated from such property, such as lease or rent income, may be committed as funding for the Housing Endowment Fund to promote the development of affordable and accessible housing per Ramsey County Board Resolution 2000-426.
Where possible, one-time revenues will be used to fund one-time expenditures such as capital purchases. Before purchases are made, consideration will be given to related ongoing operating costs.
These funds are being requested for use by the Community and Economic Development department to provide support for the department to properly fund its commitments for the 2021 year. Moreover, these funds will cover increased personnel costs within Community and Economic Development. This includes accelerating hires and additional interns to work on the Affordable Housing programs contained in the 2022 budget proposal. In addition, the Housing Stability department needs additional funds to cover budget gaps in 2021 until the $1 million funding proposal becomes available in 2022.
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County Goals (Check those advanced by Action)
☐ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
The county envisions an inclusive economy where all residents prosper and have access to opportunity. Racial disparities continue to deprive Black, Latinx, Asian and Indigenous communities of opportunities to build wealth and additionally restricts our regional economy from being economically competitive. In response, the county’s Economic Competitiveness and Inclusion strategic priority and Vision Plan aim to improve job access, increase the quality and quantity of jobs and create pathways to ownership in order to build prosperity and opportunity for all.
Data shows that Black, Brown, Asian, and Indigenous households face the greatest disparities in terms of housing cost burden, homeownership and income levels. These disparities reflect decades of racial bias within governmental policies and financial services, and the extraction of land and homes from Indigenous people and Black households without fair compensation. Addressing these needs and disparities benefits all Ramsey County residents and builds broader community wealth
Community Participation Level and Impact
There is no community participation for this item.
☐ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Community and Economic Development will need approximately $130,000 in 2021 to cover an unfavorable variance due to the acceleration of hires to support the 2022 housing programs. The remaining funds from the transfer will help offset 2021 gaps in the operating budget of the Housing Stability department’s general fund budget.
County Manager Comments
No additional comments.
Last Previous Action
On December 12, 2000, the Ramsey County Board established the Ramsey County Housing Endowment Fund and its guidelines (Resolution B2000-426).
Attachments
None.