HRA staff seek release of 4(d) affordable-housing covenant on 1048 Central Ave W to allow school expansion by Saint Peter Claver affiliate

At the Housing and Redevelopment Authority meeting, staff presented a request to release a restrictive covenant placed on a property enrolled in the city’s local 4(d) Affordable Housing Preservation Incentive Program.

Rachel Fonosidal (presenting staff) described the 4(d) program as a locally administered pathway tied to a Minnesota state designation that provides qualifying low-income rental properties a lower property-tax classification in exchange for recorded deed restrictions that preserve affordability for a 10-year compliance period. Fonosidal told commissioners the HRA’s program had historically accepted new enrollments but has shifted focus to compliance monitoring because properties carry 10-year deed restrictions.

The specific request concerns 1048 Central Avenue West in Ward 1, a single-family home enrolled in the local 4(d) program in 2021 and restricted at 50 percent of area median income (AMI). Xavier Properties, an entity affiliated with Saint Peter Claver Church, has a purchase agreement to acquire the house and plans to demolish or repurpose the parcel to expand Saint Peter Claver School’s facilities and create up to 60 additional early-childhood seats under a broader master plan. Fonosidal said the HRA is being asked to release the recorded declaration so the buyer can obtain free-and-clear title for their planned uses.

Commissioners asked technical questions about program monitoring and fiscal impacts. Commissioner Maker asked who checks annual compliance; staff responded that HRA staff perform annual compliance reviews and that noncompliant owners lose the tax benefit. Chair Johnson and Commissioner Burley emphasized the site’s community role; Burley described Saint Peter Claver as a long-standing Rondo neighborhood institution and said the buyer has proposed a relocation plan for the tenant on the property. On fiscal implications, staff said the release would not require direct HRA subsidy beyond staff time to record the removal of the declaration.

Staff did not record a final vote at the meeting. Fonosidal said the request will appear before the council as an action on a future agenda (the HRA presentation notes it will be an action item when the council next considers the request). Commissioners signaled support in discussion but did not adopt a final authorization in this session.

Key details from the presentation: the 4(d) designation is administered in coordination with Minnesota Housing and the Ramsey County assessor; the tax classification can provide an approximate 80-percent reduction to the effective property-tax rate on qualifying units when fully enrolled and compliant, prorated if only some units meet affordability restrictions; and the local program typically requires a 10-year recorded deed restriction as the participation agreement. Staff said the HRA rarely removes declarations except when a property is being demolished or otherwise changed in a way that requires clear title for redevelopment.