HRA to consider $13 million conduit bonds and LIHTC recapitalization for St. Joseph’s Point rehab at 200 Wilkins St.

Hannah Chung, project manager in the City of Saint Paul Planning and Economic Development (PED) department, told the Housing and Redevelopment Authority that St. Joseph’s Point is an existing 90‑unit multifamily building at 200 Wilkins Street in Ward 2 and that the developer, Shaffer Richardson, is seeking city assistance for recapitalization and rehabilitation.

The proposal that PED presented asks the HRA to authorize a not‑to‑exceed $13,000,000 issuance of multifamily conduit revenue bonds and use automatic 4% low‑income housing tax credits (LIHTC) as part of the capital stack. PED staff described an additional $1,600,000 in gap financing: $1,300,000 from community development block grant (CDBG) funds and about $241,000 of remaining Emergency Rental Assistance (ERA2) funds from the American Rescue Plan Act (ARPA) that must be obligated by Sept. 30 and spent within 120 days thereafter.

Why it matters: PED said recapitalization will fund comprehensive rehabilitation — window and exterior sealant work, HVAC and water heater replacement, elevator work, mechanical/plumbing/electrical upgrades and energy‑efficiency improvements — and will allow the development team to extend regulatory affordability periods. Without the recapitalization, staff said the building risks returning to market rents after the existing LIHTC extended use period expires.

Project details and affordability: PED described St. Joseph’s Point as roughly 154,000 square feet with 90 units made up largely of two‑ and three‑bedroom apartments (74 two‑bedroom units and 16 three‑bedroom units). The building opened in 2004 and entered its LIHTC extended use period in 2019; PED corrected an earlier transcript inconsistency and said that extended use period would otherwise expire in February 2034 absent new restrictions. Under the proposed financing, affordability would be contractually preserved through February 2066, PED staff said.

On tenant protections and subsidies: PED noted 15 units are currently reserved for project‑based vouchers (PBVs) administered through a Housing Assistance Payments (HAP) contract with the Saint Paul Public Housing Authority; those PBV units operate under separate renewal terms and were described as remaining in place at least through 2044 under the most recent renewal.

Funding and timing: Sarah Zorn, supervisor of PED’s multifamily housing finance team, explained the ERA2/ARPA balance history and why $241,000 of ERA funds remain available. She said complex multi‑partner program reconciliations delayed final accounting and that the St. Joseph’s Point recapitalization is an eligible use under LIHTC and Treasury rules. PED said full financial closing is anticipated in mid‑October with construction completion targeted in 2026, but HUD’s environmental review must be completed before the HRA can finish the public hearing process.

Developer explanation: Katie Anthony, vice president of development for Shaffer Richardson, said her firm acquired partnership interests in the property in 2021 (stepping into the partnership to preserve LIHTC basis), and that the listed acquisition price reflects that earlier partnership purchase rather than a third‑party market sale.

Board process and next steps: PED staff said the project will return to the HRA for a bond hearing and action next week but warned the public hearing may need to continue if the HUD environmental review is not finished. No formal HRA action occurred during the introduction.

Voices from the HRA: Commissioners asked for clarification on ERA timing and the meaning of “spent,” on AMI definitions (PED confirmed HUD Twin Cities metro AMI is used), and on how unit improvements would serve families (developer said common‑area programming and unit upgrades will be pursued; playground adjacent to the site is not owned by the project). Commissioner Maker asked what would happen if the HRA did not approve the financing; staff said that without recapitalization the owner would likely need to bring the building to market rent to pay for deferred maintenance.

What remains uncertain: HUD environmental clearance, the final bond and tax‑credit structuring at closing, and the HRA’s formal action on the bond request. PED recommended the HRA authorize signing a development agreement to obligate ERA2 funds by the federal deadline and to proceed with the financing schedule.

Ending note: Staff framed the transaction as a preservation opportunity to keep 90 family‑size units affordable, while some commissioners expressed unease about using ERA funds for redevelopment rather than direct rental assistance.