St. Paul HRA adopts four resolutions on loan forgiveness, legal services, homebuyer income limits and emergency rental-assistance guidelines

The St. Paul Housing and Redevelopment Authority adopted four resolutions during its meeting, approving partial loan forgiveness for the Commerce Building projects, authorizing a master legal services agreement, raising an income limit for owner-occupied duplex buyers in the Inspiring Communities program and finalizing guidelines for an Emergency Rental Assistance Eviction Prevention Program.

The most consequential financial action approved was resolution 205431, which authorizes partial loan forgiveness of up to $1,255,384 — covering combined principal and interest — on three HRA loans to the Commerce Building Phase 1 and Commerce Building Phase 2 projects at 10 Fourth Street East in Ward 2. Director Newton told commissioners the item had received a presentation at the HRA’s previous meeting and staff recommended approval. Commissioner Naker moved the item; the HRA recorded 5 in favor, 0 opposed, and the resolution was adopted.

The HRA also approved resolution 205417 to execute a master legal services agreement citywide with Kutek Rock LLP for bond counsel and public finance work. Director Newton said the agreement is part of the HRA’s ongoing set of master legal services contracts; staff recommended approval. The HRA recorded 5 in favor, 0 opposed, and adopted the resolution. Director Newton noted a “similar item” would appear before the City Council.

On housing policy, the authority adopted resolution 205423 to amend affordability requirements for buyers of owner-occupied duplexes in the Inspiring Communities program (RFP No. 7). Director Newton said the program originally limited buyers to households at 80% of area median income (AMI), a level that has made qualifying difficult given current interest rates and market values. He said Minnesota Housing Finance Agency impact-fund guidelines permit owner-occupied duplex buyers to qualify up to 115% of AMI, and the HRA voted to allow the program to increase the eligible buyer limit to as much as 115% of AMI “if necessary to get those sold.” The vote was 6 in favor, 0 opposed.

Finally, the HRA adopted resolution 205430 finalizing guidelines for a new Emergency Rental Assistance Eviction Prevention Program. Chair Johnson and Director Newton said the program is intended to prevent evictions from appearing on tenants’ records by quickly providing assistance and paying landlords electronically. Director Newton said staff were still building the application infrastructure and expected to be ready to launch within about 30 days; the HRA recorded 6 in favor, 0 opposed.

Why it matters: The loan forgiveness and the change to the Inspiring Communities buyer income limit affect the HRA’s portfolio and how affordable homeownership units can be sold. The emergency rental-assistance guidelines create a new local tool to prevent evictions and their long-term effect on tenants’ housing records. The Kutek Rock agreement ensures continued access to outside counsel for bond and public-finance work.

Next steps and context: Director Newton said the legal-services agreement will also be before the City Council. Staff noted the emergency rental program still requires internal setup (applications, payment systems and database tracking) before launch. The Inspiring Communities change applies specifically to owner-occupied duplexes produced through that RFP and is intended to allow sales to proceed when buyers at 80% of AMI cannot qualify.