Staff seeks CDBG loan extension for Ramsey Hill Apartments while Trellis pursues rehabilitation financing

St. Paul Planning and Economic Development staff presented a loan-extension request on behalf of Trellis Co. for Ramsey Hill Apartments, a scattered-site portfolio of 54 affordable units in the Marshall and Dayton area. Staff said the CDBG loan currently matures on Dec. 21, 2025, and Trellis is requesting an extension of the maturity date to Dec. 15, 2031 to align with other debt and preserve affordability while the developer secures financing for rehabilitation.

Libby Logsdon, senior project manager on PED’s multifamily housing team, explained the extension aligns the CDBG maturity with an existing HOME loan (maturing 12/15/2031) and otherwise leaves terms unchanged. Logsdon said Minnesota Housing will review the request with its mortgage credit committee in mid-December and Family Housing Fund has already approved the extension; HRA staff recommended approval of the extension request to maintain portfolio affordability while Trellis pursues additional funding.

Melinda Studer of Trellis described project details: Ramsey Hill comprises six buildings constructed between 1884 and 1929 across five parcels, with a diverse unit mix of studios through three-bedroom units and all units affordable at 50–60% AMI. The property currently has four project-based Section 8 units and was recently awarded six additional project-based rental assistance (PRA) units, four housing-support units, and 13 Saint Paul Public Housing Authority project-based vouchers (12 targeted to family units). Trellis was also awarded $660,000 from Ramsey County’s housing development solicitation and has Bridgewater Bank signed for a first mortgage; Trellis is awaiting notice from Minnesota Housing on a 2025 funding RFP and may receive additional awards.

Staff said the HRA has committed an up-to-$1.4 million deferred grant, conditional on underwriting and HRA approval, to support the recapitalization if Minnesota Housing awards the project. Staff reported that the HRA will receive a formal loan-extension item for a vote next week to meet timing needs and that Minnesota Housing’s committee process will run in mid-December.

No vote on the loan-extension was taken at this meeting; staff framed this presentation as an introduction and invited questions. Commissioners thanked the presenter and asked for clarifying information about the timeline and next steps.

The staff presentation included a map of the scattered sites, a summary of transit access and amenities, and an account of prior management (Trellis has managed Ramsey Hill since 1995 and acquired it in 2014). Logsdon and Trellis emphasized preservation of long-term affordability and improved property operations as the goals of the recapitalization.

Next steps: staff will return with a formal loan-extension request for HRA action next week; Minnesota Housing will process its mortgage-credit review in mid-December; any HRA deferred grant would be subject to underwriting and a separate approval.