St. Louis HUD committee approves amended RAM settlement spending plan, shifts more to North City recovery and water upgrades

The St. Louis Board of Aldermen—Housing, Urban Development and Zoning Committee on Wednesday approved an amended version of Board Bill 22, the RAM settlement spending plan, after a marathon session of public testimony and a series of votes to shift money toward tornado recovery, water infrastructure and a new vacancy litigation fund.

The committee adopted a package of technical and programmatic changes that, together, direct more money and interest earnings toward North City tornado recovery, increase funds for the Water Division to begin shoring up the system and create a litigation fund to pursue large-scale vacant properties. President Sharon Green, who presented the bill amendments to the panel, said the changes reflect three priorities: more funding for tornado recovery, a response to the city's water needs and a bill that could pass the full board quickly so residents could start receiving help.

"From the beginning, I've had three goals for this bill. One, to make sure we can get as much funding as possible for tornado recovery. Two, to make sure that our water department has the critical funding they need to protect our greatest public asset," President Green said. "We are not fully addressing every need, but this is one of many steps we must take."

The committee approved a series of discrete amendments in roll-call votes. Highlights include: - A $10 million transfer from reserves to the Water Infrastructure Fund to help the Water Division leverage debt for critical repairs; the committee adopted clarifying language so the money can be used to support bond financing rather than recorded as an interdepartmental loan. - An increase in the principal available for tornado recovery, moving the tornado housing allocation higher (amendment tallying and text changes were made through multiple votes). - A $5 million increase to a Vacancy Litigation/Reduction Fund intended to give the city legal tools and seed money to address long-standing absentee ownership and blight. - Reorganization of the downtown allocation into a "Downtown Plan Fund" with three subaccounts (strategic capital, riverfront, and retail/events) and a requirement for private partners to report annually on pledged matches. - A diversion of interest earned on the downtown subaccount to the long-term North City recovery fund for an extended period (the committee amended that provision to cover interest through July 1, 2030).

Alderwoman Rachel Schwitzer, who introduced the water amendment, told the committee the $10 million piece is intended to shield ratepayers and allow the Water Division to use funding strategically to draw additional borrowing capacity. "This is a shield to make sure that we don't have to raise rates even higher," she said during debate.

The bill also added new transparency requirements for private entities pledging match dollars for downtown projects. An amendment requires organizations that say they will match public funds to file annual progress reports with the Board's budget committee, and to provide commitment letters that the committee may rely on when evaluating whether pledged private money materializes.

Committee members urged speed and accountability. Alderman Ken Conn asked for clearer tracking of how funds will be spent; Chair Clark Hubard and others said the amendments were the outcome of weeks of negotiation to balance competing priorities.

The measure received a committee "due pass" recommendation in a 7-0 recorded vote after the amendments were adopted. The committee record shows repeated pleas from residents and community groups asking the Board of Aldermen to allocate at least $150 million to North City tornado recovery; members said they sought to respond to that pressure while preserving other policy goals and funding levers.

What's next: Board Bill 22 as amended will move to the full Board of Aldermen for consideration. The committee's actions mean the final package the board considers will include the new allocations and reporting requirements the committee approved.

Quotes in this story are drawn from the committee hearing transcript and committee roll-call minutes.