a here just to Ken. And they hear Ye. 6 present. One absent that is commission can. Staff reports item number one staff report. 25 dash to 23 presentation on new dwelling tool kit housing unit here. Property. And grateful I'm looking forward to this presentation. I also. See congratulations is in order apart. I'm like I know there was some confusion over there as well. But one expectant mothers are another congratulations, head welcome. Phoenix. And good afternoon. Chair commissioners Brown and that's a plan pd and I'm excited too. Provide an overview of the new competed the fight All right. So this document is a resource
to help property owners plan for design and build another housing unit on their property. This could be excess redrawing unit or a senior principal unit. And these are in the h one h 2 zoning districts that talk about in the second. Meant to be a living document to be updated continuously. Want to really make this clear and easy for people to understand. The hope is to make the cut regulations simpler but not necessarily substitute all the state laws and zoning codes that we have. The mayor care professional. All right. Mentioned that we're focusing on the h one h 2 zoning districts that these are the most prominent scientists tricks. You can see the yellow and kind of doctor yellow these were implemented in 2023. And met with the one for you. Housing study. So it
is now a lot easier to add a housing unit, properties in the zoning districts. Minimum lot size of 2000 Square feet or 3,000 Square feet. For 2 principle units. And then also it's very easy to add up to 2.80, years for each single family home. All Starting with the introduction section, provides a lot of helpful back information about zoning code terms. So we have a lot of terms that principle an accessory and the building's uses. And that mean, it's so this helps lay out all that. Also information help you choose between 80 you, John Unit or a principal dwelling unit. All right. This is a flow Kind of like in the news. Magazines, maybe not us.
You know, it's fun. But it does have you determined. If you should build an 80 year or a principle unit on your property, Sevilla tapes to differ. And their maximum height and square footage and whether you can sell the unit separately and also the the occupancy limit to this walks you through which property type with air, which meant I would be appropriate for your lot. All right, Ed, looking at an overview of the process stages for getting your house needed constructed. So actually through planning to move in. And there's a section for each of these one through 7. And in the in book. All right. So in the getting started section walks you through the process of thinking that got for this
unit looking for inspiration doing a sketch of your property. Also discusses things to consider Leon. I like your neighbors sharing your space with someone knew. He's started to strict rules, parking and also considerations for connecting to utilities, which is a really important thing that needs to be looked at early on. All right there in the rules, the section have to understand the basics of your property, how to figure out the area of your lot. The zoning district of your that. And all those are the standards for accessory dwelling units and principal dwelling units. And also talks about other important regulations like science standards, Parking Fire, Safety utility connections. Short-term rentals. Also variances. These things are likely to come with your
construction of the unit. Budgeting to finance the section lays out options for financing the construction of a new u net. And summer different loan options has links to different types of own programs that you MAY consider. For building these types of units. Section 4 at designing your unit, this season options for designing your housing unit talks about purchasing a preemie plan. Set different construction methods like safebuilt or prefabricated modular housing also talks about the different types of professionals that you might hire an architect contractor, different engineers. Just to give people idea about
that. Also the basic stages of designing your housing unit. Terminating and approvals as the section discusses Dsi is processes building planner view. The permitting process through Poly and Syfy interview. If that does happen to kick. And although it it's more likely for larger projects. And the construction section of the summer the process for hiring a contractor. What to include in the contract, the construction stages and the inspection process. Move in and rental. This is a good resource to help understand rental are as the fires to program and things like setting that Rend the senior unit. And I'm managing your rental. And thus the top residential violations. People understand that. Thanks to my fair housing, ph stabilization
includes all of us. Thanks. And in terms next steps for this and we want publish it on the one to 6 unit housing development. My promote it a little Us invite staff. Dsi pt any other staff who who wants to review and overcome inspections are happy update keep it as up-to-date as possible. And then continued update as necessary. Commissioner, thanks, chair. I just want to say how much I love this. I my colleagues will remember this was one of our priorities last year in strategic planning. Retreat is one of the things that to Johnson. I worked tray last year's. We're doing check ins with pd. And as everyone will remember, we saw kind of the pros outline of this But seeing it now in the actual form that it looked like a
line is just really. Rally great. And I testing the limits of my vision a little bit. But I think I can read the text here and it looks like it's written and it really plain language, a lay person's friendly, not the way that you normally see things City websites. So just really kudos and I'm excited. But now I think planning next year to move into our preapproved blueprints. So it seems like they'll have a perfect home in link right on this security. Where they fit in. So congratulations. It's really great work. Commissioner Cullman. Thanks, which Chair Johnson, thank you for this presentation. Echo everything. And this is really exciting. I started to ask when ahead. 2 questions. The first was about to pay proved blueprints because I know that there's been funding set aside for that for 2026 and I assume that that is going on in this
to look at once. Ready to But I also want to ask the financing section. My understanding is that and with the big one of the most significant barriers to seeing they view development that they're hoping for is that it's just much more difficult to finance. Then it sort of a principle unit might be. And curiously and also squinting to see what I see here, Anderson, there's been any conversations with npd thus far about ways that we might in the future work to provide more resources here. Yeah. So that you can sure there would be very helpful. commissioner going on. So so right now, you know, I was kind of work with 1000 team and seeing what if we have any programs that would apply to
these units. And right now we I'm not sure about about the future. To speak to that butts. There are some some really good and just regular mortgage programs that do work for these. So that's what but the guy that does share. Yeah. In the future, we need to plan to. Se what what more resources we can kind of push towards these units. Dr McMahon get regions and I'll just jump in and add to that as well. Its resources and its process right is ensuring that how are we looking at the building code every consistent with neighboring cities? How ae we started easing that process through which? This is one stage and this is a great first one because pd has done so much work on the zoning and this taking in that very technical. We change the zoning law. But how do you actually do how do you as a resident, the city actually do it? And then again, its
resources and then as this continues, looking specifically within our internal process and how we can continue to improve that to make it that much smoother. Counsel for commission. Thanks nothing up to that point. I wonder if funds that were putting into the small scale development program. this coming budget, which I know is a new funding stream might we might consider making a to use Part of this mosque at the moment program's eligibility and how far along we are in determining those guidelines. But I think this comment is really right to point out that in addition to process, I think we've your most people said no to help be able to afford this. Cheh commissioner, to that point, right, looking specifically at our properties a small scale development on some of those
properties as well and how that might be something that we can encourage move towards I love I'm alone in crest questions to take their course. Cause some of the notes that I did. Just kind noted for folks awareness well with the propose a jury budget has 500,000 right now allocated specifically for for 80 use. And then the plan cn also be in the Housing Trust Fund. The small South development pieces that I think we're also that word interest to me, too. But I also would love to see the, you know, just are protected expenses like it would be nice to know what? How much would this cost so someone to take this endeavor on? What are What are we kind of seen in the market to know? How how much are these projects really expanding? Because I think when we're scaling our support
are putting our resources to it, be nice to know we're scaling towards just like how expensive an offensive caught that would be so and there's some of the things that can be just providing for some of the additional contacts for like how if someone wants to do this project costing people just generally a curious and I coming up. I'll hand it over to you. Thank you. Chair genson commissioners also want so much excitement about this tool kit and they worked really hard to make sure. And it was like Cecil and clearly. And I definitely think it's the first step. Down the path of opening up this type of development to everybody. Want to say that like that atu part is exciting but was really
unique for Saint Paul as the primary unit and I think it's something that we haven't been able to talk about much. And I would encourage the hra too. Not look at the ad you portion for the funding, but to also look at the primary unit as well. I think it could be a really interesting way open small development. We are working on a scope for the preapproved plans. Sometimes the culprit approve plans sometimes called permit ready. Sometimes there's kind of a lot of ways for going to come up with a standard cut nomenclature for that. But working on the scope right now. And hopefully we'll be able to get that going asap. And I think that there's other things, you know, we can do.
We can start talking to different groups about financing talking about like what are all the tools that we have? What are other partners that we might be able to engage in in other cities like Portland where the prices of real estate are very high. That has pushed a lot of interest accessory dwelling And so I think here we have a little bit, you know, of a ways to go. I actually tried to get one myself and was deterred because of the cost and actually what it cost more than my house comes to midway. So for me, that you know, eye opening experience. So I wish
I had this tool kit when gets it that process. But there's a, you know, a lot of pieces to this. Excited to start pulling all that information. Thank you so much. I appreciate that clarity as well, because, yeah, that's something that, you know, I'm just much of the cost. Someone who knows wanting to explore these different alternatives. And I appreciate point around the, you know, looking at the full magnitude of everything and not just a tease, but also the primary unit pieces. I'm sure that there, you know, several things online, just different ways in the tool kit, which is what I really like. I appreciate all the visuals to and just like examples that are given and I think in many ways it'll be a learning experience. And so my hope is that. But some of the initial investments and is also just as the blueprint and scenes come along communication, especially with this body as well. Just what
we're finding, we're learning that we can do that together. And so I'm looking forward to just kind of what comes of it into 2026. Any other questions from commission Seeing none. Thank you guys so much putting this together and all the work that's gone into it. It's something that I have been watching for own. So I think this is clear this is not last time we have this competition, but I thought it was really important her and to get this in front of us. Item number 2. Staffing for 25, dash, 2, 2, 6 authorization to release the 40 Affordable Housing Incentive program. Happening and 10 48 Central Avenue West Saint Paul District, 8 Ward, one. So we're continuing on our lovely staff reports of a handing this over to director McMahon. Yes, we have written for and also tell you I know.
Here to present on this, this a really unique and exciting in many ways in that this is property is part of large. A community asset really historically in the neighborhood and they oftentimes what we run into is folks simply going to non-compliance 40 program that helps manage. And this is really an entity that has come forward has a great project overall. And this is a component of it and really reaching out to the hra. forward action that is admirable. go from a very exciting topic, 80 years tax status. So hope you're all Thank you. Chair commissioners. I here today to talk about the 40 affordable housing Preservation incentive program and a request that we have from a buyer and and I will be referring it to a more
specifically as 40 before. Begin, though, I also want to note that this program is not currently open for applications. This is typically the season where we would be open for new applications for this program. But we have transition this program to focus on compliance because all of our properties enrolled in this program have a 10 year compliance period. So some of the things that I'm going to be talking about is how we did enrollment in the past. But that's not the current status of this program. So just to get us started, I have 2 slides about what the 40 program is. One site about how the 40 program used to work and then the request that we have coming before the board. So the 40 program is minute from Minnesota State statute that provides qualifying low-income rental properties to have eligibility for a
class with excuse me class rate reduction and property taxes to aid the preservation and the sustainability of affordable rental housing in the state of Minnesota says this really focused on Noah properties. And for tax purposes, most rental units are dsignated as a or for the status. However, affordable rental properties that receive a public subsidy or tax credit any kind, can b classified. As for de by the state directly. This is also referred to as a low-income rental classification. So often here for the slash laerke a thing. There approximately 19,000 total units Saint Paul that are
classified as a 40 year alert status by Minnesota housing. That being said for this specific program cities could create a local program to so that an subsidize affordable rental housing property owners MAY benefit from the stand. Same tax class rate reduction. In exchange for maintaining a deed restriction affordability for 10 years. There are about 4,000 units located in the Saint Paul for the program, which is included in that overall 19,000. So the amount that this program specifically to this 4,000 out of Properties that qualify for tax rate reduction as mentioned previously would be things with funding within them to make the units affordable. So that could include like project exception. It low income housing tax credits, rental
assistance units, finance through rural housing service is obviously not relevant and sinkhole. Brenton income restrictions that are below 60%. And my placed on units by state, federal or local unit of government as evidence by a document reported against the property. So again, that declaration. Once the unit is enrolled in her 40 program, the tree will qualify the property to Minnesota housing, which classifies it as a relevant unit excuse classifies the relevant unit has 40. Once the approval is granted the Minnesota housing certifies the units which approves the 40 status to the Ramsey County assessor's office. And this is something that we also have to go through every year to ensure that there is compliance with that program. So people can either keep their tax status
because they're doing what they're supposed or lose their tax benefit because they are not compliant. This amounts in most beginning with 2024. So people taxes for this year with an 80% reduction to these units effect of property tax rates. The reduction is prorated, if only a portion of the units are rented income restricted, the tax savings is redistributed to properties, not world and 40. So very high level overview of the process. This does not show the amount of work that the 40 program was for staff. But very high level overview of landlords would be experiencing if they wanted to enroll their property with the 40 program for one, the property owner would apply with the city for a tax exemption status. Again, that would typically be happening in this season. Staff would then be reviewing those applications to verify
things like their unit mix was appropriately affordable. This would be something like a single-family home required to be a 50%. And my cap at for an example. And then it also we need to verify clear title of property and ownership. So that digging through a lot of difference. Documentation about property and who owns what and who an llc and things like that. If their property was approved, the landlord must sign a participation agreement and then staff would record a declaration on the property. As I mentioned, this is the legal document that allows them to claim a special tax status. After the fact. When we have lots of questions that come up about changes to someone's enrollment. And realistically in our program guidelines, we do not typically allow for changes in program enrollment. There's 2 reasons. One big reason for
this. And that is if a a somebody sells their property and has a new buyer. What we can do is if buyer doesn't want t participate in port deal, we don't remove the declaration. We just say great. You don't have to be compliant. We're still going to try to do compliance work with you, but you lose your tax status. think a tax bill the next year. They're not happy with that. And they want to come back and be complaint with the program. They could then regain that status as the new buyer of the property. That being said, we almost never allow an enrollment from this programs since a new property owner could just choose this non compliance option. However, when a 40 property property is going to be purchasing plan for something like demolition or
complete change of use than the jury. This body can consider removing the declaration so that the new owner has free and clear title. So I ask for today. Just one slide. 10 48 Central Avenue West as a single unit that is restricted currently, it's 50% and I and it was enrolled in 40 in 2021. This unit is single-family home has about 4 bedrooms in it. But as I said, it's a single unit, which is why it's restricted at that level. And Xavier Properties which is affiliated with Saint Peter Claver Church has a purchase agreement with the original owner of the property to fight and 48 Central Avenue West and And as you can see by my little bit of Google map here, the started property is surrounded by all the other property for Saint Peter
Claver School Church and another worship building that that curch possesses. So they would like to purchase the property to demo the House or repurpose the House. And to expand their school space and make room for up to 60 additional early Early-childhood education students. And this comes as a part of a master plan where they're going to be improving all their facilities to expand free. More students. In the a jury is being requested by Xavier properties to release the restrictive covenant 10 48 Central Avenue West so that they can have free and clear title to pursue what they need to with this property. Take any questions. Commissioner. Thanks, Chair Johnson, thank you for the informative presentation. And I think back on this really helpful fully supportive of this ask of him.
A super fan expanding early childhood education. Opportunities for students of this is really great to see. I actually have a question about the previous slide. Mentioned that almost never allow an enrollment because the property owner can essentially an unreal themselves, just kind of compliance divisions of the program. Who is checking in every year to make sure the property owners are still complying so that a so we get snow but he's not complying and still getting the tax benefit. Yes, okay. Right. And I guess I'm just a quick question. I think look at the looking at the actual proposal itself, you know, didn't raise too many Pfizer, anything from from office as well. But one of the questions that we just wanted to make sure we understand make what are the are there any sort of financial implications of the decision like what exactly?
When you think about this? This is it. And what's in front of us. You know, yes, those perks of being able to provide 60 additional students, a space to learn. And then also just wondering what's the financial surfing off at all from? Declaration I would see not anything be on like staff time to have t prepare something to remove a declaration from from body. But there is not. There's no like money from many of our budget's going into this property property. Commissioner Johnson. I don't have any questions. I comments since this is my word and just now have state on the record that I did have a chance to talk wth it. The great pdt man and get a crash course on the 40 program
that I have great interest and, you know, learning more about in the future. But I did also have a chance to talk with the development team. community leader, Faith leader, father Chris. Who is the pastor at Saint Peter Claver and for some people who aren't familiar with Saint Peter Claver, it is a community asset. It's a school. It's a church and it's a historic Rondo community asset and that's existed for. All of my lifetime in and beyond. So this up the plan for this technical processes them reach their renovations and expansion. So and if anyone have been to that site, is very historic. You see You see it and it's brick. You see in space and some of the members
from the church, including pass to Chris, her father, Chris, have mentioned interest wanting to be able to host large community events, interests and hosting funerals. Weddings, birthdays and also connecting the school. More with that church. So I'm in support of this changed, you for sure. We want to make sure we're making decisions that preserve as much housing as possible. I also had a chance to confirmed our staff that owner will be assisting with a relocation plan for the tent there. So and that that's something that they recommended and it's
required that they have. You know, volunteered to do so. So. You know, I'm not in support of of of this item. And I do appreciate Chair Johnson for asking like what is the technical ask? Sometimes we kind of get drawn into the, you know, the one shot of it. And I just want to be really clear that this is a very technical step that the city is making to expansion for the site. Thank you, Commissioner Thank you so being hre and we appreciate your time and your. This will be in action in front of the council. When we get back Appreciate it. Thank you. Item number 3 staff report. 25 Dash 2, 2, 7, resolution endorsing amendments to the
Minneapolis Saint housing finance boards 2026 2027 qualified allocation plan. Citywide. Over the last couple of weeks, commissioners he would have had probably several conversations about this particular item. This is the staff report which will also be in front of us for. vote on the fence and over to director of man and I'm sure director and talking it will be shortly to present on the as a stretch time getting everything set up noting again, right? This is a staff report with discussion and that the action will be taking place on NOVEMBER 5th. So the proposal is to amend the fall. Find allocation plan to allow for increased capacity to support additional housing development our city. And the reason for this request right now is to take advantage of recent federal tax law changes that happened after the q a p
was last adopted and really utilize this increased capacity once available in JANUARY of 2026. Just no need to write. Post-covid downtown's are facing really unique challenges and financing the development of additional affordable housing and are downtown in particular is facing unique set of circumstances for financing housing, all housing, including affordable housing. So also proposing to use increase capacity from these federal tax laws for downtown projects with the federally required affordability requirement. So this change would allow projects to move forward downtown that either otherwise wouldn't be able to move forward at all or would require substantial additional public subsidy to move forward. And director China has lot more details and information for you That could become a fan Jeh Johnson
commissioned this money was to sit down. Doesn't do it yet to discuss too. Football's aendments for the 2026. 22. Top 7 quantify occasion planned to kill up. I was by ground staff program to say that the program was created by Congress in 1962, white couple going cause up with optional affordable housing by providing tax incentives affordable housing assistance. In MAY, the sought out the so-called the final stages the season. That's pretty from eye And we also have some of Gators and did you happen to simplify mouse? Some of the gate there charge of Dietz fall projects in both Minneapolis and Saint Paul. For inquiries about the case is to guidelines for the dust the publication. happens every 3 when the join. Bob to all He's got eyes
on the Bowery And last Do these priorities where poll by the finals to do with Este committed by the hiv on John on 14th posed by the Minneapolis Tmple Finals book on 11th Committee member changes included, expanding of causing thoughts, credits expanding services think it's fine to equip young cultural integration. Pride the eye. Now proposing since day in Congress also passed a new dots law on. The new docks and Give capacity to your small capacity to use bonds and stocks. To fund affordable housing projects. So we are proposing to update the cue it the guidelines to the select long waged in you for that on that was demeaning on docks Exum ball on mall to shoot for a -
project from of the bases to 25% of bees is up to JANUARY. First 2026. Staff also proposing to allow downtown housing projects using money to be eligible for the Wi-Fi contract rule on the federal ins, the claimant up to 15 years affordability. And find out proposing to revise a last fall Docs say the school cut. If got off, he still wasn't on Asian projects. We think that approving these change within Shaw. We can't fully maximize the increased capacity and ability to have additionally affordable housing projects in Saint Paul. As know, downtown projects is a unique set of challenges that, in the whole city. And w think that hyvee exciting, I've to downtown benefits communities in Iowa City. Thank you. Step talk about the people out in area
year and just such a. Show. You these child that that is you've entered for off now just U.S. Mint Oreo. Yeah. In twenty-nineteen probably find I know this just some poor. These included in these 30 cities. But this is effective of this taped off. A lot didn't sample us well with most most of the share of the office building located downtown. And this gives me off you 70% of office building there, they stomped on and we have e. Also and just in to some of most death and didn't look at the downtown. This mother share of. But a full meet space downtown. We just. That's down 10%. Ad happened is that covid heat.
On the funding make that significant. Significant decline in all cities occupancy. We off the f a We are dealing with a bond and on on power off. His tie last with on 50 infrastructural. Overall, she likened activities leading crime I can crime and safety issues. The charges study made by the University of Toronto in 2020 on the shoals, the downtown traffic, the And this is onset shop tracking. In downtowns North America. Cities like southern of the city because 51 Basile. Se that out for traffic. Compared to what before the pond And city, the view of that that the surge in 2024 and the
after you broke down to the just be the second dates. The overall down of It. This goes to the doing typical walking, I at the 06:00pm Monday to Friday do do them in city called also well, you know, was that the 06:00pm and weekends and you can see that, you see these off when it comes to the atf. There. I mean, don't on traffic. After walking hours, both cities. Think all that fits you. Well. But what do we is a very know, these chart is that most of the see in Walnut crime. he said just gives a give all reasons. For example, don't he defends on the commute time and then the was shelled jobs in 50 go south become
proficient fields. Downtown's. That's how sectors like education. Death in men from edition Montauk Tuning Way. Walk us out on site. If he did then through the process, why bills with longer commute times and densities said it was. Watch tt. So Downtown's almost the thought of downtown opportunities on week nights on weekends and it did before the covid-19 fun to make on most. All of these downtown site in the yuan. Agents suggesting that these and way there there's a way they're as it does on shoppers downtown. And finally, downtowns. The pond in the activity come from day's supposed to work Windy City as if you go shelf useful petition the evening, even close proximity to downtown job locations. Now we also question what that were there other cities that are not the
not on top of banking. I a New York Boston, Chicago New York's looking looking to on the air. Yes, toughest needed. Malcolm, the Asians with significant interest from the Oval despite the time in just a phone in your buildings. So according to do all been on, mother is the future downtown's. We depend on the ability to adapt to changing landscape. Welcome U.S. West commitment to long-term projects that deal to make stuff used on with judicial pay since. Boston. Boston offering 75. of property theft speak to that will up 13 buildings in Boston. A during Susp on the
engines. We think goal to both tools they can seize. I think Lee's is seeing those successful project positivity Is me just on according to maybe show program, we've had take advantage of to fall to need to. We have to rethink down thong. I see space way. People from all over come to to put all the even And she on the Nice kid project involving then see by by over in subsidies with the fall. Some of unit it that that's affordable? A downtown see makes never hold Brookings - Institution things that office to is national Convention is one big with 2 of the fine and what downtown's fall. And director in could you
share any of these proposed cities and their solutions in their approach includes the low income income where tax credit. Site doesn't include light tech in there. Solutions. So looking at some of these descriptions. Not seen the direct link between commissioned These out and the cities having conceded Light but they do half of the sauce is doing faced other than like a. I just wanted to make sure some the cities that we're proposing that city that were brought forward just as what other cities are doing. They're not currently changing their like tech. Then frontage ending the activity. All right, Chad Johnson function us. But they do half because has to be half of that. He saw slight to gobble 150 million dollars. Austin cost City. That's 70 to 75%. And have you
seen any cities and your findings that have been changing their q a p Joe Johnson Commission, a budget. Okay. Thank you. So what's the solution for sample? First of all, I would like to show this is stuff. Some projects. We didn't. Some thought that bonds and tax credits. And you MAY notice that. Pretty much all I mean, all these projects have to use a significant needed significant amount subsidies. Sometimes off to 7.7 million dollars. In addition to. Bonds and tax credits even at the bottom. The needs that you agents have been ball, some broad with model. All do we do I think guys subsidy, we do provide some by waiving that. There are about see. So that the development
and get she do all of He all we provide some fast to grounds from make. Also Dietz. So the yes, that the and longer the affordability DeMoss up to do the project needs. So again, a reason for these additional told the upper forcing we think that driving downtown benefits, all communities, most successfully con that enters office space into housing opportunities don't on beef. At that space. Launch And increases physician and they can make up to the tee. And would encourage age for housing projects downtown. We've got off into Saw gas subsidies are thinking you
will fall tease for the communities. Bulls Amendment would be place for the 2026. 21 7 to 8 I believe you are. They getting 2027? Now let's talk specifically about the proposed discuss the year. He says the cut down weight and now be that. Essentially quiet on housing credit projects to waive the fy the fight on rights and you for the book. For 30 year minimum. The language director. Just to go back to the previous slide. Can you verify again? How long has this currently wichmann in place? Missions that can check on that. That high. From what the county member. And it's maybe - fall 10 years on this. Up and checked to be specific. Okay. And so just. Yeah. I think it it's part
in know, just how long this would have been a decision made by a report body to have this reflected in our cue up. And while it's updated every 2 years and process this, particularly which has been in place for almost a decade. That's my assumption. When it'll be nice to know like just the kind of how long it's been in place as a follow-up. So the Bulls are rules on which makes an exception for some fall project on the front office to was ink on the ocean projects located in downtown Saint Paul on projects on mostly quiet waive that quantify content rights. This would give an incentive to do well. That's what more housing investment can sample. Again, the This is it cost effective tool that would provide easy access to private cop, though.
And that's the thinking ways. The sauces from programs and projects. Despite a ci, just money for proof can be amended right I would just off and will housing overall this would happen. He don't economy can gin for the city lead U.S. Fiscal stress on citizens on home on and I was for economic growth, cultural vibrancy, social infrastructure, infrastructure, and job creation. Now this to amendment to polls wage. Shows the amount of William Kopp must be admin. Minimum, a maximum. 52 1% of the aggregate business. We proposing to Disney didn't easy on needs to reflect language of the new lull that Lewis, the minimum on from 50% of the b's in school. 25% of the business up to JANUARY. First 2026. And finally got also proposing to amend or
fall skull Essentially these. He's got game by key Asian television. What? What's on the by new construction? Downtown office to a single Lost from the Perry to give into downtown projects that create affordable housing from building Con vision. And speaking the same year. Yeah, I think he's for it to office to was in Cannes vision for projects downtown. Finally, this is the new stuff downtown. Just want to show you stuff affordable housing projects in downtown. As you can see, we are off for a 1000. You need to fall down down which represents about 20 to 25% of units downtown currently. As a follow-up director and partner, because you share. So
from this slide, this is affordable housing downtown. Of these downtown affordable housing units are properties. Do you recall like of these projects which ones have used by tech would be currently under the 30 year requirement. Just a mission. I got look into But that ben the most of these projects chair these the And this, but this requirement impact units at or it wouldn't be just new and moving forward. commission as these when it bought developments only about new housing means office to was in competition projects. Okay. Would it be possible to also know than the expiration timelines for those that are on the 30 year, the 30 year clock. I'm just curious as to where they are on that year with that Weaver 30 year time frame and just wondering how
much of the current downtown affordable housing stock. We would have really not. But they do that. 2045, time frame. Jay Johnson Commission. That's a lot of these projects on the on the long the and the of the affordability. How wave that? Because from the beginning we had some guys subsidies. So we use the festivities to extend the affordability of most of these developments. ok, it would helpful to, I think, get a glimpse just like we've done some of the downtown units. It would be helpful to know like of these units. You know, this how many of them do or don't have. Any sort of requirement to say portable. Commissioner, thanks to Johnson. Couple of questions for you, But I'm going always it wrong. I'm so sorry. Tools. So first of all, I think
it's at this is something that I think is weighing on all of us because this is a council, the that prioritizes affordable housing. And so I think one of the questions that I I think it's really important to address what would be the impact of this change on the amount of affordable housing. In the city of Saint Paul that would be able to create citywide. Does that does increase decrease or stay the same if we were to make this change to the Huey p. Chad Johnson commissioned this that think he's amount of affordable housing. This wasn't just winning. Courage. Does change would developers to build affordable housing, the affordable housing downtown. My understanding also is that it would allow us to use more of our city dollars to subsidize affordable housing projects. Outside of downtown. So downtown development would
be relying on federal dollars. We could then put our dollars into projects outside of downtown. Other words. Just in the mission as that's right. With new off federal law last that honey do anything. On to subsidizing projects outside of downtown. And then lastly chair I. Looking at the side that are Johnson talked about that other cities that are trying to create new tools to incentivize development in their downtowns. You mentioned the size the 150 million dollars that Chicago has invested. 75% property tax break in Boston. I had no idea what the magnitude of those investments are. But my guess is that there of a magnitude that we we could never hope to achieve with our own dollars. And I guess what I'm trying to understand is what are the
other options that we've that we've looked at to make that kind of subsidy, the understanding they have from the developers that I've spoken to is that even that 5 million dollars that we're proposing in our budget for this coming year is a small fraction of the amount it would take to subsidize even one project and even a market rate project because downtown projects hiring even market rates subsidy. So I guess. It feels to me like this is a creative approach to situation or we don't have those dollars that those other cities have and we're really falling behind in those incentives. But I want to make sure I'm understanding the other options that we've looked at. Joe Johnson Commission well when we do But not we look ahead to hold onto them, affordable housing. We that. We look at the impact of on
the home on this. For example, if we want that space dwindling, especially downtown. So we see no that the school. So you bought home on that dentist because month that someone has to be for that for all. The Silva says so. We think that this is the best solution because the half. That's I mean to to collect more revenue. To fund affordable housing as in the old city. And I appreciate that director and partner. I do disagree in part because, you know, one of the things that I will share one. So my concerns about this particular piece really come to the actual scorecard, changes and the process on the back in. We just went through the process of approving Wojciech funding for the or gotten So if you just he talked a little bit about the process that would happen in place that this was put in place from like how we
would actually been, you know, if a project is coming forward with the changes that are proposed, including the language that essentially I think gives an advantage to downtown projects on the scoring metric like how? That actually ends up being in practice. So you have applications and if they will activate the downtown core, if they That's what else. I cver the downtown core provide downtown office to housing conversions. They'll be allocated additional. 20 point, I think collectively in the language that's there. And as we've seen with the scoring. The project with even 3 points, more. We'll get the funding. So I'm just curious as to how whether it's a 30 year affordable project that's nt downtown or a 15 year That is. Can you just help me understand? So applications
come in as a downtown project with this proposed language that gives a 20 point advantage pretty much over any other project throughout the city. Could you share a little bit how that? Jake Joe Johnson Commission can. What first of all, we we yes, you know, it is we just watch Okay. That's clearly still do out of project. Project within the impact it because he's different process. He said 9% credit get talking about you is the fault and and this is not competitive. Is that just need to meet special to be allow to get a lot for To do that to a different boss. So tonight, the sun is very competitive if we do and I year for project is now on its feet. People who suffer meet application on
guide if they meet te 14 point racial, then they would be allowed have access to of William Kopp So from a process standpoint and just kind of going to the process itself, can you talk a little bit about how some of these changes, what impact that downtown project now that would be getting this would be adding the scoring to these metrics that they would not normally get if this change was not put in place. Joe Johnson commissioned festival. We have an extended capacity with the change of law right now to waft access bonds. the bonds have to fund 50 50 per cent. Eminem, a 50%. Do the basis. The expenses that image to be funded by that's created. Now law, according to a new
law, only 25% will just extra pass to allows us to. mall for the units you want to use that by city. It's a capacity to create affordable units, including downtown. So they need that is change process. Okay. And I think one of the things that I want to share and I'll go commission an acre really, for, you know, creative solutions when it comes to addressing our downtown issues, especially surrounding development and being able to see it moving our city. What concerns me is when we have creative solutions that one have never been tried in any place else around the country to with that. They're really truly has not been a lot of that suggest that this particular light tech funding source would be the one to change. In addition continues to put us in a space
where we're doing. Actually quite not only the opposite of what our neighboring city is doing, but actually not even something that is currently being discussed in city of Minneapolis when it comes to changing the Huey p and because the jury cannot change repeat, we actually have to go to the Minneapolis and Saint Paul Housing Finance Board to explain. Why would really be doing this, including having council members from both cities weigh in on a final solution that. Doesn't know that I would share. Part of my concern is that you know, depend on how the locals is fine. But I think going into this discussion and its pace, we would assume for trying creative solutions that we have them in the hopes that they would not only work, but that there's actually prove
that this could be helpful and beneficial to future projects. Seems like there's not like a pipeline of projects awaiting to utilize this this change, but also concerned we're using light act to do that. I've seen a lot of creative ways that folks are addressing development downtown across the nation and tech funding or the to ap has not been where they started. And I'm just curious as to you know, why we decide to start at the low income housing tax credits pieces like why was that the first option that we're seeing in front of us too, for some of the development around affordable housing downtown because we are talking about affordable housing development. But we're also talking about the change from 30 to 15 years. So the difference between being 2060, for any projects that put 4
than 2045 for projects that MAY or MAY not be watching to be affordable right now are to sing to be important because this option would be ad place that could potentially roll off and 15 years. So the question was, why did you start with the law housing tax credits? To Johnson commissioned this. I just have to see that read on the and not get comply it requirements when comes affordability. mean, most 15 years we have to comply. So it's not like, you know, asking for a waiver from the irs. Know we have comply. That's and then why do are we starting with I mean, putting away the inquest east to I-5, got last word that enough don't believe so. So we are it on the so people can have I mean that all of this
can not be what it of tools to ewells when comes to getting affordable housing downtown. should look at these table. You would most of the we used to We'll subsidize affordable housing for those sauces. How no longer access to pop We also pull it from which we don't have us 40 do anything. sometimes cdbg that Michelle going even receive that money to subsidize affordable housing. So we have to create new revenue. And these gives good and on this with just 2 deal, drafted location gives us to Washington to create more revenue to have affordable housing for the whole city. Appreciate that. I would just say I don't personally think there's any problem with going above what the feds are asking us to do, especially at this particular time.
When we think about U.S. And our compliance sums up complaints since inception of this program in that regard. But for some reason, this body made a decision to make a commitment for 30 year Weaver and not a 15 year waiver and I just haven't seen or heard anything that would warrant just to go back but only to cut that that prior commitment in half. And so I appreciate in many ways. In some cases, I kind of chuckle. But I don't look to the federal government, especially not at this time to decipher how affordable housing development should be for the rest of of the country, but let alone in their city. I actually haven't really grateful to see in a 30 year wait for that's an alliance with the city of Minneapolis and their practice as well. And I'm me not understand. And you know why? I guess our city is jumping
out in front of that being that there's been no action of this nature and either amendment, no rush to come into compliance with the new federal decisions. No rush to change the que ap guidelines in any capacity from a neighboring city as well. And so it just seems a little it seems a little premature. And I did share that with you all. So I'm sure it's nothing new that you haven't heard. But it is a concern that I have. And just want to know that if folks haven't had a chance to really dive into it, we did receive other letters as well from the Saint Paul Area Chamber, Housing Justice Center and Home. I. And I did to the time to read through those as well. And I would I would say are some questions that have come up and some of those discussions, but I hope staff are paid attention to because of the time and we have
another presentation. I'll head to commission a current stay on this topic. I walked to the full like, you know, I was definitely going to allow some just for the contacts from those that provided letters. This is an ongoing conversation, but it's one that I'm actually really disappointed to see. And I express concerns a few weeks about this because I think that one of important parts of bringing forward solutions such as these, that they should have consensus amongst this body. And, you know, as the jury chair and this because I think development is really important and how we spirit. I also think the funding sources that we utilize to do that. And I'm slightly uncomfortable with the fact that we are starting with funding source that supposed to. Work towards affordable housing for low-income community members and saying that 15 years is enough. We haven't said that
in almost a decade. So whether its downtown or it's not downtown, that's really truly with this decision would be making. Commissioner, thanks Johnson. I appreciate your comments. And I know we disagree on this. I am. And it. But I think this is an important discussion to be having. And hear you saying, no, this is new in other cities are doing this. And I think that that is. That is true. And that is fair. At the same time. That's what that's what innovation means. And sometimes when we're doing something creative and something new, we are leading on it, not with outdated that it will work, but we might b we might be the first ones to do it. And I think that that's okay. I think in these circumstances, especially given what we're seeing. At the federal level in terms of investment in affordable housing and at the city level, we MAY need we need to do some things that that are new that we have
evidence will work. I think one point you brought earlier that I want to come back to, though that's really important. And I do want to get lost in that conversation. But the tax credits, the thick up for 4% tax credits is is not competitive. But fact that we make developers keep their properties affordable for 30 years rather than 15 years, which is the federal requirement. That requires us to put in more subsidy. That's why all of those affordable housing projects have had those additional subsidies that we just heard about. We only have a certain amount of money to put in to subsidize affordable housing citywide. So given the costs of development downtown right now, we can either take a huge proportion of the limited public dollars we have and put them into affordable
housing downtown or we can let downtown projects have the 15 year minimum and only use federal dollars. And then we can use all of our limited public dollars to subsidize affordable housing throughout the rest of the city, which is which is why this would lead to more affordable housing because we would be able to put our subsidy into more projects leaving downtown to be subsidized just by the federal level. So I'm someone who's advocated for actually 45 50 years of projects. In my word, I completely understand the impulse to do it. Also really concerned about the amount of affordable housing we have and how we're using are really limited dollars. So I think this is a solution to that problem. And I know we're not voting right now. Did you have a question? Commissioner? Larry, Good. I'm good. Thank u k.
Commissioner Ye. sense that I thought I would have eye. I did take a look at the letters from the the 2 organizations that sentiment. And I'm just I'm just wondering, like, is it? Can you explain that so that I can understand a bit more? It? If we want more development in downtown. And let's let's say, you know, there was interest in keeping the 30 years of affordability. Ryan, I just adjust the stumps, the score card so that we give her points for the development happening in downtown. Is that an option? Something I'm not understanding on some commission this that's option. How we've week. Need also going to see the eye, the subsidies subsidies on these projects, guide and a half. But we also want to create 5 in downtown that expanded with that space, the other option would be to use
tif, but that Dick's 26 years put that fight. This is due speak on the 15 years, although they will be paying song property taxes that can head of old city and to 15 years the pandemic flu, property taxes. So and then just a follow-up upon approval of the Huey p amendment in front of us. How many how many units of affordable housing do you? Are you confident that we would be able to produce for next year? Joe Johnson commissioned Welcome te future. But I feel like we MAY be able to do maybe maybe 2 projects. With these new tool, but think of the impact of each project in the area. Maybe small, one project. I think of impact on talk to more people. Thank
Often these downtown. For te safety security and safety issues. Getting citations. Thank you. Those questions yeah, I know that we're we're going to be a vote on this matter on the I just to make sure that all of the things folks that are and some of the consideration pieces like I know a lot of us are, you know, we have at the downtown development strategy that is being proposed in this year's budget for 2026, will this be covered at all? And that downtown development strategy as far as like? Possible innovative solutions to address the need for investment in downtown. Is that a part of the school? Chad Johnson, commission, I believe, this like go case set of tools that you're putting together. 2 don't then that MAY be to come man something to say about to downtown development up to the familiar
with Yet to Johnson commissioners, that's something I'd have to look more into Back to you. Because I know that you know it. It's the 25th. The comp plan is up for an update as well. So it's about the downtown development strategy. We have also an economic development strategy that I now that we've invested in this year. And so we're spending a lot of money on data collection. I really, really would love for us to use that to guide some of these decisions and time. So we feel that we want to be creative and innovative because to me data is really important. And it drives a lot of our decisions. And it's one of the reasons why I think. You know, I'll be voting against tis next to week 7 because think Wednesday, I don't think it's founded really proving it. That's
something that I really value separately. I think some of the investments that we're taking will be really important to see at a chance to have actually respond to the findings and a chance to really trust expertise that we're enlisting in spending 6 figures on to understand how to address our issue and relying on community to really guide us and what they're saying that they need. If issues really are and subsidies and financing and trying to find avenues to make it better to develop, to make it more affordable to develop downtown. You know, to me that. Kind of goal of I take us to provide that affordable housing piece. And I hear you on the subsidy, quest, but I rather. You know, if I continue to try and find resources to ensure that it's affordable for length of time, for some, it's a now full childhood. 15
years is not. It's nt that I think that's part of the reason why we made the decision years ago to Gobi on the expectations of the federal government will be on the requirements of the irs in order to ensure that affordable housing maintains here in the city of Saint Paul. And I don't know if we've really started to look at and something that set the tone for for our housing policies study as well. We really need to check in on our housing stock and affordable housing stock that we have here in the city. Made several policy changes over the last year and have that have been to incentivize development. But the question remains of just again, how many of the affordable housing housing units that we have downtown currently will remain
affordable housing units. How many of the new affordable housing units that we're investing in actually remain because affordable housing downtown, that's different than affordable housing and other places across the city. The pain on the percentage of am I we're looking at and so edges. I think it's, you know, the votes will be where they land, though. That will be without my support. But I definitely think that in so many different ways, as we think through future conversations and future innovative solutions. Please stick to that. The time to hear from some of the studies that we are taking a effort and investing in here at the city to do. I think it's supposed to leave some of this work and informed them. So we are pretty confident in the choices that we're making. This seems a little bit like a guess.
Item number 4, staff 4.25, dash, 5, p v budget update transfers. Details. Rate. So this is a follow-up conversation regarding the budget. That was presentation slide given. If remember like know her like last her last to entering the with us a lot back but had a long list of a transfers that we have done and things and there's a piece that just talks about the eatery operations find transfers out. Part of that follow-up us to get more information for council members to know and commissioners to know just what they went towards. There's a lot of cool and fun things in But I did ask for. Director director man and Deputy Director Newton. I'm sorry, Green. To be here to be able to get just a little bit of what we saw. You would potentially received a memo if you
haven't. It's attached to the. If you're gender for today's, you all have that. But this goes through together. And I know that we have about 10 minutes or so. I would like to give folks a chance to take a break from meetings for 5 But I think it's really important. And I did want to get some time to it. So. I've been over to Deputy Director Green. Good afternoon for And yes, we are reviewing the responses that we received in. So I just want acknowledge and thank our colleagues over with us for their leadership and support in digging through some of the questions and working there. Other departments to provide overall, I don't think it the with the previous slide
that we showed you all is about annual basis. 1.9, something like that transfers out of pe operations and special fund budgets. They go to other departments. You can hear me. My earrings so we are that's better am. And so we are reviewing the questions that you all have asked. About specifically about what is being done or how the funds that are our transfer. I have historically it historically been utilized or MAY be some statement to hear Its peak generally, potential plans for how they could be utilized going forward. So just starting off the
city Council policy. Funding overview about $84,000. That comes from a jury operations that is going to support for fte presidents those contributions help support your salaries as well. Any questions on this particular one? Great. And then we have about 18 1000 that is going to district Council support. And we don't actually know the origin of this transfer and and how how we decided the amount. But the amount that currently goes to district councils from the general fund about 1.2 million. This is a very small portion that comes out of hre operations. Minority business development review. This transferred to a from a jury hr Yeo support staff.
that administer in in the dr Program. And include some of minority a supplier, diversity initiatives. It's so they would they would be looking at staffing reductions without this half billion dollar transfer. And there parks right track transfers. Those are also from the operations fund. That's 191,000. And that comes to the current supervisor and some summer job coaches as well as 800 youth annually. And so they be without their supervisor without the funding for an alternative funding source. And without the match that's required for a partner funding from And questions on that. This is the last confirmed, the operations, or
156,004 right track. And this is there for fair housing coordinator. And that's it supporting housing objective tenant protection ordinance implementation as well. Director just to clarify. I think this The fair housing coordinator okay. And How long we been funding bill? The fair housing coordinator? And it's a very good question. I'm not sure. And I'm not sure. But we look at that information, ok? I think it's been since its inception, but appreciate just kind of knowing as we head into more lke futuristic conversations around something that's come up. A council budget cnversations have been the cost of doing business. This is one position that I think the jury has historically funded since it became position and it's a city. Office of financial Empowerment Department, Anderson, that's fair.
Absolutely. We can check on that. Okay. Thank you. And the this is it. It's next set of transfers is from our parking fines. And then 500,000 is. Intentional intended for support parking ramp. And we initially did this in 2015, but those transfers the transfer of half, a million has not occurred since 2019. And that was, think, as a result of a pandemic and some other decisions. And so we haven't actually made the transfer of half a million. Allocation has remained in the parking When you remained so. So essentially this money hasn't
been utilized at all since 2019 anyway. Yes, so my understanding as our transfers, this body is approving the proposed budget that includes the transfers. and then transfer occurs if. If those expenses right are incurred and then Ofs works with our tam to ensure that pll that money out of pd budget and that And then from just a technical what this means, peace. If next year, the budget as proposed and adopted without this contribution. As Mark, it just remains in the parking fun and it's just not for that purpose, right? Same would happen. We would not have the capacity, however, to support. The work that is needed at at the River Center. So those decisions apparently have been
tabled or had been preserved and wanting to make funds are - stable. So and there could be other reasons behind that to that. I'm not privy to, but we have or the past several years, 6 years, not drawing down on those held held them in the trust fund in the Park 5. Thank you, Commissioner Johnson. I just I want to thank you for your leadership in asking these questions and having a presentation on the subject. I think transfers out of the tree parking fund MAY not be the most exciting agenda item f or but it's this kind of question that you've asked that's raise an important half a million dollars that had been recorded as being transferred out of the parking fund year over year over year. But actually has not been transferred and could have been used for another use and can be used for another use in your head. As you're pointing out, a few
director that would have consequences. But want to thank you for asking these questions because I think it's really going to help us make some strategic decisions in this year's budget. Thank you, MISTER Speaker. Great Opportunity Live here. 345,000 out of the parking fund. On this a bit also originated at the same time. And if references the work that we do with our parking meter system. So this maximizes our supply turning over street parking and encouraging rampant lot use. So this transfer also has not been made in recent years but will be required in 2025. Due general fund. Cash position. So we will make the transfer this year. And then our operations transfers out and the amount
transferred from pd to the mayor's office. With support capacity across across departments enter government strength in governmental strategy and policy alignment. So again, ensuring that all of the funding available to the city is considered in terms of how we support the city and leadership in aligns priorities and our strategies. 75,000 goes to a policy analyst position. And and that was focused on transit oriented development, regional coordination. For gold line record or policy. Historically. Another area support for policy. Analysis is 30,000 this works advancing equity across the city. Inclusion and affordability, gulls and aligning with local little bit development. Community groups. 40,000 was previously supported in the
intergovernmental strategy currently supports legislative. Items. So our intergovernmental work the work to do it. Friday morning, whoever's attended meetings. I think that's it. Small amount for executive alignment on America. So I don't know. All departments contribute portion their budget to that executive align. It. I see the transfers out Yeah. And this is another one that was very like I mean, it was actually kind of interesting also because I don't think I've seen positions snowflake kind of broken apart that we financing. So I think it would be really helpful to know. If that's something that like, yeah, every department contributes a little bit of But this bucket. I know that some of the just for awareness and some of the transfers, if you do have additional questions on the transfers
out, you're more than welcome to to let u know. But you're also able now to especially with the departments and hand departments were able to provide overview. So pt staffer see this formation of the directors. And so, you like the departments that you can reach out to have a question around this particular and then also in regards to some of the additional things we talked about, like the parking fund transfers and the pv operations transfers. I do have a couple questions about them and we'll follow up with you all accordingly as it relates to it. But you've seen at this point in time being able to talk with you all about the eatery. Budget helpful. And then in addition for future conversations regarding the tree budget guy.
You can. We can kind of talk through any recommendations that you MAY have some of these. Interest or you have questions about. We need further clarification. Some of them we've been doing for years. The origin isn't necessarily know why it's just something that happens every year. And then some of them are positions and some of them more important in the sense of clearly there will be impacts to some of these. I'm not talking are suggesting about, you know, discontinuing some of them. It's more of for information. And if there are things that you. Want to see your need clarification it is not the most sexist thing on the agenda, but it is really actually important. It's 2 million dollars of jury funding in way, shape or the other that gets transferred out to support other things that are not pt or
injury-related. And I would say another line item and is strong throughout our budget is essential services. And so we want to make sure that we're supporting. You know, all the work because all the work impacts our work as well. So social services line items are also supporting departments. And so I would just encourage somebody to look at those line items to interest understanding kind of the mechanics of budget. Maybe all of these move to something like central services we would still need to be our contribution to the hole. Is coming. It's coming leadership chair. Johnson Dssel. Appreciate this. I know I have monthly meetings with peace team, particularly around. No programs and what our services and what are some like innovative approaches wanted things that I don't see on here, but it probably
hasn't been talked about publicly. Is that what is that channel between our that pipeline between hra and helping Dsi particularly around our bacon building program? And is there some tools that can commerce and services that could come out of hra to help, you know, help some of these buildings, residents who are in vacant building programs. But, you know, don't have those resources. So I do appreciate you light to how a jury does help apd does help other departments. And that's something that I'm interested and particularly with sign a So. And I appreciate that point is Commissioner Billy.
Okay. Before anyone else is there and we are adjourned.