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Housing Redevelopment Authority (HRA) Levy
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Many Ramsey County residents live in poverty and struggle to find or afford stable housing. The current market is not building or preserving enough affordable housing to meet the needs of these residents, including seniors, low-wage workers and others who make less than $25,000 annually. This challenge is anticipated to grow, placing further strain on the housing market and county services for all households.
To help solve these challenges, many local units of government levy for affordable housing through their Housing Redevelopment Authorities. In 2022, Ramsey County began levying through its Housing and Redevelopment Authority (HRA) to address the longstanding housing crisis that has intensified due to the COVID-19 pandemic and the resulting economic downturn. Funds collected will preserve and create affordable housing for Ramsey County residents, providing a long-term resource to address the existing housing crisis. The HRA levy raises up to $11.1 million a year to fund affordable housing, increasing annual property taxes on a median value residential property by about $45.
Prior to 2022, Ramsey County was the only county in the Twin Cities metropolitan area that does not have an active levy authority dedicated to affordable housing.
HRA Levies by Metro County
The need
Ramsey County’s limited housing resources don’t meet the need in the community.
- Of Ramsey county’s 209,000 households, 65,000 pay more than 30% of their income on housing.
- 33,395 people in Ramsey County are currently in mixed-income housing, while 77,330 people in poverty.
- There is currently a shortage of 15,000+ homes that are affordable for Ramsey County households making between $30,000-$50,000 per year and 50,000+ homes that are affordable for households making less than $30,000 per year.
- If all new construction in Ramsey County was dedicated to affordable housing, it would take 20-50 years to meet the current need and would still require subsidies.
What will the HRA levy fund?
Funds collected through a Ramsey County HRA levy support the preservation and creation of affordable housing developments. This is done by offering gap financing and land acquisition funds as well as allocating resources to increase the competitiveness of Ramsey County housing projects applying for state grants.
Additionally, Ramsey County will focus funding for affordable housing on 30% AMI (area median income) units, which are the greatest need in the marketplace, only accounting for 5.5% of total housing production. Currently there is a shortfall of more than 15,000 units in this category.
Timeline
Ramsey County’s began levying in 2022. Communities that had active HRA levy authorities of their own prior to 1971 are statutorily required to pass a resolution to participate in Ramsey County’s levy as well. This currently applies to the cities of Saint Paul - where the city council passed the resolution on May 26, 2021 and North St. Paul that opted out in June 2021.