Along West Seventh Street, a non-profit affordable housing developer will receive tax assistance from the City of Saint Paul to build Treehouse, a new $12.8 million rental housing development for low-income seniors.
The Saint Paul City Council met Wednesday as the Office of Housing and Renovation to approve $832,000 in low-income housing tax credits for Trellis Co., the Minneapolis-based real estate company formerly known as BDC Management. The tax credits make up all of the city’s remaining federal appropriations for 2022. Trellis previously received a $550,000 commitment from the city’s HOME funding program.
Treehouse will consist of 36 units of affordable nursing homes at 2319 West Seventh St., close to McDonald’s and less than half a mile from the Aldi grocery store.
Seven units will be reserved for older people who were previously homeless. In total, 15 performance units and a dozen one-bedroom units will target tenants earning no more than 30 percent of the area’s median income. Nine one-bedroom apartments will be for tenants earning no more than 50 percent of the median income for the area.
The Low Income Housing Tax Credit offers a reduction in federal tax liability to owners and investors of qualified low income housing developments. Units must remain available for 30 years.
“To live to 30 (years of affordability) is a big win for the housing team,” said Chris Tolbert, chairman of the Saint Paul Office of Housing and Renovation.
To qualify for the loans, the Treehouse project scored slightly higher on the Housing and Renovation Administration’s scorecard than a competing proposal from Aeon, an affordable housing developer planning to redevelop Mary Hall at 438 Dorothy Day Place in downtown St. Paul for $21 million. dollars. will be converted into 88 housing units. This project, which has requested $1.4 million in low-income housing tax credits from the city, is being funded by separate funds.
The City’s Housing and Improvement Authority recently amended its scoring system for low-income housing tax applicants to award additional points to projects that provide very affordable housing that targets residents earning no more than 30 percent and 50 percent of the regional “median area of twin cities”. income”, which is about $22,000 per person, or $31,000 for a family of four.
This is below the income limit of 60 percent of the region’s median income, which is double that figure.