The QAP amendments, focused on utilizing 4% federal tax credits, were introduced to address financing hurdles faced by developers in the post-COVID downtown landscape. The changes are intended to facilitate projects that require significant public subsidy to proceed. Proponents argued that the amendments would increase affordable housing by enabling developments that might otherwise be financially unfeasible due to high conversion costs from office spaces to residential units. They also emphasized the amendments’ limited scope, applying only to downtown projects over the next two years, and highlighted the strategic use of federal resources to avoid depleting local funds.

However, the approval was not without contention. Concerns were raised about the potential implications of reducing the affordability requirement from thirty to fifteen years. Some commissioners argued that this reduction could be seen as a step backward in ensuring long-term affordable housing availability. They stressed the importance of public investments yielding lasting benefits and warned about the historical precedent of affordability requirements lapsing, which could lead to a shortage of affordable housing in the future.

In contrast, supporters of the amendments contended that the changes would not diminish affordable housing stock but rather bolster it by attracting necessary investments to areas that might otherwise remain undeveloped. They also highlighted the importance of economic growth and innovation in addressing housing challenges, advocating for the expansion of the resources available to support these initiatives. As part of the debate, discussions touched on the broader goal of achieving economic justice and expanding the tax base while addressing public concerns about the use of funds for market-rate developments.

Following the approval of the QAP amendments, the meeting transitioned to a discussion regarding the release of the 4d Affordable Housing Incentive Program Covenant on a property on Central Avenue West. The property owner sought to release the covenant to facilitate a sale to Saint Peter Claver Church, which plans to expand its programming and provide early childhood services. The property owner committed to relocating existing tenants to other affordable housing units within the city. The motion to approve the covenant release passed unanimously.

Another topic was the loan extension request for Ramsey Hill Apartments, aimed at maintaining affordability while the developer seeks additional financing for rehabilitation efforts. The proposed extension of the Community Development Block Grant loan’s maturity date from December 2025 to December 2031 aims to align various debts and support the developer’s efforts in securing further funding.

The discussion also brought attention to the broader housing needs in St. Paul, with a commissioner noting the demand for QAPs across various neighborhoods.