A key highlight of the meeting was the presentation of the “New Dwelling Toolkit,” designed to assist property owners in planning and constructing additional housing units, particularly accessory dwelling units (ADUs) and principal dwelling units, within the newly adjusted H1 and H2 zoning districts. The toolkit aims to simplify the complex building process by offering a comprehensive guide that includes zoning regulations, financing options, and construction guidelines. A flow chart within the toolkit helps property owners decide between building an ADU or a principal unit, considering factors such as maximum height, square footage, and occupancy limits.

Commissioners expressed strong support for the toolkit, which had been prioritized during a strategic planning retreat. The language of the toolkit was praised for its clarity and accessibility to laypersons. However, there were concerns about the difficulties in financing ADU projects compared to principal units. A proposed budget allocation of $500,000 for ADUs was discussed, with a call for clearer understanding of associated development costs.

In parallel, the meeting discussed the 40 Affordable Housing Preservation Incentive Program, which is currently focused on compliance rather than new applications. This program provides tax rate reductions for qualifying low-income rental properties, with approximately 19,000 rental units in St. Paul classified under this initiative. A discussion point was the request from Xavier Properties, associated with Saint Peter Claver Church, to purchase a property on Central Avenue West. This property is enrolled in the program with a 50% affordability restriction, and the request was for the release of this restrictive covenant to facilitate the expansion of school facilities.

The importance of expanding early childhood education opportunities was emphasized, with assurances that a relocation plan for existing tenants would be established. The historical significance of Saint Peter Claver Church in the Rondo community was also noted, highlighting its potential for hosting community events. While concerns were raised about the potential loss of affordable housing, it was clarified that this decision would not have financial implications beyond administrative efforts.

The meeting also tackled the challenges faced by downtown developments, particularly in light of changes brought on by COVID-19. Increased crime and shifts in traffic patterns were highlighted as factors affecting downtown vibrancy. In response, cities like Chicago and Boston have implemented property tax incentives to stimulate development. St. Paul is exploring similar strategies, including converting office spaces into housing to meet affordable housing demands.

Proposed amendments to the Minneapolis-Saint Paul Housing Finance Board’s 2026-2027 Qualified Allocation Plan were discussed. These changes are intended to enhance the feasibility of downtown projects, which typically require substantial public subsidies. Concerns were raised about the potential impact on the availability of affordable housing citywide, with discussions on whether the amendments would increase or decrease affordable housing stock.

A proposed language amendment to scoring metrics for downtown projects was debated, where an additional 20 points could be awarded. This raised concerns about the prioritization of downtown developments over affordable projects in other areas. Participants questioned the rationale for reducing the affordability commitment from 30 to 15 years, with some arguing it undermines long-term affordability goals.