St. Paul HRA Clears Path for Owner-Occupied Sale at 556 Goten Street
The Housing Redevelopment Authority unanimously approved the release of a 4D affordable housing covenant, facilitating a time-sensitive home purchase for an income-qualified buyer.
St. Paul’s Housing Redevelopment Authority (HRA) moved swiftly on Tuesday, unanimously approving a resolution to release a 4D affordable housing incentive program covenant at 556 Goten Street. The decision, outlined in Resolution RES26-1026, was crucial to allow the sale of the property to an income-qualified owner-occupier to proceed without further delay.
The property, previously part of the city’s 4D affordable housing program, was in the final stages of a purchasing process. Lucas Allen, who presented information on the resolution, informed the HRA that the prospective buyer was utilizing Down Payment Assistance (DPA) funds to secure the home.
The home is currently within the purchasing process with an income qualifying owner-occupier who was actually using DPA funds to help with the purchase of the home. So the request is to release the restrictive covenant on 556 Goten so that the sale may commence.
Understanding the 4D Program
The necessity for the covenant release stemmed directly from the change in the property's intended use. As the 4D program specifically targets rental units, the sale to an owner-occupier rendered the property ineligible for the tax incentive, thereby requiring the removal of the associated covenant.
So the reason in this instance is because it will be owner occupied rather than a rental unit, and the 4D tax statute is only qualifying for rental units.
Other Topics from This Document
Resolution 26-10008: Reservation of funds for St. Paul projects applying for Minnesota Housing Finance Agency funding
Public Hearing Resolution 26-145: Sale and conveyance of HONE parcel at 1087 Ross Avenue, Development Agreement, and Expenditures for Redevelopment District 4
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