Title
Resolution Approving and Authorizing the Assignment and Assumption of an Existing HOME Loan; Extension of Maturity Date of an Existing HOME Loan; Subordination to a New First Mortgage; And Execution of the Loan Documents and Related Documents for the Maryland Park Apartments At 1619 Maryland Avenue East; District 2, Ward 6
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WHEREAS, the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota (“HRA”) is a public body corporate and politic organized, existing, and operating under the laws of the State of Minnesota, Minn. Stat. Sec. 469.001, et seq. (the “Act”); and
WHEREAS, the HRA has the power to engage in development and redevelopment activities under the Act, and is authorized to create redevelopment projects as defined in the Act; and
WHEREAS, said activities include but are not limited to: (a) providing adequate, safe and sanitary dwellings, remedying housing shortages for low and moderate income residents, and providing housing for persons of all incomes through housing projects and development, (b) removing and preventing blight or deterioration, (c) bringing substandard buildings and improvements into compliance with public standards, (d) performing duties according to the comprehensive plan, (e) disposing of land for private redevelopment, and (f) improving the tax base and the financial stability of the community, (g) engaging in the aforementioned activities, with a focus on targeted neighborhoods, when these needs cannot be met through reliance solely upon private initiative; and
WHEREAS, the HRA is authorized to create redevelopment projects as defined in Minnesota Statutes, Section 469.002, Subdivision 14; and
WHEREAS, St. Paul Leased Housing Associates V, Limited Partnership, is the current owner of Maryland Park Apartments (the “Project”) located at 1619 Maryland Avenue East and is affiliated with Dominium; and
WHEREAS, in 2014 via RES 14-627, the HRA issued a deferred loan to St. Paul Leased Housing Associates V, Limited Partnership, in the amount of $600,000 using HOME funds (“HOME Loan”) to assist in the acquisition and rehabilitation of the Maryland Park Apartments which consists of 172 affordable housing units; and
WHEREAS, St. Paul Leased Housing Associates V, Limited Partnership desires to sell the Project and has identified LIH Maryland Park Associates, LLC, LEDG Capital, LLC and/or its affiliated entities as the potential buyer (“Buyer”); and
WHEREAS, St. Paul Leased Housing Associates V, Limited Partnership and LIH Maryland Park Associates, LLC entered in a purchase agreement on May 8, 2026, for a purchase price of $19,300,000; and
WHEREAS, the HOME Loan put restrictions on the sale of the Property such that the Property will not be sold, transferred, or conveyed without the prior written consent of the HRA; and
WHEREAS, execution of loan documents in connection with this resolution acts as that consent; and
WHEREAS, Buyer has requested that the HRA approve the execution of an assignment and assumption, extend the maturity date of the HOME Loan from June 26, 2046, through approximately November 30, 2056, (or 30 years from the closing of the property sale), and subordinate to a new first mortgage; and
WHEREAS, staff recommends to the HRA approval of the assignment and assumption of the HOME Loan, extension of the HOME Loan through approximately November 30, 2056, and subordination to a new first mortgage, for the reasons described in the staff report submitted to the HRA Board with this Resolution; and
WHEREAS, by this Resolution the HRA approves the assignment and assumption of the HOME Loan, extension the HOME Loan through approximately November 30, 2056, and subordination to a new first mortgage and finds a public purpose for the actions taken in connection with the Project. Now therefore,
BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota that:
1. The HRA Board of Commissioners hereby approves and authorizes the assignment and assumption of the HOME Loan, and any related documents.
2. The HRA Board of Commissioners hereby approves and authorizes the execution of a loan amendment to extend the HOME Loan, and any related documents.
3. The HRA Board of Commissioners hereby approves and authorizes the subordination of the HOME Loan to a new first mortgage and any existing mortgages originally in a higher lien position, and any related documents.
4. The HRA Executive Director, staff, and legal counsel for the HRA are directed and authorized to take all actions necessary to implement this Resolution.
5. The HRA Executive Director is authorized to negotiate and execute any loan documents amendments, and instruments in connection with this Resolution including without limitation the execution of a loan amendment to extend the HOME Loan, and any related documents.