St. Paul, Minnesota, October 8, 2025
News Summary
A short-term bridge loan rescued a stalled senior housing project in St. Paul, allowing construction to continue and prompting the developer to move its banking relationship. Separately, a nonprofit secured a $32.9 million construction package for a 60-unit affordable building on East 7th Street that is already under construction. The St. Paul public housing agency and Ramsey County broke ground on 11 deeply affordable townhomes targeting households under 30% AMI. A local special election is spotlighting debate over student-oriented housing after zoning changes. Market data show a busy pipeline but a projected drop in affordable completions next year.
Twin Cities affordable housing update
What’s new: A short-term loan from a local bank rescued a stalled senior housing project in St. Paul; a 60-unit affordable apartment project secured nearly $33 million in construction financing and is moving fast; the public housing agency broke ground on 11 deeply affordable townhomes; and a special city council race is putting student housing rules at the center of local debate. Market data shows affordable completions are slowing compared with last year.
Bridge loan saves senior project
A Twin Cities affordable housing developer faced tough site and financing challenges on a new senior community in St. Paul. With construction financing still needed and several complicated pieces holding up progress, the developer secured a short-term bridge loan from a bank founded in 2005. That loan provided a key piece of financing and allowed the project to move forward. The developer has since moved its full banking relationship to the lender, which now handles construction financing, lines of credit, deposits, and other banking services for the organization.
The bank describes its role in the affordable housing space as more than just lending, emphasizing long-term relationships with housing developers and offering a range of products such as pre-development loans, acquisition financing, permanent loans, lines of credit and treasury management services. Local leaders on both sides said the lender anticipated needs and worked alongside the developer to keep the project alive.
60-unit East 7th Street project secures $32.9 million
A separate affordable housing nonprofit secured a $32.9 million construction package for a 60-unit community on East 7th Street in St. Paul. The financing includes tax credit equity and a bridge loan from the same financing partner. Construction began late last year and is already well underway, with completion expected within about a year.
The building will offer a mix of one- to five-bedroom apartments. Seventeen units will be income-restricted for households at up to 30 percent of area median income and 43 units for households at up to 60 percent of area median income. Seven apartments are reserved for people with disabilities and another seven are set aside for people experiencing homelessness, with county housing support programs helping to place the latter households. The community will include common-area features such as a gym, wellness room, storage, a conference room and a playground.
State housing tax credits passed in recent years played a critical role in the project’s financing. The nonprofit already owns and manages more than 1,700 affordable apartments across the metro and expects to add more than 200 additional units by year’s end.
Public housing agency breaks ground on 11 deeply affordable homes
The local public housing agency and county officials broke ground on a small but significant project to add 11 deeply affordable townhomes as part of a $4.8 million effort. Funded by the county and the housing agency, the plan includes seven units in one development and four units in another, all reserved for families earning less than 30 percent of area median income.
The homes will include sprinkler systems, enhanced security and durable finishes. At one site, the plan adds six two-bedroom units — including an accessible ground-floor unit — and a five-bedroom unit. At the other site, four three-bedroom units with accessible first floors are planned. The agency said these new homes represent the final available public housing subsidies the agency can deploy and are part of a push to use public housing development capacity to support the most vulnerable families.
Ward 4 special election spotlights student housing rules
A special election for a city council seat covering neighborhoods on the city’s western edge has turned attention to student-oriented housing. Since zoning rules were relaxed in 2023, student housing developments have been built on former single-family lots near a local university, prompting questions about whether the city should pause approvals while it studies impacts.
Candidates take a range of positions: opposition to a moratorium, support for a pause until neighborhood concerns are addressed, and proposals for a very short temporary moratorium to gather student input. The debate touches on broader city challenges: housing affordability, homelessness and how permissive to be with development when new supply remains limited in many parts of the city. The outcome is being watched as an early indicator of voter priorities ahead of a larger municipal election later in the year.
Market snapshot
Construction activity in the metro shows thousands of multifamily units underway, with roughly one quarter of those inside fully affordable projects. Last year more than 2,300 affordable units came online across the region. But projections show fewer affordable completions next year, with an expected drop of nearly 23 percent compared with the prior year.
How to submit an obituary to a local paper (process overview)
For people planning notices in a local daily paper, the general process requires sending obituary text and payment by specified deadlines, and supplying either a funeral home phone contact or a death certificate for verification. Proofs are emailed or faxed for review before publication. Payments are required in advance; credit card payments are usually accepted by phone, and cash or checks can be handled in person on weekdays. Families can contact the paper’s obituary desk during listed hours for questions and changes.
Why this matters
Each of these developments adds to the picture of how the region is trying to keep up with housing need. Short-term loans can save projects with complex sites, state credits and tax equity remain key to moving projects forward, public housing agencies continue to fill gaps at the deepest income levels, and local politics can shape how fast and where different kinds of housing are built.
Frequently asked questions
What is a bridge loan and why was it used?
A bridge loan is short-term financing that fills a gap when a project needs cash quickly to keep work moving. It was used to get construction started on a senior housing project that faced site and financing complications.
Who pays for deeply affordable public housing units?
Deeply affordable units are usually funded through a mix of public sources such as county dollars, public housing agency funds, state housing programs and sometimes federal resources, combined with development financing managed by the housing agency.
How long will the East 7th Street project take to finish?
Construction began late last year and is expected to finish in about 12 months from the time financing was secured.
What counts as deeply affordable?
Deeply affordable usually means homes reserved for very low-income households, often those earning less than 30 percent of the area median income.
How can residents learn about changes to local zoning rules?
Residents can follow city council announcements, attend public meetings, or contact their council offices to get updates and provide input on zoning and development rules.
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Key features at a glance
| Project | Location | Units | Target income levels | Funding highlights | Timeline |
|---|---|---|---|---|---|
| Senior housing (Treehouse) | St. Paul | Senior community (size not specified) | Senior income-focused affordable | Short-term bridge loan to resolve construction financing | Loan enabled project to continue |
| East 7th Street apartments | 892 E. Seventh St., St. Paul | 60 | 17 units at ≤30% AMI; 43 units at ≤60% AMI; units for disabilities and homelessness | Tax credit equity and $14M bridge loan | Under construction; expected complete in ~12 months |
| Public housing townhomes | McDonough Homes & Dunedin Terrace, St. Paul | 11 | <30% AMI | Funded by county and public housing agency ($4.8M) | Expected complete by fall 2026 |
| Ward 4 special election | Western St. Paul neighborhoods | N/A | N/A | Policy debate over student housing moratoriums and zoning | Special election held; seen as indicator for fall municipal race |
Deeper Dive: News & Info About This Topic
Additional Resources
- TCB Magazine: Laying the foundation for lasting change
- Wikipedia: Affordable housing
- Multi-Housing News: St. Paul affordable project lands $33M construction loan
- Google Scholar: East 7th Street St. Paul affordable housing
- Twin Cities: SPPHA to build 11 deeply affordable housing units
- Encyclopedia Britannica: public housing
- Axios Twin Cities: St. Paul council candidates on housing
- Google News: St. Paul housing council election
- FOX9: St. Paul woman facing homelessness after housing program accused of fraud
- Google Search: housing program fraud St. Paul
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