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 roundup: bridge loan rescues senior project; $32.9M secured for 60-unit build; 11 new deeply affordable homes break ground; student housing fuels local election debate
The latest developments in the Twin Cities housing scene show momentum and strain at once. In the biggest immediate development, a short-term bridge loan rescued a stalled senior housing project in St. Paul. Meanwhile, a separate nonprofit secured a $32.9 million construction package for a 60-unit affordable building that is already under construction. The St. Paul public housing agency and county officials broke ground on 11 new deeply affordable townhomes funded through a $4.8 million effort. On the political front, a special city council election is spotlighting neighborhood concerns about student-oriented housing after recent zoning changes.
Bridge financing saves senior housing project
A Twin Cities affordable housing developer encountered tough site and financing hurdles on a planned senior community called Treehouse. At a late stage the project required construction financing that developer leaders described as critical. A regional bank provided a short-term bridge loan that covered the immediate funding gap and enabled construction to continue. The developer has since moved its banking relationship to that lender to handle future site financing, lines of credit and account services. Bank leaders framed their work as relationship-driven lending for the affordable housing sector and said supporting these projects is an institutional priority.
$32.9 million package moves 60-unit East 7th Street project forward
A nonprofit housing provider secured a $32.9 million construction financing package for a 60-unit affordable development on East 7th Street in St. Paul. The financing included nearly $19 million in 9 percent low-income housing tax credit equity and a $14 million bridge loan. Construction began last December and is already well underway, with completion expected in roughly 12 months.
The new building will offer one- to five-bedroom apartments and a mix of income restrictions: 17 units targeted at households earning up to 30 percent of area median income and 43 units for households at or below 60 percent of AMI. The plan sets aside seven apartments for residents with disabilities and seven for people experiencing homelessness, with the county helping to fill the latter through existing homelessness assistance systems. Common amenities will include a gym, wellness room, conference space, storage and a playground.
SPPHA and Ramsey County break ground on deeply affordable townhomes
The local public housing agency and county officials marked the start of construction on 11 new deeply affordable townhomes as part of a $4.8 million initiative. The project adds seven townhomes at one public-housing site and four townhomes at another, targeting families earning less than 30 percent of AMI. Units will include a mix of two-, three- and five-bedroom layouts, with accessible first-floor options, sprinkler systems and enhanced security and durability features. The agency noted this project uses the last available public housing subsidies under its control and said it is focused on maximizing public housing development capacity to serve the most vulnerable residents.
Local politics: student-oriented housing shapes Ward 4 special election
A special election for a city council seat that covers western neighborhoods of St. Paul has become a testing ground for voter attitudes on housing and development. Candidates hold contrasting positions on whether to pause student-oriented housing projects that have appeared on newly rezoned parcels near a major university. Some candidates oppose a moratorium, citing fiscal and revenue concerns, while others support a time-limited pause to gather resident feedback. The debate reflects broader tensions over affordability, homelessness, and how permissive the city should be toward new development.
Market context: pipeline, production and projected drop in 2025
Regional market data show a busy construction pipeline and a notable portion dedicated to affordable housing, but future completions are projected to fall. Roughly 8,000 multifamily units were under construction in the market in recent reporting, with about 2,000 of those inside fully affordable projects. Last year more than 2,360 affordable units were delivered across the metro; however, forecasts indicate only about 1,822 affordable apartments are expected to deliver in 2025, a near 23 percent drop year-over-year.
Why these developments matter
The combination of private bridge financing, tax-credit equity and county and agency funding illustrates how multiple funding tools must be coordinated to deliver affordable housing. Projects that target very low-income households rely on specific sources and partnerships; when any piece weakens, short-term lending or public subsidy decisions often determine whether a project proceeds. At the same time, community debates and local zoning choices continue to shape where and how new housing is built.
Notes on related administrative processes
The reporting that produced these facts included background on obituary and memorial submission rules for a regional newspaper. Key administrative practices noted include requirements to verify deaths through a funeral home or a death certificate, pre-payment before publication, and firm deadline windows for next-day or weekend publication. These items are procedural and unrelated to project finance, but they were part of the same information source.
Frequently asked questions
What is a bridge loan and why was it used?
A bridge loan is short-term financing used to cover a timing or cash-flow gap. In the senior housing project noted here, a bridge loan filled an immediate need for construction funds while longer-term financing or other project conditions were resolved.
How many units will the East 7th Street project add and who will they serve?
The East 7th Street project will add 60 units. Seventeen units will be restricted to households at or below 30 percent of area median income, 43 units will be restricted to households at or below 60 percent of AMI, and some apartments will be set aside for people with disabilities and for people experiencing homelessness.
What does “deeply affordable” mean in the SPPHA project?
“Deeply affordable” refers to homes targeted to households with very low incomes. The recent townhomes are being developed for families earning less than 30 percent of area median income, with features for long-term safety and accessibility.
Are these projects already under construction?
Yes. Construction for the East 7th Street project began late last year and is well underway. The rescued senior project was able to continue after the bridge loan; the SPPHA townhomes have broken ground with an expected completion in the fall of 2026.
How is the local political debate shaping housing policy?
Local electoral contests are focusing attention on whether to restrict or slow certain types of housing, such as student-oriented developments appearing under relaxed zoning rules. Candidates differ on moratoriums and on approaches to balancing revenue, neighborhood character and housing supply.
Quick reference table — key project features
| Project | Location | Units | Income targets | Key financing | Expected completion |
|---|---|---|---|---|---|
| Treehouse senior community | St. Paul | Senior housing (size varied) | Affordable senior units (varied) | Short-term bridge loan from regional bank | Construction continued after financing gap closed |
| East 7th Street | 892 E. Seventh St., St. Paul | 60 | 17 at ≤30% AMI; 43 at ≤60% AMI; units for disabilities and homelessness | $18.9M LIHTC equity; $14M bridge loan; state housing tax credits | About 12 months from current report |
| McDonough Homes & Dunedin Terrace townhomes | St. Paul (North End & West Side) | 11 townhomes (7 + 4) | <30% AMI | Funded by county and public housing agency ($4.8M) | Fall 2026 |
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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