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.
Affordable housing moves forward across the Twin Cities as financing deals, new builds and local debates shape the near-term outlook
Short-term financing secured for a stalled senior housing project in St. Paul and a separate $32.9 million construction package for a 60-unit development mark the most immediate developments in a busy affordable-housing season for the Twin Cities. Public agency groundbreakings and a local election debate over student housing add context to a market that shows signs of slowing delivery of income-restricted apartments in 2025.
Bridge loan rescues senior project
A local nonprofit housing developer working on a new senior residence in St. Paul faced both site complications and tightening financing requirements that put the project at risk. The developer obtained a short-term construction bridge loan from a regional bank, which provided financing to move construction forward and allowed the project to remain on track.
The developer has since moved its banking relationship to the lender that provided the bridge loan, using the bank for financing of new sites, lines of credit and property account services. The lender offers a range of products for affordable housing projects, including pre-development loans, acquisition financing, permanent loans and treasury management for both local and national clients.
60-unit East 7th Street project gets full funding
A separate affordable community in St. Paul secured a combined financing package totaling $32.9 million to build 60 units on East 7th Street. The package includes tax-credit equity tied to a 9 percent Low-Income Housing Tax Credit allocation and a bridge loan. Construction started last December and is already well underway, with completion expected in about 12 months.
The upcoming community will offer one- to five-bedroom apartments and will set aside a mix of income-restricted units: 17 apartments for households at up to 30 percent of area median income, and 43 apartments for households at up to 60 percent of AMI. Additional set-asides include units for people living with disabilities and apartments reserved for people experiencing homelessness that will be coordinated with county housing programs. Amenities planned include a gym, wellness room, storage, conference space and a playground.
Public housing agency breaks ground on deeply affordable townhomes
The city’s public housing agency and county officials broke ground on an 11-unit project funded through a $4.8 million effort aimed at families earning less than 30 percent of AMI. The development includes seven townhomes at one site and four at another, with accessible units, sprinkler systems and durability features. The new homes represent the agency’s remaining public housing subsidy capacity and are scheduled for completion by fall 2026.
Local politics and student housing
A special election in one St. Paul ward is highlighting local tensions over student-oriented housing developed near a university after zoning rules were relaxed. Candidates differ on whether to pause these developments while the city gathers more community input. Observers view the contest as an indicator of voter sentiment ahead of a citywide mayoral election later this year.
Market snapshot
Regional market tracking shows a sizeable construction pipeline and thousands of multifamily units underway. Roughly 8,000 apartment units were in construction across the metro, with about 2,000 of those in fully affordable projects. Last year more than 2,360 affordable units came online in the metro, but projections show a decline in 2025: approximately 1,822 affordable apartments are expected to be delivered, a near 23 percent drop year over year.
Practical community information
Local public agencies and housing groups continue to coordinate funding and services for people exiting homelessness, residents with disabilities and households at the lowest income levels. For households and families tracking development timelines, several projects expect occupancy within one to two years, while larger pipelines will take longer to influence rental supply and affordability.
Obituary and memorial submission guidance
Local readers who need to place obituaries or memoriam notices can find procedures and contact paths through the community paper’s obituary desk. Submissions require funeral home verification or a death certificate, pre-payment and adherence to publication deadlines. Separate contacts handle memoriam notices and online changes; payment by credit card is accepted by phone to comply with payment security rules.
FAQ
How did the bridge loan help the senior housing project?
The bridge loan provided short-term construction financing that addressed timing and site-related challenges, enabling the project to continue into construction while longer-term financing is arranged.
What income levels will the East 7th Street development serve?
The community will include units restricted to households at up to 30 percent of area median income and units restricted to households at up to 60 percent of AMI, plus apartments set aside for people with disabilities and people experiencing homelessness.
Who is funding the 11 deeply affordable townhomes?
The project is financed through a joint public effort by the housing agency and county funds totaling about $4.8 million, with construction scheduled to finish by fall 2026.
What does the market data mean for renters?
Although many units are underway, projected completions of income-restricted apartments are lower in 2025 than the previous year, which may limit near-term growth in truly affordable supply.
Where can I get help placing an obituary?
Obituary submissions need verification from a funeral home or a death certificate, must meet publication deadlines, and require pre-payment. Contact information and submission hours are available through the community paper’s obituary desk.
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Key project features at a glance
| Project | Location | Units | Primary Funding | Target AMI | Expected Completion |
|---|---|---|---|---|---|
| Senior housing (Treehouse) | St. Paul | Senior community (size varied) | Bridge loan (short-term construction financing) | Senior-focused affordable units | Under construction after financing |
| East 7th Street | 892 E. Seventh St., St. Paul | 60 | $32.9M (LIHTC equity + bridge loan) | 30% & 60% AMI; set-asides for disabilities and homelessness | About 12 months from report |
| SPPHA townhomes | McDonough Homes / Dunedin Terrace, St. Paul | 11 townhomes | $4.8M (county + agency) | <30% AMI | 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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