Inheritance Fund Frequently Asked Questions (FAQS)

The Inheritance Fund is a cornerstone initiative of Mayor Melvin Carter to address the lost generational wealth that occurred when hundreds of families were displaced from their homes for the construction of Interstate 94 between Lexington Avenue and Rice Street in the late 1950s.

The two City programs that currently include extra assistance for people eligible for the Inheritance Fund are the Downpayment Assistance program and the Homeowner Rehab program. These programs are for low- and moderate-income homebuyers or homeowners wishing to purchase or improve their home in Saint Paul.

Applicants eligible for the Inheritance Fund must be direct descendants of a property owner whose property was acquired by Minnesota State Department of Transportation for the Interstate 94 highway project between Lexington Avenue and Rice Street.

View a map of the boundaries of the Interstate 94 project and nearby Urban Renewal projects. The area eligible for the Inheritance Fund is marked in orange on the map.

Inheritance Fund eligibility is verified by community partner organizations. Applicants are eligible for Inheritance Fund layers of downpayment assistance or homeowner rehab assistance if they are a direct descendant of a property owner whose property was taken for the construction of I-94 in Rondo; or were displaced from the West Side flats area as defined in the “Flats to the Future” report.

Applicants who believe they are eligible for the Inheritance Fund should indicate that they are seeking verification of Inheritance Fund eligibility when applying for downpayment assistance or homeowner rehab assistance. Staff will refer those applicants to community organizations, who will review historical real estate records in relationship to the ancestor the applicant is directly descended from. The Rondo Community Land Trust (RCLT) is Saint Paul’s partner for verifying eligibility of applicants for the Inheritance Fund connected to the construction of I-94 through the Rondo community.

A direct descendant is a person who was born into or legally adopted into the direct line of the property owner whose property was taken (e.g., children, grandchildren, and great-grandchildren).

There is no limit to the number of direct descendants that can apply for the Inheritance Fund layers of assistance.

There is currently over $2.6 million available for the Downpayment Assistance program. Depending on how much assistance each applicant needs, we estimate being able to serve 35-40 homebuyers with this amount of funding over the next two years. The City will continue to identify and consider sources of funding that will allow us to continue or even expand the program.

No. If you are eligible for the Inheritance Fund, you may be qualified for more assistance with less strict requirements. Applications will be processed in the order received, regardless of the applicant’s Inheritance Fund status.

Interest in the Inheritance Fund has been astounding! We are currently sending out approximately 20 application packets a month to people who submitted an eligible intake form in the order they were submitted and as staff capacity and funding allow. After submitting an eligible intake form, applicants will get confirmation of their placement on the waiting list and what number they are. Not all applicants who receive an Inheritance Fund application packet are awarded downpayment assistance.

While we can’t predict when we will be able to reopen the process, we will continue to seek additional sources to fund the program and the staff to do so.

Yes. If you qualify for the Inheritance Fund layer of assistance, you may currently own a property and still apply for downpayment assistance for the purchase of a new home. However, the home purchased with downpayment assistance funding must be the primary residence of the homebuyer, and if the other property is not sold, but rather a source of rental income, that rental income is considered in the income limit calculation.

No. Only properties within the borders of the City of Saint Paul are eligible for funding through the Inheritance Fund layers of the Downpayment Assistance program and the Homeowner Rehab program.

There were multiple displacement events in the area between the 1950s and the 1970s. At this time, we are only able to verify property owners whose property was taken specifically by the Minnesota Department of Transportation for the construction of Interstate 94. Descendants displaced by the Western Area Addition, Central Village Addition and Cathedral Hill Redevelopment Area are not currently eligible for the Inheritance Fund layers of assistance. View a map of the displacement areas.

If Inheritance Fund eligible homeowners or homebuyers own or purchase a home in the historic Rondo neighborhood, they can access an additional layer of assistance to acknowledge the broader community harm done. The boundaries of historic Rondo for that layer of assistance are both sides of Lexington Avenue and Rice Street, between both sides of University Avenue and Selby Avenue. View the map of boundaries.

Information about historic Rondo and the Interstate 94 project can be found through the following organizations:  

• Historic Saint Paul
• Minnesota Historical Society  
• Latimer Central Library (archived phone directories)

No. The Inheritance Fund is not a part of the Reparations Committee.