Downtown Vitality Fund

Housing developers planning to develop or redevelop housing units or complete an office to housing conversion in downtown Saint Paul. 

All housing units must meet Local Affordable Housing Aid (LAHA) requirements and will be subject to annual reporting. Construction, acquisition, rehabilitation, and gap financing to provide affordable housing that have incomed which do not exceed:

• Homeownership – 115% of AMI
• Rental units – 80% of AMI

Housing developed or rehabilitated with funds under this section must be affordable to the local workforce. Housing financing may be provided in the form of a grant or loan. The structure of the assistance will be determined upon receipt of application and underwriting by PED staff. 

• For-profit entities engaged in an eligible activity and/or use located at a physical address or are relocating to a physical address within the eligible geography.
• Non-profit entities primarily engaged in economic development and an eligible use located at a physical address or are relocating to a physical address within the eligible geography.

The Downtown Vitality Fund can be used for:

• Building capital improvements – street level interior and/or exterior permanently affixed, physical enhancements which visible enhance the downtown experience.
• Equipment purchases with 5 or more years of useful life to update and/or expand business operations.
• Public realm improvements that are maintained by the private property owner and/or adjacent businesses, such as lighting, outdoor seating, or public art.

If the fund is oversubscribed, projects will be prioritized based on the following criteria:

• Projects that are prepared to close in 2026.
• Projects with the greatest number of units created. 

• Projects under $100,000:
  • Funding will be a grant that is distributed as a reimbursement as the project incurs eligible costs.
  • All projects will submit a program report and have a monitoring visit from PED staff within one year of project completion.
  • 5% of the total grant will be held in retainage by the City until the project is complete and demonstrates that all grant funded costs have been fully paid.
• Projects over $100,000:
  • Funding will be a deferred forgivable loan with a four-year term that is forgiven annually if the borrower:
  • Provides an annual report by year end of each year for the life of the loan.
  • Maintains operations in downtown Saint Paul or has a space that is actively being leased to a business operating downtown Saint Paul for the term of the loan.
  • A mortgage or other collateral placed on the subject property for the life of the loan.

Note: Any projects receiving over $500,000 must be approved by the HRA Board.