Downtown Vitality Fund

Downtown Vitality Fund is sponsored by City of Saint Paul. Provides financial assistance for housing and economic development projects that positively impact downtown Saint Paul through affordable housing development and activation of commercial spaces.

Downtown Vitality Fund | Saint Paul Minnesota Supporting projects that add vibrancy and investment throughout downtown Saint Paul.

Downtown Vitality Fund Interest Form (Both Housing and Economic Development) The Downtown Vitality Fund is a $5 million fund that financially assists housing and economic development projects that positively impact downtown Saint Paul through the development of additional affordable housing units and activation of vibrant commercial spaces. The fund is broken into two categories: Housing and Economic Development.

$3 million is allocated for housing developments, redevelopments, or office-to-housing conversion projects. $2 million of the fund is allocated for commercial capital improvement projects, equipment purchases with 5 or more years of useful life, and public realm improvements such as lighting, outdoor seating, or public art. What is Considered "Downtown"?

Downtown Vitality Fund dollars are available to organizations within the Downtown Improvement District , as defined by the Downtown Alliance. The Downtown Improvement District boundaries were updated as of January 1, 2025, and is reauthorized every 5 years. Eligible Applicants and Uses Funding is available for eligible for-profit and non-profit organizations and developers.

Housing: Eligible Applicants 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 incomes 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. Economic Development: Eligible Applicants 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. Economic Development: Eligible Uses 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. Housing Funding Priorities Projects that are prepared to close in 2026.

Projects with the greatest number of units created. Economic Development Funding Priorities 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. 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.

Interested organizations can submit an interest form to begin the application process. Submit a Downtown Vitality Fund Interest Form All projects must follow compliance requirements, established HRA and City Council approval processes, and applicable reviews. Applicants can learn more about contract compliance here .