Program Temporarily Closed

The Rondo Inheritance Fund Downpayment Assistance Program will open again in the first half of 2025. You will be able to begin your application online by completing an interest form that will request a copy of your mortgage preapproval along with an estimate of your income related to program eligibility. Once you complete the interest form, you will receive a full application. These applications will be processed on a first come, first served basis.

History

The Rondo neighborhood is a vibrant and resilient cross-section of Saint Paul, deeply rooted in community and connection. By the early 1930s, the neighborhood was the beating heart for our African-American community and home to thriving businesses, religious organizations and social clubs.

Two decades later, the economic and social diversity of the area was upended when the construction of Interstate 94 began in 1956. The 12-year highway corridor construction project decimated the footprint of the Rondo neighborhood, displaced over 600 families and laid to waste over $100 million in wealth.

During Mayor Carter’s 2023 budget proposal, he shared his vision for rebuilding family wealth that was lost during the highway construct and returning to the sons and daughters of Old Rondo their inheritance of homeownership.

What is the Rondo Inheritance Fund Downpayment Assistance Program?

The Rondo Inheritance Fund Downpayment Assistance Program (DPA) offers eligible homebuyers who are directly descended from an ancestor (i.e. a grandparent or great-grandparent) who lost property due to the construction of I-94 through the Rondo community. Rondo Inheritance Fund DPA recipients are eligible for up to $110,000 through a 15-year deferred term loan* at 0% interest to use toward the purchase of a home in Saint Paul. Funds can be used toward:

  • Downpayment
  • Closing costs
  • Interest rate buydown

Eligibility Requirements

To be eligible for the program, prospective homebuyers must:

Rondo Eligibility Areas - Inheritance Fund
  • Have verified direct descendency (i.e. displacement of grandparent or great-grandparent that owned property taken for the construction of I-94).
    • The Rondo Inheritance Fund is available to 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 (the orange area on the map).
    • Descendancy is verified by Rondo Community Land Trust.
  • Earn at or below 100% Area Median Income (see income limits)
    • Additional funding may be available for homebuyers at or below 80% Area Median Income (see income limits)
  • Provide a preapproval or prequalification letter from a lender
  • Complete a homebuyer counseling certification course that meets HUD standards from a HUD-approved counseling agency or a member of the Minnesota Homeownership Center’s Homeownership Advisors Network prior to closing on a new home

Financing Terms

Downpayment assistance is offered through 15-year deferred loans at 0% interest. Loans are secured by a subordinate mortgage. Each year of the term, the loan is forgiven at an amortized rate of one-fifteenth of the loan amount. Loan balance is due upon resale, refinance, or loan maturity except when there are no net proceeds.

Staff will contact eligible applicants on a first come, first served basis as funding allows.

Download Full Program Guidelines

Maximum Award Amounts

The amount of downpayment assistance for qualifying descendants depends on income level, first-generation homebuyer status, and location of the purchased home. For this program, a direct descendant is a person born into or legally adopted into the direct line of the property owner whose property was taken from the orange area of the map. 

Program LayerEligibility

Max Award

Inheritance Fund - Generational Wealth
  • Earn 100% AMI or less
  • Be a direct descendant of an owner whose property was taken to build I-94 in Rondo

$50,000

Inheritance Fund - Community Wealth
  • Earn 100% AMI or less
  • Be a direct descendant of an owner whose property was taken to build I-94 in Rondo
  • Property must be located in historic Rondo (the blue area on the map)

$10,000

Citywide Downpayment Assistance
  • Earn 80% AMI or less

$40,000

First Generation Homebuyer
  • Earn 80% AMI or less
  • Have never owned a home
  • Parents have never owned a home or lost most recently owned home to foreclosure

$10,000

 Maximum Available

$110,000

Income Limits

The Rondo Inheritance Fund Downpayment Assistance Program uses HUD income limits.

Family Size100% AMI80% AMI
1 person$87,000$68,500
2 persons$99,400$78,250
3 persons$111,800$88,050
4 persons$124,200$97,800
5 persons$134,200$105,650
6 persons$144,100$113,450
7 persons$154,100$121,300
8 persons$164,000$129,100
9 persons$173,900$136,900
10 persons$183,800$144,700
11 persons$193,800$152,600
12 or more persons$203,700$160,400

Process

Learn about the Rondo Inheritance Fund Downpayment Assistance Program process by viewing our roadmap or reading about each step below.

Graphic illustration of the Downpayment Assistance process, outlined below.
1

Prepare for the Program

Take these steps to prepare for the Rondo Inheritance Fund Downpayment Assistance Program:

  • Review program guidelines to make sure you’re eligible for assistance.
  • Gather descendency information about the parent, grandparent or great grandparent of yours that owned property that was taken for I-94, such as their legal name and address.
  • Find an approved homebuyer education course. You must complete an HUD-approved course before closing. Here are some local options for homebuyer education:
  • Get preapproved for a mortgage. You must submit preapproval with your program interest form.
2

Complete an Interest Form

Fill out an interest form when applications are open. If you’re eligible, staff will send you an application to complete. 

Staff will contact eligible applicants on a first come, first served basis as funding allows. Please note: There is high interest in this program.

3

Complete an Application

Staff will send you an application once the interest form with preapproval is received.

The application requires the same type of information required for preapproval. You must submit the following documents for all household members:

  • Rondo Inheritance Fund descendancy verification form, which you will send directly to staff at the Rondo Community Land Trust (Rondo CLT). Their contact information is included on the verification form.
  • Most recent year of Federal Income Tax Returns including all W-2s and/or 1099s
    • If you are self-employed, please provide a year-to-date financial income statement with 3 years’ worth of Federal Income Taxes to include all schedules filed to the IRS.
  • Three (3) months of current paystubs for all household income earners ages 18 years old or older.
  • Three (3) months of current financial statements for all household members. (bank account, stocks, bonds, CDs, crypto, etc).
  • Current award letters/income statements such as Social Security, pensions, retirement, child support & alimony payments.
  • If you have full time student household members ages 18 years old or older, proof of educational facility course enrollment/schedule is required.

Staff members will work with you to complete all the required documents.

4

Confirm Eligibility

Staff members will underwrite the application. If eligible, you will receive a three-month reservation letter of downpayment assistance funds. 

5

Complete Purchase Agreement

Start your home search. You must notify staff when there is a purchase agreement. 

6

Finalize Closing Documents

Staff members will request required documents from the lender. Underwriters will prepare the closing documents to send to the lender/title company. 

7

Closing

Staff members will send closing documents to the title company before closing. The City will wire downpayment assistance funds to the title company on closing day. 

Frequently Asked Questions

Additional Programs and Information

Downpayment Assistance and Homeownership Programs

Please check out the following partner organizations that also offer downpayment assistance and other homeownership programs:

Please also speak to your lender about other downpayment assistance programs that may be available to you.

Homebuyer Education Courses

Homebuyer education courses give you the information you need to be an informed buyer. Check out some options for homebuyer education courses:

Last Edited: April 10, 2025