Descendants of displaced West Side Flats residents get first chance at housing assistance

For the first time, St. Paul is offering funds to descendants of the West Side Flats, a frequently flooded neighborhood that was bulldozed in the 1960s to make way for a floodwall and an industrial park.

About 25,000 residents, largely from immigrant families, were displaced at the time, and many received less than fair market value or nothing at all for their homes, according to the West Side Community Organization.

5 EYEWITNESS NEWS has reported on a push for reparations to those whose ancestors lost property and wealth as a result of displacement from West Side Flats. Now, they will be able to access a pool of $2 million of down payment assistance through St. Paul’s Inheritance Fund, a program originally established for families who were displaced from the Rondo neighborhood during the construction of Interstate 94.

The Downpayment Assistance Program is open to all eligible homebuyers who fall within the income and asset qualifications, but additional funds are available for first-time homebuyers and those who qualify for the Inheritance Fund. When the program launched in 2023, it provided assistance to 40 St. Paul residents, including 13 through the Inheritance Fund.

The standard Downpayment Assistance Program can net homebuyers up to $40,000 for use toward a down payment, closing costs, or to buy down their interest rate in the form of a 15-year deferred loan.

To qualify, applicants must earn 80% or below area median income (100% AMI for Inheritance Fund applicants) and own no more than $25,000 in assets. A home loan preapproval or prequalification letter is also required.

Those who are eligible for the Inheritance Fund can receive between $50,000 and $110,000 in down payment assistance:

• $50,000 for households below 100% AMI
• Up to $90,000 for households at or below 80% AMI
• An additional $10,000 for first-generation homebuyers
• An additional $10,000 for people who purchase property in the communities where their ancestors were displaced, either in historic Rondo or the West Side Planning District

To access homebuying assistance through the Inheritance Fund, applicants are asked to fill out a separate form. The full terms of the Downpayment Assistance Program are available here.