Rondo resident and community organizer Marvin Anderson, whose home and family business were destroyed in the 1960s when the freeway system came into the Twin Cities, looked out at I-94 last summer. (David Joles, Star Tribune/The Minnesota Star Tribune)

In the late 1950s, Marvin Roger Anderson's parents were part owners of 12 St. Paul townhouses, which they gave to the state for much less money than they were worth. A new eight-lane freeway was being built through the city's Rondo neighborhood, so the government sawed the property into two- and three-unit pieces, which were shipped to other parts of town.

Now, more than half a century later, families like the Andersons could receive up to $100,000 in public dollars to help them purchase homes near the ones they lost in St. Paul's Rondo neighborhood, a social, cultural and economic hub for the city's Black community.

St. Paul Mayor Melvin Carter recently revealed a proposal to launch a $2 million Inheritance Fund to assist some of those who lost properties when the construction of Interstate 94 ripped the Rondo neighborhood in two.

"This could be a real game-changer," Anderson said. "We have to know the details, but I think this idea resonates with so many people."

Carter's plan would allow former Rondo residents and their descendants who meet income eligibility requirements to apply for 15-year forgivable loans, which could be used to pay for a down payment or housing rehabilitation in St. Paul.

"This was all built on the premise that our apology for what happened to Rondo is incomplete until we start taking some steps to rebuild the intergenerational wealth they lost," said the mayor, whose father and grandparents were forced to move for the highway.

"I think I inherited seven deeds for properties that aren't worth the paper they're printed on," he added.

A 2020 study estimates that the Rondo community lost more than 700 homes and $157 million in home equity to I-94.

Rondo residents have for years been working on a number of efforts to restore their bisected neighborhood, including an ambitious proposal to build a multi-acre land bridge over the freeway.

"I think this Inheritance Fund is a huge milestone," said Jonathan Palmer, executive director of St. Paul's Hallie Q. Brown Community Center. "Because to my knowledge, this is the first time there's been an actual investment in individuals."

The 'vehicle of wealth'

Carter said his proposal is rooted in the idea that "home ownership is still the primary vehicle of wealth in our country."

The money for the Inheritance Fund would come from St. Paul's existing Housing Trust Fund, which the mayor created in 2019. Those dollars, coupled with funding from the state and federal governments, have been used in recent years to offer assistance with down payments or home repairs to St. Paul residents making up to 60% of area median income (which is $70,380 for a family of four).

Qualified St. Paul residents will still be able to apply for those loans — up to $40,000 for a down payment and up to $25,000 for home rehabs. But those who are able to prove their families lost property in Rondo when I-94 was built — and who make 80% of the area median income or less — will be eligible for additional loans. They could get an added $50,000 for down payments or added $10,000 for rehabilitation work.

Those individuals could also be awarded even more funding if their home is located near the Rondo neighborhood.

Loan forgiveness will likely be amortized over 15 years, said Tara Beard, St. Paul's housing director. If recipients move before then, they would have to pay back the city an amount based on how many years they lived in the home.

Many other details of the program are still being finalized, including how individuals will demonstrate their ties to Rondo. Given the plethora of existing data and research on the neighborhood, city officials and community members said they don't expect much difficulty establishing proof.

Additionally, St. Paul has not determined how it will select loan recipients if the city receives more applications than it can grant, Beard said.

The proposal will require the approval of the City Council, which acts as St. Paul's Housing and Redevelopment Authority. Carter said he hopes to get the group's sign-off before the end of the year, allowing St. Paul to start administering the loans in 2023.

Mikeya Griffin, executive director of the Rondo Community Land Trust, said her nonprofit is working to potentially make even more housing assistance available to complement what the city would give to displaced Rondo residents and their descendants

"I really think it's going to go a long way to healing," she said. "It's symbolic and it's tangible at the same time."

'Just the beginning'

Some residents have questioned how the Inheritance Fund may relate to St. Paul's reparations advisory group, which earlier this year recommended the creation of a permanent city commission for related policies and programs. Carter's 2023 budget proposal did not include money dedicated to staffing that work.

"One of the reasons I don't use the word 'reparations' here is because I've seen estimates and studies that suggest over $100 million in wealth was taken from our Rondo community. We're not going to scratch the surface anywhere near $100 million," said Carter, adding that he's "eager to hear" feedback from the advisory group.

Nieeta Presley, who was forced to move from her family's home in Rondo as a child, said she's "extremely excited" about the prospect of the Inheritance Fund.

"It's about time," she said. "I think this is just the beginning, but it's a very, very strong statement."

Presley said she sent her daughter home listings in Rondo a few years ago, but prices were too high. She wonders if the Inheritance Fund might be a way to make a home in the neighborhood accessible.

Anderson, too, wonders if he or his family members might be able to tap into the loans. Right now, he lives a few blocks outside of the official Rondo boundaries, but he's always thought it would be nice to move back.