Item Coversheet

Housing and Redevelopment Authority Board Action Request
21-HCHRA-0018

Item Description:
2021 Supportive Housing funding recommendations – Neg 3 2021 award agmts, 05/12/21-05/10/66, total NTE $4,100,000; modify 2020 award agmt, ext date to 05/10/66, incr NTE by $575,000; neg agmt(s) with vendor(s) for consulting svcs/pre-development asst, 06/1/21-05/31/26, total NTE $325,000
Resolution:

BE IT RESOLVED, that the Executive Director be authorized to negotiate Agreements PR00003365 with Beacon Interfaith Housing Collaborative, or affiliated entity, for the Vista 44 supportive housing project, with a not to exceed amount of $1,700,000; PR00003367 with Beacon Interfaith Housing Collaborative, or affiliated entity, for the Emerson Village supportive housing project, with a not to exceed amount of $1,200,000; PR00003366 with AEON, or affiliated entity, for the 819 2nd Ave supportive housing project, with a not to exceed amount of $1,200,000; during the period May 12, 2021 through May 10, 2066; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreements and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and

 

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate modifications to a 2020 Supportive Housing program funding award, approved under Resolution 20-HCHRA-0018, recognizing additional funding awarded under the 2021 Supportive Housing program: PR00002226 with Alliance Housing, Inc., or affiliated entity, for the 700 10th Avenue South project, increasing the not to exceed amount by $575,000 for a new total not to exceed amount of $1,325,000, and extending the contract period from May 12, 2065 to May 10, 2066; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreements and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed; and

 

BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate an agreement with one or more vendors to provide consulting services and pre-development assistance to develop a pipeline of new supportive housing projects, with a total not to exceed amount of $325,000; during the period June 1, 2021 through May 31, 2026; that following review and approval by the County Attorney's Office, the Chair be authorized to sign the agreement(s) and related documents on behalf of the authority; and that the Controller be authorized to disburse funds as directed.

Background:

History: In 2018, the Hennepin County Housing and Redevelopment Authority (HCHRA) established the Client-based Housing Program (HRA: Client-based Housing – CP 1006848) to provide targeted capital assistance to client-focused housing projects that preserve and expand the supportive housing system (Resolution 18-HCHRA-0041R1). The purpose of this program is to advance the development of supportive housing through more intentional and proactive county investment. The county identifies housing gaps, recruits and partners with supportive housing developers and providers, and provides early-in funding for projects that meet county objectives.

 

Housing and Economic Development (HED) partnered with staff from Health and Human Services to draft guidelines, criteria, and evaluation processes, incorporating input from discussion at the HCHRA Board meeting in the fall of 2018. The program’s guidelines and criteria, entitled ‘Supportive Housing Program Guidelines and Criteria’ was adopted on May 14, 2019 (Resolution 19-HCHRA-0011R1).

 

In January 2021, Hennepin County issued a request for proposals (RFP) focused on families involved with child welfare and people exiting mental health treatment. Proposals were reviewed and ranked by staff from Housing and Economic Development and Human Services’ Housing Stability, Child Welfare, and Adult Behavioral Health areas, as well as representation from the Racial Equity Advisory Committee and the Local Advisory Council on Adult Mental Health.

 

Consistent with guidelines established by the HCHRA, recommended projects include strong project feasibility, commitment to long-term affordability in a leased-based housing setting, closest alignment with county-identify population need, and demonstration of a strong potential impact on service outcomes.

 

To assess project alignment with population-need, proposals were compared to the housing plans developed by county staff working most closely with the target population.

 

In addition to meeting HCHRA guidelines and criteria, the recommended projects:

 

  • Designate a high number of units reserved for the target groups,
  • Demonstrate models for “screening in” and supporting the target groups,
  • Align with identified housing needs and preferences, and
  • Provide adequate support services and leverage funding for those services.

 

Together, the recommended projects will create 205 new units of supportive, affordable housing, including 32 units reserved for county-referred families with child welfare involvement, 30 units for county-referred people exiting mental health treatment, and 48 units for people experiencing chronic homelessness. In addition to the 110 county-designated units, these projects will also create 75 housing units for households exiting homelessness and 20 units affordable to households with extremely low-incomes. The 2021 projects include $632,000 in unique/unfunded annual support service costs which will be subject to a future Health and Human Services budget request.

 

Since its inception, and including the recommended 2021 allocations, the Supportive Housing program will have committed approximately $11,000,000 for a total of 290 units of supportive housing reserved for county-referred populations. All together, these awards represent $37,931 in capital funding per population unit, and $4,249 in service and operating funding per population unit.

 

  Capital  Services/Operating   Population Units
2021 projected                                 $5,000,000                   $750,000  100
This action                                                        $5,000,000[1]              $0 [2]  110 [3]
Program projected  $10,000,000  $1,500,000  200
Program to date  $11,000,000 $ 0 [2]  290

 

  1. Includes $325,000 for pipeline consulting services and pre-development assistance
  2. As part of the RFP process, the projects recommended in this action also identified $632,000 in unique/unfunded annual service and operating expenses which are not eligible for funding under the HCHRA Supportive Housing Capital Program. The total unfunded annual service and operating expenses, including Resolution 20-HCHRA-0003 and (Resolution 20-HCHRA-0018) are $1,232,105
  3. Includes $575,000 for 48 units that received $750K in 2020 (Resolution 20-HCHRA-0018)

 

Recommended Project Awards:

 

Supportive Housing

PR00003336 - AEON – 819 2nd Avenue S - $1,200,000
819 2nd Avenue S, Minneapolis; adaptive reuse/conversion of existing building into 60 affordable rental units; 30 units for people exiting mental health treatment; 30 units for people experiencing homelessness. Partnership with Touchstone Mental Health for services. No direct county service funding.

 

PR00003365 - Beacon Interfaith Housing Collaborative – Vista 44 - $1,700,000
44 12th Ave S, Hopkins; construction of 50 affordable rental units; 20 units for families with child welfare involvement; 25 units for homeless families. Partnership with Volunteers of America for services. Unique/unfunded annual support service costs: $390,000.

 

PR00003367 - Beacon Interfaith Housing Collaborative – Emerson Village - $1,200,000
1800 Emerson Ave N, Minneapolis; construction of 40 affordable rental units; 12 units for families with child welfare involvement; 20 units for homeless families. Partnership with Project for Pride in Living for services. Unique/unfunded annual support service costs: $242,000.

 

2020 Supportive Housing Award Modification

PR00002226 - Alliance Housing – 700 10th Avenue South - $575,000 (new total NTE $1,325,000)
700 10th Avenue South, Minneapolis; adaptive reuse/conversion of existing building into 55 affordable rental units; 48 for people experiencing chronic homelessness. Partnership with Touchstone Mental Health for services. No direct county service funding. Extending the project end date from May 12, 2065 to May 10, 2066.

 

Current request: Approve negotiation of supportive housing agreements and a 2020 award modification with a total combined not to exceed amount of $5,000,000 under the 2021 Supportive Housing Program (CP 1006848).

 

Impact/Outcomes: Approval of these agreements will create 205 new units of supportive housing, including 32 units for families with child welfare involvement, 30 units for people exiting mental health treatment, and 48 units for people experiencing chronic homelessness. In addition, they will create 75 housing units for people exiting homelessness and 20 units of housing accessible and affordable to households with extremely low and low incomes.

Recommendation from County Administrator: Recommend Approval