Background:
The Supportive Housing Program was created by the Hennepin County Housing and Redevelopment Authority (HCHRA) Board of Commissioners (Resolution 18-HCHRA-0041R1) to provide targeted capital assistance to client-focused housing projects that preserve and expand the supportive housing system. The purpose of this program is to advance the development of supportive housing through 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.
A request for proposals (RFP) for the Supportive Housing program was issued in January 2023. Proposals were reviewed and ranked by staff from Housing and Economic Development, Human Services’ Housing Stability, Child Welfare, and Adult Behavioral Health departments, and the Department of Community Corrections and Rehabilitation. Proposals submitted through the 2023 Coordinated Affordable Housing Development RFP which met the Supportive Housing Program Guidelines and Criteria were also considered for Supportive Housing program funding awards.
Consistent with guidelines established by the HCHRA, recommended projects include strong project feasibility, commitment to long-term affordability in a lease-based housing setting, closest alignment with County-identified population need, and demonstration of a strong potential impact on service outcomes.
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 90 new units of supportive, affordable housing, including 6 units reserved for youth with foster care experience, 17 units for people experiencing chronic homelessness, 17 units for adults leaving or at risk of entering mental health treatment, and 42 units for high-priority homeless households. The projects include $238,000 in unique/unfunded annual support service costs which will be subject to a future Health and Human Services budget request.
Since 2018, and including these recommended 2023 allocations, the Supportive Housing program has committed approximately $18.79 million to assist the development and/or preservation of 421 units of supportive housing reserved for priority populations. Projects include $1,755,238 in unique annual support service costs. These service costs are not eligible for funding under the HCHRA Supportive Housing Program, as noted above, and are subject to future Health and Human Services budget requests.
Recommended Project Awards:
PR00005285 - 1301 West Lake housing development - CommonBond Communities – $1,500,000
1301 West Lake Street, Minneapolis; new construction of 120 affordable housing units; 17 units for people experiencing chronic homelessness, 7 units for other high-priority homeless households, and 6 units for youth with foster care experience. Partnership with Touchstone Mental Health and Bridge for Youth for services. Unique/unfunded annual support service costs: $238,000.
PR00005295 - 901 Cedar housing development – Reuter Walton –$600,000
901 Cedar Avenue South, Minneapolis; new construction of 126 affordable housing units; 12 units for high-priority homeless households. Partnership with Simpson Housing Services. No direct county service funding.
PR00005292 - Agra housing development – Wellington Management, Inc –$900,000
901 27th Avenue South, Minneapolis; new construction of 155 affordable housing units; 10 units for high-priority homeless households, and 8 units for adults leaving or at risk of mental health treatment. No direct county service funding.
PR00005296 - Olson Court/Park Plaza housing development – Trellis Co –$500,000
525 Humboldt Avenue North, Minneapolis; preservation of 134 rental units and new construction of 116 rental units; 10 units for high-priority homeless households. No direct county service funding.
2022 Supportive Housing Award Modification:
PR00004847 - NACC-H housing development - Native American Community Clinic and Wellington Management, Inc –$600,000 (new total NTE $1,050,000)
1213 East Franklin Avenue, Minneapolis; construction of 83 affordable rental units; 8 units people experiencing chronic homelessness, 3 units for other high-priority homeless households, and 9 for adults leaving or at risk of mental health treatment. Partnership with Avivo for services. No direct county service funding.
Current request: This request is for authorization to negotiate one award modification and four implementation agreements totaling $3,950,000 under the 2023 Supportive Housing program.
Impact/Outcomes: Five projects will create 90 new units of new affordable, supportive housing for county-designated priority populations, including 17 units reserved for people experiencing chronic homelessness, 42 units for other high-priority homeless populations, 17 units for adults leaving or at risk of mental health treatment, and 6 units for youth with foster care experience. These projects will also create 112 additional housing units for households with incomes below 30 percent of area median income.
Housing Disparity: Black, Latino/x, and Native American Households of color are disproportionately housing cost burdened. This request creates housing opportunities for individuals with incomes at or below 30 percent of the area median income.