Background:
History: In 2018, the Hennepin County Housing and Redevelopment Authority (HCHRA) established the Client-based Housing Program 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.
In partnership, staff from Community Works and Health and Human Services drafted 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 (19-HCHRA-0011R1).
In September 2019, Hennepin County issued a request for proposals (RFP) focused on people experiencing chronic homelessness. This population was selected for the first RFP for its high likelihood of leveraging services and operating funds, an existing infrastructure for identifying and prioritizing within the group, and strong community support due to recent spikes in unsheltered homelessness.
The RFP garnered six proposals, totaling $4,090,000 ($2,000,000 available). Proposals were reviewed and ranked by a cross-departmental panel consisting of staff from Community Works and Human Services. Consistent with guidelines established by the HCHRA, recommended projects include strong project feasibility and cost reasonableness, 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 better assess project alignment with population-need, proposals were compared to the housing plan developed by county staff working most closely with the target population, as well as the results of a housing needs and preferences survey of people who were formerly chronically homeless. Additionally, a focus group of people who were formerly chronically homeless provided input on the proposals.
In addition to meeting HCHRA guidelines and criteria, the three recommended projects:
-
Designate a high number of units reserved for chronic homelessness
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Demonstrate track records for “screening in” and supporting people experiencing chronic homelessness
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Align with identified housing needs and preferences
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Have a strong likelihood of achieving a financial closing by 2021
Together, the three recommended projects will create 65 new units of supportive, affordable housing for people experiencing chronic homelessness. In addition to the 65 designated units, these projects will also create 45 housing units for people exiting homelessness, create 43 units of housing accessible and affordable to people with extremely-low and low incomes, and preserve and improve an existing shelter program.
This request would bring our cumulative capital allocations for Year 1 of the Supportive Housing strategy to $3,840,000 for a total of 124 units of supportive housing.
| 2020 projected |
$6,000,000 [1] |
$750,000 |
100 |
| Previously allocated |
$2,000,000 [2] |
$0
|
59 |
| This action |
$1,840,000 |
$0 [3] |
65 |
| 2020 totals to date |
$3,840,000 |
$0 |
124 |
[1] Includes Resolution 18-HCHRA-0043 (Supportive Housing, $2,000,000)
[2] Resolution 19-HCHRA-0057 (Catholic Charities’ Exodus Replacement Project)
[3] As part of the RFP process, the recommended projects also identified $337,650 in unique/unfunded annual service and operating expenses which are not eligible for funding under the HCHRA Supportive Housing Capital Program.
Recommended project awards:
PROOOO1966 Alliance Housing – 3301 Nicollet: $500,000
3301 Nicollet, Minneapolis; construction of 63 affordable rental units; 20 for people experiencing chronic homelessness. Partnership with Avivo for services and Hayes Gibson for property management.
PROOOO1962 Beacon Interfaith Housing Collaborative – Bimosedaa: $500,000
16 4th Street North, Minneapolis; historic rehabilitation and adaptive reuse to create 48 units of supportive housing with services specialized to support Native Americans; 15 units for people experiencing chronic homeless, 33 additional units for people experiencing homelessness. Partnership with Avivo for services and CommonBond Communities for property management.
PROOOO1963 Project for Pride in Living – 2740 Project: $840,000
2740 1st Avenue South, Minneapolis; construction of co-located shelter (to replace existing shelter) and 42 units of permanent supportive housing; 30 units for people experiencing chronic homelessness. Partnership with Simpson Housing Services for services.
Current request: This request is for authorization to negotiate Agreements PR00001966 with Alliance Housing, or affiliated entity, for the 3301 Nicollet supportive housing project, with a not to exceed amount of $500,000; PR00001962 with Beacon Interfaith Housing Collaborative, or affiliated entity, for the Bimosedaa supportive housing project, with a not to exceed amount of $500,000; PR00001963 with Project for Pride in Living, Inc., or affiliated entity, for the 2740 Project supportive housing project, with a not to exceed amount of $840,000; during the period January 15, 2020 through January 14, 2065.
Impact/Outcomes: Approval of these agreements will create 65 new units of supportive, affordable housing for people experiencing chronic homelessness. In addition, they will create 45 housing units for people exiting homelessness, create 43 units of housing accessible and affordable to people with extremely-low and low incomes, and preserve and improve an existing shelter program.