Background:
History: The Client-based Housing Program (HRA: Client-based Housing CP 1006848) was established in 2018 by the Hennepin County Housing and Redevelopment Authority (HCHRA) to provide targeted capital assistance to client-focused housing projects that preserve and expand the supportive housing system (Resolution 18-HCHRA-0041R1). The program advances 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 develop guidelines, criteria, and evaluation process, incorporating input from discussion at the HCHRA Board meeting in the fall of 2018. The program’s ‘Supportive Housing Program Guidelines and Criteria’ was adopted on May 14, 2019 (19-HCHRA-0011R1).
In February 2020, the county issued a request for proposals (RFP) seeking housing projects focused on people with severe addictions and people experiencing chronic homelessness. These populations have similar housing and service needs and preferences, and a high likelihood of leveraging services and operating funds.
The RFP garnered four proposals, totaling $2,550,000 ($2,160,000 available). Proposals were reviewed and ranked by a cross-departmental panel consisting of staff from HED and Human Services’ Housing Stability and Adult Behavioral Health areas, as well as representation from a community-based withdrawal management provider.
In addition to meeting HCHRA’s established guidelines and criteria, the three recommended projects:
-
Designate a high number of units reserved for the target groups,
-
Demonstrate track records for “screening in” and supporting the target groups, and
- Align with identified housing needs and preferences.
Together, the three recommended projects will create 88 new units of supportive, affordable housing; 20 units for people with severe addictions, and 68 units for people experiencing chronic homelessness. In addition to the 88 designated units, these projects will allow the developers to create an additional 50 housing units for people exiting homelessness, 7 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 $5,856,000 for a total of 212 units of supportive housing.
|
Capital |
Services/Operating |
Units |
| 2020 projected |
$6,000,000 [1]
|
$750,000
|
100
|
| Previously allocated |
$3,840,000 [2]
|
$0 [3] |
124 |
| This action |
$2,160,000
|
$0 [3] |
88 |
| 2020 totals to date |
$6,000,000
|
$0 |
212 |
| 2020 remaining |
$0 |
$750,000
|
|
[1] Includes Resolution 18-HCHRA-0043 (Supportive Housing, $2,000,000)
[2] Resolution 19-HCHRA-0057 (Catholic Charities’ Exodus Replacement Project) and Resolution 20-HCHRA-0003
[3] As part of the RFP process, the projects recommended in Resolution 20-HCHRA-0003 and in this action also identified ($600,105) in unique/unfunded annual service and operating expenses which are not eligible for funding under the HCHRA Supportive Housing Capital Program.
PROOOO2226 Alliance Housing – 700 10th Avenue South: $750,000
700 10th Avenue South, Minneapolis; construction of 55 affordable rental units; 48 for people experiencing chronic homelessness. Partnership with Avivo for services.
PROOOO2227 Project for Pride in Living, Inc. – Anishinabe III: $1,000,000
1600 East Franklin, Minneapolis; construction of 40 units of supportive housing with services
specialized to support Native Americans; 20 units for people with severe addictions, 20 additional units for people experiencing homelessness. Partnership with American Indian Community Development Corporation for services.
PROOOO2225 Community Housing Development Corporation – St. Stephen’s Emergency Shelter and Affordable Housing: $410,000
Minneapolis; construction of co-located shelter (to replace existing shelter) and 50 units of permanent
supportive housing; 20 units for people experiencing chronic homelessness. Partnership with St. Stephen’s Human Services for services.
Current request: This request is for authorization to negotiate Agreements PR00002226 with Alliance Housing, with a not to exceed amount of $750,000; PR00002227 with Project for Pride in Living, Inc., with a not to exceed amount of $1,000,000; PR00002225 with Community Housing Development Corporation, with a not to exceed amount of $410,000, during the period May 13, 2020 through May 12, 2065.
Impact/Outcomes: Approval of this request will create 88 new units of supportive, affordable housing, 20 units for people with severe addictions, and 68 units for people experiencing chronic homelessness. Additionally, this action will allow the developers to create 50 housing units for people exiting homelessness, 7 units of housing accessible and affordable to people with extremely low and low incomes, and preserve and improve an existing shelter program.
This request supports Hennepin County’s efforts to reduce disparities by aligning internal programs and projects to eliminate housing disparities for the county’s priority population of residents.