Item Description:
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2026 Supportive Housing capital program funding recommendations - neg 3 award modifications and 9 award agmts, 05/12/26-05/12/81, total combined NTE $6,795,267
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Resolution:
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BE IT RESOLVED, that the 2022 Supportive Housing Strategy awards (Resolution 22-HCHRA-0027) to The Link for the Link Supportive Housing project, in the amount not to exceed $500,000 (Agreement PR00004505), and to Beacon Interfaith Housing Collaborative for the Aster Commons project, in the amount not to exceed $950,000 (Agreement PR00004848), and the 2023 Supportive Housing Strategy award (Resolution 23-HCHRA-0019) to CommonBond Communities for the 1301 West Lake project, in the amount not to exceed $1,500,000 (Agreement PR00005285), be rescinded and reallocated for distribution under the 2026 Hennepin County Housing and Redevelopment Authority (HCHRA) budget as described herein; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED that the Executive Director be authorized to negotiate the following Agreements during the period May 12, 2026 through May 12, 2081:
• PR00008398 with Trellis Co, or affiliated entity, for the Camden Rise Early project, with a not to exceed amount of $480,000;
• PR00008394 with RS EDEN, or affiliated entity, for the Dillon Apartments project, with a not to exceed amount of $1,000,000;
• PR00008391 with 180 Degrees, Inc, or affiliated entity, for the Franklin-Columbus Stabilization project, with a not to exceed amount of $400,000;
• PR00008387 with Woda Cooper Companies, Inc and Project for Pride in Living, Inc, or affiliated entity, for the Lotus Pointe project, with a not to exceed amount of $840,000;
• PR00008399 with Matrix Development LLC, or affiliated entity, for the Senior Flats on Logan project, with a not to exceed amount of $480,000;
• PR00008389 with Bloomington Southview, LP and Sand Companies, LLC, or affiliated entity, for the Southview Estates project, with a not to exceed amount of $720,000;
• PR00008397 with The Link, or affiliated entity, for the Link Willard Gordon Buildings project, with a not to exceed amount of $1,000,000;
• PR00008401 with Zachary Development Group LLC, or affiliated entity, for the Woodson project, with a not to exceed amount of $480,000; and
• PR00008402 with Noor Development Group and Project for Pride in Living, Inc, or affiliated entity, for the Zaria project, with a not to exceed amount of $540,000;
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 a modification to the 2024 Supportive Housing Strategy award to VY Management for the Community Corner project in Brooklyn Center (Agreement PR00006161, Resolution 24-HCHRA-017), assigning the award to New Generations LLC, or an affiliated entity, with no change to the contract period of May 7, 2027 through May 7, 2079, and no change in the not to exceed amount of $1,000,000; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement and other necessary documents on behalf of the county; 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 two 2025 Supportive Housing Strategy Agreements approved under Resolution 25-HCHRA-0018, recognizing additional funding awarded from the 2026 Supportive Housing Strategy program, and extending the contract period from May 6, 2080 to May 12, 2081:
• PR00007250 with Trellis Co, or an affiliated entity, for the Cheatham Apartments project, increasing the not to exceed amount by $615,267 for a new total not to exceed amount of $2,065,267;
• PR00007251 with Trellis Co, or an affiliated entity, for the Flour Exchange project, increasing the not to exceed amount by $240,000 for a new total not to exceed amount of $840,000;
that the 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 the controller be authorized to disburse funds as directed.
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Background:
The Supportive Housing Strategy 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 that preserves and expands the supportive housing system. The purpose of this program is to advance the development of supportive housing through intentional and proactive county investment. Through the Supportive Housing Strategy, 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 coordinated affordable housing development request for proposals (RFP) which included the Affordable Housing Incentive Fund (AHIF) program, Supportive Housing Strategy, HOME Investment Partnerships (HOME) program, Community Development Block Grant (CDBG) and Local Affordable Housing Aid (LAHA) was released in December 2025. The RFP garnered 17 proposals eligible for Supportive Housing Strategy consideration, requesting a total of $20.9 million.
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. Proposals were then reviewed by staff from the Housing and Economic Development department, Human Services’ Housing Stability and Adult Behavioral Health departments, the Department of Community Corrections and Rehabilitation (DOCCR), and a multiagency panel of housing finance professionals, and members of the Lived Experience Advisory Group (LEAG) and Youth Advisory Board (YAB).
Consistent with guidelines established by the HCHRA, recommended projects include those that demonstrate feasibility, align closely with county-identified population need, commit to long-term affordability in a lease-based housing setting, and demonstrate likelihood of a strong positive impact on housing stability for residents.
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 inclusive screening 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 or preserve 144 housing units that are affordable at or below 30 percent of the area median income (AMI) and reserved for, and tailored to, vulnerable populations requiring services to maintain housing stability. This year’s recommended proposals will serve people experiencing the longest period of homelessness with additional barriers (also known as “high priority homeless” or “HPH”), people with disabilities and DOCCR connections, people with mental illness leaving treatment or at risk of institutionalization, and youth involved in Hennepin County systems.
Since 2018, and including these recommended 2026 allocations, the Supportive Housing Strategy capital program has committed approximately $34.4 million to assist the development and/or preservation of 713 units of supportive housing reserved for priority populations.
The 2026 recommended projects include $84,000 in unique annual support service costs. These service costs are not eligible for funding under the HCHRA Supportive Housing Strategy Capital Program; the service costs identified herein will be subject to a future Human Services budget request.
Recommended Project Awards:
Camden Rise Early - PR00008398 - Trellis Co - $480,000
4134 Dupont Avenue North and adjacent addresses in Minneapolis; construction of 17 affordable rental units (66 units total), of which 8 units will be set aside for people experiencing homelessness. Partnership with Simpson Housing for services.
Dillon Apartments - PR00008394 - RS EDEN - $1,000,000
3210 and 3218 Lyndale Avenue North in Minneapolis; preservation of 32 affordable rental units, of which 20 units will be set aside for people experiencing homelessness. RS EDEN to provide services.
Franklin-Columbus Stabilization - PR00008391 - 180 Degrees - $400,000
Various adjacent addresses at East Franklin Avenue and Columbus Avenue South in Minneapolis; preservation of 29 affordable rental units, of which 8 units will be set aside for people with disabilities and DOCCR connections. 180 Degrees to provide services.
Lotus Pointe - PR00008387 - Woda Cooper Companies, Inc. and Project for Pride in Living, Inc. - $840,000
6000 56th Avenue North in Crystal; construction of 34 affordable rental units (44 units total), of which 12 units will be set aside for people experiencing homelessness. Project for Pride in Living to provide services.
Senior Flats on Logan - PR00008399 - Matrix Development - $480,000
529 and 535 Logan Avenue North in Minneapolis; construction of 48 affordable rental units, of which 8 units will be set aside for people experiencing homelessness. Partnership with MySkye Care for services.
Southview Estates - PR00008389 - Bloomington Southview, LP and Sand Companies, LLC - $720,000
8901 Aldrich Avenue South in Bloomington; preservation of 34 affordable rental units (47 units total), of which 4 units will be set aside for people experiencing homelessness and 6 units for people with mental illness who are leaving treatment or are at risk of institutionalization. Partnership with Simpson Housing for services.
The Link - PR00008397 - Willard Gordon Buildings -$1,000,000
2220 16th Avenue North in Minneapolis; adaptive reuse to create 40 affordable rental units, of which 12 units will be set aside for youth experiencing homelessness and 15 units for youth involved in Hennepin County systems. The Link to provide services.
The Woodson - PR00008401 - Zachary Development Group - $480,000
Southern half of 3501 Hiawatha Avenue in Minneapolis; construction of 35 affordable rental units (105 units total), of which 8 units will be set aside for people experiencing homelessness. Partnership with Simpson Housing for services.
Zaria - PR00008402 - Noor Development Group- $540,000
3033 Blaisdell Avenue South in Minneapolis; construction of 90 affordable rental units, of which 9 units will be set aside for people experiencing homelessness. Project for Pride in Living to provide services.
2025 Supportive Housing Strategy Project Award Modifications:
Cheatham Apartments - PR00007250 - Trellis Co - $615,257 (new total NTE $2,065,267)
3716 Cheatham Avenue South in Minneapolis; construction of 79 affordable rental units (98 units total), of which 20 units will be set aside for people experiencing homelessness. Partnership with Simpson Housing for services. Future Human Services budget request for supportive services: up to $84,000 annually.
Flour Exchange - PR00007251 - Trellis Co - $240,000 (new total NTE $840,000)
310 Fourth Avenue South in Minneapolis; conversion of historic office building to housing, creating 84 affordable rental units (110 units total), of which 8 units will be set aside for people experiencing homelessness and 6 units for people with mental illness leaving treatment or at risk of institutionalization. Partnership with Simpson Housing for services.
Current request: This request is for authorization to negotiate nine implementation agreements and three award modifications with a total combined not to exceed amount of $6,795,267 under the 2026 Supportive Housing capital program.
Impact/Outcomes: Approval of these agreements will create or preserve 522 affordable housing units, including 235 housing units for households at or below 30percent of AMI, and 287 units for households at or below 50 percent of AMI. The selected projects will create a total of 144 Supportive Housing Strategy units reserved for the following populations referred from various Hennepin County service areas:
• 109 units reserved for households experiencing high priority homelessness
• 8 units for people with disabilities and DOCCR connections
• 12 units for people with mental illness leaving treatment or at risk of institutionalization
• 15 units for youth involved in Hennepin County systems
Housing Disparity Domain: Households of color are disproportionately housing cost burdened, and experience housing instability, including homelessness, at disproportionate rates. This request creates housing opportunities for individuals with incomes at or below 30 percent and 50 percent of area median income, and creates units specifically reserved for people experiencing homelessness and other Hennepin County priority populations.
recommendation
Recommendation from County Administrator: Recommend Approval