Item Description:
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2024 Supportive Housing Strategy funding recommendations - Neg a 2021 award modification, 05/07/24-05/06/79, neg 7 award agmts, 05/07/24-05/06/79, total combined NTE $7,576,709
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Resolution:
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BE IT RESOLVED, that the Executive Director be authorized to negotiate modifications to Agreement PR00003366 (Resolution 21-HCHRA-0018 adopted May 11, 2021) with Aeon, or affiliated entity, increasing the not to exceed amount by $1,950,000, for a new total not to exceed amount of $3,150,000, and extending the contract period end date from November 7, 2066 to May 6, 2079; that following review and approval by the County Attorney’s Office, the Chair be authorized to sign the agreement 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 the following Agreements during the period May 7, 2024 through May 7, 2079:
• PR00006162 with Project for Pride in Living, or affiliated entity, for the Downtown View project, with a not to exceed amount of $1,000,000;
• PR00006163 with Alpha Emergence Behavioral Health, or affiliated entity, for the Kendall House at Portland project, with a not to exceed amount of $201,709;
• PR00006159 with Matrix Development LLC, or affiliated entity, for the PennWood Village development, with a not to exceed amount of $900,000;
• PR00006157 with RS EDEN, or affiliated entity, for the Portland Village project, with a not to exceed amount of $775,000;
• PR00006161 with VY Management LLC, or affiliated entity, for the Community Corner development, with a not to exceed amount of $1,000,000;
• PR00006158 with VY Management LLC, or affiliated entity, for the LOMA development, with a not to exceed amount of $750,000;
• PR00006160 with Beacon Interfaith Housing Collaborative, or affiliated entity, for the NorthView project, with a not to exceed amount of $1,000,000; and
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 revise, as needed, the supportive housing funding amounts of the HCHRA approved projects in response to potential changes in a specific project's funding requirements providing that such revisions will not result in an increase in the aggregate funding of $7,576,709 or any projects being funded that have not been approved by the authority.
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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 2024. The Supportive Housing RFP garnered 24 applications, requesting a total of $30.4 million. Proposals were reviewed and ranked by staff from Housing and Economic Development, Human Services’ Housing Stability, Child Welfare, and Adult Behavior al Health departments, and the Department of Community Corrections and Rehabilitation.
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. 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, those County staff and members of the Lived Experience Advisory Group (LEAG) provided feedback on the proposals.
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 or preserve 184 deeply affordable housing units reserved and tailored to vulnerable populations requiring services to maintain housing stability, including:
• 125 units for households experiencing homelessness prioritized for housing by Hennepin’s coordinated entry system
• 12 units for people with complex medical conditions and currently homeless
• 8 units for people with disabilities and connections with Hennepin’s department of community connections and rehabilitation, and
• 39 units for people with mental illness leaving treatment, or at risk of institutionalization.
The projects include up to $230,206 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 2024 allocations, the Supportive Housing program will have committed approximately $27.8 million to assist the development and/or preservation of 575 units of supportive housing reserved for priority populations. Projects include $1,877,444 in unique annual support service costs. These service costs are not eligible for funding under the HCHRA Supportive Housing Program, as noted above, and will be subject to a future Health and Human Services budget request.
Recommended Project Awards:
PR00003336 - Aeon - St. Olaf-Exodus/819 2nd Avenue S - $1,200,000 (new total NTE $3,150,000)
819 2nd Avenue South, 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.
PR00006162 - Project for Pride in Living - Downtown View - $1,000,000
1205 Chestnut Avenue, Minneapolis; preservation of 39 affordable rental units; 20 units for people experiencing homelessness. Partnership with YouthLink for services. No direct county service funding.
PR00006163 - Alpha Emergence Behavioral Health - Kendall House at Portland - $201,709
3341 Portland Avenue South, Minneapolis; preservation of 16 rental units; 8 units w for people with disabilities and connections with Hennepin County’s Department of Community Corrections and Rehabilitation. Alpha Emergence to provide services. No direct county service funding.
PR00006159 - Matrix Development LLC - PennWood Village and Fresh Food Market - $900,000
2125 Glenwood Avenue North, Minneapolis; construction of 86 affordable rental units; 9 units for people experiencing homelessness; 9 units for people with mental illness leaving treatment or at risk of institutionalization, referred by the Section 811 program. Partnership with Simpson Housing and DHS-contracted service providers for services. No direct county service funding.
PR00006157 - RS EDEN - Portland Village - $775,000
1829 Portland Avenue South, Minneapolis; preservation of 26 affordable rental units; 20 units for people experiencing homelessness. RS EDEN to provide services. No direct county service funding.
PR00006161 - VY Management LLC - The Community Corner - $1,000,000
1500-1510 69th Avenue, Brooklyn Center; construction of 31 affordable rental units; 8 units for people experiencing homelessness; 12 units for people with complex medical conditions and currently homeless. Partnership with Touchstone Mental Health for services. Unique/unfunded annual support service costs: $122,206.
PR00006158 - VY Management LLC - The LOMA - $750,000
3246 Nicollet Avenue South, Minneapolis; construction/preservation of 62 affordable rental units; 15 units for people experiencing homelessness. Partnership with Touchstone Mental Health for services. No direct county service funding.
PR00006160 - Beacon Interfaith Housing Collaborative - The NorthView - $1,000,000
3806-18 3rd Avenue South, 3146 Cedar Avenue South and 2216 and 2220 Clinton Avenue South, Minneapolis; construction/preservation of 31 affordable rental units; 20 units for people experiencing homelessness. Partnership with Simpson Housing for services. No direct county service funding.
Current request: This request is for authorization to negotiate eight implementation agreements with a total combined not to exceed amount of $7,576,709 under the 2024 Supportive Housing program.
Impact/Outcomes: Approval of these agreements will create 144 new units, and preserve 40 existing units, of affordable, supportive housing for county-designated priority populations, including 125 units for households experiencing homelessness, 12 units for people with complex medical conditions and currently homeless, 8 units for people with disabilities, and 39 units for people with mental illness leaving treatment, or at risk of institutionalization. In addition to the 184 county-designated units, these projects will also create 72 housing units for households with extremely low-incomes.
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.
recommendation
Recommendation from County Administrator: Recommend Approval