Item Description:
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2025 Supportive Housing Strategy capital funding recommendations - neg 7 agmts, 05/13/25-05/06/80, total combined NTE $6,350,000
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Resolution:
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BE IT RESOLVED, that the 2023 Supportive Housing Strategy program award to Reuter Walton Development LLC for the 901 Cedar project (Agreement PR00005295, Resolution 23-HCHRA-0019), in the amount not to exceed $600,000, be rescinded and reallocated for distribution under the Hennepin County Housing and Redevelopment Authority (HCHRA) Supportive Housing Strategy program; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the 2021 Supportive Housing Strategy program award to Beacon Interfaith Housing Collaborative for the Vista 44 project (PR00003365, Resolution 21-HCHRA-0018), be reduced by $1,600,000 to a new not to exceed amount of $100,000, and the $1,600,000 be available for redistribution under the HCHRA Supportive Housing Strategy program; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the Executive Director be authorized to negotiate these Agreements during the period May 13, 2025 through May 6, 2080:
• PR00007248 with Trellis Co, or affiliated entity, for the Bickham Court project, with a not to exceed amount of $1,200,000;
• PR00007250 with Trellis Co, or affiliated entity, for the Cheatham Apartments project, with a not to exceed amount of $1,450,000;
• PR00007251 with Trellis Co, or affiliated entity, for the Flour Exchange project, with a not to exceed amount of $600,000;
• PR00007252 with RS EDEN, or affiliated entity, for the Lindquist Apartments project, with a not to exceed amount of $1,000,000;
• PR00007253 with Trellis Co, or affiliated entity, for the Lyndale Avenue Apartments project, with a not to exceed amount of $500,000;
• PR00007254 with Volunteers of America National Services and Our Savior’s Community Services, or affiliated entity, for the OSCS-VOA Housing Project, with a not to exceed amount of $1,000,000;
• PR00007255 with CommonBond Communities, or affiliated entity, for the South Haven Summit Point project, with a not to exceed amount of $600,000; 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.
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Background:
The Supportive Housing Strategy 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 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. 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, and Homeownership Assistance Fund was released in December 2024. The RFP garnered 20 proposals eligible for Supportive Housing capital program consideration, requesting a total of $22.5 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, and a multiagency panel of housing finance professionals, and members of the Lived Experience Advisory Group (LEAG).
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 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 113 housing opportunities 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. All of the recommended proposals serve people experiencing the longest period of homelessness with additional barriers (also known as “high priority homeless” or “HPH”).
The projects include up to $293,255 in unique/unfunded annual support service costs which will be subject to a future budget request.
Since 2018, and including these recommended 2025 allocations, the Supportive Housing capital program has committed approximately $31.1 million to assist the development and/or preservation of 688 units of supportive housing reserved for priority populations. Projects include $2,163,493 in unique annual support service costs. These service costs are not eligible for funding under the HCHRA Supportive Housing Strategy Capital Program.
Recommended Project Awards:
Bickham Court (fka Perspectives) - PR00007248- Trellis Co. - $1,200,000
2753 Louisiana Court in St. Louis Park; preservation of 56 affordable rental units, of which 22 units will be set aside for people experiencing homelessness. Partnership with Missions, Inc for services. No direct county service funding.
Cheatham Apartments - PR00007250 - Trellis Co - $1,450,000
3716 Cheatham Avenue South in Minneapolis; construction of 98 rental units, of which 20 units will be set aside for people experiencing homelessness. Partnership with Simpson Housing for services. No direct county service funding.
Flour Exchange - PR00007251 - Trellis Co - $600,000
310 Fourth Avenue South in Minneapolis; conversion of historic office building to housing, creating 110 rental units, of which 8 units will be set aside for people experiencing homelessness. Partnership with Simpson Housing for services. No direct county service funding.
Lindquist Apartments - PR00007252 - RS EDEN - $1,000,000
1931 West Broadway in Minneapolis; preservation of 26 rental units, of which 20 units will be set aside for people experiencing homelessness. Partnership with The Link to provide services. No direct county service funding.
Lyndale Avenue Apartments - PR00007253 - Trellis Co - $500,000
5719 Lyndale Avenue South in Minneapolis; construction of 40 affordable rental units, of which 10 units will be set aside for people experiencing homelessness. Partnership with Simpson Housing for services. Unique/unfunded annual support service costs: up to $12,255.
OSCS-VOA Housing Project - PR00007254 - Volunteers of America and Our Savior’s Community Services - $1,000,000
2309 Chicago Avenue South in Minneapolis; construction of 40 affordable rental units, of which 20 units will be set aside for people experiencing homelessness. Our Savior’s Community Services to provide services. Unique/unfunded annual support service costs: up to $200,000.
South Haven Summit Point project- PR00007255 - CommonBond Communities - $600,000
3400 Parklawn Avenue and 5010 Summit Avenue in Edina; preservation of 129 affordable rental units, of which 13 units will be set aside for people experiencing homelessness. CommonBond Communities to provide services. Unique/unfunded annual support service costs: up to $81,000.
Current request: This request is for authorization to negotiate seven implementation agreements with a total combined not to exceed amount of $6,350,000 under the 2025 Supportive Housing Strategy capital program.
Impact/Outcomes: Approval of these agreements will create or preserve 442 affordable housing units, including 113 units reserved for households experiencing homelessness, 105 housing units for households at or below 30 percent of AMI, and 224 units for households at or below 50 percent of AMI.
Housing Disparity Domain: Households of color are disproportionately housing cost burdened, and experience housing instability and homelessness at disproportionate rates. This request creates housing opportunities for individuals with income at or below 30 percent and 50 percent of area median income, and creates units specifically reserved for people experiencing homelessness.
recommendation
Recommendation from County Administrator: Recommend Approval