Minnesota Housing awards $39.5M to public housing

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By Dan Netter

BridgeTower Media Newswires

Eighteen public housing or redevelopment authorities throughout the state have been given nearly $40 million combined for completing needed renovations to some of their publicly owned buildings according to a press release from Minnesota Housing.

The agency is distributing $39.5 million to the various multifamily properties and townhomes for making infrastructure and mechanical systems updates, which will affect 1,641 units.

The funding is a part of the Publicly Owned Housing Program, or POHP. Three of the 18 properties are in the Twin Cities metro, the release said, while the remaining are located in Greater Minnesota, including three in Aitkin County and two in St. Louis County.

Minnesota Housing Commissioner Jennifer Ho said the need for help with restoring public housing is on a different scale when you get into Greater Minnesota. Compared to the portfolios of both Minneapolis and St. Paul’s public housing authorities, many of these authorities are smaller and could possibly only have one building that they operate.

“What we’re able to do and the reason that you see so much of this in Greater Minnesota is that we’re able to do more modest sized renovations that really address basic health and safety issues for public housing authorities and housing redevelopment authorities where this might be the only problem,” Ho told Finance & Commerce.

Minneapolis Public Housing Authority received $1.35 million from nearly $40 million that Minnesota Housing distributed. The bonds will allow for the MPHA to replace electrical components in the 630 Cedar high rise that are old and no longer in compliance with current city codes.

Abdi Warsame, the executive director of MPHA said in a press release that the money from the state will help 200 public housing residents. Poor funding in the past, according to the press release, meant the MPHA had to go with “band-aid options to triage leaky roofs, repairs and maintain brick facades” as well as repairing windows, plumbing and electrical systems.

Other projects that will be funded include Virgina HRA’s Columbia Rouchleau Apartments which will get $5.75 million, Midtown Manor in Duluth will get $2.88 million. The St. Paul Public Housing Authority will receive $7 million for the Mount Airy Hi-Rise apartment building and another $2 million for the Edgerton apartments.

Ho said that this year’s funding round for POHP is the largest ever because of the 2023 bonding bill that included the largest amount of money ever allocated for public housing. Ho said the agency will be putting out requests for proposals again for funds that were appropriated outside of the general obligation funds.