Minneapolis PHA Celebrates $5 Million Investment from State Legislature

Date Published: 
May 31st, 2023

From the Minneapolis Public Housing Authority's website:

On Monday, the Minnesota Legislature wrapped up its legislative session, establishing the state’s biennial budget for the next two years. Included in the final billion-dollar housing budget (HF 2335) was a direct one-time cash grant of $5 million from the state’s surplus to help repair the agency’s portfolio of more than 700 deeply affordable family homes. This investment comes after agency staff spent this legislative session seeking a $45 million one-time cash grant (SF 1899/HF 2477) from the state’s historic surplus.

“I am incredibly thankful for the legislators who fought to ensure both MPHA and public housing residents across the state were included in the final billion-dollar housing budget bill,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority. “This $5 million investment is a down payment on the future of these homes, and the agency will continue to work with leaders at every level of government to secure the resources necessary to overcome decades of federal disinvestment and deliver the safe, stable, affordable housing MPHA residents deserve.”

Preserving this critical portfolio of deeply affordable family housing is a top agency priority. The portfolio’s current backlog of capital needs stands at $31 million. If left unaddressed, the need becomes $65 million by 2027. Currently, the agency is committing more than $2 million annually into capital repairs into the portfolio, but that investment is insufficient to address the portfolio’s needs. If left to only MPHA’s annual contribution, over the next 10 years, the portfolio of homes will end up in far worse condition than they are today and in jeopardy of becoming uninhabitable.

However, recent local investments are helping MPHA address this problem in a meaningful way. This new $5 million investment from the state builds on top of a recent $3.7 million investment in the City of Minneapolis’ 2023 budget, championed by Mayor Frey, to help address the capital backlog in the agency’s deeply affordable family housing portfolio.

While the agency has secured tens of millions in one-time, project-based, and ongoing funding support, it has not been enough. The agency will continue to elevate the importance of local investments in the public housing authority to help support its public and deeply affordable housing preservation and production activities.

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