Today, U.S. Senator Tina Smith, U.S. Department of Housing and Urban Development (HUD) Assistant Deputy Secretary for Field Policy and Management, Peter Hunter, Minneapolis Mayor Jacob Frey, Hennepin County Board Chair Irene Fernando, State Representative Sydney Jordan, and Councilmember Michael Rainville gathered in Northeast Minneapolis to unveil MPHA’s next major high-rise redevelopment project, the largest in the agency’s history. The estimated $65 million project will preserve 221 units across two neighboring buildings, investing more than $35 million in capital improvements, while also constructing a new four-story building that will create 15 new deeply affordable and disability accessible units (Nine one-bedroom and six two-bedroom units). The existing buildings are at 809 and 828 Spring Street Northeast.
The full scope of renovation work between the two buildings includes replacing and/or enhancing aging building systems (plumbing, electrical, HVAC), completing total unit renovations (kitchens, bathrooms, appliances, finishes), installing in-unit fresh air ventilation systems, adding new accessibility upgrades to some existing units, along with repairing exterior enveloping (replacing windows and roofing, repairing cladding). The agency is also updating and expanding resident community spaces, including adding new seating, tables, plantings, and adding covered areas to the outdoor space.
In the new four-story addition to 828 Spring, the agency will create nearly 4,200 square feet of new ground-level resident community space that will include office space, an internet lounge, a fitness room, indoor bike storage, and a large community gathering space. The new structure will house 15 new, disability accessible units across the three floors above the new ground-level community space.
The agency will also reorganize the existing ground-level space at 828 Spring, including rearranging the mail room and adding a dedicated package room, creating new MPHA staff offices and bathroom, relocating and expanding existing laundry, and creating a more secure front entrance and front desk building entry point.
“Today I have the honor of announcing the largest public housing redevelopment project in the city’s history,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority. “MPHA staff have been working with residents since late 2023 to craft a shared vision for this project. These existing buildings serve mostly elderly residents, and residents repeatedly shared how much they loved their community, and how they wanted to stay here as they aged. I am excited to share that this project provides residents that opportunity to age with dignity in the community they love.”
“Everyone deserves a safe, comfortable, affordable place to call home,” said U.S. Senator Tina Smith. “Without one, nothing in your life works – not your job, not your health, not your education or your family. I’m glad to see MPHA taking on this historic project that will bring us closer to meeting the urgent need that exists for affordable housing options in Minneapolis. This new Spring Street redevelopment project will help make sure that everyone – from seniors who have lived in the community for years to young families just starting out – can afford to stay here.”
“Minnesota’s families should have access to safe, affordable homes,” said U.S. Senator Amy Klobuchar. “The MPHA’s transformative Spring Street project is a significant step forward, creating new opportunities to deliver much needed housing in Minneapolis. This project highlights the power of federal, state, and local collaboration. We need to invest in more housing options like this to ensure families can afford to stay in the neighborhoods they call home and build a stable future, which is why I’ll continue working to secure federal resources for more housing in Minnesota.”
“The Biden-Harris Administration’s historic investment in housing is transforming communities across the Great Lakes Region, including through the redevelopment of projects like 809/828 Spring Street,” said U.S. Department of Housing and Urban Development (HUD) Assistant Deputy Secretary for Field Policy and Management, Peter Hunter. “Projects like this address our region’s housing needs and create new opportunities for our most vulnerable residents to access safe, affordable homes.”
“Our partnership with MPHA on the Spring Manor Apartments is a trail-blazing moment – using an approach that could set a new standard in public housing development,” said Minneapolis Mayor Jacob Frey. “This redevelopment will ensure that even more Minneapolis families have a stable, affordable place to call home. I am proud of the City’s $7.3 million investment that has made this project possible, and I encourage our state and local partners to join us in supporting this transformative work.”
“It’s going to take action at all levels of government to solve Minnesota’s housing crisis, and solutions like this redevelopment are just what our community needs,” said State Representative Sydney Jordan (DFL – Minneapolis). “In the Minnesota Legislature, we enacted a historic $1 billion investment in housing to build the homes our state needs. More projects like this – where we preserve existing units and build a little more – will better ensure every Minnesotan has a safe and secure place to call home.”
“Public housing plays a key role in our housing system and this project will ensure that Spring Manor stays open for many years to come,” said Minneapolis City Councilmember Michael Rainville. “I am proud that the City restored the housing tax levy last year to boost MPHA’s budget by $5 million to help preserve and grow their housing stock. We need all levels of government to step up and create more affordable housing options.”
Agency staff first began working with residents in late 2023 to gather input on how residents felt about a large-scale modernization project. And over the past year, residents helped craft a vision for this project through open houses, one-on-one meetings, resident design panels, and other community meetings.
One of the most consistent pieces of feedback residents shared throughout the process was the importance of the green space adjacent to 828 Spring. During warmer months, residents often enjoy the space alongside friends and neighbors. Hearing this feedback, MPHA is proposing to dedicate a significant portion of the new building’s ground level to fully accessible, year-round resident amenities. This includes an internet lounge, fitness room, indoor bike storage, and a large community gathering space.
In addition to working with residents on the project’s design and scope, MPHA staff have worked with every single household of 809 and 828 Spring Street Northeast to understand their relocation needs and are working to accommodate those needs while developing a relocation plan. For most residents, the plan is simply to move from their existing unit to a newly renovated unit. However, because the construction will be done in phases, some residents in the first construction phase will temporarily move into another unit on-site before moving permanently into a newly renovated unit. In all resident relocation plans, MPHA covers any associated moving costs for the household both to and from their unit.
In recent years, MPHA has delivered a variety of large-scale, resident-centered projects, including the $27 million Elliot Twins renovation in 2022 and the internationally recognized Family Housing Expansion Project in 2023. While the Spring Street project will leverage similar U.S. Department of Housing and Urban Development (HUD) subsidy and financial tools as the Elliot Twins renovation (and similarly comply with all federal and city Memorandums of Understanding and resident protection regulations), MPHA will be piloting a new HUD subsidy structure for the 15 new deeply affordable units using a HUD program called Faircloth-to-RAD (FTR).
Faircloth-to-RAD is a complex national program in its infancy. In short, it enables housing authorities to unlock previously unrealized federal subsidies to help build and sustain new deeply affordable housing. The program is largely untested nationwide, with HUD estimating fewer than 15 completed FTR projects across the country. But this pilot, if successful, offers the potential of unlocking millions in new, ongoing federal funding to build and sustain new deeply affordable housing in Minneapolis.
Earlier this summer, MPHA presented its plan to pilot FTR to Minneapolis Mayor Jacob Frey and city financial leaders as a part of the city’s annual budgeting process. Specifically, the agency requested a one-time $1.3 million investment from the city to help cover lost debt capacity resulting from the proposed 15 FTR units.
Mayor Frey and city leaders understood what this investment could mean for the city should the pilot succeed. And in August, Mayor Frey announced an additional $1.3 million direct contribution to MPHA to help overcome this challenge and move this pilot forward. This funding comes on top of the annual $5 million annual housing levy, of which MPHA is directing $6 million from to advance this project ($2.5 million in 2024 and $3.5 million in 2025). The mayor’s $1.3 million investment marks the first external financial commitment to the project. (For more information about FTR and MPHA’s proposed pilot to use the new program, click here.)
The agency is actively applying to a variety of federal, state, and local programs to provide additional project resources. The agency will also seek to leverage MPHA capital, Rental Assistance Demonstration (RAD), and Project-Based Voucher (PBV) resources and debt financing to couple with 4% Low-Income Housing Tax Credits (LIHTC) and bonds. Tentatively, MPHA is projecting an April 2025 closing on the project financing, with construction commencing shortly thereafter.
Project renderings files can be downloaded here.
