Last week, the Minneapolis City Council approved the city’s 2025 budget, setting a new funding highwater mark for MPHA programs and activities at nearly $11 million. Included in this funding is the continuation of the $5 million annual housing tax levy, a $1.3 million investment to support MPHA piloting a new U.S. Department of Housing and Urban Development (HUD) funding program, $2.2 million in continued ongoing funding to support the nationally recognized Stable Homes Stable Schools (SHSS) program, a one-time investment of $830,500 to pilot a SHSS expansion into early childhood and middle school homelessness prevention, and $1.8 million (with $1.4 million ongoing in subsequent years) for the creation of a new city-funded Emergency Housing Voucher (EHV) program to mirror the successful but sunsetting federal program.

“We are honored by the trust Mayor Frey and the City Council have placed in MPHA as a partner in the work to address our city’s homelessness and affordable housing challenges,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority. “This agency administers numerous successful housing assistance programs. Chief among these is Stable Homes Stable Schools and the Emergency Housing Voucher program. I am heartened that our elected leaders understand the importance of these successful programs and are increasing the city’s support. This agency plays a critical role in addressing our region’s affordable housing challenges, and I hope other local and state leaders take note of what is possible when investing in MPHA’s award-winning work.”

Earlier this summer, MPHA leaders presented an update on the agency’s 2024 levy budget and a look at the agency’s five-year levy capital plan. Highlights from the agency’s 2024 levy budget included dedicating a portion of funding towards the agency’s next major high-rise renovation (Spring Manor), two scattered site infill projects (one duplex and one triplex), and modernizing elevator systems in two high-rises. The 2025 levy budget includes dedicating additional funds to the Spring Manor redevelopment project and replacing high-rise windows from the 1980s with energy efficient, code compliant windows that include fall protection safety features across the portfolio.

The City of Minneapolis’ 2025 budget includes an amendment led by Councilmembers Jason Chavez and Aurin Chowdhury, along with Council President Elliot Payne, to fund two SHSS pilot expansion projects in two core areas of need and opportunity: early childhood homelessness prevention and expanding the program into Minneapolis Public Schools (MPS) middle schools.

The early childhood prevention expansion will help reach families with infant to pre-school-aged children who are unstably housed to prevent any initial homelessness episodes. By preventing homelessness of 0 – 5-year-olds, SHSS can prevent the deficits that children impacted by homelessness bring into their primary school journeys. Services include financial assistance and case management.

And the middle school expansion is the natural next step for SHSS expansion. It will expand the reach of SHSS housing stability services to additional MPS schools, extending the stabilizing benefits SHSS delivers to additional children, families, and schools. Services include financial assistance and case management.

Full details for both pilot expansion programs can be found in this fact sheet, but MPHA estimates that an additional 180-225 families (representing 440-565 children) could be served by Stable Homes Stable Schools with these two expansions.

The other budget amendment, led by Councilmembers Robin Wonsley and Jamal Osman, creates a new city-funded EHV program that mirrors MPHA’s successful EHV program.

Created and funded through the American Rescue Plan Act of 2021 (ARPA), the EHV program connects federal rental assistance with local Continuums of Care (CoCs) and other partners to target resources to individuals and families who are homeless, at-risk of homelessness, were recently homeless, or have a high risk of housing instability.

In developing its EHV program, MPHA partnered with the Hennepin County CoC to identify chronically homeless individuals, and to establish a process of engagement with those individuals referred for the vouchers. The agency works with Hennepin County’s Coordinated Entry System to administer the EHV program, equipping individuals and families coming out of homelessness with wrap-around case management services provided by the county and county-contracted providers.

But while MPHA has developed a successful EHV program that has delivered millions in emergency rental assistance and helped 246 individuals escape homelessness, the EHV program’s funding is set to expire in September 2030. Unlike other HUD voucher programs that receive annual congressional appropriations, EHVs only received one-time funding through ARPA.

Councilmember Wonsley and Osman’s amendment will help the agency permanently fund 100 EHVs, modeled off the agency’s successful federally funded program. Full details on the federal EHV program and the agency’s proposal for a city-funded EHV program can be found in this fact sheet.

For both the SHSS expansions and the city-funded EHV program, MPHA will spend the coming months staffing up and creating the necessary administrative and compliance software systems. In the case of the city-funded EHV program, MPHA cannot simply continue to use federal documents, administration, and compliance systems. Therefore, the agency needs to build the unique systems and processes that mirror the federal program – a process the agency anticipates will run through summer of 2025 before the first city-funded EHVs are deployed. The agency will provide periodic updates on these two programs and the rest of the activities and programs funded in the City of Minneapolis’ budget throughout 2025.