Project-Based Vouchers (PBV) are among the most effective tools MPHA has to help build new and sustain deeply affordable housing in Minneapolis. MPHA recently awarded 45 PBVs to four different Minneapolis housing developments. Across the four projects, a total of 272 new homes at various affordability levels have been proposed. At least 75 percent of MPHA’s 45 PBV units will be available to residents at or below 30 percent Area Median Income (AMI), with the remaining being reserved for those at or below 50 percent AMI.

Rather than the traditional tenant-based Housing Choice Vouchers (“Section 8”) awarded to an individual or family, PBVs sit with physical building units. This provides developers a long-term source of revenue via federal housing subsidies and access to a list of potential residents through MPHA’s Housing Choice Voucher waiting list. For the tenant, PBVs take the burden off individuals needing to secure their own housing from a Section 8-eligible landlord and instead creates a pipeline of subsidy-ready units across the city for qualifying families and individuals.

The PBV program at MPHA has been incredibly successful. In 2024, 189 PBV units were awarded, and another 202 previously awarded units came online. Since 2019, MPHA PBVs have accounted for more than half of all deeply affordable homes built in Minneapolis. The agency is committed to helping develop at least 150 new units of deeply affordable housing each year over the next three years as a part of the agency’s strategic plan.

Recent projects earning PBV awards:

Lot A
Sherman & Associates was awarded 10 PBVs as part of a 50-unit mixed-use building at 1500 South 4th Street in the Cedar-Riverside neighborhood. All 50 units, 10 two-bedrooms and 40 four-bedrooms, will be available to families at or below 50% AMI. Of the 50 units, 10 are set aside for High Priority Homeless households partnering with Simpson Housing Services. Of the 10 PBVs MPHA will support at Lot A, three are two-bedroom and seven are four-bedroom family units, all reserved for households at or below 30% AMI. The 6-story wooden frame project will feature 6,100 square feet for retail and 6,400 square feet of amenity space.

Flour Exchange
Trellis Management was awarded 15 PBVs as a part of a development revitalizing a historic, mostly vacant office building at 310 Fourth Avenue South in Downtown Minneapolis. The 110 units will be available for households at or below 70% AMI with units set aside for High Priority Homeless households. Of the 15 PBVs MPHA will support, five are two-bedroom and 10 are three-bedroom units. The Flour Exchange aligns with the City of Minneapolis’ Downtown Action Plan to encourage reimagining existing buildings for residential use. The project is skyway connected and walking distance from several parks, grocery stores and the rail system. Building amenities include a rooftop deck, on-site laundry, and on-site management.

Exodus (St. Olaf)
Aeon was awarded 10 PBVs as a part of a 72-unit renovation project of the vacant building at 819 Second Ave South in Downtown Minneapolis. The 72 studio units will be available for single individuals at or below 30% AMI. Residents will receive supportive housing services from Touchstone Mental Health. The development will have a community room, fitness center, bike storage and outdoor patio space. The location will offer residents walkable access to the rail system, employment center, libraries, and health facilities.

Lyndale Avenue Apartments
Trellis Management was awarded 10 PBVs as a part of a 40-unit building at 5719 Lyndale Avenue in the Windom neighborhood. Of the 40 units, 10 are set aside for High Priority Homeless households with supportive services provided by Simpson Housing Services. MPHA PBVs will support four two-bedroom and six three-bedroom units. All units will be available exclusively to households at or below 30% AMI. The Lyndale Avenue Apartments will have a patio, family play area, and community room.

###

In anticipation of funding and broader program changes, MPHA closed its rolling PBV RFP on December 31, 2024. As a result, MPHA received and awarded fewer PBV applications this summer than in years past. However, the agency welcomes interested builders or developers to contact (pbvrfp@mplspha.org) to inquire any time of year about the benefits of PBVs, the RFP and bidding process, as well as how PBVs are awarded.