MINNEAPOLIS—Today, the Minneapolis Public Housing Authority (MPHA) Board of Commissioners passed a resolution seeking approval for the agency to exercise its maximum levy authority allowable under state law in 2024, an amount equal to 0.0185% of the City of Minneapolis’ Estimated Market Value. In 2023, the max allowable levy amount would have generated an estimated $12 million in new funding for the agency. The agency’s request now travels to the Minneapolis Board of Estimate and Taxation, where MPHA’s maximum levy for 2024 will be set.
Chairman of the MPHA Board of Commissioners, Tom Hoch, and MPHA Executive Director/CEO, Abdi Warsame, released the following statements:
“The Minneapolis Public Housing Authority has not received any part of its housing levy since 2009, when the levy was discontinued during the depths of an economic recession,” said Minneapolis Public Housing Authority Board of Commissioners Chairman, Tom Hoch. “The time has come to reinstate this tool to help the agency address its capital backlog and develop new units as outlined in the agency’s new, five-year strategic plan.”
“I am thankful for today’s vote from MPHA’s commissioners, and I look forward to continuing conversations at Minneapolis City Hall about how important a fully funded housing levy would be to MPHA residents and voucher-holders,” said Minneapolis Public Housing Authority Executive Director/CEO, Abdi Warsame. “The agency’s nearly 6,000 units are critical city infrastructure, and they require a commensurate investment from the City of Minneapolis. The Mayor, City Council, and Board of Estimate and Taxation should seize this opportunity to approve new funding for the public housing authority to help deliver the affordable housing Minneapolis residents desperately need.”
Earlier this month, MPHA staff presented research on the impact of a fully funded housing tax levy in the City of Minneapolis to the Minneapolis Board of Estimate and Taxation (BET). The agency estimates a fully funded levy would generate $12 million annually in new funding to help MPHA expand its public and deeply affordable housing preservation and production activities.
Historically, the U.S. Department of Housing and Urban Development (HUD) has only provided about 10 percent of the funding necessary for major building improvements. In 2022, MPHA received nearly $20 million from HUD to help the agency address its estimated $210 million capital backlog. Relying solely on HUD’s annual capital funding, the agency projects its capital backlog will reach $403 million by 2043.
In recent years, the agency has pursued an all-of-the-above approach in seeking new funding and partners to help address its capital needs. The agency has made progress and secured tens of millions in one-time, project-based, and ongoing funding support. However, it has not been enough.
A tool authorized by state statute and used by nearly 100 localities across Minnesota, Minneapolis is one of only a few localities in the state currently using no part of its housing levy authority. While levying authority is granted to MPHA as a special district, the agency requires approval from the Minneapolis Mayor and City Council. Approving a fully funded housing levy would cost the median Minneapolis homeowner (home valued at $316,000) just under $4.50 a month. The new funding would go directly to supporting the more than 26,000 people MPHA serves, 83 percent of whom are Black/African American (~21,500 people), 39 percent are children under 18 (~10,000 children), and 21 percent are elderly (62+, ~5,000 elders).
