Today, U.S. Senator Amy Klobuchar, Minneapolis Mayor Jacob Frey, Hennepin County Commissioner Angela Conley, State Senator Doron Clark, and Councilmember Michael Rainville joined MPHA leaders and residents in Northeast Minneapolis to break ground on MPHA’s Spring Manor redevelopment project, the largest public housing redevelopment in city history.

This $78 million project will preserve 221 units across two neighboring buildings, investing more than $30 million in direct capital improvements to the existing buildings, while also constructing a new four-story building that will create 15 new deeply affordable units designed for residents needing mobility accessibility features (nine one-bedroom and six two-bedroom units). Additionally, the agency will build a one-story structure that will connect 828 Spring to the new building, 824 Spring Street NE.

“Today we have the honor to break ground on the largest public housing redevelopment project in the city’s history,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority. “This $78 million dollar project will fully rehabilitate 221 units across two existing buildings, preserving them for decades. [And] in addition to making accessibility upgrades to existing units, MPHA is also building 15 new, fully accessible units so residents can age in place 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. The Spring Manor redevelopment, led by the Minneapolis Public Housing Authority, is turning residents’ ideas and needs into lasting investments for their future. That means clean water will continue to run from the taps, the lights will stay on, the air will stay cool in the summer, and the internet will be easier to access. Thanks to MPHA’s work and the advocacy of the people living there, residents will know they can stay here comfortably and affordably for the long haul.”

“Spring Manor is the largest public housing redevelopment in Minneapolis history — and it’s happening right here in Northeast,” said Minneapolis Mayor Jacob Frey. “We’re maintaining and upgrading homes for 200 seniors, while adding new, deeply affordable housing and modern community spaces that keep people rooted in the neighborhood they love. This project proves that when we work together, big things happen and lives change.”

“This is an exciting project and I am thrilled to have the city’s largest public housing redevelopment project occurring in the third ward,” said Minneapolis City Councilmember Michael Rainville. “MPHA has gone above and beyond to accommodate the current residents during this process and the final product will offer residents the most up to date housing and community spaces for public housing residents.”

Agency staff first began working with residents in late 2023 to gather input on how residents felt about a large-scale modernization project. Residents helped craft a vision for this project through open houses, one-on-one meetings, resident design panels, and other community meetings. With more than 80 percent of residents being at least 62 years old, and 50 percent being 70 years or older, accessibility is a major concern.

The full scope of renovation work between the two buildings includes replacing and/or enhancing aging building systems (plumbing, electrical, HVAC), complete unit renovations (kitchens, bathrooms, appliances, finishes), installing in-unit cooling and fresh air ventilation systems, adding new accessibility upgrades to some existing units, along with repairing exterior enveloping (replacing windows and roofing). The agency is also updating and expanding resident community spaces, including new seating, tables, plantings, and adding covered areas to the outdoor space.

In addition to the 15 new, disability accessible units on the top three floors of the new 824 Spring building, the agency will create nearly 4,200 square feet of new ground-level space that will include offices, an internet lounge, fitness room, indoor bike storage, and a large community gathering space. The agency will also remake the existing ground level at 828 Spring, including reorganizing the mail room and adding a dedicated package room, creating new MPHA staff offices, relocating and expanding the laundry room, and creating a more secure front entrance and front desk building entry point.

Agency staff have worked with every 809 and 828 Spring Street Northeast resident to understand and accommodate their relocation needs in their unique relocation plans. Through this work, staff were able to accommodate every residents’ relocation preferences during construction. For most residents, the plan is simply to move from their existing unit to a newly renovated unit. For residents whose units are part of the first phase of construction, they will move to other vacant units within the building before moving into a newly renovated unit.

A small number of residents requested temporary off-site relocation during construction, which staff were also able to accommodate using one of the agency’s many housing programs. For both on-site and off-site relocations, residents are guaranteed the right to return to their newly renovated home when construction is completed. In all resident relocation plans, MPHA covers any associated moving costs for the household both to and from their unit.

The Spring Manor redevelopment 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 MOUs and resident protection regulations). Unique to the Springs Manor redevelopment, however, is piloting a new HUD subsidy structure for the 15 new deeply affordable units using a HUD program called Restore-Rebuild. The agency’s ability to pilot this program was enabled by a $1.3 million one-time investment from the City of Minneapolis as a part of Mayor Frey’s FY25 budget.

Previously estimated at $65 million, the project closed its financing at $78 million in July. More than half of the total cost increase is attributed to a higher appraised value of the property (previously estimated at $10.5 million but appraised at $18.7 million for closing) – amounting to a “paper” cost increase, but not actually impacting the real cost of the project. The remaining increases include higher loan interest rates and fees, higher-than-expected subcontractor and professional service bids/costs, and a tariff contingency fund to mitigate a variable pricing risk on overseas materials.

The Spring Manor redevelopment project was made possible through the support of numerous financing partners. This includes $24.2 million in Low-Income Housing Tax Credit (LIHTC) equity provided by RBC, a $12.7 million contribution from MPHA, a $13.4 million permanent loan by ORIX Public Finance, $7.2 million in public housing levy dollars and CDBG funding from the City of Minneapolis, and a $364,000 Environmental Response Fund award from Hennepin County. ORIX Public Finance also provided a $37.9 million construction loan via Housing Revenue Bonds issued by the Hennepin County Housing and Redevelopment Authority.

The agency currently projects a 14-month construction timeline, with all work to be completed by the fourth quarter of 2026.

Project renderings and images from the 2024 project announcement, 2025 groundbreaking, and of the buildings can be downloaded here.