Late last year, MPHA awarded 26 project-based vouchers (PBVs) to Trellis as the company works to build 41 units of deeply affordable housing near 39th and Chicago in South Minneapolis—a block from George Floyd Square. The agency’s PBVs will help Trellis construct and operate the Calvary Apartments, 17 studios, three one-bedroom, 12 two-bedroom, eight three-bedroom, and one four-bedroom apartments available exclusively to residents making no more than 30 percent Area Median Income (AMI), otherwise known as “deeply affordable.” Fifteen of the units in the 41-unit development will be reserved for high-priority (chronic) homeless families and persons with disabilities, with wrap-around supportive services being provided.

“Project-based vouchers are one of MPHA’s most important tools to build and sustain deeply affordable housing in Minneapolis for the thousands of families in need,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority. “The agency’s partnership with Trellis to deliver deeply affordable units to George Floyd Square is a perfect example of the agency using its tools effectively to reach its goal of building at least 150 new units of deeply affordable housing each year for the next five years. The Minneapolis Public Housing Authority is dedicated to helping alleviate the affordable housing crisis in Minneapolis, self-developing, partnering with builders, and sustaining deeply affordable housing in every corner of the city.”

Rather than the traditional tenant-based Housing Choice Vouchers (“Section 8”) awarded to an individual or family, PBVs sit with physical units and provide developers and property managers a stable, long-term source of revenue and access to a steady stream of tenants from the agency’s Housing Choice Voucher waiting list. This process can take the challenges off of tenants securing their own housing from a Section 8-eligible landlord and instead creates a pipeline of subsidy-ready units across the city for some of the region’s most vulnerable residents and families. In the last five years, MPHA has awarded more than 700 PBVs, with a goal of awarding at least 200 a year over the next five years.

“Calvary is an uncommon project in that it has deeply affordable units available for large families—two-, three-, and four-bedroom homes—alongside wrap-around services for some of our community’s most vulnerable residents,” said Dan Walsh, Vice President of Housing Development at Trellis. “The Minneapolis Public Housing Authority was the catalyst for this unique project. The agency’s early commitment allowed Trellis to secure the tax credits necessary to make this project a reality. And, because of MPHA’s project-based vouchers, the development is set up to operate sustainably for decades to come.”

The Calvary Apartments broke ground in November 2022 and is scheduled to open in early 2024. The agency welcomes interested builders or developers to contact (pbvrfp@mplspha.org) to inquire about the benefits of PBVs, the RFP and bidding process, as well as how PBVs are awarded.