The Minneapolis Public Housing Authority (MPHA) is set to advance a significant redevelopment project known as the 809-828 Springs, aimed at rehabilitating 221 existing housing units while adding 15 new accessible, deeply affordable units specifically for senior citizens. This initiative is part of a broader effort to ensure that residents can age in place comfortably. A public celebration to announce the project details is scheduled for October 22nd.

Drew Hallin, a representative from MPHA, discussed the complexities of a new pilot program called Faircloth to RAD (Rental Assistance Demonstration), which is designed to help housing authorities unlock unused federal funding. The program is linked to the Faircloth Authority, which determines the number of public housing units eligible for operating and capital funding based on a political benchmark set in 1999. For MPHA, this limit stands at 6,393 units.

Hallin explained that the Faircloth to RAD program allows MPHA to access funding for units that have been shifted from Section 9 public housing to the more advantageous Section 8 housing choice voucher program. This shift has increased federal subsidies for family housing by approximately 2.5 times, allowing the authority to serve the same residents with the same staff while improving financial sustainability.

Despite the potential benefits, Hallin noted that the funding unlocked through this program remains inadequate, with estimates indicating a capital backlog of $260 million and only receiving 10 cents on the dollar from HUD. To address this shortfall, MPHA is requesting a one-time investment of $1.3 million from the city to supplement the funding necessary for the project.

Laura, another MPHA representative, highlighted that while the Faircloth to RAD program provides operating subsidies for new units, it does not offer federal resources for their construction. The financing for the Springs redevelopment will rely on bonds, low-income housing tax credits, and debt, with the higher subsidies for the existing units helping to offset the lower subsidies for the new units.

This pilot project represents a unique opportunity for MPHA to test the Faircloth to RAD program, potentially paving the way for future applications of this funding tool in Minneapolis and beyond. The authority aims to gather insights from this initiative to inform future housing strategies and address the ongoing challenges in public housing funding.