In a recent government meeting, city officials discussed the urgent reassignment of a housing contract previously held by Rainbow Health to the Aliveness Project, following the abrupt closure of Rainbow Health on July 18. Matt Bauer, manager of finance and property services, outlined the transition, emphasizing that Rainbow Health had terminated its services, impacting approximately 45 households reliant on tenant-based rental support funded through the federal Housing Opportunities for Persons With AIDS (HOPWA) grant.

The decision to close Rainbow Health came shortly after the resignation of its CEO, following a vote of no confidence from the workers' union, SEIU Healthcare Minnesota. This closure, which violated contractual obligations requiring a 30-day notice for layoffs, left around 60 employees without jobs and raised significant concerns within the LGBTQ community regarding the continuity of support services.

Council members expressed their dismay over the loss of Rainbow Health, highlighting the critical role it played in providing not only rental assistance but also essential services for individuals living with HIV/AIDS. However, they praised the Aliveness Project for stepping in to manage the rental subsidies and for its ongoing commitment to the community. The Aliveness Project, which already had a contract with the city for 15 households, will now expand its capacity to support more individuals in need.

The council unanimously approved the reassignment of the contract, with members acknowledging the swift action taken by city staff to ensure that affected households would continue to receive necessary support. As the Aliveness Project prepares to take on this increased responsibility, city officials will monitor the transition to ensure effective management of the additional resources.