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Councilors discuss redirecting $880,000 LAHA allocation from supportive housing RFP to emergency shelter and prevention supports

5886349 · July 23, 2025
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Summary

Councilors and HRA representatives debated whether an $880,000 LAHA allocation intended for a supportive-housing RFP should instead support emergency shelter operations, prevention assistance and related emergency-response needs; the governing board will consider a recommendation the following day.

Councilors and HRA representatives discussed whether $880,000 allocated in the 2025 budget under LAHA (Local Affordable Housing Aid) for a supportive housing RFP should remain dedicated to supportive housing or be redirected to emergency shelter operations and prevention programs.

Chair Johnson explained the item was on the agenda to solicit council feedback before a governing-board meeting of Heading Home Ramsey the next day. The $880,000 allocation has been discussed by the Heading Home Ramsey steering committee and governing board; staff transmitted three written proposals to the council prior to the meeting. One proposal — the Move Up Minnesota supportive-housing approach — aligns with the original council instruction to fund a supportive housing RFP. Two other proposals came from providers and a steering-committee subgroup that argued for using the funds for emergency shelter operations and prevention services, given rising emergency needs and federal funding cuts.

Chair Johnson asked for commissioner feedback. Commissioner Prabotsky said he would be comfortable shifting funds toward emergency shelter operations, citing strong community support. Commissioner Kim also voiced support for redirecting funds toward emergency shelter capacity, noting the need for more beds and the role of coordinated entry. Commissioner Bowie emphasized the importance of ensuring the bulk of any award goes to direct assistance and services rather than overhead. Several commissioners said they trusted Heading Home Ramsey and the governing board to weigh the options; staff and council representatives said any final recommendation would need to be vetted for LAHA eligibility and to ensure funds would supplement rather than supplant existing services.

Johnson said the governing board would meet the next day and asked his colleagues for a temperature check; he and staff indicated the matter would return to the council or governing processes as required to meet legal and LAHA rule checks. No formal council vote was taken during this meeting; commissioners were providing guidance to the city’s governing-board delegates and staff.