MPHA outlines levy-backed plan to chip away at $290 million capital backlog; BET receives report

The Minneapolis Public Housing Authority told the Board of Estimate and Taxation on Aug. 13 that it will use the city's $5 million annual housing tax levy alongside state, federal and other funds to begin addressing an estimated $290 million backlog of capital needs across its portfolio.

MPHA Executive Director Ebdi Warsami said the agency serves “roughly around 5% of the city's population” and that “around 28,000 individuals benefit from the programs MPHA serves.” He told the BET that MPHA's housing stock includes 42 high rises, a large scattered‑site portfolio, 184 units at Glendale and a 16‑unit townhome development in Minnehaha, and that the estimated unmet capital need is “approximately $290,000,000,” rising by about $25,000,000 per year.

The presentation outlined work already completed and projects planned. Warsami credited multiple funding sources for recent work: a state award of about $1.35 million used on scattered‑site repairs; a city housing tax levy of $5,000,000 a year; city budget allocations of $830,000 to expand the Stable Homes/Stable Schools program and $1.8 million to deploy 100 emergency housing vouchers; and Hennepin County emergency assistance that helped deliver about $1,000,000 in rent relief to roughly 600 MPHA families. He said MPHA completed a multi‑year project to install fire‑suppression systems in all high rises—an effort that cost roughly $28,000,000 and finished about a year ahead of schedule.

MPHA described several near‑term development and preservation efforts that will be supported in part by levy funds: a $78,000,000 Spring Manor redevelopment to rehabilitate 221 units and add 15 new ADA‑accessible units (groundbreaking and closing were scheduled the following week); a RAD conversion project to rehabilitate 56 units across two mid‑rise buildings; and a scattered‑site infill program to add 25 family units at five sites across multiple wards. Assistant Director of Planning and Development Brian Schafer said that with levy and other funds MPHA expects to “touch 882 households” through those deployments in 2024–25.

Schafer and Warsami emphasized capital systems work for high rises—elevator modernizations, boiler replacements and window projects—along with smaller infill developments (triplex/duplex projects) intended to increase family‑sized units. MPHA said it is trying to limit the use of federal tax credit pipelines by relying more on levy and other local/state tools for some projects.

On Glendale, MPHA said staff have been meeting with residents since December to develop a vision, but work there is constrained by a potential historic‑preservation designation that the city council has referred back to staff. The agency said that uncertainty affects the timing and scope of redevelopment planning and funding.

Board members raised resident‑level concerns. Commissioner Payne noted reports from residents about shower leaks and black mold; Warsami said MPHA continues to address individual work orders and is conducting plumbing and window replacements as part of a systematic approach but did not provide exact counts of work orders. Warsami also said MPHA's high rises were inspected by the federal government in a recent year and received a 98.5% overall inspection score.

The BET acted to receive and file the MPHA presentation. President Steve Brandt said the board would "receive and file this item without objection," and the clerk recorded no opposition. No further formal action on levy levels was taken at the meeting; Brandt noted the levy will be before the board in September and that city leaders, including the mayor, will be invited to discuss the 2026 budget and levy timeline.

Why this matters: MPHA manages a large, aging portfolio that serves low‑income seniors, families with young children and people with disabilities. The presentation shows how local levy dollars are being combined with state, federal and county funds to address immediate safety, accessibility and preservation needs while planning larger redevelopment projects that will require coordination with city land‑use and historic‑preservation processes.