Council advances $1 million joint powers rental-assistance pact with Hennepin County and debates expanding support

A $1 million joint powers agreement (JPA) to channel city funds through Hennepin County’s homelessness prevention program won approval from the Committee of the Whole on a 10–0 voice vote and will go to the full City Council Thursday. Amy (CPED project coordinator) presented the proposal, saying the county will contract with community-based providers to administer payments directly to landlords and that at least 80% of the funding must be used for direct financial assistance to eligible households.

Under the JPA, households must live in Minneapolis, have income at or below 30% of area median income (examples given: about $2,300/month for a single individual, about $3,300/month for a family of four) and provide a 30-day notice of eviction. The counties’ established providers named in the presentation include CLUES, Aye-San? (as listed in staff materials), and the Minnesota Indian Women’s Resource Center; checks would be issued to landlords on applicants’ behalf.

Councilmembers repeatedly pressed staff on whether the 30% AMI cut‑off would exclude many struggling households. Councilmember Osman urged negotiations with Hennepin County to widen eligibility; staff said the 30% threshold is a non‑negotiable element of the county program but that the county has already authorized up to $2 million under its JPA and additional providers could be added. Councilmember Chughtai and others pushed for fast timelines; staff said they expect applications to be available in mid‑April if the JPA is finalized and the city can increase its commitment up to the county’s $2 million authorization before formal execution.

Following extended debate about provider lists, geographic reach and income thresholds, members later moved a substitute proposal to increase the city contribution (advanced as a main motion) and ultimately voted to forward that larger package to Thursday’s full Council without recommendation so the body can finalize amounts and technical language. Staff said the county recently instituted a $10,000 lifetime cap per household for similar county assistance programs and that the city contribution would be counted against that cap.

What’s next: The initial $1 million JPA is primed for signature and implementation if the full Council approves it; any larger city contribution will require coordinating with Hennepin County’s board and additional contractual amendments. Staff will publish application channels and provider contact information and provide outreach materials to council offices and community partners.