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Hennepin HRA approves $19.2M in awards to create or preserve more than 1,400 affordable housing units
Summary
The Hennepin County Housing & Redevelopment Authority approved multiple 2026 funding recommendations and property transfers — a combined package of programs totaling about $19.2 million in awards that will create or preserve more than 1,400 affordable units, including supportive housing set-asides for priority populations.
The Hennepin County Housing & Redevelopment Authority approved a comprehensive set of 2026 funding recommendations and property disposition actions designed to expand and preserve affordable housing across the county.
Melissa Elias of Housing and Economic Development presented the Homeownership Assistance Fund awards: five recommended agreements totaling a combined not-to-exceed amount just over $1.5 million and a $300,000 transfer of capital project budget authority. Elias said the awards will support down-payment assistance and a mix of new construction, acquisition/rehab and administrative activity to produce 50 affordable homeownership opportunities targeted to households at or below 80% of area median income and prioritize first-generation homebuyers.
The HRA also accepted transfers of three surplus county properties in Minneapolis (3200 Queen Ave N, 3211 Penn Ave N and 3206 Penn Ave N) for disposition to developers selected through a joint RFP with the City of Minneapolis. Staff said the RFP received nine proposals and emphasized community feedback favoring affordable housing with active ground-floor uses or community spaces at the Penn & Lowery intersection near the C Line transit stop.
The board gave preliminary approval to issue up to $7.5 million in tax-exempt multifamily housing revenue bonds for Willow Woods, a preservation project in Plymouth that will retain 40 townhome-style units, 12 of which are reserved for households at or below 50% AMI and the remainder at or below 60% AMI; all units will benefit from project-based Section 8.
Julia Welly Ayers and other staff presented the supportive housing and AHIF/LAHA packages. Across federal and HRA programs staff said the actions total about $19.2 million in awards that will create or preserve more than 1,400 affordable units, including 522 supportive units from the supportive housing capital program; 114 supportive units were identified for priority population set‑asides and additional units were reserved for households exiting homelessness, seniors and people with disabilities.
Commissioners repeatedly praised the emphasis on preservation and stable funding after a competitive RFP cycle that was oversubscribed. “Housing ends homelessness,” one commissioner said during the meeting. The HRA approved the full package by voice vote and authorized staff to negotiate agreements and move forward with the disposition and financing steps described.
