Hello from the Capitol! We’re only a few weeks into the legislative session, but with the unseasonably warm weather and fast pace at the Capitol, it feels later in the year. Last year’s bonding bill is being heard in the Senate this week and we’re hustling from committees to meetings to make sure every elected official knows the importance of homes for all. 

STATE 

Building relationships: While few bills are moving yet, the Policy team has been hard at work setting up meetings and building the relationships we’ll need when things heat up. We’ve reached out to every new lawmaker and already had more than a dozen meetings. We’ve also sat down with some key leaders in the House and Senate. Over the next few weeks, we’ll shift our focus from education of freshman legislators to meeting with key committee members to advocate for the bonding bill.

Bonding bill update: There’s still no consensus on whether a bonding bill will pass this year. But after encouraging meetings on both sides of the aisle, we have no reason to be pessimistic — though we’ll need to push hard to make sure housing is a priority. The Homes for All coalition has secured Sen. Senjem to be the chief author of its bonding bill for $100 million and is working to secure a House sponsor. Sen. Senjem also has introduced SB 210, a bonding bill that includes $45 million for housing and is very similar to the compromise bonding bill from the end of the 2016 legislative session. This bill is being heard in the Senate Capital Investment committee this week and has bipartisan support. We’re optimistic it will pass the Senate.

Governor’s budget: The Governor’s budget proposal, released today, invests $10 million across Minnesota’s Housing Continuum. This is a good start at the beginning of session, but we know the need for affordable housing is critical throughout Minnesota. Homes for All’s budget request includes $30 million for programs to prevent and end homelessness, increase the supply of affordable housing and help first time homebuyers across the state.

Local Housing Trust Funds: One of our priorities this session is clarifying and encouraging Local Housing Trust Funds, which provide a consistent, flexible resource for the development of affordable housing within a local jurisdiction. Thus far, the idea has been very well received. A number of Minnesota cities are currently looking at establishing housing trust funds and are very excited about the possibility of a state matching fund — and legislators have been supportive of the concept, too. Draft legislation coming soon.

FEDERAL

Trump executive order: A week before President Trump took office, the Obama administration issued an executive order that cut the cost of Federal Housing Administration mortgage insurance by almost a third. After being sworn in on Friday, President Trump signed an executive order that rescinded the cut. Estimates predict that, under the Obama cut, a homebuyer borrowing $200,000 would have saved roughly $500 per year. Many advocates have criticized the act as running contrary to the President Trump’s campaign vows to help average families.   

Election and tax reform: Since the election of Donald Trump in November, there’s been plenty of speculation on the possible negative impacts on the affordable housing market. Chief among the concerns is that tax reform will lessen the incentive to invest in the Low Income Housing Tax Credit (LIHTC). Unfortunately, we’ve already started to see projects in Minnesota need additional gap financing. The other cause for concern is President Trump’s plan to cut non-defense discretionary spending by 1 percent each year for 10 years. This cut could have devastating impacts on those receiving — and those in need of — housing assistance. Trump’s appointee for HUD Secretary, Ben Carson, testified in his confirmation hearing that he would implement Trump’s plan.

Speaking of Ben Carson… In his Senate hearing this month, Secretary Carson’s testimony focused on the link between housing and health, regulatory barriers to affordable housing, and the role of the federal government in promoting economic mobility. He acknowledged the critical role of federal housing programs but stressed the need to look for greater efficiencies and a more holistic approach to addressing poverty. If confirmed, he plans to organize a listening tour to hear from practitioners and advocates. Carson confirmed that the Fair Housing Act “was one of the best pieces of legislation” and he will enforce the “laws of the land.”

United for Homes: The National Low Income Housing Coalition (NLIHC) hosted a webinar to kick off the 2017 restart of the United for Homes Campaign, an effort to fund housing programs benefiting extremely low-income renters through the restructuring of the federal mortgage interest deduction (MID). Currently, Rep. Keith Ellison (MN-5) is circulating a “Dear colleague” letter to be delivered to the leadership of the Ways and Means committee, asking committee leadership to direct any savings from reducing or eliminating housing tax benefits (such as MID) through federal tax reform to housing programs serving low-income people. Both NLIHC and Rep. Ellison see a new opportunity to fund housing programs since major tax reform is a priority for both Congress and the Trump administration.

As we transition to the New Year, MHP is delighted to announce the hiring of new and the promotion of current staff members.

Abriana Myles was hired as a part-time Office Associate and Helena Bruce was hired as a full-time Community Development Associate.

Barbara Dolan, who has worked in MHP’s Community Development department since January 2015, was promoted from Housing Associate to Community Development Officer.

Rosemary Fagrelius, who has successfully directed the Community Development department for the past 10 years, received the additional title of Deputy Executive Director.

Kristina Gronquist, hired as Business Manager in 2014, received the new title of Director of Finance and Human Resources.

Libby Murphy, Policy Associate since 2014, received the additional title of Deputy Policy Director.

Gabriela Norton, hired in Fall 2015 as an Office Associate was promoted to Research & Communications Associate.

Welcome to our new staff members and congratulations to all in their new roles!

For the fifth consecutive year, the Minnesota Housing Partnership is among a small, select groups of organizations nationwide awarded a grant through the federal Rural Capacity Building (RCB) program. The $816,455 grant for 2016 adds to millions of dollars invested in MHP to build the capacity of rural leaders to solve housing and community development issues in their communities.

The RCB award will fund MHP’s Strengthening Rural Communities (SRC) program, which gives leaders the tools and knowledge they need to identify and address regional development needs through strategic collaboration.  According to MHP Community Development Director Rosemary Fagrelius, SRC is all about empowering rural communities to address development challenges head on. SRC positions key local entities as the go-to organizations for housing and development needs in their region.

“What excites me most about the Strengthening Rural Communities program is the fact that I’ve seen how, for many rural communities, this funding provides the opportunity to build their own internal capacity,” Fagrelius said. “This program empowers communities to address the challenges they face by giving them the tools and skills they need to collaborate with developers and take a regional approach to community development.”

Over the past five years, MHP has utilized RCB funding to provide capacity building assistance in rural and tribal communities in eight states — North Dakota, South Dakota, Kansas, Minnesota, Ohio, Oklahoma, Washington and Wisconsin. Through MHP’s SRC program, for which RCB funding provides support, MHP has provided technical assistance to 139 employees at 57 organizations and supported the placement of 140 housing units into the development process.

The results are breaking new ground for rural communities. For instance, in August the Northwoods Niijii Tribal Communities in Wisconsin — an SRC participant supported by MHP’s 2012 RCB award — started construction on Waaswaaganing Indian Bowl Living Arts and Culture Center — a gathering place to share and sustain Ojibwe artistry and culture. Emerson Coy, Vice President and Treasurer of the Waaswaaganing Indian Bowl and Director of Planning for the Lac du Flambeau Tribe, says the new Indian Bowl will be “like a cornerstone” for the Lac du Flambeau community. Coy emphasizes that this project will benefit not only the local community, but everyone who visits it.

Groundbreaking for the Waaswaaganing Indian Bowl Living Arts and Culture Center (via Facebook)

“We all have something to learn from each other, and it’s not just entertainment,” Coy says. “It’s an interactive activity when you come to a powwow and when you participate in the arts. There is so much to learn. I think people can walk away being a little more grounded in their life and learn from the experience. They can learn about balance. They can learn about nature. They can learn about culture. And they can learn about themselves.”

With the support of the 2016 RCB award, MHP will work with the Northern Maine Development Commission (NMDC) to build their capacity as a rural housing development organization in Aroostook and Washington Counties. These counties face significant challenges: a steadily declining population, aging housing stock and a median household income significantly lower than the national median. MHP will assist NMDC in addressing these challenges through partnership building, planning for economic development projects and by helping NMDC tap into funding that supports the development and rehabilitation of affordable housing in the region.

In addition to supporting NMDC, MHP will utilize RCB resources to provide assistance to other eligible organizations that apply to participate in SRC. Ultimately, MHP will utilize the 2016 RCB award to continue to provide technical and financial assistance that:

• Bolsters communities’ affordable housing development and rehab capacity to ensure housing access for communities’ lowest-income residents.
• Expands communities’ capacity to access funding in the early stages of their development projects.
• Grows communities’ capacity to deliver supportive services and develop supportive housing — especially for growing senior populations.
• Develops and advances communities’ approach to sustainable economic and community development, emphasizing a comprehensive approach that includes transportation, land use, and job training.

The philanthropic investments of MHP partners such as Wells Fargo, among others, were crucial to MHP’s meeting the leverage requirement for this year’s RCB award. “Wells Fargo has a long, proud history of investing in local communities and we are pleased to partner with MHP to revitalize homes in rural communities around the country,” said Wells Fargo Minnesota Community Development Manager David Wiese.

MHP is one of just six entities receiving a portion of the $5 million pool made available by the U.S. Housing and Urban Development Department. Other recipients include Rural Community Assistance Corp., National Association for Latino Community Asset Builders, Housing Assistance Council, Collaborative Solutions, Inc. and Economic Consultants for Housing Opportunities, Inc.

During its December meeting, the board of the Minnesota Housing Finance Agency (MHFA) dedicated most of its discussion to tax exempt financing, while also providing updates on the federal tax credit program, the state’s allocation from the National Housing Trust Fund, the Agency’s outreach and feedback regarding changes to the 4 percent tax credit and marketing of the Agency’s Homeownership Lending Program.

National Housing Trust Fund

Commissioner Mary Tingerthal opened the meeting reporting that HUD had given final approval for the Agency’s plan to use its allocation from the National Housing Trust Fund. In the first year of their availability, these funds are being awarded to the Southwest MHP Solace Apartments development in Saint Peter. (Read our blog about the Solace project here.)

Four Percent Tax Credits

Tingerthal also updated the board on outreach activities the Agency is undertaking in connection to its proposal to prioritize use of tax exempt bonds and the related 4 percent housing tax credits. She said that there were 89 participants in the Agency’s webinar on the topic. In addition, the Agency hosted several meetings with developers and will meet with local government officials in early January at a meeting sponsored by the Urban Land Institute Minnesota and Family Housing Fund. Tingerthal said that staff would summarize the input received and bring recommendations to the board at its meeting in January.

Federal Tax Credit Program

On a recent trip to Washington, D.C., Commissioner Tingerthal met with U.S. Rep. Erik Paulsen (MN-3) to advocate for the housing tax credit program, now threatened under various federal tax reform proposals. Subsequent to that meeting, the House Ways and Means committee, on which Paulsen sits, held a retreat and the majority of representatives voted to retain the housing tax credit in any new tax system that is created.

Marketing Homeownership Lending Program

Communications director Megan Ryan led a staff presentation on marketing efforts the Agency is employing in support of its homeownership lending program. Staff said that realtors were surprised and pleased to learn the breadth of people who can benefit from the Agency’s financing programs. Sixty-one percent of MLS listed properties fell within the $307,000 price limit for Agency funded loans in the Twin Cities, and household income can reach $120,000 for non- first time homebuyers who do not receive down payment assistance. Ryan said that the Agency’s new online lender search tool, launched in April, already had 21,000 visits. This summer the Agency will be implementing a new logo that is aligned with the new “Enterprise Brand” being adopted by state agencies. The Agency will focus some of its marketing efforts in Mankato, Rochester and the Twin Cities based on research for where prospective first time homebuyers are currently most active.

Tax Exempt Bonds

Staff and board participated in what was called the next chapter in its conversation regarding use of Private Activity (tax exempt) Bonds in Minnesota. Tingerthal said that because of the high demand for tax exempt bonds for rental housing and the resulting oversubscription for allocations of these bonds, developers had approached the Agency to see if the Agency would issue “conduit bonds” from the Agency’s entitlement allocation of bonding for their projects. These are bonds issued by the Agency to finance multifamily projects where the obligation of the Agency as an issuer to pay principal of and interest on the bonds is limited to the payments it receives from a private third-party borrower that owns the project. Minnesota Housing CFO, Kevin Carpenter, reviewed the Board’s debt management policy, which states that the Agency will only consider requests for the issuance of conduit bonds for preservation projects, and that such projects would also need to meet several other criteria outlined in the policy. Carpenter indicated that in 2017 the Agency will adopt a more specific process for handling requests for the Agency to issue conduit bonds.

Tingerthal then discussed the possibility that, starting on January 3, applications to utilize bonding authority from the Housing Pool administered by Minnesota Office of Management and Budget (MMB) may exceed the bonding authority available. The Board discussed the possibility of issuing conduit bonds to finance a portion of the costs of certain general occupancy, non-preservation projects. These bonds would utilize some of Minnesota Housing’s annual entitlement authority for private activity bonding, and would help finance projects which could apply to MMB for a bonding allocation but do not receive sufficient allocation to qualify for 4% Low Income Housing Tax Credits. The Board indicated a willingness to hold a special board meeting in January if notified by Minnesota Housing staff that MMB received enough applications to exceed the amount available in the Housing Pool in the first round of applications.

In the course of discussing this proposal a number of comments were made by Tingerthal and board members regarding the broader topic of the Agency’s use of tax exempt financing. Because of the scarcity of affordable rental housing Tingerthal said that in 2015 and 2016 the Agency used more than $100 million of its entitlement allocation of bonding authority for rental projects. She added that since spring, bond issues for homeownership maximized the use of taxable bonds thereby enabling the Agency to invest more of its tax exempt capacity in rental housing and thereby leveraging federal 4% housing tax credits.

Board member Stephanie Klinzing asked what other states were doing to respond to the demand for tax exempt bonds and inquired if they are using their bonding authority to meet the growing senior housing need. Tingerthal responded that not many states are in Minnesota’s situation of having a shortage of bonding authority and those that have a shortage are trying to figure out how to deal with scarcity, too. Regarding senior housing, Tingerthal said some developers in Minnesota are replacing traditional senior project proposals with general occupancy projects that target 80 percent of the units for 55+ year-old households. Tingerthal said that attorneys believe that this type of development conforms to fair housing law (prohibiting discrimination against families) and avoids having to wait until May 15 to submit an application for bonding authority to MMB, which is when Minnesota statute allows exclusively senior housing projects to apply for bonding authority from the state housing pool.

Other board members were concerned that the Agency would not be providing adequate notice of the proposed bond financing option or that there would be backlash if only preservation projects were funded. Tingerthal said that the development community would quickly be alerted to the possibility of accessing the Agency’s entitlement bond authority and would have this information as they consider making application to MMB in January, with the possibility of a special board meeting occurring in early to mid-January, after the first round of bonding allocations by MMB.

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MHP is excited to ring in the New Year with three new board members: Jacqueline Ann Dionne from the Minnesota Department of Health, Tony Schertler of the Dakota County Community Development Agency, and Jim Wabindato from the Indian Land Tenure Foundation. “MHP is fortunate to be led by many of the state’s top leaders in affordable housing and community development,” said Chip Halbach, MHP’s Executive Director. “Tony, Jim, and Jackie are very accomplished individuals and will bring a wealth of experience to the board.”

As the organization continues to expand its work with Native communities in Minnesota and beyond, the perspectives and insights of Wabindato and Dionne will be critical.

“MHP is working in more and more Native communities, and having board members who can help guide and support the work we do is essential,” said Rosemary Fagrelius, MHP’s Deputy Director and Community Development Director. “We will be looking to them for guidance as we deliver technical assistance to American Indian communities through programs like the Native Communities Development Institute. It is a huge asset to have Native voices on our board.”

Jacqueline (Jackie) Dionne

As Minnesota Department of Health’s (MDH) first ever Director of American Indian Health/Tribal Liaison, Jaqueline (Jackie) Dionne coordinates strategic collaboration between MDH and sovereign tribal governments to maximize resources and to support American Indian health initiatives.

Previously, a specialist with the Minnesota Board on Aging, Dionne oversaw continuing care and elder services programs for American Indian Tribes including Wisdom Steps, a program that supports preventative healthcare for American Indian Elders. She has more than two decades of experience working with Minneapolis-based American Indian nonprofits, including American Indian Community Development, Little Earth of United Tribes, and Baby Space. An enrolled member of the Turtle Mountain Chippewa Tribe, Dionne grew up in Minneapolis and earned a bachelor’s degree in Early Childhood Education from the University of Minnesota.

Tony Schertler

Tony Schertler is the Executive Director of the Dakota County Community Development Agency. Appointed in January 2016, Schertler oversees six departments and facilitates collaboration with local, state and federal agencies to increase access to affordable housing and opportunity in Dakota County Communities. Dakota County CDA administers more than 30 programs and manages 2,700 units of affordable housing including senior, youth, workforce and public housing.

Schertler previously worked with Springsted Incorporated, a public sector advising firm, as Director of Housing and Economic Development Services, where he assisted in negotiating more than $1 billion in public-private developments. Prior to that, Schertler served for over 10 years in the City of St. Paul Department of Planning and Economic Development. He oversaw St. Paul’s Housing 5,000 project, which created more than 5,000 new housing units in a four year period, and he administered St. Paul’s land use planning, housing and economic development, small business lending, home rehab, foreclosure prevention, and neighborhood revitalization programs. Schertler has a Bachelor’s degree in History from St. John’s University and a Juris Doctor from William Mitchell College of Law.

Jim Wabindato

A citizen of the Little River Band of Ottawa Indians, Wabindato works with the Indian Land Tenure Foundation. In his capacity as Program/Development Officer, Wabindato educates American Indian landowners on federal regulations, manages programs and grants for land-based projects in Indian Country, and advocates for policies that expand opportunities for Indians to manage their own land.

Wabindato served for four years as chair of the Little River Casino board, and he currently serves as treasurer of the Minnesota Food Association’s farmer training program board. Wabindato recently became treasurer of the Water Protectors Legal Cooperative board. He practiced realty in Arizona and Wisconsin and served as realty specialist and grant writer for the Bad River Band of Chippewa in Northern Wisconsin. Wabindato has a bachelor’s degree in Sociology from the University of Michigan.

Please join us in welcoming our new board members!

Like so many communities, Mora has a long waiting list to secure one of the city’s affordable rental units. But, in the East Central Minnesota town, a particularly vulnerable population makes up the majority of the list. Of the 208 families, 161 are older adults over 55.

“The waiting lists are so heavy with seniors that many of them aren’t living long enough to get to the top of the list,” says Rose Dunn.

As the Executive Director of the Mora Housing and Redevelopment Authority (HRA), Dunn has been elevating and addressing the need for more affordable senior housing for close to a decade. And last month Dunn, the HRA and the dozens of people on the waiting list got a significant victory: Funding for a project that will add 24 units to a burgeoning senior living campus in Mora (pictured right).

It all started more than 10 years ago, when the Mora HRA purchased a 16-acre parcel on the east side of town. With a rising number of retirees in the farm community, there was a dramatic need for more affordable housing for Mora’s elder residents.

So in 2007, the HRA built 24 units of senior independent living and in 2010 added assisted living, memory care and a senior center to the Eastwood campus. With community support and project successes the HRA was moving forward with more affordable apartment units when the great recession hit. The economic downturn put their plans on hold, but the dedication to the project remained strong.

And for good reason. A housing study for the City of Mora released in May 2014 noted that “demand was highest for affordable senior housing, showing a need for nearly 70 units” through 2025. A few months later in October 2014, a housing assessment for the wider East Central Regional Collaborative reported the area’s senior vacancy rate was barely 1 percent — and the region would need 2,761 more senior units through 2025.

From the East Central Regional Collaborative housing study

Having worked with MHP on the housing studies, Dunn joined the Housing Institute in 2015 — and it was just what the HRA needed to jumpstart a project that would start chipping away at that growing need.

“The board remained committed to bringing in more affordable senior housing; they’ve never taken it off their agenda,” Dunn says. “The Housing Institute was really a great catalyst, not just in what I learned there and the resources I could bring back to the HRA, but also the way it helped to create a stronger community group focused on affordable housing in our area. Through that group the HRA has been able to engage the community and work on this as a project with others.”

And that group has grown. While the Housing Institute Team started with representatives from Lakes & Pines CAC, Seven County Senior Federation, A Place For You (homeless shelter), East Central Regional Development Commission, and Central MN Housing Partnership and Mille Lacs Corporate Ventures, it didn’t stop there. “Our team’s commitment to meeting outside of the Housing Institute evolved into a group we call the ‘East Central Housing Organization’ (ECHO) and it now includes more than 20 members, including the Central Minnesota Council on Aging, Kanabec and Pine counties, Pine City Community College and others,” Dunn says. “This group meets monthly and has been very proactive in reaching out to the greater east central region to begin the work of developing regional housing goals.”

Fostering that collaboration wasn’t the only goal for Cherre Palenius, the MHP Community Development Manager that worked closely with the team in Mora to turn their vision into a viable project. “We wanted them to look at the entire site and create something that was connected and complementary to the existing development, that the community and existing residents could support,” Palenius says. “We encouraged them to think about building a senior campus, versus one parcel at a time, and deliberately thinking about and planning how everything would connect.”

Through the Institute, the Mora HRA decided the next piece of the puzzle was a 24-unit senior apartments project that would become Mysa House. On the advice of Palenius, the team applied to and were selected for the American Institute of Architects’ Search for Shelter program this spring. “That allowed us to work with a group of architects and students on some visionary plans and ideas,” Dunn says. “When we conveyed to them the Swedish theme of our town and campus, they found the word mysa. It’s not immediately translatable but it’s a feeling in Sweden of coming home and being comfortable and cozy after a long day. That’s kind of how we feel about this campus; we want seniors who have lived long, hard lives and put so much work into our community to come home to Eastwood and feel comfortable, cozy and relaxed.”

From the AIA Search for Shelter renderings

To make that happen they needed a developer — and dollars. Through the Housing Institute and assistance from Palenius, the Mora HRA contracted with D.W. Jones for the development and put in an application for funding — its first ever — to the Minnesota Housing Finance Agency. In October, they got good news: MHFA had selected the project as part of its Senior Housing Pilot, allocating $2.1 million in funding from the agency and an estimated $1.1 million in 4% tax credit equity.

For Dunn, moving forward on Mysa House is another important step in creating a continuum of housing options for aging residents. “We have the independent and assisted living and memory care,” Dunn explains. “Mysa House will bring in services, so if residents come in being more independent they can get services they need later — in the home where they’re already living.” Beyond Mysa House, the HRA has a vision for more affordable apartments and even senior townhomes.

While the project has been embraced in Mora, Dunn discovered the power of truly engaging with community partners. “When we did the independent and assisted living projects, the HRA did it very independently and it went well,” Dunn recalls. “But the more we go down this road, the more we realize there are many other parts of seniors lives aside from just housing. So it’s been important for the success of the project to partner with other community agencies that support seniors and can bring in those services.”

With construction set for spring and an opening envisioned for 2018, Dunn is already getting inquiries from seniors interested in Mysa House. “The senior center here has really vibrant programming and a lot of our regular seniors coming in who live in their homes in the community have become aware and have been watching as we’ve worked toward this project. Last week when it was announced that we were getting the funding, three came and asked me if the waiting list is open.”

Read more about the MFHA funding announcements and learn more about the Housing Institute.

The impetus for the Solace Apartments came from an unlikely champion.

Three years ago, the Honorable Allison Krehbiel raised the alarm. The Judge for the Fifth Judicial District Court in Nicollet County (pictured right) was watching rehabilitated residents exit the criminal justice system and enter a housing market that made it nearly impossible for them to find a home.

With virtually no vacancy in the primary cities of St. Peter and Mankato, people with criminal backgrounds simply couldn’t compete. Instead, they ended up couch surfing or living in their vehicles, creating unstable lifestyles for their families and, all too often, paving a direct path to recidivism.

Krehbiel knew something had to change — and fast. So she contacted Rick Goodemann, CEO of Southwest Minnesota Housing Partnership.

“Judge Krehbiel asked me what I intended to do about this problem,” Goodemann recalls with a laugh. “That’s how it started.”

Three years later, that call to action has resulted in Solace Apartments, 30 units of affordable housing with supportive services for people at high risk of homelessness who have mental health and/or substance abuse challenges. While the vision is far from complete, last month the ground-breaking project in St. Peter received $6.7 million in funding from the Minnesota Housing Finance Agency. Adding shine to its award, the project secured the state’s first allocation from the National Housing Trust Fund — and is being heralded as a national model already.

Like so many successful projects, Solace grew from strong collaboration. Diverse stakeholders in Nicollet County recognized that people with criminal backgrounds and substance abuse issues are among the hardest populations to house. And they also understood that ignoring the challenge impacts the entire community.

“These families are failing, because they don’t have stable housing,” Goodemann says. The school district suffers, because children bring their stress from the homefront into the classroom. When residents miss medical or counseling appointments, taxpayers often pick up the tab for high cost of emergency room visits. The community peace is compromised when personal crises lead to police calls and, ultimately, the criminal justice system is burdened when ex-offenders cycle back into the system.

So Judge Krehbiel wasn’t the only one who saw an urgent need for affordable housing that would serve this population with both long-term shelter and supportive services. The group behind Solace Apartments has included important stakeholders from the county probation, prosecutor, and public defender offices; the public health department and school district; mental health services provider; and the City of St. Peter and Nicollet County commissioners.

“It made eminent sense for everyone to deal with this as a long-term problem,” Goodemann says. “Housing people with criminal background is typically a red flag to bull. But because of the partners at the table, there was no opposition from anyone.”

That didn’t mean Goodemann was without reservations. While his organization has partnership right in its title, this collaboration was different.

“I was a bit apprehensive trying to design by committee,” he says. “But, in this case, where there were a lot of social services being provided, it was an amazingly fruitful process. It offered a voice to a lot of the agencies that don’t normally get into designing a space, which really brought in a new level of commitment.”

Members of the group, with expertise in public health and child development, were able to work with the SWMHP Rose Fellow Architect to create interior spaces and exterior amenities that cater to the needs of families with kids and individuals with mental health and chemical dependency barriers. And, beyond the supportive physical space, Solace includes a wealth of on-site support for residents, including addiction recovery, medical, dental and behavioral health services.

“The Councilmembers are so excited about this latest effort from a number of different perspectives,” says Todd Prafke, City Administrator for the City of St. Peter. “Solace helps people from our very own community and demonstrates a new way of thinking about how and where we provide supportive services and housing with wonderful potential to secure better, more efficient, outcomes. It does all of this while meeting our housing goals and providing opportunity to work with great community members.”

To meet those housing goals, Solace also required that SWMHP reexamine its tenant requirements. “We brought in our property management team and with the supportive services provider worked through what a lease would look like and what kind of handbook we’d have to create, since our typical guidelines would prohibit many people from living in our communities,” Goodemann says.

The effort has already garnered national attention, too. “A lot of people are grappling with this issue,” Goodemann says. “I’ve been talking to groups in San Diego and Boston who are trying to figure out how to deal with these very difficult people to house. This is a model that offers a huge chance of success.”

That national attention has, in part, been made possible by a federal funding source. When the Minnesota legislature failed to pass a bonding bill during the 2016 session, Goodemann was concerned. “I was very fearful that we would not get funded without the bonding bill,” he said. But Solace Apartments did get the dollars it needed — from the National Housing Trust Fund. With it’s first allocation of NHTF funding, the state awarded its full amount to the St. Peter project.

For years, MHP has been advocating for the NHTF through the United for Homes campaign, coordinated by the National Low Income Housing Coalition. “MHP worked on the campaign because there is no dedicated source of revenue for housing,” says Libby Murphy, MHP’s Deputy Director of Policy. “Year after year, HUD’s budget is subjected to the annual appropriations process and advocates work tirelessly just to defend funding for various housing programs. The National Housing Trust Fund is supposed to have a dedicated source of revenue — and it’s the only funding specifically dedicated to the construction and preservation of housing for extremely low-income housing.”

For Judge Krehbiel, meeting those needs is possible when government stakeholders come together.

“The success of this effort demonstrates what a community can achieve through collaboration,” she says. “If city, state and county government work together with community stakeholders, everyone benefits. The goal of this project is not to bring homeless people into our community, but instead to provide homes for the homeless already living here.”

See the full list of projects funded by MHFA in the latest round of awards and learn more about the National Housing Trust Fund.