Minneapolis City Council — Transcript
Tuesday, September 29, 2026
Minneapolis Public Housing Authority Operations and Budget
Glendale Town Homes Redevelopment and City Bonding Request
Heritage Park Conditions and MPHA's Role
MPHA Funding Structure, Oversight, and Rental Licensing
Votes (1)
Minneapolis Public Housing Authority 2027 Budget Presentation and Discussion
Dissent: Strong concerns and critiques were voiced by Council members Warren, Vita, Palmisano, and Stevenson regarding the conditions at Heritage Park, MPHA's oversight role, and the broader context of public housing disinvestment and accountability.
The Minneapolis Public Housing Authority (MPHA) presented its operational overview, budget, and strategic initiatives for 2027. A central theme was the agency's $320 million capital backlog, stemming from decades of federal disinvestment and recent budget cuts. MPHA highlighted successful local partnerships, including city and state funding for projects like Springs Manor redevelopment, and programs such as Stable Home Stable Schools and City Emergency Housing Vouchers. The discussion extensively covered the proposed Glendale Town Homes redevelopment, a multi-phase project estimated at $38-42 million per phase, for which MPHA seeks city bonding support, proposing to pay debt service via its tax levy. This bonding mechanism was presented as a potentially transformative and repeatable tool for deeply affordable housing. A contentious segment addressed the deteriorating conditions at Heritage Park, a property for which MPHA provides operating subsidies but does not own or directly inspect. Council members expressed deep concern over widespread mold and structural issues detailed in a receiver's report, questioning MPHA's oversight and accountability. MPHA committed $6 million to Heritage Park (repurposing funds from other delayed projects like Glendale and a scattered sites upzoning project) for stabilization and conversion tools to secure more subsidy. The larger conversation revolved around MPHA's unique position as a federally funded entity, its ongoing legal dispute over city rental licenses, and the overall need for greater investment and clearer accountability for public housing quality across the city.
Notable Quotes (6)
We estimate our capital backlog to today to be approximately $320 million. So $320 million just to keep what we have. Not to add any accessibilities or any things that our residents need, but just to keep the portfolio that we have.
The city's bonding authority allows us to raise the necessary capital without using the city's general fund or burdening its borrowing capacity. Over the past year, we've actually been working with the city's um banking investment team um to explore this possibility and we've determined that it can be done and um it would provide approximately 38 to $42 million in in proceeds um per phase to support the project.
Heritage Park is uniquely structured. It was born out of a lawsuit back in the early 90s. MPHA is the land owner and our sole obligation was to pass through operating subsidy and those obligations for operating the property to a developer that was selected through an RFP.
All of the properties and units at Heritage Park are uninhabitable. There is not a habitable unit at Heritage Park. There are over 3,700 failing windows. There are 38 failed roofs that have been patched...
The model doesn't work. There should be one owner. The model that now works is for one owner. The owner owns the land. They own the units and they might have PPVs in there and therefore they're responsible. They're inspected by the city. They have a rental license. We inspect the units for the HQS inspections. That model is working because the federal government has continued to fund section 8 where they don't fund section 9 or public housing.
We have just been put on a display of the failures of disinvestment in public housing... the federal government not investing in our public housing authority, the state not investing in our public housing authority, the city not investing in our public housing authority...
Ordinances & Resolutions (27)
The budget under discussion, which did not include city bonding for Glendale.
Traditional low-income public housing program type, mainly in highrises.
Housing Choice Vouchers and the program type deeply affordable family housing portfolio converted to.
Lawsuit in the early 90s against HUD, the City, and MPHA that led to the unique structure of Heritage Park.
Federal amendment that restricted new public housing construction decades ago.
Housing Quality Standards inspections for voucher programs, also noted as MPHA's initial interaction with rental licenses at Heritage Park.
Mortgage type on Heritage Park's financial projects, leading to HUD inspections on the multifamily side.
Act governing moving expense reimbursement for Heritage Park residents.
Funding sought for Glendale from the state legislature that did not pass.
Rental Assistance Demonstration program for converting public housing to project-based Section 8, used for 56 units in Ward 9 and proposed for Heritage Park.
Section 8 vouchers serving 18,500 residents.
One of MPHA's three core housing programs.
One of MPHA's three core housing programs, involving scatter sites.
One of MPHA's three core housing programs, specifically Section 8.
City resource providing $5M annually to MPHA, with some funds repurposed for Heritage Park.
Proposed MPHA investment of $3M from this levy for Heritage Park's long-term stabilization.
New city-funded rental assistance program partnered with Hennepin County's continuum of care.
New state-issued vouchers mimicking Section 8, with MPHA awarded $21M over two years.
A planning project that was suspended, and its earmarked funds were repurposed for Heritage Park.
Report detailing extensive water damage and mold at Heritage Park, cited by Council member Warren.
Subject of dispute between MPHA and the city regarding payment and accountability; previously not required at Heritage Park according to MBS.
Funds passed from MPHA to the owner of Heritage Park, deemed inadequate ($85k/month for 200 units).
Agreements dictating MPHA's limited role and responsibilities at Heritage Park.
MPHA's annual fund facing a $2.9 million federal cut in 2026.
High-priority transfer category for MPHA residents experiencing domestic abuse.
Another department scheduled for a presentation to the committee.
MPHA's budget overview targeting preservation, new unit production, and health/safety code compliance.