Supportive Housing Strategy

Hennepin County’s Supportive Housing Strategy is a locally funded initiative aimed at developing and maintaining long-term affordable supportive housing for its most vulnerable residents. Created in 2019, the strategy is managed by the Hennepin County Housing and Redevelopment Authority (HCHRA) and is designed to align capital investment with service funding to better meet the needs of populations who face the greatest barriers to stable housing. These include individuals and families with extremely low incomes (at or below 30% of area median income), as well as those with mental illness, developmental disabilities, substance use disorders, chronic medical conditions, or involvement with the county's corrections or child welfare systems. The program is administered through an annual Coordinated Affordable Housing Development Request for Proposals (RFP), allowing early-stage projects—some still in conceptual phases—to seek capital funding. Eligible projects must include at least eight supportive housing units dedicated to one or more of Hennepin County’s priority populations, which are detailed in the Supportive Housing Strategy Manual. These priority groups include people experiencing high-priority homelessness, those with complex medical needs, neurodiverse individuals, youth with foster care or system involvement, and families involved with child protection. All housing developed under this strategy must be located within Hennepin County and adhere to service and affordability guidelines. Funded projects can use capital for property acquisition, new construction, rehabilitation, site improvements, and related costs. They must comply with local and state construction codes and are encouraged to integrate sustainable and accessible design elements. Rental units must be affordable to households earning no more than 30% of AMI and must not exceed rent limits defined by the Multifamily Tax Subsidy Project (MTSP). Projects should also minimize involuntary displacement and meet fair housing standards, including affirmative marketing and Section 504 accessibility requirements. The program emphasizes service-enriched housing with mandatory case management offered on-site. Service plans must align with County fidelity standards and include budget proposals delineating costs and funding sources. If funding gaps are identified and endorsed by the County, projects may receive additional service funding. All units must maintain a commitment to affordability and service delivery throughout the funding term, typically structured as a 30-year deferred loan with a zero-percent interest rate, with disbursement required within two years of loan execution. The application process includes early outreach to County staff, registration through the Housing and Economic Development participant portal, and a formal submission before the RFP deadline. For the 2026 cycle, the RFP opened on December 15, 2025, and closes on January 29, 2026. Developers are encouraged to build collaborative partnerships between service providers and property managers to ensure tenant stability and effective case management. Awards are contingent upon HCHRA Board approval, with final terms outlined in award letters. The County requires extensive due diligence before closing, including municipal support, financial documentation, and service agreements. Applicants can direct questions to the Housing Development and Finance Director, Julia Welle Ayres ([email protected], 612-543-4342) or the Director of Housing Stability, David Hewitt ([email protected], 612-543-3650). Additional program guidance is available through the Supportive Housing Strategy Manual and related documents posted on the Hennepin County Housing and Economic Development webpage. Hennepin County aims to develop 1,000 new supportive housing units over 10 years and has already funded 26 projects totaling 575 units with an investment of $24.77 million.

Engage County staff early to align project with referral and population needs; prepare service budget to County standards.