Overview: Housing and policy
A breaks down MPHA’s $6 million vote to fund immediate mold remediation and long-term stabilization at Heritage Park, examining both the relief for current residents and the trade-offs facing future affordable housing projects in the Twin Cities.
After months of community outcry and urgent calls from city leaders, the Minneapolis Public Housing Authority (MPHA) Board of Commissioners voted Wednesday to approve a $6 million investment in Heritage Park.
The funding will target near-term repairs and long-term stabilization following ongoing mold issues, water leaks, and failures in structural maintenance. To make the funds available immediately, MPHA is repurposing funds from other agency initiatives and leveraging a portion of its annual housing tax levy.
Where the $6 million is going
The approved funding plan is split evenly into two $3 million buckets, administered alongside court-appointed receiver Certus Financial and property manager Property Solutions & Services LLC (PSS):
- Immediate Needs: Covers operational shortfalls, grounds upkeep, utility costs, and moisture remediation for impacted units.
- Long-Term Stabilization: Proposed work includes complete unit renovations (kitchens, bathrooms, appliances), HVAC and plumbing system overhauls, and exterior roof and stucco repairs.
“MPHA is committed to meeting the moment at Heritage Park by coupling the $12 million the agency has invested at the site since 2022 with this proposed new $6 million investment,” said Abdi Warsame, Executive Director and CEO of MPHA, in a statement.
While MPHA owns the land beneath Heritage Park, the agency historically did not own or manage the residential buildings. Private developer McCormack Baron Salazar held operational control from its 2006 construction until December 2025, when a Hennepin County court removed the firm following mounting debts and deferred maintenance. The site remains under court-ordered receivership.
Citywide project delays
Although this is a step forward, it comes with a cost. Because the City of Minneapolis receives its tax funds six months after approving the budget, MPHA said it’s repurposing funding previously dedicated to other projects.
Delays will be seen at the Glendale redevelopment project for a year, plus a scattered-site Missing Middle Upzoning Project will be on hold until deemed financially feasible.
Across both developments, the temporary freeze delays the delivery of more than 300 deeply affordable family homes, at a time when MPHA carries over 3,500 families on its waitlist and faces a $320 million capital backlog citywide.
Resident transfers and relocation options
MPHA is currently coordinating voluntary transfers for public housing households at Heritage Park. Out of 128 public housing households, 32 have requested transfers, including nine high-priority households living in severely degraded units.
According to MPHA, high-priority households are being offered expedited moves, full coverage of moving expenses, and funded short-term hotel stays or daily stipends if replacement units are not immediately ready. MPHA noted that despite low inspection scores, no units at Heritage Park have been condemned by the city, and air quality testing confirmed no widespread toxic hazards.
The proposal moves to the Minneapolis Board of Estimate and Taxation on Sept. 9, 2026. If approved, it will go to the Minneapolis City Council for final budget authorization.