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Request for Committee Action

A briefing memo explaining the purpose, background, and impact of the requested action.
Contract amendment with Minneapolis Public Housing Authority (MPHA) for Stable Homes Stable Schools (RCA-2021-00277)

ORIGINATING DEPARTMENT
Community Planning & Economic Development
To Committee(s)
# Committee Name Meeting Date
1 Business, Inspections, Housing & Zoning Committee Mar 2, 2021
Lead Staff:
Katie Topinka
Presented By:
Katie Topinka
Action Item(s)
# File Type Subcategory Item Description
1 Action Contract/Agreement

Authorizing an amendment to the funding agreement with the Minneapolis Public Housing Authority for the Stable Homes Stable Schools program to:

  1. Extend the term of the Agreement until December 31, 2025, subject to annual appropriations,
  2. Increase the percentage of funds that can be used for administration costs for the program and add $2,200,000 from 2021 budget as well as terminate the Covid Response Housing Stability Fund Expansion, and
  3. Re-program $17,126.87 of remaining balance from the expansion program back to the base program.
Ward / Neighborhood / Address
# Ward Neighborhood Address
1. All Wards
Background Analysis

Stable Homes Stable Schools is a collaborative effort by the City of Minneapolis, the Minneapolis Public Housing Authority (MPHA), Minneapolis Public Schools (MPS) and Hennepin County Health and Human Services to provide funding and services for families facing the threat of losing their home or experiencing homelessness. The Stable Homes Stable Schools program began on April 1, 2019. The 2019 and 2020 City budgets included $3.35 million and $3 million respectively in one-time funding for the Stable Homes Stable Schools pilot. In 2021, the City Council approved making Stable Homes Stable Schools an ongoing program by approving base funding of $2.2 million per year. This change provides more certainty for program partners and participants about the stability of the funding, and right sizes the program to maintain current service levels while continuing to add families.

Program Overview

  • There are two ways families receive assistance through the program:
    • Rental Assistance: The City of Minneapolis and MPHA jointly fund direct rental assistance to families of students experiencing homelessness. MPHA works directly with families to administer the rental assistance.
    • Housing Stability Fund: A grant from the Pohlad Family Foundation funds emergency Housing Stability Funds to assist families that are at risk of eviction or other loss of housing. Additionally, the Church of Jesus Christ of Latter-Day Saints had made a donation to support this fund. MPHA administers this funding.

Minneapolis Public Schools social workers identify eligible families at 15 public schools across the city. The 15 public schools were selected because they have the highest rates of homelessness among MPS schools. School social workers refer families directly to MPHA for the rental assistance. An additional 3 schools were added for the 2020-2021 school year, bringing the total to 18 participating schools.

Emergency Housing Assistance

In response to the COVID-19 pandemic, the City reprogrammed up to $1 million of existing Stable Homes Stable Schools funds for emergency housing assistance for families with children in MPS all elementary schools, prioritizing resources for families earning less than 30% AMI. The program is now finished. Therefore, staff requests that the remaining balance be re-prorgrammed to the regular Stable Homes Stable Schools program.

Contract Amendment

The existing Funding Agreement between MPHA and the City states that the City will reimburse MPHA for program costs including 60 percent of rental assistance payments, third party supportive services to ensure housing stability, and program evaluation. MPHA administers the rental assistance payments and contributes 40 percent of the costs of the rental assistance (except for families who are undocumented, in which case the City pays for 100 percent of the rental assistance payments). In the existing Funding Agreement, up to 8 percent of the City's funds can be used toward MPHA's costs of administering the program. The change in the annual budget has reduced the total amount available to MPHA to cover administrative expenses because the percentage for administration will be based off of a lower dollar amount than the original Funding Agreement. The staffing needs to run the program remain consistent even with the reduction. Based on the performance by MPHA staff and comparison to administrative costs in similar programs, staff requests authorization of a contract amendment to allow for up to 10% of City funds to be used for MPHA administrative expenses for the Stable Homes Stable Schools program.