MPHA outlines transfers and $6M stabilization for Heritage Park amid receivership

MPHA officials told the Budget Committee that Heritage Park has been in receivership since December 2025 and that the agency is coordinating resident transfers, repairs and short‑term stabilization funding.

"The property has been in receivership since December 2025," Dominic Mitchell, MPHA deputy director, said as he described efforts with the receiver and property managers to assess units, prioritize moves and fund immediate repairs. Mitchell said, as of last Wednesday, "there are approximately 38 public housing households of 128 that have asked to be moved from Heritage Park," and that the property manager identified 10 high‑priority households based on unit conditions and medical needs.

MPHA proposed a $6,000,000 stabilization package for Heritage Park: $3,000,000 repurposed from projects (including levy and agency capital earmarks) to support near‑term needs such as operating shortfalls, relocation assistance, moisture remediation, and rehabbing two mostly vacant buildings, plus $3,000,000 of 2027 public housing levy resources targeted at longer‑term stabilization and to leverage conversion tools and other financing. Laura Dykema said the agency estimates the site's total recapitalization needs at roughly $55–$65 million.

MPHA said it had delivered revised transfer procedures to residents, would cover moving expenses up to Uniform Relocation Act limits or provide contracted moving providers, and was working both with the receiver (Certus Financial and Property Solutions) and city partners to identify habitable units in MPHA's scattered‑site portfolio and bring units at Heritage Park up to habitability when feasible. Dukema and Mitchell emphasized residents' "right of return" if households chose to stay connected to Heritage Park during the recapitalization.

Council members pressed for clarity on assessments, moving logistics, and timelines; MPHA officials cited ongoing permitting, contractor pricing and HUD conversion processes as next steps and said some work could start this fall. The agency stressed the need for coordinated city, county and state resources to stabilize the property and prevent further displacement.