MPHA tells budget committee of $320M capital backlog, seeks city bonding for Glendale redevelopment

The Minneapolis Public Housing Authority told the Budget Committee on Sept. 29 that it faces an estimated $320,000,000 capital backlog and is seeking new tools — including city bonding authority — to advance redevelopment projects.

"When we get a dollar, we get 10¢," MPHA Executive Director Abdul Warsamy said, describing decades of federal underinvestment that he said left the agency with a multi‑hundred‑million‑dollar maintenance gap. Warsamy said MPHA would combine a proposed city bond issuance with $40–$50 million in agency capital plus tax credit equity and debt to redevelop Glendale Townhomes, replacing 184 existing homes and adding roughly 100 new deeply affordable units across two phases.

MPHA planning director Laura Dykema told the committee that city bonding could generate approximately $38–$42 million in proceeds per phase and that MPHA would pay project debt service from long‑term levy commitments. "It would provide approximately 38 to $42,000,000 in proceeds, per phase to support the project," Dykema said, adding that MPHA would seek to close on phase one in late 2028 or early 2029 if the city commits support.

The Glendale proposal would replace aging 1952 townhomes that MPHA said currently serve about 600 residents, add a broader mix of unit sizes (including new 5‑bedroom units), increase parking and include resident amenities; MPHA stressed resident‑driven priorities and a right of return for households affected during construction. Dykema said the agency would use bonds with a long‑term levy pledge so the issuance would not draw on the city's general fund.

Council members pressed MPHA for details about how levy commitments, bond proceeds and other funds would be combined and for assurances about resident relocation and return. MPHA said the plan remains contingent on city approval of bonding support and that the agency will continue to pursue state and philanthropic resources alongside the bonding strategy.

MPHA materials shared with the committee estimate the Glendale capital need at about $23,000,000 for immediate repairs at the site but a larger multi‑phase recapitalization to be funded by the blending of bonding, agency capital and other financing tools.