Under the authority of Minnesota Statutes, section 256I.05, Subd.1a, paragraph b, Hennepin County's Human Services and Public Health (HSPH) requested a cost-neutral transfer of funds from MN Department of Human Services’ (DHS) Housing Support fund (formerly known as Group Residential Housing) for this project, which was approved by the DHS Commissioner. This transfer is codified in an amendment to an intergovernmental agreement which allocates an additional $299,927 to Hennepin County annually to provide room and board and rehabilitative services for American Indians with substance use disorders of such severity that frequently risks the person’s physical safety and has resulted in a loss of permanent housing and unsheltered homelessness.

This additional allocation will be used at 1500 Elliot Avenue South in Minneapolis, which the American Indian Community Development Corporation (AICDC) is acquiring to directly respond to the crisis situation increased numbers of people experiencing homelessness in encampments and other places not meant for human habitation, such as state’s largest homeless encampment, which occurred during 2018 in Minneapolis. AICDC will house 18 individuals at this property. The annual state fiscal year allocation will be equal to the base transfer of $299,927 plus annual cost-of-living adjustments to a portion of that amount, to be calculated annually by DHS using adjustments to the federal benefit rate. HSPH will amend expenditure contract HS00000027 with the AICDC to operate the program there to provide these services. AICDC operates several unique housing and service interventions for this population, including a detoxification facility under county contract at 1800 Chicago Avenue, and Anishinabe Wakiagun permanent supportive housing.

Also related to this action is the action taken by the Board on April 23, 2019 (Board Resolution 19-0166). This action moved $150,000 from the contingency fund to the HSPH budget to assist AICDC with one-time capital costs associated with acquiring the property at 1500 Elliot Avenue South.

The original agreement (A177727) was approved by the Board on August 22, 2017 (Board Resolution 17-0328), for an annual allocation of $296,784. With this agreement, the Department of Human Services agreed to a cost-neutral transfer of funds allocated to Hennepin County for use by the American Indian Community Development Corporation (AICDC) to support American Indians with acute substance use disorders who are experiencing homelessness in their Kola Safe Haven housing. This allocation successfully created an efficient model for up to 18 people at any one time to safely exit unsafe homeless conditions and receive housing and multiple services in the Safe Haven. The agreement was amended by DHS to expand these services to another location acquired by AICDC, at 2408 Fourth Avenue South in Minneapolis, and added an annual allocation of $214,209 to the grant, for an annual total of $510,993. This first amendment to the agreement was approved by Board on October 9, 2018 (Board Resolution 18-0415).

Current Request: To address the continuing housing needs of American Indians experiencing homelessness in encampments and other places not meant for human habitation, AICDC is acquiring the property at 1500 Elliot Avenue South in Minneapolis. This amendment from DHS, to the current Housing Support Fund direct allocation grant agreement (A177727), will add $299,927 annually to support this additional permanent supportive housing response for 18 individuals. The total annual allocation with this amended agreement will be $810,920.

This additional Housing Support direct allocation will be new funding coming into the HSPH budget, so a supplemental appropriation of $125,000 to the 2019 budget is requested.

Impacts/Outcomes:
• Improve health equity for American Indians
• Support a culturally-relevant housing and service solution for American Indians experiencing homelessness and/or substance use disorders
• Increase assessment for mainstream services (i.e., chemical health, mental health, waivers)
• Support progress toward the goal of ending chronic homelessness
• Decrease the number of American Indians with substance use disorders sleeping in places not fit for human habitation
• Decrease the time American Indians with substance use disorders experience homelessness
• Increase the number of American Indians with substance use disorders exiting homelessness to permanent housing
• Decrease the number of American Indians with substance use disorders returning to homelessness after being housed