We are thrilled to announce a December 2024 award, from the City of Minneapolis Affordable Housing Trust Fund and 9% tax credit program, toward our 2116 Nicollet project. Currently expected to open in late 2027, 2116 will include 53 homes and be located just a couple blocks from 2011 Pillsbury. The building will include 24-new construction SRO units, along with efficiencies and one-bedrooms. The new building will provide warm, safe spaces for neighbors like those in Pillsbury.
Now turning to Pillsbury itself, it is with incredibly heavy hearts that we announce Alliance recently started the process of closing the Pillsbury building and selling the property.
Since acquiring the building in 2001, Pillsbury played an important role in providing dignified housing to over 1,200 single adults facing housing instability, 27 people at a time.
The model of Pillsbury was a key part of getting Single Room Occupancy (SROs) allowed (again) in City of Minneapolis rental licensing. Many service providers over the years recognized Pillsbury as somewhere their clients could get housed quickly, and without being screened out due to their background.
Unfortunately, the operating environment has changed substantially since 2001 due to issues including COVID-19, inflation, the opioid epidemic, and community safety changes. With increased break-ins, we no longer felt we could provide adequate security to residents.
Additionally, Pillsbury now requires a substantial infusion of capital funding to keep the old mansion operational.
Residents were notified in early January that their leases are ending effective March 31, 2025, and we are currently in the process of reaching out individually to discuss their housing options. Wherever possible we will be moving residents into other Alliance buildings.
While we mourn the loss of 27 deeply affordable housing units at Pillsbury, we celebrate the many years those homes provided a warm, safe space for residents to walk the path of their lives and the forthcoming housing around the corner at 2116 Nicollet.
