When Alliance and Hennepin County opened the doors to Stevens Square Residence in December 2020, Alliance recognized it as an opportunity to expand a housing model that has been a staple in our portfolio for years: single room occupancy (SRO) units. Throughout the last three years, Stevens Square Residence has been an important community asset, providing low-cost, low- barrier housing for individuals, primarily those transitioning out of homelessness. During the peak of the COVID-19 pandemic, cities nationwide utilized funding from the Federal CARES Act to de-populate shelters and provide temporary housing for individuals experiencing homelessness in hotels and motels.

As lockdown restrictions eased, Hennepin County, like many others, sought permanent housing solutions for those residing in these temporary shelters. To address this need, Alliance and Hennepin County collaborated to establish Stevens Square Residence, a 31-unit SRO building in the Stevens Square neighborhood. Hennepin County purchased the building and completed critical building upgrades. Alliance assumed responsibility for operating the property, laying the groundwork for an SRO/rooming house pilot program in Minneapolis.

In SRO units, also known as rooming houses, tenants have a private room but share communal facilities such as bathrooms, kitchens, and living spaces. Throughout much of the 20th century, SRO units and rooming houses served as a crucial component of the affordable housing continuum. However, toward the mid-1900s, cities began to move away from this model, demolishing or repurposing many properties and hindering the development of new ones. Alliance has long been an advocate for SRO and sleeping room units as a part of the affordable housing landscape and as part of the solution to homelessness and was a key part of policy advocacy to allow SRO units to be allowed again in the City of Minneapolis.

The pilot program sunset at the end of 2023, Alliance is grateful to have partnered with Hennepin County on a pilot program that aligned deeply with our mission. Stevens Square Residence allowed both Alliance and Hennepin County to explore and learn together about the challenges and benefits of SRO housing. We learned a tremendous amount about operating SRO housing and plan to carry these lessons into our 2116 Nicollet project which is under development. This new project will have additional revenue sources to make the project feasible.

As for the former tenants of Stevens Square apartments, Alliance and its partner Vail Place used financial support from Hennepin County to help tenants find a new affordable unit. 10 of the tenants now live elsewhere in Alliance’s Portfolio!

Earlier this spring, Alliance hosted the grand opening of our newest property: a 64-unit apartment at 3301 Nicollet Ave. Community members, board members, staff, and city and county officials gathered on April 20th to celebrate! Together, we toured the property, learned about the design and construction process from architect Paul Gates, and heard from residents and project leaders about the impacts of the project. We’re excited to provide more affordable housing for people who need it in a brand-new, eco-friendly building.

When Alliance first purchased the land in 2017, we knew from prior experience that bringing the building to completion would be complicated—the process includes acquiring funding, drafting and finalizing building plans, and undertaking construction. But we didn’t know that this would all take place during a pandemic, adding to the complications.

When designing 3301 Nicollet, Alliance’s vision was to provide environmentally sustainable brick-and-mortar housing solutions to address homelessness in the Lyndale neighborhood. Of the 64 units, 24 are reserved for individuals transitioning out of homelessness, providing access to housing for individuals transitioning out of homelessness is a critical part of Alliance’s mission. Individuals can also access on-site supportive services provided by AVIVO. The remaining 40 units are reserved for adults and small families earning 30% to 50% of the Area Median Income (AMI).

3301 Nicollet includes eco-friendly linoleum flooring, bike storage, EV charging stations, and rooftop solar panels. Providing sustainable and affordable energy in our new buildings is crucial. Using renewable energy creates positive environmental impacts, but also it also reduces energy costs for the building, savings which get passed on to tenants. Sustainability both aligns with our values and is increasingly a funder requirement.

Leasing for the property began in December 2022. By the time the grand opening rolled around in March 2023, only 3 of the 64 units were vacant, with two more move-ins happening later that week. While we are thrilled that the building is full, it is clear we need even more affordable housing in Minneapolis.

At the Grand Opening event, one of 3301 Nicollet’s first tenants Toni Thompson spoke during the program. She said, “I have not had access to stable housing for the last 10 years. During this time, I struggled with depression. I am thrilled to have my own place and begin to work on some of my goals around stabilizing my mental health and reconnecting with family.”

By Eva Schmidt, Executive Assistant