Agate Housing and Services finalizes purchase of the former Metro Inn Motel
The
site will offer affordable housing supported by Hennepin County’s Single Room
Occupancy (SRO) Strategy
On November 8th,
Agate Housing and Services and Hennepin County closed on the sale of the former
Metro Inn Motel to Agate. This sale creates 38 units of permanent housing for
people earning the very lowest incomes. These single occupancy homes will be
affordable to those making about $26,000 a year.
The sale includes a
forgivable acquisition loan and affordability operating grant from Hennepin
County. In return, Agate will maintain the units’ affordability for 30 years.
Agate was created
in 2021, through the merger of St. Stephens Human Services and the House of
Charity and is one of the largest service providers in the state.
Kyle Hanson,
Agate’s Executive Director shared that “we are thrilled to add the Metro Inn to
our portfolio. The folks who live here will have the chance to build a new
community, close to excellent amenities. We’re grateful for the partnership
with Hennepin County that makes it possible. “
Background: A
strategy born from the pandemic but designed for long-term impact
In late 2020, the
Hennepin County Housing and Redevelopment Authority (HCHRA) purchased four
buildings, including the Metro Inn. These buildings would provide protective
shelter for individuals experiencing homelessness who were impacted by the
COVID-19 pandemic. The Metro Inn was utilized as a protective shelter
throughout the pandemic.
Since 2020, under
the HCHRA’s Single Room Occupancy (SRO) Housing Strategy, the county has been
converting these and other properties to deeply affordable permanent housing.
This strategy directly addresses a growing need for this kind of affordable
housing – 53,090 households in Hennepin County are defined as “very low”
income, making below 30% of the area median income. Unfortunately, there are
only 18,705 rental units affordable to them.
Following a
competitive selection process, Agate Housing and Services was selected to
purchase the Metro Inn from the HCHRA, subject to 30-year affordable housing
restrictions. Agate is well-qualified to do this work, serving more than 8,000
community members who are experiencing homelessness, hunger, and poverty in
Minneapolis each year. Agate formally acquired the property after the rehab was
complete and will begin to lease tenants shortly.
A permanent home
for new neighbors
Oftentimes, people
end up in shelters because there are simply not enough affordable housing
options, even though they can afford modest rents. Single Room Occupancy units
(SROs) provide stable and permanent
housing to people who have income and don’t need additional support services,
but who are experiencing homelessness or housing instability due to high rent
costs. This type of housing is a cost-effective model to “right-size” housing
interventions by acknowledging the specific barriers and strengths of a
population.
SROs offer quality
private single rooms, shared kitchens, and shared or individual bathrooms. Rent
is expected to range from $425 to $550 per month. The county leases or sells
the properties to experienced property managers to operate the housing and provides
ongoing financial support to keep the properties affordable and in good
condition.
Agate will provide
high quality maintenance, asset management, and person-centered, relational
property and tenant management. Units will be marketed and prioritized for
people experiencing recent or episodic homelessness, and who only need deeply
affordable, basic housing to gain housing stability and pursue their life
goals.
Community
Engagement
The surrounding
South Minneapolis neighborhood has been involved since the early stages of
development. They were relieved to see the Metro Inn purchased. Historically,
the site was a place of illegal activity; now it will be a property for folks
to call home.
Richfield United
Methodist Church, in particular, has engaged with the positive change, and is
providing welcome kits for the new tenants upon arrival.
Reverends Nate
Melcher and Hope Hutchinson are eager for Agate and its residents to move in.
“We deeply value loving our neighbors, and cannot wait to welcome our new
ones,” said Reverend Hutchinson. “This neighborhood is such a wonderful place
to call home, and we are looking forward to sharing it with the new residents
of the Metro Inn.”
The church is also
organizing a donation of resident welcome packs for move in day. Reverend
Melcher explained, “For years, people of this church have prayed and wondered
how they could safely and confidently serve our neighbors at what is now the
former Metro Inn property. Partnering with Agate Housing & Services is the
fresh opportunity we needed. All neighbors deserve dignity and a kind welcome.
We hope the welcome kits that we’ve assembled help our new neighbors feel at
home here. There is a short list of organizations that, I think, one would want
to handle a project like this – Agate is on that list! I’m grateful that
Hennepin County selected a partner who knows how to do this well.”
