Heritage Park spurs housing scrutiny

The Minneapolis Audit Committee, on Monday, approved City Council members’ request for an audit of public housing spending as questions grow over conditions at Heritage Park.

The resolution directs the city auditor to examine how the Minneapolis Public Housing Authority (MPHA) is spending $11 million from the city this year. Minneapolis City Council Member Pearll Warren said concerns over what she described as uninhabitable conditions at Heritage Park prompted the move.

“No more of the same,” Warren said, when asked what she hopes comes of the audit. “I hope that we, as a city and as a community here in the city of Minneapolis, grow to be stronger and better together.”

What will the audit cover?

In response to questions about the audit, an MPHA spokesperson said, in part, “Other than a small amount of MPHA’s 2026 housing levy the agency recently repurposed to assist with near-term needs at Heritage Park, the scope of the city audit does not include any of MPHA’s work at Heritage Park.”

The spokesperson said that $11 million is a small portion of its $200+ million budget, adding, “The agency is repurposing funds from other construction and development projects to help cover the cost of relocations.”

Repairs are not MPHA’s direct responsibility. However, Warren argued the agency should have made sure they were done sooner.

“So whether it was their responsibility to initiate the repairs and that repair process or not, it was their fiduciary responsibility to protect the participants of their program,” Warren said.

The mayor’s proposed 2027 budget would continue sending millions to MPHA over the next couple of years, including $5 million per year for affordable housing preservation and production. Warren said she supports that funding but wants stronger oversight.

“I support funding going to MPHA. However, I want there to be clear oversight going to the preservation of their existing properties and for the building of, you know, future properties,” Warren said.

The audit is expected to begin in 2027.

Relocation plans

The city and MPHA have separately promised to relocate all residents who want to move.

An MPHA spokesperson said the agency has started the transfer process with nine “high priority” households, but they have not been relocated yet. The city said it will be “communicating with residents soon to get a better sense of who is interested in relocating.”

See more Q&A between 5 EYEWITNESS NEWS and an MPHA spokesperson below:

• Will this audit find that MPHA could’ve done more sooner to fix and maintain public housing apartment units?
  • “The City of Minneapolis is not auditing MPHA’s spending at Heritage Park, so no, that will not be an audit finding. Of the $11 million in city funding MPHA received in 2026, for which is subject to this city audit, none of it was initially designated for Heritage Park. Other than a small amount of MPHA’s 2026 housing levy the agency recently repurposed to assist with near-term needs at Heritage Park, the scope of the city audit does not include any of MPHA’s work at Heritage Park.
  • “For context, MPHA receives nearly 95 percent of its $200M+ annual funding from the U.S. Department of Housing and Urban Development, and this $11 million from the City of Minneapolis helps fund many of the successful programs MPHA and the City of Minneapolis partner on, including the nationally recognized Stable Homes Stable Schools program, the city-funded Emergency Housing Voucher pilot program that mirrors the successful but sunsetting federal program, and a $5 million housing levy that supports various affordable housing preservation and production projects across the city.
  • “Since 2022, MPHA has helped lead efforts to support Heritage Park as MPHA and other stakeholders, including the City of Minneapolis and HUD, began learning more about the operational shortfalls, accrued deferred maintenance, and mounting debts at Heritage Park. From investing more than $12 million since 2022 to support the public housing units McCormack Baron Salazar owned and operated, helping 18 households relocate out of Heritage Park since April 2024, and leading the effort to have McCormack Baron Salazar assign the property to creditors and subsequently having a Hennepin County court appointed a third-party receiver in 2025, MPHA is doing the work to support Heritage Park residents.”
• If not, how can you assure the public of that today as we await the audit results?
  • “MPHA is independently audited every year, returning audits with zero derogatory findings. These audits are published annually on the agency’s website. Agency staff are happy to provide these audits and whatever additional materials city staff might need to complete their work.”

“The City will be communicating with residents soon to get a better sense of who is interested in relocating. The next steps for the City, now that the voluntary relocation policy is in place, is to continue to reach out to eligible resident households (non-public housing) with more information about how to learn more and access benefits if eligible. The City and its partners communicate daily to ensure the work continues to help Heritage Park residents.”