A Transition for Our Scattered Site Homes

Buying the building preserved these stable homes for many over the years. Small (known as scattered site) multifamily buildings are where Alliance began its work in the 1990s, when community members from the St. Stephen’s shelter organized to purchase them so people experiencing homelessness could have not just a long term, stable place to live, but a choice in where they lived.  

Over the past decade and across the country, small, multifamily buildings have become increasingly unsustainable financially. Many of these buildings are older homes, some up to 100 years old, and the maintenance, insurance, utilities, and security costs have skyrocketed to the point they put organizations’ existence at risk.  

Last year, the Alliance Board of Directors made the difficult decision to begin transitioning out of owning our small properties. This process will look different for each building as we actively work to ensure the buildings are transitioned responsibly. Our priority continues to be supporting our residents and ensuring they continue to have a stable place to call home, whether that is in their current building or a new apartment. 

The second property to begin this transition is 3631 Penn. We are  pursuing a  sale to an owner with experience in North Minneapolis to maximize the likelihood that the remains a vibrant part of the community.  

Our mission is not changing. Alliance will continue to build and manage deeply affordable homes for people who are left out of market opportunities in Minneapolis. We will continue to offer relational and flexible property management and remain a compassionate partner to our residents. 

We recognize that this transition presents the biggest changes, and potentially the biggest challenge, to our residents. Depending on who purchases 3631 Penn, they may need to move. Either way, our property management staff is working closely with each household to communicate updates, answer questions, and offer support. No matter the circumstance, we are committed to walking alongside residents and doing everything we can to ensure they have stable, safe, and comfortable housing moving forward. 

Your support has always made Alliance’s work possible. We believe that this decision positions the organization for long-term strength so we can continue doing what we do best: creating deeply affordable homes for people who have the fewest housing options in Minneapolis. 

If you have questions about the sale of 3631 Penn or about our plans for other small properties, please reach out to Craig Freeman, Director of Development at cfreeman@alliancehousinginc.org or 612-517-2323. We will continue to keep you informed as this process unfolds.  

Thank you for standing with Alliance and for believing, as we do, that everyone deserves a stable place to call home. 

If you’d like additional context about the factors influencing this decision, this Shelterforce article shares the experience of a Portland organization that, much like Alliance, had to make the difficult choice to sell its scattered site homes: 

What Does It Mean When Anchor CDCs Sell Affordable Housing? Shelterforce 

“For decades, the affordable housing system was built on the assumption that nonprofit owners can acquire aging buildings, patch them together, and hold them in perpetuity, (...) What providers’ recent decisions make is the unraveling of both that assumption and the financing mechanisms that once supported it.”