Building Minneapolis History: MPHA’s Spring Manor Expansion

A Historic Milestone for Affordable Housing

The Minneapolis Public Housing Authority (MPHA) has reached a transformative milestone with the redevelopment of Spring Manor, now known as the Springs Expansion — the largest public housing redevelopment in Minneapolis history.

On August 19, 2025, MPHA, together with local leaders and residents, celebrated the groundbreaking of this momentous redevelopment project—a major investment in affordable housing and community renewal. The initiative preserves 221 affordable homes across two existing buildings and adds a new four-story building with 15 deeply affordable, fully accessible units, creating 236 high-quality homes for seniors and residents with disabilities.

The Springs Expansion serves as a model for how housing authorities can expand affordability, protect long-term ownership, and deliver sustainable impact through innovative financing and partnership.

Reinvesting in an Anchor for the Community

Located at 809, 824, and 828 Spring Street NE, the Springs Expansion combines comprehensive rehabilitation and strategic new construction to ensure the long-term viability of MPHA’s housing portfolio:

• Rehabilitation: Two mid- and high-rise apartment buildings from the late 1960s and 1970s are undergoing complete renovation, preserving 221 deeply affordable homes while modernizing every system and space.
• New Construction: A new midrise building at 824 Spring Street NE will add 15 Faircloth-to-RAD units, all fully UFAS-compliant, providing accessible, energy-efficient homes that meet modern standards of comfort and sustainability.

These updates include new kitchens and bathrooms, HVAC and plumbing systems, improved air quality, and enhanced community amenities: a fitness room, resident lounge, and landscaped outdoor gathering areas.

Turning Vision into Execution

CSG Advisors served as financial and strategic advisor to MPHA, guiding the transaction from concept through execution by supporting MPHA with:

• Designing a comprehensive financial structure that combined RAD, Section 18, and Faircloth-to-RAD tools with 4% Low-Income Housing Tax Credits (LIHTCs).
• Negotiating terms with lenders and investors to optimize project viability while maintaining long-term affordability.
• Ensuring the capital stack — totaling $77.9 million — balanced public and private resources efficiently, leveraging funds from Orix Public Finance, RBC Community Investments, and multiple local partners.

This collaboration illustrates how housing authorities can strategically modernize their portfolios, attract private capital, and preserve affordability — all while maintaining public ownership and mission integrity.

Innovative Financing, Long-Term Affordability

The Springs Expansion’s financing model exemplifies how PHAs can achieve large-scale redevelopment without compromising community control. Key financial features include:

• A 99-year ground lease structure ensuring MPHA retains ownership and oversight;
• Energy-efficient design and solar-ready infrastructure that reduce operating costs and environmental impact; and
• A blend of RAD/Section 18 conversion and Faircloth-to-RAD new construction, allowing MPHA to add new units while reinvesting in existing housing stock.

This model aligns financial sustainability with long-term community outcomes ensuring that every dollar invested strengthens both the property and the neighborhood it serves.

Rehabilitation That Meets the Moment

Spring Manor has served Northeast Minneapolis for over 50 years as a vital source of affordable housing. The redevelopment replaces aging infrastructure, enhances accessibility, and reimagines shared spaces to meet modern standards of safety, dignity, and energy performance.

The project is Green Communities certified, incorporating high-efficiency boilers, water-saving fixtures, and air-source heat pumps to reduce emissions and utility costs. These improvements not only extend the life of the buildings but also ensure residents benefit from healthier, sustainable homes that reflect the community’s future.

A Blueprint for Housing Authorities Nationwide

The Springs Expansion models the impact of combining federal tools like RAD and Faircloth with strategic private investment. As a result, housing authorities are able to rebuild aging housing with modern systems and amenities, create new deeply affordable units within existing land asset, and strengthen financial flexibility for future development.

CSG Advisors’ partnership with MPHA on this transaction highlights how innovative structuring and experienced advisory support can turn ambitious redevelopment goals into reality — responsibly, sustainably, and at scale.

Looking Ahead: A Stronger Minneapolis for Generations

Spring Manor’s transformation is a testament to what’s possible when public housing authorities invest strategically in their communities. With 236 homes of lasting affordability, improved accessibility, and state-of-the-art energy performance, this project will benefit Minneapolis families for decades to come.

As MPHA and its partners move forward, the Springs Expansion stands as both a community victory and a blueprint for cities nationwide — proving that smart financing and mission-driven leadership can redefine what affordable housing looks like for future generations.