New deal: DHS acquires rental properties with support services planned

February 23, 2024
1 min read


TLDR:

  • The Minnesota Department of Human Services purchased the SoPHi apartments in Minneapolis for $7.575 million.
  • They plan to provide support services for clients with intellectual and developmental disabilities and mental illness.

The Minnesota Department of Human Services recently acquired the SoPHi apartments in Minneapolis for $7.575 million. The purpose of the purchase is to introduce support services for clients with intellectual and developmental disabilities as well as mental illness. The state plans to offer residential and support services in an integrated setting to help these clients live more rewarding and independent lives within a community setting. The sale closed on February 13, with the state highlighting the three key goals of the new approach:

  • Expand housing options and quality of life for clients.
  • Reduce costs compared to traditional care settings.
  • Decrease the staffing needed while providing the same level of care.

The program will operate at the SoPHi apartments, which feature studio units ranging from 461 to 547 square feet. The average price per unit is $157,813. The DHS plans to reserve 24 units for their clients, keeping the remaining 24 available to the general public. Rent will continue to be set at market rates, with Level 10 Property Management overseeing the property.

The SoPHi apartments were developed by North Bay Cos. and opened in 2023. The DHS-operated program will be managed by the DHS Direct Care and Treatment Administration, which serves individuals with complex conditions that other healthcare providers may not accommodate. The new approach aims to empower clients with disabilities and mental illness to lead more independent lives and participate more actively in their communities.


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