Minneapolis Approves $2.5 Million to Move Residents From Failing Heritage Park

Overview

• The Minneapolis City Council voted unanimously Thursday to allocate $2.5 million from the Affordable Housing Trust Fund to help relocate residents and address urgent problems at Heritage Park.
• City staff say roughly 685 people across about 212 households are affected and that nearly 200 of the development’s roughly 440 units are offline or uninhabitable due to mold, leaks, broken balconies and other damage.
• The funding is meant to flow to the court-appointed receiver, Certus Financial, and partnering agencies such as MPHA, Hennepin County and relief groups to arrange temporary housing, short-term repairs and a broad mold assessment.
• Council members directed the city attorney to pursue legal options to recoup costs as officials and planners evaluate whether to repair the complex or pursue a full rebuild, a process city leaders say could require far more money.
• The crisis has sharpened accountability questions: the development was run by McCormack Baron Salazar until a court removed the developer in late 2025, community groups are demanding investigations and leadership changes, and residents face immediate disruption to their homes and routines.