MPHA Creates Shell Companies to Privatize Public Housing

DG&PHC found this information in the list of companies MPHA contracts with.  As a result, we were able to retrieve one of their contracts that shows this evidence. MPHA created these companies in January of 2021. Each of the above companies is a legally separate nonprofit corporation and a developer that holds a contract with MPHA (Minneapolis Public Housing Authority) itself. However, MPHA Executive Director & CEO Abdi Warsame is also the Executive Director of each company. These companies were formed to redevelop the Elliot Twins. But they exist to privatize other public housing buildings, and homes which MPHA wants to call affordable housing after they are privatized.

During the COVID Pandemic, summer of 2020, the Keep Public Housing Public Minneapolis Coalition conducted a letter campaign to hold MPHA accountable and pause all privatization schemes.  MPHA pushed RAD at Elliot Twins and  Section 18 Demolition & Disposition to privatize over 730 single-family homes known as scattered sites. MPHA failed to create a transparent process to answer questions and explain the schemes. MPHA kept pushing their plans behind closed doors. Tessa Wetjen, Commissioner of MPHA, responded to one of the letters from an ally.  Tessa Wetjen said:  “I understand people are concerned about the future of scattered site homes, but what MPHA is doing with them is essentially moving them from one (internal) program to another, not getting rid of them.” See the last paragraph of Tessa’s email.               

If MPHA is not changing anything;

  1. Why are they creating three private companies for the first time in MPHA’s history? 
  2. Why are they naming the companies all MPHA….? Is it to confuse the public and make the people think these companies are public when they are legally seperate private companies?
  3. How can MPHA claim that nothing is changing when they are legally transferring public housing to private market so-called “affordable” housing?