Five years later: the county’s single-room occupancy strategy

The Robin, an affordable housing project in Robbinsdale that opened its doors in August, offers a mix of single room occupancy units and one-bedroom units for veterans.

Single-room occupancy housing isn’t a new idea. The practice of renting out single rooms as a low-barrier, low-cost option dates to the late 1800s and peaked in the 1970s. Over time, cities ended up demolishing most of them and establishing zoning standards that prevented them from being built again. These closures contributed to skyrocketing levels of homelessness.

Now, Hennepin County has taken an old idea and made it new again through our single-room occupancy (SRO) strategy. It’s all about filling a gap in the housing market that’s critically needed, while adhering to modern housing practices that create desirable homes for residents and neighbors.

After five years of implementing the strategy, learning from partners and residents, and successfully opening and maintaining SRO properties, the county is taking this moment to reflect on lessons learned, impacts made, and progress toward the future.

A difficult time presents a new opportunity

At the start of the pandemic, Hennepin County leased hotels as a refuge for people at high risk of COVID-19 who were living in congregate emergency shelters. Soon after, the county purchased several of these properties with the goal of ultimately transforming them into long-term affordable housing. As concerns about COVID-19 decreased, the county saw an opportunity—the possibility of converting these buildings into SRO units.

To determine how to ensure greatest impact, the county led a single room occupancy task force, the results of which showed that there were at least 200 people every night in shelters who could afford modest rents but had no options available to them. The results of the task force report helped inform the county’s new single room occupancy strategy.

“When we looked at the continuum of housing options, there was an option missing—housing for people who were earning $1,000 per month and who didn’t require supportive services,” said Julia Welle Ayres, Director of Housing Development at Hennepin County. “So many people are teetering on the edge of losing their housing, or have lost their housing already, even if they’re working and making a minimum wage.”

Hennepin County purchased or helped partners acquire a total of six buildings under the single room occupancy strategy, then developed tailored conversion plans for each building. Both the acquisition requirement and conversion plans followed the findings from the single room occupancy task force. While one purchased building was best suited for a full re-build, others could be remodeled for conversion to SRO units meeting modern building and design standards.

By leading the reemergence of this type of housing, the county hoped that other regional and statewide housing partners might follow suit.

“From the beginning, we wanted to encourage the reintroduction of this housing type,” said Welle Ayres. “We wanted to show that this type of housing might be a good option not just for residents, but also for affordable housing developers. We took these projects on knowing there was a lot to learn but confident that when done well, this type of housing would go a long way toward filling a gap in what’s available on the housing market.”

Reimagined housing, opportunities to grow

Left, a private bedroom at 925 Studios, and right, shared kitchen and dining space at the Metro Inn.

The Metro Inn, 925 Studios, and the Robin Apartments

Of the six properties originally purchased under the SRO Strategy, three of them are currently operating as SRO properties—the Metro Inn, 925 Studios, and Robin Apartments. Together, the three former motels offer a total of 97 affordable housing units affordable to people making 30% of the area median income (AMI).

Units rent between $470-$555 per month depending on whether they share bathrooms or kitchens. Units typically include private sleeping and living space while other amenities, such as kitchens and laundry areas, are usually communal.

The amenities might be basic, but that hasn’t diminished residents’ excitement.

“People are so excited to have a key to their own door and have more independence than in shelters or supportive housing,” Welle Ayres said. “The single-room occupancy model prioritizes stability, independence, and community over amenities within individual rooms.”

As recommended by the task force report, careful selection of properties to convert made for more streamlined and less expensive conversion. There were several elements that made these three projects successful:

• Existing, good quality building infrastructure, like HVAC and plumbing connected to individual dwelling units
• All properties were previously functioning as extended stay hotels
• All were mid-sized buildings (20-40 units), making renovations more manageable.

Finally, for all three projects, the county selected property owners and operators with deep roots in the area, on-site staff, and who were seasoned affordable housing professionals.

Impactful investments

While three buildings remain under the original SRO Strategy, the additional three are offering housing or much-needed community services. One operated from 2021-2023 as affordable SRO housing and will re-open in 2027 as a culturally specific residential treatment center, one has provided emergency shelter since 2020, and the final will be rebuilt as new affordable housing by 2028.

Welle Ayres is proud of the county’s investment of one-time funding that met our region’s timely needs:

1. Getting people out of shelters during the pandemic during a critical moment
2. Creating long-term affordable housing, and
3. Demonstrating models for creating new single-room occupancy housing.

“We were able to really quickly get a bunch of people out of shelter, who otherwise would have had to use their money to sleep on the bus or anywhere else they could find,” she said. “And all these investments will ultimately go a long way in building out a range of affordable options.”

The exterior of 925 Studios, which offers 45 single room occupancy units.

Changing the narrative on single room occupancy

From the beginning, the county wanted to prove that this kind of housing was needed as an option and that it can help reduce the number of people in homeless shelters. Over the past five years, both of those goals were met.

“We proved the need for SROs, and that they can work,” said Welle Ayres. “We demonstrated that other funders and regulators could allow it. Now we’re seeing more and more SRO projects being spearheaded by partners outside of the county. And that’s huge progress.”

Katrina Nygaard, senior housing analyst at Hennepin County who is leading a five-year analysis of the SRO strategy, has interviewed the owners and operators of the Metro Inn and 925 Studios who confirm that same point—people's interest is piqued. In fact, both properties now have waitlists.

“There’s a high demand for this with the public,” said Nygaard. “Property management companies would love to do more of this and would love government support to do it.”

The people Nygaard interviewed were overwhelmingly positive when it came to the idea of investing in more SRO units in the region. They also remarked on the added benefit of community living—tenants have built strong fellowship and community ties, working together to improve common areas like planting flowers and setting up patios, in addition to the sense of independence and ownership that comes with having your own dedicated space.

“Tenants like living there, and some tenants don’t think they’ll ever move out,” said Nygaard. "They have a good sense of community, and they also have own little corner of the world, which is really cool for the right person.”

Of course, it's not always easy. There are cash flow considerations, and it’s challenging to find a good tenant match—someone who doesn’t need supportive services and can afford modest rent.

“There are challenges, but that doesn’t mean we should stop encouraging developers and cities across Hennepin County to consider SROs,” said Nygaard. “People want this as an option.”

Learn more about Single Room Occupancy

If you’re interested in learning more about the county’s single room occupancy strategy, the single room occupancy task force, or lessons learned over the past five years, visit our single room occupancy webpage or email housing@hennepin.us.