Services are being cut at a Minneapolis housing complex for people living with HIV/AIDS.

Bloom Lake Flats opened just a year and a half ago as a ‘supportive housing apartment,’ touting itself as a unique model for serving those battling HIV and homelessness.

The 42-unit complex had been in the works for nearly a decade.

Now, the partnership behind the operation is ending.

The nonprofit Project for Pride in Living runs the housing portion of the project, with Clare Housing as the qualified services provider.

Clare Housing provided around-the-clock services at Bloom Lake Flats, from nursing care to medication management to referrals.

Last week, the organization sent a letter to residents, stating: “Effective October 9, 2024, Clare Housing will no longer be providing services at Bloom Lake Flats.”

You can read the full letter below:

5 EYEWITNESS NEWS spoke with the executive director of Clare Housing about what happened.

“It is multiple problems with multiple funding streams,” said Executive Director Phoebe Trepp. “These programs that are meant to help people are so bureaucratic and so time-consuming for providers that, in the end, we’re spending more time and more money trying to understand and get the money than actually being able to provide services to people.”

Trepp said the model at Bloom Lake Flats was no longer ‘financially sustainable’ due to changes made at the state legislature regarding who is eligible for some of their more specialized programs.

She said they also ran into issues getting approvals, even for those who are eligible.

“The approvals just have not been coming in. Cases have been closed and had to be restarted, which leaves balances of months and months of unpaid service dollars and rent that part was not anticipated, so for the last year, that has been part of the growing problem,” Trepp said.

Clare Housing budgeted about $600,000 per year for the program at Bloom Lake Flats but said only about half of the funding is projected to come through.

“It’s really hard for the mission, it’s really hard for the staff and it’s obviously the hardest for the clients,” Trepp said. “And while it was a really hard decision, it means the rest of our agency is able to keep being healthy. It would really impact the whole agency if we continued to operate in a model that doesn’t work.”

Clare Housing serves more than 300 clients per year across a variety of programs.

Before the organization pulls out of Bloom Lake Flats in October, Trepp said they will work to connect tenants with case managers at other service providers.

It comes at a difficult time for the HIV community in Minnesota.

Rainbow Health, a major nonprofit serving the LGBTQ+ and HIV communities, abruptly shut down in July.

“It’s the worst possible time for this to happen, amidst the other losses in services,” Trepp said. “But by being able to stem the loss on this program, it keeps our agency financially viable and it means that we can continue to operate and expand in other programs that will be sustainable.”

The Minnesota Department of Human Services also released a statement regarding the situation:

“DHS is aware of this situation and is working with Clare Housing and Bloom Lake Apartments. As this situation is still developing, we are exploring what options are available.”

The other half of the partnership at Bloom Lake Flats, Project for Pride in Living, provided 5 EYEWITNESS News this statement:

“Bloom Lake Flats is a wonderful new building and unique model to serve families with HIV AIDS.  PPL is the owner, and Clare is the qualified services provider.

We received notice that Clare was leaving the partnership in early July and were surprised and disappointed.  Despite efforts to keep Clare in the partnership, Clare has made the decision to leave the partnership. 

PPL is not equipped to provide the 24/7 medical and other supportive services needed by residents and are working diligently to find another service provider, a task that will be challenging, given the limited service providers working in the HIV/AIDS community.  

In the meantime, no resident will be required to move. They can give notice to move elsewhere, should they choose.  PPL is working hard with Hennepin Co, the State of MN, and the City of Minneapolis to find a resolution quickly.”