St. Paul-based affordable housing provider CommonBond Communities will lay off 117 employees starting in July as the nonprofit plans to hand off management of half its real estate portfolio next year.
The layoffs, which are focused in its property-management department, were detailed in a public WARN notice the Minnesota Department of Employment and Economic Development shared Monday afternoon.
After the job cuts, the nonprofit will maintain a team of 107 employees — roughly half its workforce — that cover other business lines, including real estate, fundraising and its Advantage Services program, which offers support programs to renters including financial support for utility payments and food access.
CommonBond President and CEO Deidre Schmidt said in an open letter Monday the decision comes as the nonprofit “is addressing challenging conditions in the affordable housing industry” and looking for ways to stabilize its rental portfolio.
The nonprofit has already transferred about half those responsibilities to other area property managers, Schmidt said, and until recently sought to continue self-management of the other half.
But a partnership with Boston-based nonprofit the Community Builders presented “a new, compelling option,” for taking over the rest of CommonBond’s portfolio, Schmidt said. The other nonprofit has the experience and capacity to handle the rest of CommonBond’s properties.
Schmidt said Community Builders will begin working with CommonBond immediately. CommonBond will continue to offer its wraparound services at its buildings, Schmidt said in the letter.
A CommonBond spokesperson said staff members directly affected were given a 60-day notice on Monday and many will have an opportunity to interview with Community Builders.
