CommonBond Communities to Lay Off 117 Employees

CommonBond Communities, a nonprofit affordable housing provider based in St. Paul, Minnesota, has announced plans to lay off 117 employees as it outsources its property management operations. The layoffs, scheduled to begin on July 18 and continue through January 31, 2026, will primarily affect staff in the property management department at the organization's headquarters at 1080 Montreal Avenue.

Image credit: Kaas Wilson Architects

In a public notice filed with the Minnesota Department of Employment and Economic Development, CommonBond detailed the workforce reduction, which represents over half of its current staff. Post-layoffs, the organization will retain approximately 107 employees focused on areas such as real estate development, fundraising, and its Advantage Services program, which offers support to residents including financial assistance for utilities and food access.

President and CEO Deidre Schmidt explained that the decision to outsource stems from challenging conditions in the affordable housing industry.

"CommonBond is addressing challenging conditions in the affordable housing industry and finding fresh solutions to stabilize residents and our portfolio so that we can deliver on our mission well into the future," Schmidt stated in an open letter.

The organization has partnered with The Community Builders (TCB), a Boston-based nonprofit with experience managing 12,000 homes nationally, to assume property management responsibilities for about half of CommonBond's portfolio beginning in 2026. Schmidt noted that TCB's values-based, resident-focused approach aligns with CommonBond's mission and that the partnership will allow the organization to focus on its core strengths.

CommonBond has already transitioned management of roughly half of its communities to other trusted partners, including ACC Management Group, Lloyd Management, MetroPlains Management, Property Solutions & Services, and Premier Management & Development.

The collaboration with TCB represents a significant step in the organization's strategic shift away from self-management.

Despite the layoffs, CommonBond will continue to offer its Advantage Services at its properties, ensuring ongoing support for residents. Schmidt emphasized that while TCB will handle property management, CommonBond's commitment to resident services remains steadfast.

The organization has faced financial challenges in recent years, prompting a $65 million capital campaign launched last year to improve its aging housing stock. Increased operational costs and losses in rental income have further strained resources, leading to the current restructuring efforts.

Employees affected by the layoffs have been given a 60-day notice and may have opportunities to interview with TCB for potential positions.