Many developers are competing today to find sites for upscale market-rate apartment projects. But the Higher Ground housing project, set for a grand opening on June 7, is designed to meet more basic needs. The $18.45 million project combines shelter beds for homeless people and affordable apartments in the same building. The project is part of a partnership between Catholic Charities of St. Paul and Minneapolis and the Community Housing Development Corp., both Minneapolis-based nonprofits. Higher Ground offers 171 shelter beds, 80 “Pay-For-Stay” beds which cost $8 per night, 74 single room occupancy supportive housing units and 11 efficiency apartments. The combination of shelter space with apartments is meant to offer a gateway for homeless people to get into permanent housing. The project financing was anchored by $12.75 million in bonds from the Minnesota Housing Finance Agency, and also included money from Hennepin County and the Metropolitan Council. The city of Minneapolis is providing about $211,000 in Emergency Shelter Grant funds to furnish the shelter. Private donors to the project include the Pohlad Family Foundation, the General Mills Foundation, the Patrick and Aimee Butler Family Foundation and the Annette Atkins and Tom Joyce Fund of the Minneapolis Foundation. Tracy Berglund, director of housing and emergency services for Catholic Charities said that Catholic Charities still needs to raise $2 million towards the shelter component of the project.