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AGENDA RECOMMENDATION       
   Item No: 4.A.
Economic Development Authority
Meeting Date:
01/13/2025

Agenda Item:

Motion considering consolidation of 53 Housing Choice Vouchers from the Pipestone HRA.

Recommendation/Action(s):

Motion to consider consolidation.

Summary:

Staff have been contacted by the Minneapolis HUD Field Office and the Pipestone HRA to consider the consolidation of the Pipestone HRA's Housing Choice Voucher program into our program. 

The Pipestone HRA has an allocation of 53 vouchers and has had substandard ratings for several years due to underutilization of their vouchers. They currently have 23 of the 53 leased and have 8 families on their wait list. The two multi-county HRAs across southwestern MN have considered consolidation but under new leadership do not have the capacity to expand their voucher programs.

The Minneapolis HUD Field office has reported a consolidation with the EDA would allow these vouchers to be utilized in Blue Earth County. Currently, the Mankato EDA is in shortfall funding, using 100% of the program budget for 89% of the allocated vouchers. These additional vouchers will assist the EDA in serving families on our waiting list. Currently, there are 917 families on the waiting list. In addition to considering these vouchers, the EDA has applied for 25 Bridges vouchers through MN Housing and anticipates 80 -90 vouchers through MN Housing’s Bring It Home Voucher Program. These additional vouchers expand affordable housing opportunities in the community and are supported by the Affordable Housing Action Plan and the Strategic Plan for the city. These vouchers coordinate with local landlords to provide affordable housing options for low-income families.  The EDA has staffing capacity to manage these additional vouchers.

To consolidate these vouchers, HUD will require a contractual relationship with the Pipestone HRA or another entity to assist the EDA in the administration of vouchers in Pipestone County. The EDA will need to contract for services with the Pipestone HRA to conduct necessary inspections and assist in coordinating certifications that would best meet participant needs in Pipestone County due to the distance between our jurisdictions. Vouchers not being utilized in Pipestone will have access to the EDA’s current waitlist expanding the number of vouchers available to Blue Earth County. A Pipestone preference would be utilized and prioritize families that could be served under contract with the Pipestone HRA.
 

Information on next steps for a consolidation will be provided by the Minneapolis HUD Field Office. Including consideration of which entity, the Mankato EDA or Blue Earth County EDA, would be recommended for consolidation.

A motion is being requested for staff to proceed with the Minneapolis Field Office and Pipestone HRA in considering a consolidation.