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AGENDA RECOMMENDATION |
Item No: 4.D.
Economic Development Authority
- Meeting Date:
- 03/10/2025
Agenda Item:
Resolution approving acquisition of certain property owned by the Housing and Redevelopment Authority of Mankato.
Recommendation/Action(s):
Adoption of the attached Resolution.
Summary:
On March 10, 2025, the Housing and Redevelopment Authority met and approved the conveyance of public housing properties to the City of Mankato and the Economic Development Authority of Mankato (EDA).
The EDA operates this public housing portfolio and approved the disposition of units from the Section 9 public housing portfolio and approved the disposition of units from Section 9 Public Housing into a long-term, Project-Based, Section 8 Housing Choice Voucher rental assistance that provides a stable and predictable annual subsidy. The application for Section 18 disposition of 49 scattered site units was approved by the EDA on December 11, 2023. This application for Section 18 disposition was approved by the US Department of Housing and Urban Development (HUD) on September 5, 2024, and tenant protection project-based vouchers were provided to the EDA. It is anticipated that the conversion will be completed in March 2025. The remaining 130 units will be seeking disposition approval later this year.
The HRA authorized the conveyance of 49 scattered site public housing units to the City of Mankato for less than the fair market value and the city will continue to serve low-income households under the Section 8 Project-based Voucher Program administered by the EDA. Further, the HRA authorized the conveyance of the remaining 130 public housing units to the EDA under the Section 9 Public Housing program to be converted later this year.
Under disposition, all the units will be subject to a Declaration of Restricted Use Agreement requiring the rental properties to serve low-income households for a term of 30 years, with such use agreement to be recorded covenant running with the land and binding on successors and assigns of the City.
The requested action is to accept, by resolution, the conveyance of 130 Public Housing units to the EDA that will be considered for disposition later this year.
The EDA operates this public housing portfolio and approved the disposition of units from the Section 9 public housing portfolio and approved the disposition of units from Section 9 Public Housing into a long-term, Project-Based, Section 8 Housing Choice Voucher rental assistance that provides a stable and predictable annual subsidy. The application for Section 18 disposition of 49 scattered site units was approved by the EDA on December 11, 2023. This application for Section 18 disposition was approved by the US Department of Housing and Urban Development (HUD) on September 5, 2024, and tenant protection project-based vouchers were provided to the EDA. It is anticipated that the conversion will be completed in March 2025. The remaining 130 units will be seeking disposition approval later this year.
The HRA authorized the conveyance of 49 scattered site public housing units to the City of Mankato for less than the fair market value and the city will continue to serve low-income households under the Section 8 Project-based Voucher Program administered by the EDA. Further, the HRA authorized the conveyance of the remaining 130 public housing units to the EDA under the Section 9 Public Housing program to be converted later this year.
Under disposition, all the units will be subject to a Declaration of Restricted Use Agreement requiring the rental properties to serve low-income households for a term of 30 years, with such use agreement to be recorded covenant running with the land and binding on successors and assigns of the City.
The requested action is to accept, by resolution, the conveyance of 130 Public Housing units to the EDA that will be considered for disposition later this year.