Public Hearing and Resolution approving the 2026 Mankato Annual Agency Plan.

Public Hearing and adoption of resolution.

The 2025 PHA Annual Plan is a comprehensive guide to public housing agency policies, programs, operations, and strategies for meeting local housing needs and goals. The EDA submits a streamlined plan that represents the role of the agency and programs in the community. The plan follows strategic planning identified in the community consolidated plan, strengthens ties to community service agencies, fair housing, and accesses tools necessary to reach established goals.

These tools include:

• Annual review of payment standards and utility allowances.
• Annual review of the Administrative Plan for the Housing Choice Voucher program and Admissions and Occupancy Plans for Public Housing.
• Identifies special vouchers including:
  • Project-Based Vouchers.
  • Family Self-Sufficiency, and Homeownership.
  • Mainstream Vouchers for non-elderly, disabled.
  • VASH Vouchers for homeless veterans.
  • Foster Youth to Independence vouchers to meet the needs of homeless and at-risk foster.
  • Emergency Vouchers and Stability Vouchers that work to prevent homelessness.
• Utilizes preferences based on community needs; and
• Manages formula funding for capital programs that improve and replace public housing.

The plan identifies and recommends policy changes the EDA has enacted since submission of the last Annual Plan, as well as the Capital Fund Program (CFP).

• Administrative Plan: Housing Opportunity Through Modernization Act (HOTMA) revisions have been made to the Administrative Plan as required for HUD and anticipated to be effective in 2025-6. Link for Administrative Plan: HCV Administrative Plan
• Admissions and Occupancy Procedures (ACOP): Housing Opportunity Through Modernization Act (HOTMA) revisions have been made to the Admissions and Occupancy Plan as required for HUD and anticipated to be effective in 2025-6. Link for ACOP: Admissions and Continued Occupancy Policy (ACOP)
• Capital Fund Program: includes the continued modernization of units and other site improvements. Capital funding held from prior years will be used to address physical need assessment report items necessary to complete the repositioning of units under RAD. 
• Repositioning of Public Housing units in the RAD/Section 18 program: The conversion allows for a more predictable, sustainable revenue stream while still providing the same protections/rights to all current tenants.  The program revenue will come from rent payments from tenants that reflects 30% of their income, and the HUD funding will change from an annual operating subsidy and Capital Fund Grant to a Housing Assistance Payments (HAP). The conversion financial application was submitted in January 2024 for the Section 18 and 49 units transitioned on April 1, 2025. The RAD/ Small PHA Blend option was submitted in July and is being reviewed by HUD with a closing date of November 30, 2025. 

While this plan has specific emphasis on the operations and strategies of the Housing Choice Voucher program and Public Housing program. It also addresses affordable housing needs in the community and progress in implementing action steps identified in the Affordable Housing Action Plan (AHAP). The programs and services administered by the EDA are intended to cover the continuum of housing.
 
The Annual Agency Plan highlights routine accomplishments and new initiatives over the past year and the AHAP that include:
 
Administering Housing Choice Voucher and Public Housing Programs:

• Received high performer status with HUD providing safe, decent, and affordable housing to 673 voucher holders and 263 Public Housing units in Mankato and Blue Earth Counties.
• Prioritized special populations with housing vouchers that include Foster Youth to Independence, Mainstream, VASH, Emergency, and Stability vouchers. 
• Administered capital funding to maintain and renovate public housing to meet all inspection criteria and received a REAC Inspection rating of 98%.

Create a Housing Trust Fund:
Combined, Mankato and Blue Earth County received $1,101,289 in Statewide Affordable Housing Aid from the MN Department of Revenue to create local Housing Trust funds. Mankato created a Housing Trust Fund on August 26, 2024, to leverage funding for affordable housing in the community. Trust funds are a consistent, flexible resource for addressing housing needs in the community. HTF will provide opportunities to leverage public and private funds and jump start projects that benefit and invest in affordable housing. In 2025, the EDAs leveraged an additional 600,000 in EDA and MN Housing HTF Grant funding to the HTF that will support the Partnership Community Land Trust.
 
Creation of Affordable Housing:

• The EDA is successfully administering the Public Housing and Housing Choice Voucher programs. The EDA evaluates the availability of additional housing vouchers with the use of current resources.
• Assisted 52 low-income families obtain homeownership.
• Affordable homeownership: $900,000 of HTF allocated to Partnership Community Land Trust for 30 new homes in 2026-27.
• Affordable workforce rental developments– LIHTCs – CDBG Funding of $100,000, land, PBV rent assistance that include: 
  • Sinclair Flats – general Occupancy (48 units) in 2024,
  • Lewis Lofts – senior housing (64 units) in 2025, and
  • In 2026, the Poplar Apartments will provide supportive housing for those who are homeless (40 units) using 40 PBV under the HCV program in collaboration with Partners for Housing offering supportive services on site.

• More rental assistance: (293 new vouchers) with the EDA awarded
  • MN Housing Bridges Vouchers (25) for those with mental illness leasing beginning in August 2025,
     
  • MN Housing Bring It Home Rental Assistance (180) prioritizing families regionally beginning the fall of 2025,
  • Local Homeless Prevention Aid from MN Department of Treasury (35) youth homelessness or at risk of homelessness, and
  • Anticipated consolidation of vouchers from the Pipestone HRA (53 Vouchers) on January 1, 2026.
• Support streamlining zoning guidelines that include considering modifications to B3 Highway Business District to allow multiple family dwelling units, and discussion on accessory dwelling units and tiny homes.
• Discussions with developers to create affordable homes and consider smaller lot sizes
• Support Habitat for Humanity considering local rent to homeownership programs.

Preservation of Affordable Housing:

• The Capital Fund Program maintains and renovates public housing units to meet all inspection criteria and received a 98% on the REAC Inspection.
• Alma Apartments were preserved by Trellis Company in 2024, preserving 86 HUD-subsidized units.
• Homestead Apartment Flooding – 40 affordable rental units needing rental rehabilitation and relocation assistance. The EDA, Partners for Housing, and the Red Cross assisted to rehouse tenants using HCV assistance and other subsidies.
• CDBG Rental Rehabilitation program to provide $12,000 per unit, 50% of rents must serve low-to-moderate income households, 50% match.
• CDBG Owner rehabilitation program to providing up to $35,00 per property, 0% interest loans, and low-to-moderate income households can have a deferred forgivable 10-year loan.
• CDBG Funding to support Habitat for Humanity’s Aging in Place program.
• Seeking LIHTCs in 2026 to replace 40 aged Public Housing units.

Preventing and Ending Homelessness:

• Under the coordinated entry system homeless response system and use of preferences, the EDA has increased housing subsidies serving homelessness by 33% over the past 5 years.
• Poplar Apartment supportive housing development by Trellis Company was funded by LIHTCs in December 2024 and will begin construction this fall.
• Successfully administer programs for homelessness, including:
  • 8 Continuum of Care program at Cherry Ridge Apartments,
  • Housing Choice Voucher special program vouchers that provide for 8 VASH, 112 Mainstream, and 22 Foster Youth Independence families, and
  • 4 Dedicated units for Long Term Homelessness at Breckenridge Townhomes.

• Administered Emergency Housing Vouchers and Housing Stability vouchers for those who are homeless or at risk of homelessness.
• Conduct bi-weekly case conferencing with shelters and housing providers to house/shelter the homeless.
• Use the regional Coordinated Entry Assessment system for homeless response and participate in monthly regional case conferencing.
• Provide CES Navigation services to those who are homeless. These funds support our local Street Outreach team to navigate those who are homeless to community resources and stable housing options.
• The EDA utilizes preferences for coordinated entry, supportive housing, and involuntary displacement due to natural disaster or governmental action, and VAWA outlined in the Administrative Plan and ACOP.
• CDBG funds continue to consider proposals from homeless shelters serving low-income homeless households. 
• Maintains a response system to house veterans experiencing homelessness within our CoC Region.

• Continued collaboration seeking capital funding for a 24/7 emergency shelter.

Expand Affordable Housing Opportunities:

• Utilize the MCPP program with MN Housing, aiding 49 first-time home buyers, step up buyers and fix-up loans.
• Support of the Partnership Community Land Trust expansion into Mankato. The CLT will provide homeownership for 3 households purchasing existing homes in the community and 3 households purchasing new construction homes. Next year, Phase III & IV will provide 15 new construction homes and 5 acquisition/rehabilitation homes in the community.
• Supported the Jackson Park Apartments and Cherry Street Apartments application for Low Income Housing Tax Credit (LIHTC) program, financing needed to preserve and increase affordable housing in Mankato.  
• CDBG funds to preserve existing housing stock owned by or rented to low-income Mankato
• The EDA continues to apply for additional affordable housing as available and is seeking information on the State Tax Credit program through MN Housing to expand the local housing trust fund.

Community Education and Landlord Engagement:

• Help move citizens to economic self-sufficiency and become homeowners. Staff continue the Family Self-Sufficiency program, helping move participants off government assistance and promoting asset development. This year, 47 participants made progress towards achieving their goals.
• Continue to offer home buyer education to home buyers through HCV Homeownership Program.  EDA collaborates with SWMNHP as a HUD-certified housing counseling agency to provide program participants with housing counseling.
• Offer down-payment assistance through the City of Mankato Homeownership revolving loan fund for HCV home buyers and Minnesota Cities Participation program.
• Participate in the Preventing Rental Evictions Program (PREP) to engage local landlords in supporting affordable rental housing. Supported Partners for Housing offering Rentwise education programs to local renters.
• Promoted the Beyond Background insurance program.
• Conducted Marketing for Rental Rehabilitation funding as deferred and forgivable loans in to keep rents affordable.
• Creation of program flyers – Home Modification group has developed a Rehabilitation flyer.

Successful Administration of the Community Development Block Grant:
In 2025, CDBG funds were spent on owner-occupied and rental housing rehabilitation and abatement of lead-based paint hazards, benefiting 14 low - moderate income households. Housing rehabilitation has been effective in preserving affordable housing stock, remediation of lead-based paint hazards, as well as improving the quality of life for low to moderate-income households. CDBG funds are used for a variety of public service activities, including healthcare services, nutrition, transportation, chore services for the elderly and disabled, education for new Americans, affordable childcare, and youth services.
 
CDBG funds are also being used towards site acquisition costs for the Poplar Apartments with Trellis Company. Environmental investigation and site cleanup costs have been leveraged from DEED Contamination Cleanup grant and an EPA Brownfield Assessment grant.
 
Since 2010, CDBG funding has rehabilitated 72 owner-occupied dwellings and 20 rental units. CDBG funds have been used towards site acquisition costs leveraging Low Income Housing Tax Credits for the creation of 159 affordable units and for the preservation of 374 affordable units.

Assist Participants who are Victims of Domestic Abuse:

• Staff refer victims to law enforcement as well as to services provided by the Committee Against Domestic Abuse (CADA).
• Staff terminate housing assistance/lease agreements of the perpetrators of violence.

• Staff work with CADA social services staff to provide supportive housing to residents of CADA House.
• Utilize preference for VAWA on HCV wait list.

Continue to Build Partnerships:
The plan also highlights our strength in community partnerships that include and are not limited to: Arc of MN, Blue Earth County, Connections Shelter, Habitat for Humanity, ISD 77, Lutheran Social Services, Minnesota Valley Action Council, Partners for Housing, River Valley Continuum of Care, Salvation Army, Southern MN Regional Legal Services, and Southwest MN Housing Partnership.
 
The plan was posted for public comment and Resident Advisory Committee Meetings were held on September 2. A summary of comments received is attached. Following the Public Hearing, the Board is asked to approve by resolution the Annual Public Housing Agency Annual as presented.