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AGENDA RECOMMENDATION |
Item No: 4.E.
Economic Development Authority
- Meeting Date:
- 04/13/2026
Agenda Item:
Resolution authorizing use of the Housing Trust Fund to support Connections Shelter Summer Expansion.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
This memorandum requests EDA Board authorization to allocate Housing Trust Fund resources to support the expansion of Connections Shelter’s emergency shelter operations through the summer months of 2026. The proposed expansion will provide continuous, low-barrier overnight shelter from May 1 through September 30, addressing a critical seasonal gap in the community’s homeless response system.
Connections Shelter is uniquely positioned to implement this expansion immediately, leveraging an established facility, trained staff, and a proven service model grounded in housing first, harm reduction, and trauma-informed care philosophies. Funding this proposal represents a strategic investment in stabilizing vulnerable residents, improving housing outcomes, and advancing the community’s goal of a sustainable year-round shelter system.
Background and Need
The Mankato area currently lacks consistent shelter availability during the summer months, resulting in increased unsheltered homelessness, encampments, and reliance on emergency services. While Connections Shelter operates at or near capacity during its traditional season (October–May), services historically cease during the summer due to funding limitations.
This seasonal gap disrupts continuity of care, undermines housing progress, and increases vulnerability for individuals experiencing homelessness. Data from recent years demonstrate growing demand:
Proposal Overview
Connections Shelter proposes to operate a 48-bed overnight shelter from 5:00 PM to 8:00 AM daily throughout the summer period. The model includes:
Organizational Capacity
Connections Shelter has nearly a decade of experience serving individuals experiencing homelessness. It operates a fully equipped shelter facility and maintains partnerships with healthcare, housing, and community service providers to deliver coordinated support.
The organization has established financial management systems and demonstrated success managing state and grant-funded programs. Overall, Connections Shelter has the capacity to deliver effective, housing-focused services with measurable outcomes and accountability.
Budget
The total projected cost for summer operations is $145,283, primarily driven by personnel expenses required to maintain safe and consistent operations.
Key cost categories include:
Community Impact
Approving this funding will have a meaningful and immediate impact on the community by ensuring continuous access to shelter, helping reduce the number of individuals experiencing unsheltered homelessness. With uninterrupted case management, individuals and families will be better supported in achieving and maintaining housing stability, leading to more consistent and positive long-term outcomes.
This investment will also help alleviate pressure on emergency services and other public systems by addressing needs proactively rather than reactively. By supporting a coordinated, year-round response to homelessness, the community will be better equipped to respond effectively across seasons and circumstances.
Overall, this funding aligns closely with established community priorities, including promoting housing stability, improving public health outcomes, and ensuring equitable access to essential services for all residents.
Recommendation
Staff recommends that the EDA Board authorize by resolution the allocation of Housing Trust Fund resources to support Connections Shelter’s expanded summer emergency shelter operations from May 1 through September 30, 2026, in an amount not to exceed $135,283, subject to standard funding agreements and reporting requirements, in order to address the seasonal gap in shelter services and advance a sustainable, year-round homeless response system.
Connections Shelter is uniquely positioned to implement this expansion immediately, leveraging an established facility, trained staff, and a proven service model grounded in housing first, harm reduction, and trauma-informed care philosophies. Funding this proposal represents a strategic investment in stabilizing vulnerable residents, improving housing outcomes, and advancing the community’s goal of a sustainable year-round shelter system.
Background and Need
The Mankato area currently lacks consistent shelter availability during the summer months, resulting in increased unsheltered homelessness, encampments, and reliance on emergency services. While Connections Shelter operates at or near capacity during its traditional season (October–May), services historically cease during the summer due to funding limitations.
This seasonal gap disrupts continuity of care, undermines housing progress, and increases vulnerability for individuals experiencing homelessness. Data from recent years demonstrate growing demand:
- Shelter applications increased from 325 to 412
- Individuals served increased from 160 to 222
Proposal Overview
Connections Shelter proposes to operate a 48-bed overnight shelter from 5:00 PM to 8:00 AM daily throughout the summer period. The model includes:
- Low-barrier access with flexible check-in hours
- Safe, supervised overnight accommodations
- Meals and basic needs support
- On-site housing-focused case management
- HMIS and Coordinated Entry participation and service navigation
Organizational Capacity
Connections Shelter has nearly a decade of experience serving individuals experiencing homelessness. It operates a fully equipped shelter facility and maintains partnerships with healthcare, housing, and community service providers to deliver coordinated support.
The organization has established financial management systems and demonstrated success managing state and grant-funded programs. Overall, Connections Shelter has the capacity to deliver effective, housing-focused services with measurable outcomes and accountability.
Budget
The total projected cost for summer operations is $145,283, primarily driven by personnel expenses required to maintain safe and consistent operations.
Key cost categories include:
- Salary and Staffing: $123,803
- Non-personnel Expenses: $17,400
Community Impact
Approving this funding will have a meaningful and immediate impact on the community by ensuring continuous access to shelter, helping reduce the number of individuals experiencing unsheltered homelessness. With uninterrupted case management, individuals and families will be better supported in achieving and maintaining housing stability, leading to more consistent and positive long-term outcomes.
This investment will also help alleviate pressure on emergency services and other public systems by addressing needs proactively rather than reactively. By supporting a coordinated, year-round response to homelessness, the community will be better equipped to respond effectively across seasons and circumstances.
Overall, this funding aligns closely with established community priorities, including promoting housing stability, improving public health outcomes, and ensuring equitable access to essential services for all residents.
Recommendation
Staff recommends that the EDA Board authorize by resolution the allocation of Housing Trust Fund resources to support Connections Shelter’s expanded summer emergency shelter operations from May 1 through September 30, 2026, in an amount not to exceed $135,283, subject to standard funding agreements and reporting requirements, in order to address the seasonal gap in shelter services and advance a sustainable, year-round homeless response system.