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AGENDA RECOMMENDATION |
Consent Calendar 5.A.
City Council Regular Meeting
- Meeting Date:
- 06/08/2026
Agenda Item:
Resolution approving acquisition of certain property owned by the Economic Development Authority of Mankato, MN and to enter into a Property Management Agreement with Blue Earth County.
Recommendation/Action(s):
Adoption of the attached Resolution.
Summary:
The Economic Development Authority of Mankato, MN (EDA) owns and operates a portfolio of public housing made up of scattered site units located throughout Mankato, including the Orness Plaza. As part of an ongoing strategy to preserve and modernize affordable housing, the EDA has been transitioning its public housing inventory through federal repositioning programs.
On April 1, 2025, the EDA conveyed forty-nine (49) scattered site public housing units to the City pursuant to Section 18 of the United States Housing Act of 1937. Building on that effort, the EDA has now secured approval from the U.S. Department of Housing and Urban Development (HUD) to convert its remaining public housing units—consisting of one hundred, thirty (130) scattered site units and Orness Plaza—through a combination of the Rental Assistance Demonstration (RAD) program and additional Section 18 disposition authority.
In connection with this conversion process, the EDA has determined that it is in the public’s best interest to transfer ownership of the remaining development properties to the City of Mankato. The proposed conveyance would be completed by a quit claim deed for a nominal amount, consistent with the public purpose of maintaining long-term affordable housing.
Following the transfer, the converted units will operate under the Housing Choice Voucher program, Project-Based Voucher (PBV) Housing Assistance Payment (HAP) contracts. The EDA will enter contracts with the City and will continue to serve as the contract administrator of the Project Based Vouchers, ensuring the proper oversight of federal subsidy payments from HUD.
To support ongoing property operations, the City intends to enter into a management agreement with the Economic Development Authority of Blue Earth County (BECEDA). Through its partnership with the EDA and its experience administering housing programs, BECEDA has the capacity and expertise necessary to manage the properties in compliance with RAD program requirements and applicable HUD regulations through its Intergovernmental Agreement with the EDA.
This action represents a continuation of the City’s efforts to preserve affordable housing resources, maintain access to federal funding, and ensure long-term, compliant management of these affordable housing assets.
Staff recommend approval of the attached resolution authorizing the City to accept conveyance of the properties owned by the Economic Development Authority of Mankato, enter into the necessary HAP contracts and management agreement, and empower the City Manager, or their designee, to execute all required documents and take any actions necessary to carry out the intent of the transaction.
On April 1, 2025, the EDA conveyed forty-nine (49) scattered site public housing units to the City pursuant to Section 18 of the United States Housing Act of 1937. Building on that effort, the EDA has now secured approval from the U.S. Department of Housing and Urban Development (HUD) to convert its remaining public housing units—consisting of one hundred, thirty (130) scattered site units and Orness Plaza—through a combination of the Rental Assistance Demonstration (RAD) program and additional Section 18 disposition authority.
In connection with this conversion process, the EDA has determined that it is in the public’s best interest to transfer ownership of the remaining development properties to the City of Mankato. The proposed conveyance would be completed by a quit claim deed for a nominal amount, consistent with the public purpose of maintaining long-term affordable housing.
Following the transfer, the converted units will operate under the Housing Choice Voucher program, Project-Based Voucher (PBV) Housing Assistance Payment (HAP) contracts. The EDA will enter contracts with the City and will continue to serve as the contract administrator of the Project Based Vouchers, ensuring the proper oversight of federal subsidy payments from HUD.
To support ongoing property operations, the City intends to enter into a management agreement with the Economic Development Authority of Blue Earth County (BECEDA). Through its partnership with the EDA and its experience administering housing programs, BECEDA has the capacity and expertise necessary to manage the properties in compliance with RAD program requirements and applicable HUD regulations through its Intergovernmental Agreement with the EDA.
This action represents a continuation of the City’s efforts to preserve affordable housing resources, maintain access to federal funding, and ensure long-term, compliant management of these affordable housing assets.
Staff recommend approval of the attached resolution authorizing the City to accept conveyance of the properties owned by the Economic Development Authority of Mankato, enter into the necessary HAP contracts and management agreement, and empower the City Manager, or their designee, to execute all required documents and take any actions necessary to carry out the intent of the transaction.