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AGENDA RECOMMENDATION |
City Manager's Report 8.A.
City Council Regular Meeting
- Meeting Date:
- 06/08/2026
Agenda Item:
Resolution authorizing Community Development Block Grant support for Phase VI of the Partnership Community Land Trust seeking MN Housing Impact Funding.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The Southwest Minnesota Housing Partnership (SWMHP) is preparing an application to the Minnesota Housing Impact Fund Program to support Phase VI of the Partnership Community Land Trust (PCLT) single-family homeownership initiative. The application deadline is July 9, 2026.
Phase VI advances the City’s housing goals by expanding affordable homeownership opportunities through the development of up to 10 newly constructed homes, anticipated for completion in 2028. The PCLT model provides long-term affordable homeownership opportunities for income-qualified households while promoting housing stability and community inclusion. Participating homebuyers will have the flexibility to select homes that best meet their household needs.
The program is expected to serve households earning up to 80% of Blue Earth County Area Median Income (AMI) and to comply with CDBG income guidelines.
To support a competitive application, SWMHP is requesting partnership commitments from the City of Mankato and Blue Earth County. The proposed Phase VI funding sources include:
Local investment has historically leveraged significant additional funding from Minnesota Housing, the Greater Minnesota Housing Fund, philanthropic partners, SWMHP, local development partners, and the Housing Partnership Network's New Markets Tax Credit (NMTC) program. SWMHP is also pursuing an additional NMTC allocation that could support future phases of affordable homeownership development in Mankato.
SWMHP is requesting that the AHTF and Community Development Block Grant contributions remain flexible to address financing gaps and coordinate with other funding sources available at the time of sale. The overall request will not exceed the granted cost allocated for Phase VI. The proposed funding structure for Phase VI is as follows:
Recommendation
Staff recommends approval of a resolution and letter of support committing up to $100,000 from the Community Development Block Grant Funding for Phase VI of the Partnership Community Land Trust, contingent upon SWMHP receiving Minnesota Housing Impact Fund financing.
The commitment would be provided on a pay-as-you-go basis as homes are completed and sold, with funding available through December 31, 2029.
Phase VI advances the City’s housing goals by expanding affordable homeownership opportunities through the development of up to 10 newly constructed homes, anticipated for completion in 2028. The PCLT model provides long-term affordable homeownership opportunities for income-qualified households while promoting housing stability and community inclusion. Participating homebuyers will have the flexibility to select homes that best meet their household needs.
The program is expected to serve households earning up to 80% of Blue Earth County Area Median Income (AMI) and to comply with CDBG income guidelines.
To support a competitive application, SWMHP is requesting partnership commitments from the City of Mankato and Blue Earth County. The proposed Phase VI funding sources include:
| Funding Source | Amount |
| City of Mankato Affordable Housing Trust Fund | $200,000 |
| Blue Earth County Affordable Housing Trust Fund | $100,000 |
| Community Development Block Grant (CDBG) | $100,000 |
| Minnesota Housing Impact Fund | $2,000,000 |
| Total | $2,400,000 |
Local investment has historically leveraged significant additional funding from Minnesota Housing, the Greater Minnesota Housing Fund, philanthropic partners, SWMHP, local development partners, and the Housing Partnership Network's New Markets Tax Credit (NMTC) program. SWMHP is also pursuing an additional NMTC allocation that could support future phases of affordable homeownership development in Mankato.
SWMHP is requesting that the AHTF and Community Development Block Grant contributions remain flexible to address financing gaps and coordinate with other funding sources available at the time of sale. The overall request will not exceed the granted cost allocated for Phase VI. The proposed funding structure for Phase VI is as follows:
| Funding Source | Per Home Contribution |
| City Affordable Housing Trust Fund | $20,000 |
| County Affordable Housing Trust Fund | $10,000 |
| CDBG | $10,000 |
| Minnesota Housing Impact Fund | $200,000 |
Recommendation
Staff recommends approval of a resolution and letter of support committing up to $100,000 from the Community Development Block Grant Funding for Phase VI of the Partnership Community Land Trust, contingent upon SWMHP receiving Minnesota Housing Impact Fund financing.
The commitment would be provided on a pay-as-you-go basis as homes are completed and sold, with funding available through December 31, 2029.