Motion authorizing submittal of the Consolidated Annual Performance Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program.

Public hearing followed by motion authorizing submittal of CAPER.

On May 27, 2025, the City Council adopted the City of Mankato 2025-2029 Consolidated Plan for the utilization of Community Development Block Grant (CDBG) funding. The plan details how the expected annual funding from the U.S. Department of housing and Urban Development (HUD) will be used in conformance with CDBG guidelines and guides the use of funds for each annual action plan. The first year of this plan ended on June 30, 2026. The federal regulations that govern CDBG require two public hearings every year. The purpose of the first hearing is to review the Action Plan for the coming year and the Consolidated Plan (when applicable), which was held by the City Council on May 27, 2025. The purpose of the second public hearing is to review the program performance for the previous program year, which is the subject of the requested action. The performance for the previous years is summarized in a standardized format referred to as the Consolidated Annual Performance Evaluation Report (CAPER). Staff have completed the CAPER and it is attached.
 
The 2025 program year operated from July 1, 2025, and ended June 30, 2026. Activities completed during the 2025 program year included activities committed from prior program years, and include the following:
 
The City of Mankato made progress in achieving the goals of the 2025 Annual Action Plan. Activities completed during the 2025 program year include the following:

• Owner-occupied housing rehabilitation was completed on 2 single-family dwellings. This activity assists with preserving the City's affordable housing stock, removal of lead-based paint hazards, and improving living conditions for low-to-moderate income households.
• Rental housing rehabilitation was completed on 2 dwelling units. This activity assists with preserving the City's affordable rental housing stock, removal of lead-based paint hazards, and improving living conditions for low-to-moderate income households.
• Public service grants were provided, benefiting a total of 587 individuals. Public services benefit low-to-moderate income households to help meet identified needs of health services, senior services, and services for those experiencing homelessness.

Additionally, CDBG funds from prior program years were spent to assist the following activities:

• Owner-occupied housing rehabilitation was completed on 3 single-family dwellings.
• Park improvements were completed on picnic shelters at Highland Park, improving the quality of life for a neighborhood with a high population of low-to-moderate income households.

Activities underway, but not yet complete, include the following:

• Owner-occupied housing rehabilitation is underway on 7 single-family dwellings.
• Rental housing rehabilitation is underway on 3 dwelling units.
• Construction is underway on Poplar Apartments, which will include 40 units of affordable supportive housing. CDBG funds were used towards site acquisition costs. Once construction is complete and all 40 units are leased, the City will be able to report accomplishments on this activity.
• The Partnership Community Land Trust purchased two single-family dwellings. CDBG funds were used towards site acquisition costs. Once a low-to-moderate income household closes on the dwelling, the City will be able to report accomplishments on this activity

The following table shows the Action Plan for the 2025 program year, including the funds obligated and spent during the program year. The City has a total of eight years to expend funds from each program year.  

Activity Goals for the 2025 Program Year	Obligated	Disbursed	Encumbered
Owner Occupied Housing Rehabilitation	$72,932	$63,000	$9,932
Rental Housing Rehabilitation	$20,000	$12,000	$8,000
Public Services	$65,000	$40,200	$24,800
Affordable Housing	$230,000	$130,000	$100,000
Planning & Administration	$50,000	$3,184.83	$46,815.17

The CAPER was posted for public comment on August 28, 2026, and will run through September 13, 2026. Any public comments received will be reported at the time of the public hearing on September 14, 2026.