Public Housing Conversion

Overview.

The Mankato Economic Development Authority (EDA) manages a portfolio of 179 public housing units. It recently approved converting these units from the Section 9 Public Housing Program to long-term, project-based Section 8 rental assistance vouchers, ensuring stable and predictable annual subsidies.
 
As part of this process, the units must be transferred to the City of Mankato at less than fair market value. The City will continue serving low-income households through the Section 8 Project-Based Voucher Program administered by the EDA.
 
Title work revealed that the properties are still deeded to the Housing Authority of Mankato (HRA) which was dissolved years ago. However, the resolutions to dissolve the HRA and transfer all its assets to the EDA were never completed. To legally convey the properties, it is recommended that the City temporarily reinstate the HRA, finalize the property transfer, and properly dissolve the HRA.
 
The process will be as follows:

1. Set date of hearing to establish the HRA and provide notice published of the enabling resolution.
2. City Council will hold a public hearing and establish the HRA.
3. Hold the HRA meeting following the Council meeting to set date of hearing to transfer properties to the City.
4. Hold next HRA meeting transferring the property.
5. Hold the City Council meeting to accept the transfers and dissolve the HRA.