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AGENDA RECOMMENDATION |
Public Hearings 6.C.
City Council Regular Meeting
- Meeting Date:
- 02/24/2025
Agenda Item:
Resolution declaring the need to re-establish the Housing and Redevelopment Authority in Mankato, Minnesota.
Recommendation/Action(s):
Public Hearing and adoption of resolution.
Summary:
The Mankato Economic Development Authority (EDA) operates a public housing portfolio of 179 units and approved the disposition of units from Section 9 Public Housing into a long-term, Project-Based, Section 8 Housing Choice Voucher rental assistance that provides a stable and predictable annual subsidy.
The EDA approved the application for Section 18 disposition of 49 scattered site units on December 11, 2023. This application for Section 18 disposition was approved by the US Department of Housing and Urban Development (HUD) on September 5, 2024, and tenant protection project-based vouchers were provided to the EDA. It is anticipated that the conversion will be completed in March 2025. The 130 units will be seeking disposition approval later this year.
Through the disposition, the ownership of the public housing units needs to be conveyed to the City of Mankato for less than fair market value and the City will continue to lease to low-income households using subsidies under the Project-Based, Section 8 HCV Program administered by the EDA.
In conducting the title work for the public housing properties, it was identified that the properties are still deeded with the Housing and Redevelopment Authority of Mankato. Although program administration was transferred to the EDA on June 8, 1998, the City has no record of the HRA transferring HRA owned property from the HRA to the EDA before dissolution of the HRA and the County Recorder and Registrar of Titles still show ownership of these properties in the name of the HRA.
To complete the disposition of the public housing program and convey the properties to the City of Mankato, there is a need to temporarily re-establish the City of Mankato Housing and Redevelopment Authority to transfer 49 units still held in the name HRA of Mankato, Minnesota by quitclaim deeds to the City with the remaining 130 units to be transferred from the HRA to the EDA, by quitclaim deeds.
The requested action is to re-establish, by resolution, the HRA as an independent corporation and political subdivision with such powers as are necessary or convenient to carry out the purposes of Minnesota Statutes Sections 469.001 through 469.047, particularly transferring properties still held in the HRA’s name to the necessary other City bodies, including the City and the EDA, to address the shortage of decent, safe, and sanitary dwelling accommodations available to persons of low income and their families at rentals they can afford.
The EDA approved the application for Section 18 disposition of 49 scattered site units on December 11, 2023. This application for Section 18 disposition was approved by the US Department of Housing and Urban Development (HUD) on September 5, 2024, and tenant protection project-based vouchers were provided to the EDA. It is anticipated that the conversion will be completed in March 2025. The 130 units will be seeking disposition approval later this year.
Through the disposition, the ownership of the public housing units needs to be conveyed to the City of Mankato for less than fair market value and the City will continue to lease to low-income households using subsidies under the Project-Based, Section 8 HCV Program administered by the EDA.
In conducting the title work for the public housing properties, it was identified that the properties are still deeded with the Housing and Redevelopment Authority of Mankato. Although program administration was transferred to the EDA on June 8, 1998, the City has no record of the HRA transferring HRA owned property from the HRA to the EDA before dissolution of the HRA and the County Recorder and Registrar of Titles still show ownership of these properties in the name of the HRA.
To complete the disposition of the public housing program and convey the properties to the City of Mankato, there is a need to temporarily re-establish the City of Mankato Housing and Redevelopment Authority to transfer 49 units still held in the name HRA of Mankato, Minnesota by quitclaim deeds to the City with the remaining 130 units to be transferred from the HRA to the EDA, by quitclaim deeds.
The requested action is to re-establish, by resolution, the HRA as an independent corporation and political subdivision with such powers as are necessary or convenient to carry out the purposes of Minnesota Statutes Sections 469.001 through 469.047, particularly transferring properties still held in the HRA’s name to the necessary other City bodies, including the City and the EDA, to address the shortage of decent, safe, and sanitary dwelling accommodations available to persons of low income and their families at rentals they can afford.