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AGENDA RECOMMENDATION |
Item No: 3.B.
Housing & Redevelopment Authority
- Meeting Date:
- 02/24/2025
Agenda Item:
Set date of Public Hearing to consider the conveyance of 49 units of Public Housing under the Section 18 Disposition Program to the City of Mankato and 130 units of Public Housing under the Section 9 Public Housing Program to the EDA of Mankato.
Recommendation/Action(s):
Motion to set date of Public Hearing.
Summary:
The Housing and Redevelopment Authority of Mankato (HRA) owns a portfolio of 179 Section 9 Public Housing Program units. The administration of the Public Housing program was transferred to the Economic Development Authority of Mankato (EDA) on June 8, 1998.
The Mankato Economic Development Authority (EDA) operates this public housing portfolio 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 remaining 130 units will be seeking disposition approval later this year.
Through the disposition, the HRA agrees to convey 49 scattered site public housing units to the City of Mankato for less than fair market value and the City will continue to serve low-income households under the Section 8 Project-Based Voucher Program administered by the EDA. Further, the HRA agrees to convey the remaining 130 public housing units to the EDA under the Section 9 Public Housing program to be dispositioned later this year.
Under disposition, all the units will be subject to a Declaration of Restricted Use Agreement requiring the rental properties to serve low-income households for a term of 30 years, with such use agreement to be a recorded covenant running with the land and binding on successors and assigns of the City.
The requested action is a motion to set March 10, 2025, as the date of public hearing to consider conveyance of 49 Public Housing units to the City of Mankato for Section 18 Disposition and 130 Public Housing units to the Economic Development Authority of Mankato to continue under the Section 9 Public Housing program.
The Mankato Economic Development Authority (EDA) operates this public housing portfolio 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 remaining 130 units will be seeking disposition approval later this year.
Through the disposition, the HRA agrees to convey 49 scattered site public housing units to the City of Mankato for less than fair market value and the City will continue to serve low-income households under the Section 8 Project-Based Voucher Program administered by the EDA. Further, the HRA agrees to convey the remaining 130 public housing units to the EDA under the Section 9 Public Housing program to be dispositioned later this year.
Under disposition, all the units will be subject to a Declaration of Restricted Use Agreement requiring the rental properties to serve low-income households for a term of 30 years, with such use agreement to be a recorded covenant running with the land and binding on successors and assigns of the City.
The requested action is a motion to set March 10, 2025, as the date of public hearing to consider conveyance of 49 Public Housing units to the City of Mankato for Section 18 Disposition and 130 Public Housing units to the Economic Development Authority of Mankato to continue under the Section 9 Public Housing program.