Public Hearing to consider resolution approving the conveyance of public housing properties to the City of Mankato and the Economic Development Authority of Mankato.

Adoption of the attached resolution.

On February 24, 2025, the City Council of the City of Mankato re-established the Housing and Redevelopment Authority for the City of Mankato (HRA) in accordance with Minnesota Statutes, Chapter 469 (the “Act”) to convey or dispose of HRA-owned properties.  

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. 

As the titled holder of certain public housing properties, the HRA is holding a public hearing to consider the transfer of some of these properties to the City of Mankato and the remaining properties to the Economic Development Authority of Mankato (EDA). The 36 properties conveyed to the City of Mankato will be converted from the Public Housing program to the Project-Based Housing Choice Voucher program through the Section 18 program, providing long-term rent assistance payments to ensure affordable housing for low-income families at or below 50% of the area's median income. A summary of the repositioning program is attached.
 
Further, the HRA intends to convey 10 properties of public housing to the EDA under the Section 9 Public Housing Program. The properties conveyed will be converted from the Public Housing program to the Project Based Housing Choice Voucher program through a RAD/Section 18 Small PHA Blend disposition program providing long-term rent assistance payments to ensure affordable housing for low-income families at or below 50% of area median income. 

Attached as Exhibit A is a list of all parcels of public housing properties currently owned by the HRA listed for conveyance to the City and to the EDA. 

The requested action is to authorize the Chair and the Executive Director of the HRA by resolution to execute and deliver quit claim deeds for each parcel conveying all the HRA’s interest in each parcel listed in Exhibit A to the City and the EDA, together with such other documents and certificates that are necessary to affect such conveyances. 

The resolution additionally authorizes and directs the Board Chair and the Executive Director to transmit a certified copy of this resolution to the Mayor of the City of Mankato, the Chair of the Economic Development Authority of Mankato, and, as necessary, the county recorders for filing in the appropriate records of Blue Earth County, Minnesota.