 |
AGENDA RECOMMENDATION |
Item No: 4.B.
Economic Development Authority
- Meeting Date:
- 06/16/2025
Agenda Item:
Resolution supporting the Partnership Community Land Trust Phase V application to MN Housing.
Recommendation/Action(s):
Adoption of the attached resolution.
Summary:
The SWMHP is preparing an application to the MN Housing’s Impact Fund Program to support single-family development through Phase V of the Partnership Community Land Trust (PCLT). The application deadline for Phase V is July 10, 2025.
The project will further the city’s objectives to preserve and create affordable homeownership opportunities by increasing the development of new housing. The PCLT will address the housing disparities and support inclusive communities by working with the lowest-income families to purchase homes. Families will have the opportunity to select homes that best meet their needs.
The SWMHP is prioritizing the creation of 10 new construction homes in this Phase V. The program will be for buyers that do not exceed 80% Area Median Income at the statewide average and is seeking approval this month from their Board of Managers to expand this limit to 100% AMI at the statewide average.
To achieve success in Phase V, the SWMHP is seeking to partner with the City of Mankato and Blue Earth County to support this application. Preliminarily, the SWMHP is proposing $500,000 from the City and County ($250,000 from each) with Minnesota Housing providing $1.25 million and other funding sources contributing $750,000.
The ability to leverage investment by the City of Mankato and Blue Earth County is resulting in additional sources contributing to these homes, which include Minnesota Housing Finance Agency, Greater Minnesota Housing Fund, local developers Mike Drummer and Bill Freitag, Target Foundation, Otto Bremer Trust, Southwest Minnesota Housing Partnership and Housing Partnership Network’s New Markets Tax Credits. Owners of other parcels we are evaluating are considering contributions as well.
SWMHP continues to reach out to local, regional, state and federal entities seeking funds to continue this work in Mankato. The overall vision is a PCLT of 100 homes in the region, and SWMHP is over 1/3 of the way there. The City contributed 100% of the write-down/gap in the first phase of the CLT homes in Mankato vs. 11% in phase IV because of SWMHP’s success leveraging other funds. NMTC in designated low-income census tracts.
SWMHP is requesting continued partnership from the City of Mankato and Blue Earth County or City/County Housing Trust Funds for Phase V in support of this application with the following summary of funds requested from partners:
PHASE V - Per home summary:
SWMHP would also desire the dedicated City/County funds to be flexible on the use of each home as homebuyer financial gaps vary based on their purchasing ability and other funds secured for the homes.
Use of Local Housing Trust Fund to support
The EDAs have allocated Statewide Affordable Housing Aid (SAHA) to create local housing trust funds to support affordable housing initiatives in both Mankato and Blue Earth County. Additionally, in April 2025, the EDAs made applications to MN Housing seeking Housing Trust Fund grants matching EDA general funds to support the PCLT in Mankato for Phase IV and V. MN housing did award funding to both HTFs and the awards are listed in the table below.
The EDA has committed $250,000 of funds to Phase IV. The EDA is being asked to consider support for Phase V of the PCLT in the amount of $250,000 to support 10 homes in Mankato. With support for Phase IV and V of the PCLT in the amount of $500,000, the remaining balance in the HTF will be $501,022 to support other affordable housing initiatives.
Recommendation/Action:
The requested action is the adoption of the resolution and letter of support of Phase V of the Partnership Community Land Trust from the Mankato EDA in the amount of $25,000 per home, for ten (10) new construction homes, totaling $250,000 and subject to approval of the MN Housing’s Housing Trust Fund Grant Program and Impact Funding. The commitment will be a pipeline of funding available on a pay-as-you-go, ongoing basis upon sale of each home through December 31, 2028.
The project will further the city’s objectives to preserve and create affordable homeownership opportunities by increasing the development of new housing. The PCLT will address the housing disparities and support inclusive communities by working with the lowest-income families to purchase homes. Families will have the opportunity to select homes that best meet their needs.
The SWMHP is prioritizing the creation of 10 new construction homes in this Phase V. The program will be for buyers that do not exceed 80% Area Median Income at the statewide average and is seeking approval this month from their Board of Managers to expand this limit to 100% AMI at the statewide average.
To achieve success in Phase V, the SWMHP is seeking to partner with the City of Mankato and Blue Earth County to support this application. Preliminarily, the SWMHP is proposing $500,000 from the City and County ($250,000 from each) with Minnesota Housing providing $1.25 million and other funding sources contributing $750,000.
The ability to leverage investment by the City of Mankato and Blue Earth County is resulting in additional sources contributing to these homes, which include Minnesota Housing Finance Agency, Greater Minnesota Housing Fund, local developers Mike Drummer and Bill Freitag, Target Foundation, Otto Bremer Trust, Southwest Minnesota Housing Partnership and Housing Partnership Network’s New Markets Tax Credits. Owners of other parcels we are evaluating are considering contributions as well.
SWMHP continues to reach out to local, regional, state and federal entities seeking funds to continue this work in Mankato. The overall vision is a PCLT of 100 homes in the region, and SWMHP is over 1/3 of the way there. The City contributed 100% of the write-down/gap in the first phase of the CLT homes in Mankato vs. 11% in phase IV because of SWMHP’s success leveraging other funds. NMTC in designated low-income census tracts.
SWMHP is requesting continued partnership from the City of Mankato and Blue Earth County or City/County Housing Trust Funds for Phase V in support of this application with the following summary of funds requested from partners:
PHASE V - Per home summary:
| City/County contribution | $50,000 |
| Land discount/donation | $25,000 |
| MHFA contribution | $125,000 |
| NMTC/SWMHP/Other contributions | $50,000 |
SWMHP would also desire the dedicated City/County funds to be flexible on the use of each home as homebuyer financial gaps vary based on their purchasing ability and other funds secured for the homes.
Use of Local Housing Trust Fund to support
The EDAs have allocated Statewide Affordable Housing Aid (SAHA) to create local housing trust funds to support affordable housing initiatives in both Mankato and Blue Earth County. Additionally, in April 2025, the EDAs made applications to MN Housing seeking Housing Trust Fund grants matching EDA general funds to support the PCLT in Mankato for Phase IV and V. MN housing did award funding to both HTFs and the awards are listed in the table below.
| 2023 | 2024 | 2025 | Subtotal | LHTF Grant Request | General Fund | Total | |
| Mankato | $288,957 | $288,957 | $123,108 | $ 701,022 | $150,000 | $150,000 | $1,001,022 |
| Blue Earth County | $165,141 | $165,141 | $ 69,985 | $ 400,267 | $150,000 | $150,000 | $ 700,267 |
| Total | $454,098 | $454,098 | $193,093 | $1,101,289 | $300,000 | $300,000 | $1,701,289 |
The EDA has committed $250,000 of funds to Phase IV. The EDA is being asked to consider support for Phase V of the PCLT in the amount of $250,000 to support 10 homes in Mankato. With support for Phase IV and V of the PCLT in the amount of $500,000, the remaining balance in the HTF will be $501,022 to support other affordable housing initiatives.
Recommendation/Action:
The requested action is the adoption of the resolution and letter of support of Phase V of the Partnership Community Land Trust from the Mankato EDA in the amount of $25,000 per home, for ten (10) new construction homes, totaling $250,000 and subject to approval of the MN Housing’s Housing Trust Fund Grant Program and Impact Funding. The commitment will be a pipeline of funding available on a pay-as-you-go, ongoing basis upon sale of each home through December 31, 2028.