Motion authorizing submittal of the Consolidated Annual Performance Evaluation Report (CAPER) for the Community Development Block Grant (CDBG) Program.

Public hearing followed by motion authorizing submittal of CAPER.

On June 8, 2020, the City Council adopted the City of Mankato 2020–2024 Consolidated Plan for the utilization of Community Development Block Grant (CDBG) funding. The plan details how the expected funding will be used in conformance with CDBG guidelines. The fifth funding year of this plan ended on June 30, 2025. The federal regulations that govern the CDBG program require two public hearings every year. The purpose of the first hearing was to review the Action Plan for the coming year and the Consolidated Plan (when applicable), which was held by the City Council on May 27, 2025. The purpose of the second hearing is to review the program performance for the previous year, which is the subject of the requested action and summarized in a standardized format referred to as the Consolidated Annual Performance Evaluation Report or CAPER. Staff have completed the CAPER and it is attached.
 
The 2024 program year operated from July 1, 2024, and ended June 30, 2025. Activities completed during the 2024 program year included activities committed from prior program years and include the following:
 
The City of Mankato made progress in achieving the goals of the 2024 Action Plan. Activities completed during the 2024 program year include the following:
 

• Owner-occupied housing rehabilitation was completed on 6 dwelling units. This activity assists with preserving the City's affordable housing stock, removal of lead-based paint hazards, and improving living conditions for low to moderate-income households.
• Rental housing rehabilitation was completed on 8 dwelling units. This activity assists with preserving the City's affordable rental housing stock and improves living conditions for low-to moderate-income households.
• Public service grants were provided, benefitting 1,745 low-to moderate-income households to help meet identified needs of health services, food support, affordable child care, senior services, and youth services. Matching grants were provided to Feeding Our Communities Partners, MSU public dental clinic, VINE Faith in Action, MY Place, Open Door Health Center, and Lutheran Social Service Crisis Nursery.
• Park improvements were completed at Lions Park for a new picnic shelter, improving the quality of life for a neighborhood with a high population of low to moderate income households.

 
Additionally, CDBG funds from prior program years were spent assisting the following activities: 

• Affordable housing: CDBG funds were used towards site acquisition costs for The Alma (formerly known as "Walnut Towers"). The developer, Trellis, was awarded Low Income Housing Tax Credits from Minnesota Housing to rehabilitate the existing building to preserve 86 units of affordable housing.
• Public services: a public service grant was provided to the Minnesota Council of Churches Refugee Services for their Tapestry program benefitting 18 low-income households. Additionally, subsistence payments were provided to 13 low-to moderate-income households to assist with past due rent and utilities and rent deposit to prevent eviction and homelessness.

Activities underway, but not yet complete, include the following:

• Owner-occupied housing rehabilitation is underway on 5 dwelling units.
• Rental housing rehabilitation is underway on 4 dwelling units.
• Affordable housing: CDBG funds were used towards site acquisition costs. Construction of Lewis Lofts began in 2024 and was completed in spring 2025, which created 64 units of affordable senior housing. Leasing of the 64 units is currently underway. Once all 64 units are leased, the City will be able to report accomplishments on this activity.
• Park improvements to picnic shelters at Highland Park is underway.

 
The following table shows the Action Plan for the 2024 program year, including the funds obligated and spent during the program year. The city has a total of eight years to expend funds from each program year.

Activity Goals for the 2024 Program Year	Obligated	Disbursed	Encumbered
Owner Occupied Housing Rehabilitation	175,669		70,000
Rental Housing Rehabilitation	82,919		38,111.75
Park Improvements	110,668	91,590	19,078
Public Services	63,395	63,395
Planning & Administration	20,000	20,000

The CAPER was posted for public comment on August 23, 2025, and will run through September 7, 2025. Any public comments received will be reported at the time of the public hearing on September 8, 2028.