Resolution authorizing the execution of the Local Housing Trust Fund Grant Agreement with Minnesota Housing.

Adoption of the attached Resolution.

Minnesota Housing approved the Mankato EDA’s request for funding under the 2025 Local Housing Trust Fund Grants Program Request for Proposal on May 28, 2025. The EDA has been awarded a grant in the amount of $150,000.

The Local Housing Trust Funds Grant Program was established by Minnesota Housing to encourage local governments to create or fund Local Housing Trust Funds. The program uses state funding to match a portion of new housing trust fund dollars to encourage local investment in affordable housing across Minnesota. The EDA approved a local match to these grant funds of $150,000 from its general fund.

 The grant funds:

• Must be used for households at or below 115% of the state median income
• May be used for
  • Development, rehabilitation or financing of housing
  • Down payment assistance
  • Rental assistance
  • Homebuyer counseling services
  • Administrative expenses, up to 10% of grant 
• Must be used within five years 

Within our application for grant funds, the EDA stipulated that the use of these funds would support the Partnership Community Land Trust in Mankato, MN. The $300,000 will create affordable homeownership with 12 homes in the PCLT by December 31, 2026.

The requested action is to approve by resolution the Executive Director's authorization to execute the grant agreement with Minnesota Housing.