Resolution authorizing support for Phase VI of the PCLT seeking MN Housing funding to implement services of the community land trust.

Adoption of the attached resolution.

The Southwest Minnesota Housing Partnership (SWMHP) is preparing an application to the Minnesota Housing Impact Fund Program to support Phase VI of the Partnership Community Land Trust (PCLT) single-family homeownership initiative. The application deadline is July 9, 2026.

Phase VI advances the City of Mankato's housing goals by expanding affordable homeownership opportunities through the development of up to 10 newly constructed homes, anticipated for completion in 2028. The PCLT model provides long-term affordable homeownership opportunities for income-qualified households while promoting housing stability and community inclusion. Participating homebuyers will have the flexibility to select homes that best meet their household needs.

The program is expected to serve households earning up to 80% of Area Median Income (AMI), based on the statewide average. If additional funding sources are secured, eligibility may be expanded to households earning up to 100% of AMI.

To support a competitive application, SWMHP is requesting partnership commitments from the City of Mankato and Blue Earth County. The proposed Phase VI funding sources include:
 

Funding Source	Amount
City of Mankato Affordable Housing Trust Fund (AHTF)	$200,000
Blue Earth County AHTF	$100,000
Community Development Block Grant (CDBG)	$100,000
Minnesota Housing Impact Fund	$2,000,000
Total	$2,400,000

Local investment has historically leveraged significant additional funding from Minnesota Housing, the Greater Minnesota Housing Fund, philanthropic partners, SWMHP, local development partners, and the Housing Partnership Network's New Markets Tax Credit (NMTC) program. SWMHP is also pursuing an additional NMTC allocation that could support future phases of affordable homeownership development in Mankato.

SWMHP is requesting that AHFT and CDBG contributions remain flexible to address individual homebuyer financing gaps and coordinate with other funding sources available at the time of sale. The proposed funding structure for Phase VI is as follows:
 

Funding Source	Per Home Contribution
City Affordable Housing Trust Fund	$20,000
County Affordable Housing Trust Fund	$10,000
CDBG	$10,000
Minnesota Housing Impact Fund	$200,000

Affordable Housing Trust Fund Capacity
The AHTFs were established using Statewide Affordable Housing Aid (SAHA) allocations and Minnesota Housing’s Housing Trust Fund (HTF) grants. To date, the City and County have committed $835,000 to previous phases of the Partnership Community Land Trust program.

After accounting for existing commitments, the City AHTF maintains an unallocated balance of approximately $223,079. A $200,000 commitment to Phase VI would be funded from available Trust Fund resources and would continue the City's long-standing partnership with SWMHP to expand affordable homeownership opportunities.

Recommendation
Staff recommends approval of a resolution and letter of support committing up to $200,000 from the City of Mankato Affordable Housing Trust Fund for Phase VI of the Partnership Community Land Trust, contingent upon SWMHP receiving Minnesota Housing Impact Fund financing.

The commitment would be provided on a pay-as-you-go basis as homes are completed and sold, with funding available through December 31, 2029.