Public hearing and Resolution approving the 2027 Annual Agency Plan.

Public Hearing and Adoption of the attached resolution.

The 2027 PHA Annual Plan is a comprehensive guide to public housing agency policies, programs, operations, and strategies for meeting local housing needs and goals. The EDA submits this plan, which represents the role of the agency and programs in the community. The plan follows strategic planning identified in the community consolidated plan, strengthens ties to community service agencies, fair housing, and accesses the tools necessary to reach established goals.
 
These tools include:

• Annual review of payment standards and utility allowances.
• Annual review of the Administrative Plan for the Housing Choice Voucher program and Admissions and Occupancy Plans for Public Housing.
• Identifies special vouchers including:
  • Project-Based Vouchers.
  • Family Self-Sufficiency, and Homeownership.
  • Mainstream Vouchers for non-elderly, disabled.
  • VASH Vouchers for homeless veterans.
  • Foster Youth to Independence vouchers to meet needs for homeless and at-risk foster.
  • Stability Vouchers that work to prevent homelessness.

• Utilizes preferences based on community needs; and
• Manages capital funding reserves that improve and replace publicly owned housing.

The plan identifies and recommends policy changes the EDA has enacted since submission of the last Annual Plan.

• Administrative Plan and Admissions and Occupancy Procedures (ACOP): Housing Opportunity Through Modernization Act (HOTMA) revisions were provided last year in anticipation for implementation in 2027. Adjusted reporting times for income and household changed from 30 days to 10 days to comply with new HOTMA rules. Additionally, the removal of specific fair housing and LEP requirements as required by HUD.
   
• Expansion to regional jurisdiction: Plan includes the new regional service area for the Housing Choice Voucher program. Minnesota residents residing in Blue Earth, Nicollet, Pipestone, Rock, Sibley, Waseca or Watonwan counties. 
• Repositioning of Public Housing units in the RAD/Section 18 program: The conversion allows for a more predictable, sustainable revenue stream while still providing the same protection/rights to all current tenants.  The program revenue will come from rent payments from tenants that reflect 30% of their income, and the HUD funding will change from an annual operating subsidy and Capital Fund Grant to a Housing Assistance Payments (HAP).  The Section 18 conversion of 49 units transitioned on April 1, 2025.  The RAD/ Small PHA Blend options was submitted in July 2025 and is being reviewed by HUD with a closing date of November 30, 2026.  The Administrative Plan includes these project-based vouchers in Chapter

While this plan has specific emphasis on the operations and strategies of the Housing Choice Voucher program and Public Housing program.  It also addresses affordable housing needs in the community and progress in implementing action steps identified in the Affordable Housing Action Plan (AHAP) and the City's Strategic Plan.  The programs and services administered by the EDA intend to cover the continuum of housing.
 
The Annual Agency Plan highlights routine accomplishments and new initiatives over the past year and the AHAP that include:
 
Administering Housing Choice Voucher and Public Housing Programs:

• Received high performer status with HUD providing safe, decent, and affordable housing to 984 voucher holders and 130 Public Housing units.
• Prioritized special populations with 10 VASH, 112 Mainstream, 22 Foster Youth to Independence, and 5 Stability vouchers. 
• Administered capital funding to maintain and renovate public housing to meet all inspection criteria and received a REAC Inspection rating of 98%.

Administered the Housing Trust Fund:
Combined, Mankato and Blue Earth County received $1,302,887 in Statewide Affordable Housing Aid from the MN Department of Revenue to create local Housing Trust funds with $180,146 certified for 2027. Trust funds are a consistent, flexible resource for addressing housing needs in the community.  HTF will provide opportunities to leverage public and private funds and jump start projects that benefit and invest in affordable housing.  In 2025, the EDAs leveraged an additional 600,000 in EDA and MN Housing HTF Grant funding to the HTF that will support the Partnership Community Land Trust (PCLT).

Administration of Community Development Block Grant Fund (CDBG):
The CDBG program provided public service funding that supported the quality of life for more than 587 low to moderate income individuals, included park improvements at Highland Park, and rehabilitated 5 owner-occupied units and 2 rental units.  Additionally, 2 PCLT homes are being sold, 7 owner-occupied homes have rehabilitation in process and the 40 units of supportive housing serving homelessness are under construction for the Poplar apartments.

Creation of Affordable Housing:

• The EDA is successfully administering the Public Housing and Housing Choice Voucher programs. The EDA evaluates the availability of additional housing vouchers with the use of current resources.
• Assisted 28 low-income families this past year obtain homeownership utilizing the MCPP program with MN Housing.
• Expanded affordable homeownership with the Partnership Community Land Trust: providing $1,135,000 from the HTF to PCLT for 24 homes in 2026-27. 5 acquisition/rehabilitation homes, 4 on Scotch Lane, 8 at the Meadows, and 7 at Quarry View.
• Supported funding through MN Housing Low Income Housing Tax Credits for the Poplar Apartments currently under construction to provide supportive housing for those who are homeless (40 units).

• More rental assistance with the EDA awarded:
  • MN Housing Bridges Vouchers (25) for those with mental illness leasing that began in August 2025 and fully utilized in 2026. 
  • MN Housing Bring It Home Rental Assistance (150) prioritizing families regionally with leasing started May 1, 20 25.
  • Local Homeless Prevention Aid from MN Department of Treasury (35) youth homelessness or at risk of homelessness households.
  • Voluntary Transfer of vouchers from Pipestone HRA (53 vouchers) and  South Central MN Multi-County HRA (348 vouchers)

Preservation of Affordable Housing:

• The Capital Fund Program maintains and renovates public housing units to meet all inspection criteria and received 98% at the last REAC Inspection.
• Allocated an HTF gap loan of $600,000 for the RAD/Section 18 conversion and preservation of public housing in Blue Earth County.
• Rehabilitation of 5 owner-occupied homes and 2 rental units through the Community Development Block Grant Funding.
• Anticipated funding to support the rehabilitation at the Homestead Apartments following flooding in 2025.

Preventing and Ending Homelessness:

• Conduct bi-weekly case conferencing with shelters, street outreach, and housing providers to house/shelter homeless.
• Use the regional Coordinated Entry Assessment system for homeless response and participate in monthly regional case conferencing.
• Utilizes preferences for coordinated entry, supportive housing, and involuntary displacement due to natural disaster or governmental action, and VAWA outlined in the Administrative Plan and have increased services addressing homelessness by 33% over the past 5 years in Mankato and Blue Earth County.
• Expanded emergency nighttime shelter through the summer months using local Housing Trust Fund dollars and Community Development Block Grant funding.
• Poplar Apartment supportive housing development targeting those at risk of homelessness or homeless by Trellis Company was funded in December 2024 and is under construction with completion anticipated in February 2027.
• Successfully administer programs for homelessness, including 4 dedicated units for long-term homelessness at Breckenridge Town homes.

• Administered housing stability vouchers for those who are homeless or at risk of homelessness.
• Maintains a response system to house veterans experiencing homelessness within our CoC Region using VASH Vouchers and a veteran’s preference. 

• Continued collaboration seeking capital funding for a 24/7 emergency shelter.

Expanded Affordable Housing Opportunities:

• The EDA continues to apply for additional affordable housing as available and is seeking information on the State Tax Credit program through MN Housing to expand the local housing trust fund.
   

Community Education and Landlord Engagement:

• Help move citizens to economic self-sufficiency and become homeowners. Staff continue the Family Self-Sufficiency program, helping move participants off government assistance and promoting asset development.  This year, 93 participants made progress towards achieving their goals.
• Continue to offer homebuyer education to homebuyers through HCV Homeownership Program.  EDA collaborates with SWMHP as a HUD certified housing counseling agency to provide program participants with housing counseling.
• Offer homeownership assistance through the Housing Voucher Program and Minnesota Cities Participation program.
• Participate in the Preventing Rental Evictions Program (PREP) to engage local landlords and tenants in supporting affordable rental housing. Supported Partners for Housing offering Rentwise education to local renters.
• Promoted the Beyond Background insurance program.

Assist Participants who are Victims of Domestic Abuse:

• Staff refer victims to law enforcement as well as to services provided by the Committee Against Domestic Abuse (CADA).

• Staff terminate housing assistance/lease agreements of the perpetrators of violence.
• Staff work with CADA social services staff to provide supportive housing to residents of CADA House.
• Utilize preference for VAWA on HCV wait list.

Continue to Build Partnerships:
The plan also highlights our strength in community partnerships that include and are not limited to: Arc of MN, City of Mankato, Connections Shelter, Habitat for Humanity, ISD 77, Lutheran Social Services, Minnesota Valley Action Council, Partners for Housing, River Valley Continuum of Care, Salvation Army, Southern MN Regional Legal Services, and Southwest MN Housing Partnership.

The plan was posted for public comment and a Resident Advisory Committee Meeting was held on August 25. A summary of comments received are attached. Following the Public Hearing, the Board is asked to approve by resolution the Annual Public Housing Agency Annual as presented.