Ms. Hatanpa moved and Ms. Melby-Kelley seconded a motion to approve the Economic Development Authority minutes of the Regular Meeting of December 8, 2025, as written. The motion carried unanimously.

Ms. Bokelmann explained that the Public Housing Capital Fund Budget has traditionally been approved each year with the PHA Annual Plan to manage the formula funding for modernization of the Mankato Public Housing units; however, HUD has separated the procedures and adjusted timelines for the Capital Fund budget to align with the annual operating budget process.
 
Ms. Bokelmann stated that the 2026 Capital Fund includes the continued modernization and repair of the public housing units and site improvements required through RAD process. She noted that the plan also includes work requirements based on the physical needs assessment as required for the repositioning of the remaining Public Housing through the RAD Small PHA Blend program. She indicated that for 2026, the capital fund budget anticipates $550,000.00 and provides funding for dwelling improvements, appliances, site improvements and general operations as presented in the attached budget.
Ms. Bokelmann commented that the Capital Fund Program for 2026 was posted for public comment and a Resident Advisory Meeting was held. She summarized the comments and concerns received and added that residents expressed appreciation for the re-stripping of parking lots, noting that it helps with parking management as well as the signage designating resident parking areas.

Mayor Massad opened the public hearing. There being no one wishing to speak, Mayor Massad closed the public hearing.

Mr. McLaughlin moved and Mr. Mettler seconded a motion to approve the Resolution approving the 2026 Public Housing Capital Fund program. The motion carried unanimously. 

Ms. Bokelmann reported that the US Department of Housing and Urban Development (HUD) requires the annual review and adjustment, if required, of tenant-furnished utilities. She explained that utility allowances are based on reasonable consumption of energy for conservative families to provide basic essentials needed to provide a living environment that is safe, sanitary, and healthful. She reviewed the consumption analysis that was conducted by The Nelrod Company.
 
Ms. Boklemann indicated that the utility allowance schedule has been adjusted using the latest HUD projections where needed. She stated that the new rates show a slight increase to electric and gas rates and increases to water and sewer rates. She noted that the use of this schedule provides average utility costs to participants who pay their own utility costs and streamlines efficiency in calculating rent subsidies using standard rates under the Housing Choice Voucher program, Public Housing and other affordable housing projects that access these schedules throughout the county. She added that the schedules are broken down for high rise, low rise, rowhouse/townhome/duplex, and single family.
 
Mr. Laven moved and Ms. Melby-Kelley seconded a motion to approve the Resolution adopting the Housing Choice Voucher Utility Allowance Schedule for 2026. The motion carried unanimously. 

Ms. Bokelmann stated that the South-Central MN Multi-County Housing and Redevelopment Authority (HRA) administers the Housing Choice Voucher program funded by the US Department of Housing and Urban Development (HUD) to provide tenant-based rental assistance vouchers to meet the housing needs of low-income households in Nicollet, Martin, Waseca, Watonwan, Sibley Counties. She noted that HUD was working on a breakdown of vouchers by county and summarized the vouchers currently in use.

Ms. Bokelmann reported that the HRA has experienced underutilization, is in funding shortfall for the Housing Choice Voucher program, has been unable to support program staffing, and desires to dissolve and transfer their vouchers to another housing agency in the region. She indicated that the HRA is requesting a voluntary transfer for the administration of the program to the Economic Development Authority of Blue Earth County, the Economic Development Authority of Mankato, and to the Minnesota Valley Action Council for the Faribault County HRA effective July 1, 2026. She noted that transfer to the EDA would allow the Housing Choice Vouchers to be utilized in each HRA county or Blue Earth County. 
Brief discussion on the number of vouchers, and how they would be allocated. Ms. Bokelmann noted that HUD hasn’t yet determined how the additional vouchers would be allocated.

Mr. Laven moved and Mr. Mettler seconded a motion to approve the Resolution authorizing support for the voluntary transfer of the Housing Choice Voucher program from the South-Central MN Multi-County HRA to the Economic Development Authority of Mankato, Minnesota. The motion carried unanimously.