Mr. Dieken moved and Ms. Melby-Kelley seconded a motion to approve the Economic Development Authority minutes of the Regular Meeting of June 8, 2026, as written. The motion carried unanimously.

Ms. Bokelmann presented a request from the Housing Trust Fund Advisory Committee for EDA Board authorization to allocate $28,512 from the Housing Trust Fund to Partners for Housing. She indicated that the one-time funding would provide interim support for one-half of the salary, taxes, and benefits for a Housing Generalist position while Partners for Housing pursues long-term funding through a joint Continuum of Care and HUD application with the Mankato EDA and The Salvation Army. She explained that the Housing Generalist provides coordinated housing navigation and street outreach services, working directly with individuals experiencing homelessness or housing instability to connect them with emergency shelter, housing opportunities, health care, behavioral health services, public benefits, identification documents, and other essential resources. She added that the position also coordinates with community partners to streamline access to services and reduce barriers to obtaining stable housing.

Ms. Bokelmann noted that the Housing Generalist plays a key role in improving the community's response to homelessness by providing timely coordinated entry assessments, individualized housing assistance, and ongoing follow-up to help clients achieve and maintain permanent housing. She also reviewed the Housing Trust Fund's investments over the past four years, during which $1,870,283 of the $1,902,887 allocated to the fund has been invested, leaving an unallocated balance of $32,604. She mentioned that previous investments have supported affordable homeownership through the Partnership Community Land Trust, expanded emergency shelter capacity at Connections Shelter, and preserved affordable public housing through the Blue Earth County EDA's RAD Blend conversion. She stated that the requested allocation was presented as a continuation of the Housing Trust Fund's strategic efforts to support housing stability and reduce homelessness in the community.

Mr. McLaughlin moved and Mr. Metter seconded a motion to approve the Resolution authorizing the allocation of Housing Trust Fund resources to Partners for Housing to support a Housing Generalist position that provides coordinated housing navigation and street outreach services. The motion carried unanimously. 

Ms. Bokelmann reported that Affordable Housing Trust Funds (AHTF) were established in 2024 through a partnership between the City of Mankato and Blue Earth County under Minnesota Statute 462C.16 to provide a permanent, renewable funding source for affordable and workforce housing initiatives, including development, preservation, rehabilitation, and homelessness prevention. She noted that as housing needs continue to grow, the AHTF Advisory Committee and staff have explored long-term sustainability strategies to create a reliable local funding source that can leverage additional state, federal, private, and local investment. She stated that the proposed strategies are intended to establish sustainable funding, strengthen competitiveness for housing resources, provide local matching funds, support affordable housing and homeless response efforts, and advance regional housing priorities.

Ms. Bokelmann outlined several recommended funding strategies, including dedicating management fee revenues generated through the Public Housing Conversion to Project-Based Vouchers program, estimated at approximately $60,000 annually, to support the Affordable Housing Trust Fund. Staff also recommended annual designations of the EDA reserve fund investments and consideration of levy funding strategies as part of the 2027 EDA budget. She noted that the city's REDA contribution has decreased under the current Joint Services Agreement, creating additional levy capacity. She commented that the Housing Trust Fund Advisory Committee recommended directing the projected 2027 savings of $4,365.30 to the Affordable Housing Trust Fund for rental rehabilitation activities and requested consideration of an increased 2027 EDA levy allocation to further support rental rehabilitation. She added that final decisions on levy allocations and Trust Fund appropriations are expected during the 2027 budget process between September and December 2026.

Discussion focused on the EDA levy and budget, with questions raised regarding the request and additional clarification provided. Following the discussion, the consensus was to take no action on the Resolution adopting the Affordable Housing Trust Fund (AHTF) request to sustain the fund and to leverage other local, state, and federal resources at this time and continue the conversation during the budget review process.