Blue Earth County approves financing plan to convert public housing to RAD project-based vouchers

Blue Earth County commissioners on Tuesday approved a resolution to submit a financing plan to the U.S. Department of Housing and Urban Development to convert 56 public housing units through a RAD (Rental Assistance Demonstration) Section 18 project-based voucher conversion.

Nancy, a county housing staff member, told the board the county already began repositioning public housing and that 19 units will convert on Sept. 1 as the first phase. She said the proposed financing plan covers the remaining 56 units and follows a consultant-prepared comprehensive needs assessment, a 30-year capital improvement plan, an environmental review and title work required for conversion. "All residents that are in the Breckenridge buildings and the scattered sites have the right to remain in their units," Nancy said, adding residents will continue to pay 30% of their income for rent.

Why it matters: Staff said converting to project-based vouchers will streamline programming, reduce reporting burdens and let the authority set contract rents up to 110% of fair market rent (public housing rents are about 80%), with the voucher subsidy making up the difference. County staff provided a reserve and capital funds summary and said HUD’s projections indicate adequate replacement reserves to support the conversion process.

Board action: A commissioner moved to adopt the resolution authorizing staff to submit the financing plan to HUD; the motion was seconded and carried without recorded dissent. The paperwork will be forwarded to HUD for review as the next step.

What the approval does not do: The board’s vote authorized submitting the financing plan to HUD for review; it did not itself execute HUD contracts or change individual tenant terms beyond the protections staff described. The record contains no public comments opposing the plan at the meeting.