Waseca County approves $5,000 one-time appropriation to shore up regional HRA as officials weigh future of voucher program

Waseca County commissioners voted to provide a one-time $5,000 appropriation to a regional housing and redevelopment authority (HRA) to cover overdrawn bank fees and keep voucher-based rental assistance functioning while counties consider longer-term options.

"The HRA board said, we need to find a $100,000 to get us out of the red before the end of the year," said Speaker 3, describing the HRA's immediate cash shortfall and recent HUD reconciliation that reduced expected monthly administrative funds. Speaker 3 told the board the HRA currently serves roughly 472 vouchers, which translates to about $20,000–$25,000 in rental assistance flowing to Waseca County each month.

Speaker 6 summarized the immediate need: "This is just a proposed resolution ... the need is immediate. There is current overdrawn fees in the checking account that the bank is waiting upon." The board discussed delivery options including wiring funds or issuing a check and options for longer-term management of the voucher program.

County officials and the HRA noted HUD controls transfer timing for vouchers. Speaker 3 said HUD’s transfer notice could make July 1 an effective date and that counties must pass local resolutions to authorize any dissolution or transfer of HRA responsibilities. Potential receiving entities discussed by the board included Minnesota Valley Action Council, Blue Earth County Economic Development Authority, and Mankato EDA, though members said the sample resolution on the screen must be more specific before approval.

Board members also discussed staff reductions and cost drivers inside the HRA. Speaker 3 reported that the HRA had already laid off one housing coordinator in November and recommended keeping at least one coordinator at reduced hours to manage existing voucher paperwork. The board also heard that some client escrow funds exist but are restricted and cannot be used to cover operating liabilities.

Motion and vote: Speaker 1 moved to approve the $5,000 appropriation; Speaker 5 seconded. The board verbally recorded ayes and the motion carried.

Next steps: Commissioners directed staff to work with the HRA executive director to (1) confirm the immediate payment mechanism, (2) continue outreach to potential agencies that might absorb vouchers, and (3) bring back a county-specific resolution by January to preserve options for HUD filings. The board emphasized that HUD timing and decisions will shape how and when any transfer or dissolution occurs.