Blue Earth County seeks HUD transfer of underutilized vouchers to preserve regional housing support

Blue Earth County’s economic development authority asked the county board Jan. 20 to request a voluntary transfer from the South Central Multi‑County HRA of a tranche of Housing Choice Vouchers that the HRA says it can no longer manage effectively.

Nancy (property/environmental resources staff) told the EDA the HRA has been operating at roughly 64% utilization and is seeking to dissolve HRA operations, which would put some vouchers at risk of permanent loss. She said the voluntary transfer — a process HUD conducts in January or July — would reassign vouchers to local public housing agencies, naming Blue Earth County EDA, Mankato EDA and the Minnesota Valley Action Council as potential recipients.

The board was presented with a staff packet summarizing the transfer process, regional voucher counts and the rationale for accepting additional vouchers. Nancy said accepting the transfer would expand administrative capacity, improve financial performance and allow the county and its partners to continue serving families in their original counties or within Blue Earth County.

Board members asked a few clarifying questions; the motion to approve a resolution and send a letter to HUD asking for the transfer carried by voice vote.

The request is subject to HUD approval and to a final breakdown of how vouchers would be allocated among interested PHAs. Staff said HUD typically completes voluntary transfers in January or July but that timing could vary; Blue Earth County staff said they believe they have the administrative capacity to manage additional vouchers and that partner agencies can assist during any transition period.

Next steps: staff will submit the request letter to HUD and report back when HUD provides an allocation breakdown or a schedule for transfer implementation.