Mankato EDA backs voluntary transfer of Housing Choice Vouchers; HUD allocation still pending

The Economic Development Authority of Mankato on Jan. 26 voted unanimously to authorize support for a voluntary transfer of the Housing Choice Voucher program from the South Central Minnesota Multi-County HRA to the Mankato EDA, the Blue Earth County EDA and Minnesota Valley Action Council, subject to HUD approval.

Staff explained the transferring HRA has struggled with sustained underutilization and funding shortfalls and that its current utilization is "approximately 64%." Staff said the HRA’s contract inventory (read in the packet) shows existing vouchers and that HUD has not yet finalized how it will allocate the transferring vouchers. "The EDA will receive approximately 600 additional vouchers," staff said, but added that a portion will go to Minnesota Valley Action Council and that final allocations are HUD decisions.

Commissioners asked whether a required share of the transferred vouchers must be set aside for project-based vouchers and whether Mankato has sufficient landlord participation. Staff replied there is not a required carve-out and that the EDA can project-base up to 20% of its program to leverage low-income housing tax credits; staff also said referrals from the transferring counties and local landlord interest make it likely the EDA can utilize the vouchers.

Commissioner Laban moved to authorize the EDA to support the voluntary transfer and to send a letter requesting HUD approval; Commissioner Metzler seconded. A roll call vote recorded unanimous yes and the resolution passed. Staff emphasized that HUD approval and the agency-level allocation decisions will determine the final number of vouchers transferred and their county distribution. The EDA did not receive a definitive HUD allocation at the meeting; the transfer was authorized only to proceed with a formal request to HUD.