Mankato EDA shifts the way affordable housing options are funded

Mankato EDA shifts the way affordable housing options are funded

MANKATO, Minn. (KEYC) - In May, the Manakto Economic Development Authority authorized the release with RECAP Real Estate Advisors for public housing repositioning services.

The Mankato EDA currently owns and operates 179 units of public housing. Instead of receiving funding through the public housing program, the units are funded through project-based vouchers or project-based rental assistance.

Under the current program, tenants pay 30% of their income toward rent and the other revenue comes from HUD.

Under the new program, the tenant portion stays the same but the remaining revenue comes from HUD through a housing assistance payment, similar to the Housing Choice Voucher Program.

Total fees would not exceed $33,700, unless the EDA decides to reposition the public housing units through multiple transactions or expands the scope of services.

Costs related to public housing repositioning, including consulting fees, are eligible for capital funds.

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