NEW ULM – Mankato will take over administering some of New Ulm’s rental assistance following an agreement between the two cities Economic Development Authority (EDA).

On Tuesday, the New Ulm EDA approved a memorandum with the Mankato EDA that would allow Mankato to administer the Bring It Home Rental Assistance program on New Ulm’s behalf.

The Bring it Home Rental Assistance program is a new program started in Minnesota that provides additional voucher assistance to communities.

New Ulm Economic Development Director Heather Bregel said New Ulm is already participating in the Section 8 voucher program, but the program is under utilized. For this reason, New Ulm declined to participate in the new rental assistance program.

Mankato has the opposite problem with not enough rental assistance available. The Mankato EDA has asked New Ulm and other counties who are not using their Bring it Home vouchers, to enter an agreement to allow them to apply for the program on their behalf. This would give greater rental assistance to the region as a whole.

Bregel said the New Ulm EDA could get out of the agreement at any time if they decided to take over administration of the Bring it Home program.

“As long as we are not planning to use it at this time, we would like to turn our assistance over to Mankato,” she said. There is no cost to New Ulm if Mankato takes it over.

EDA Chairwoman Michelle Markgraf said it made sense to allow Mankato to use the assistance if New Ulm did not need it.

“I like being able to work with other EDAs to help southern Minnesota be stronger,” Markgraf said.

Board member Char Reinhart-Kalk made the motion to approve the agreement with a second from board member David Christian. It was approved.

In other news, the EDA tabled a decision on the commercial property rehab loan application for Ulm Sweet Ulm due to lack of a quorum. Board member Reinhart-Kalk recused herself from the discussion, preventing the board from having a quorum present.

The loan is for a business at 203 N. Minnesota Street. The plan is to renovate the lower levels of the business to create additional event and office space. A freight elevator would be converted to a passenger elevator for ADA access.

The proposed loan is for $74,900 over 10 years with 2% interest.

The loan review will come back to the EDA in October.