HomeMy WebLinkAboutVIII-11 Approve Assessment Abatement for 2024 Neighborhood Infrastructure Improvements
City Council Memorandum
To: Mayor Fasbender & City Council Members
From: Cody Mathisen – City Engineer
Date: October 21, 2024
Item: Approve Assessment Abatement for 2024 Neighborhood Infrastructure Improvements
Council Action Requested:
Council is requested to approve abatement of assessments to properties within the 2024 Neighborhood
Infrastructure Improvements project areas.
Background Information:
The assessment abatement program provides federal funding through the Dakota County Community
Development Agency to the City for assistance with financing assessments to owner-occupied low and moderate
income households. The 2024 Neighborhood Infrastructure Improvements included Brooke Lane, Brooke Court,
21st Street West, Highland Drive, 17th Street West, and Brittany Road. The project impacted 154 properties, all of
which are single-family owner-occupied residential dwellings. During this year’s process, Nine (9) applications for
assessment abatement were filed with the Dakota County Community Development Agency (CDA). This
represents about 6% of owner-occupied households within the project area.
The CDA has completed their review and determined that five (5) properties qualified for assistance, with one (1)
household qualifying as low-income, and four (4) as a moderate-income household. These properties were
assessed a total of $33,525.00.
All four applications not awarded were found to be over the maximum income threshold to qualify for abatement.
Financial Impact:
The combined total of assessments against qualifying households is $33,525.00. The total Community
Development Block Grant (CDBG) budget set aside for assessment abatement for the 2024 project was
$67,273.00. Federal requirements call for 100% abatement of low-income households, and the City can choose to
fund anywhere from 0% to 100% abatement for the qualifying moderate-income households.
Staff Recommendation:
The budget for the 2024 program is enough to provide the required full abatement to qualifying low-income
households, and full abatement for qualifying moderate-income households. It is staff’s recommendation to
maximize available CDBG Assessment Abatement funds and provide abatement in full to both the low-income and
moderate-income households.
Attachments:
A listing of the properties eligible for assessment abatement and the amounts recommended to be abated is
attached for City Council approval.
VIII-11
2024 Improvement Program Assessment Abatement
Qualifying Households
Low Income Households (100% Abatement Required)
Project PID
Assessment
Amount
Abatement
Amount
2024 Neighborhood Infrastructure
Improvements
193285104010 $6,750.00 $6,750.00
Total Qualifying Low-Income Abatement $6,750.00
Moderate Income Households (100% Abatement Recommended)
Project PID
Assessment
Amount
Abatement
Amount
2024 Neighborhood Infrastructure
Improvements 193285007010 $7,650.00 $7,650.00
193285008140 $7,650.00 $7,650.00
198323004120 $1,912.50 $1,912.50
193285006010 $9,562.50 $9,562.50
Total Qualifying Moderate-Income Abatement $26,775.00
GRAND TOTAL ABATEMENT $33,525.00
VIII-11