HomeMy WebLinkAboutX-C-01 Adopt 2025 CDBG Budget
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: John Hinzman, Community Development Director
Date: January 6, 2025
Item: Resolution: Authorize Submittal of 2025 CDBG Budget
Council Action Requested:
Adopt the attached resolution authorizing submittal of the 2025 Community
Development Block Grant (CDBG) budget to Dakota County. The estimated
funding of $44,879 would be allocated towards assessment abatement. Action
requires a simple majority of Council.
Background Information:
CDBG funding is intended to fund activities for low and low\moderate income
individuals including affordable housing, anti-poverty, and infrastructure
development. Dakota County receives a direct allocation of CDBG funding
from the US Department of Housing and Urban Development (HUD) and sub-
allocates funding to individual cities within the County.
Assessment Abatement:
Similar to past years, CDBG funding would be
allocated toward providing assessment abatement for
local public infrastructure projects; allowing qualifying
homeowners to reduce or eliminate their assessment.
The adjacent map indicates the project area.
Financial Impact:
CDBG funds will assist low to low\moderate income
households in abating assessments and housing repairs.
Advisory Commission Discussion:
N\A
Council Commission Discussion:
N\A
Attachments:
• Resolution
• CDBG Application
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CITY OF HASTINGS
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO. ___________
A RESOLUTION APPROVING THE APPLICATION
FOR FISCAL YEAR 2025 DAKOTA COUNTY COMMUNITY DEVELOPMENT
BLOCK GRANT FUNDING
WHEREAS, the City of Hastings is a participating jurisdiction with the Dakota
County Community Development Block Grant (CDBG) Entitlement Program for Fiscal
Year 2025 (starting July 1, 2025 and ending June 30, 2026); and
WHEREAS, the Dakota County Community Development Agency (CDA) is a
Subgrantee of Dakota County for the administration of the CDBG Program; and
WHEREAS, the Dakota County CDA has requested Fiscal Year 2025 CDBG
applications be submitted by January 17, 2025, based on an allocation of funds approved
in the Annual Action Plan.
NOW, THEREFORE, BE IT RESOLVED that the City of Hastings hereby approves
the following:
1. The Fiscal Year 2025 CDBG application is approved for submission to the Dakota
County CDA.
2. The City Administrator for the City of Hastings is authorized to execute the
application and all agreements and documents related to receiving and using the
awarded CDBG funds.
3. The Dakota County CDA is designated as the administrative entity to carry out the
CDBG program on behalf of the City of Hastings, subject to future Subrecipient
Agreements that may be required for specific CDBG-funded activities.
Adopted by the City Council of Hastings this 6th day of January, 2025
ATTEST:
Mary D. Fasbender, Mayor
Kelly Murtaugh, City Clerk
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I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to
and adopted by the City of Hastings, County of Dakota, Minnesota, on the 6th day of
January, 2025, as disclosed by the records of the City of Hastings on file and of record in
the office.
Kelly Murtaugh
City Clerk ( SEAL)
This instrument drafted by:
City of Hastings (JH)
101 4th Street East
Hastings, MN 55033
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COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
APPLICATION FOR PROGRAM YEAR 2025
Application must be received by the Dakota County Community Development Agency
NO LATER THAN FRIDAY, JANUARY 17, 2025
For July 1, 2025 – June 30, 2026
General Information
Applicant Name: City of Hastings UEI #: 172843278
Contact Name: John Hinzman
Applicant Address:101 East 4th Street
City, State, Zip: Hastings, MN 55033
Phone:651-480-2378 Email:jhinzman@hastingsmn.gov
Proposed Activities
Activity Requested Funding Amount
#1 Title: Assessment Abatement CDBG Request: $ 44,879
#2 Title: Click or tap here to enter text. CDBG Request: $ Click or tap here to enter text.
#3 Title: Click or tap here to enter text. CDBG Request: $ Click or tap here to enter text.
#4 Title: Click or tap here to enter text. CDBG Request: $ Click or tap here to enter text.
#5 Title: Click or tap here to enter text. CDBG Request: $ Click or tap here to enter text.
Total Request: $ 44,879
Contingency Funding Request:
Note the funding levels for activities if there is an increase or decrease in federal funding
levels. Specify which activities should be fully funded at the requested level and which should
be increased or decreased. Please make any adjustments to Assessment Abatement.
PLEASE NOTE: AT LEAST 50% of the proposed funding must qualify as a LOW/MOD benefit. NO MORE
THAN 35% of the any one community’s proposed funding can be for PUBLIC SERVICES. Because public
services may not account for more than 15% of the County’s total funding, public service requests may be
decreased once all applications are submitted and reviewed by CDA staff. NO MORE than 10% of any one
community’s funding can be used for PLANNING.
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Certification
I certify that the information contained in this application is true and correct and that it contains no
misrepresentations, falsifications, intentional omissions, or concealment of material facts. I further
certify that no contracts have been awarded, funds committed, or construction begun on the proposed
project(s), and that none will be made prior to notification from the Dakota County CDA based on
HUD’s issuance of a Release of Funds Notice.
Signature of Authorized Official Date
Title of Authorized Official
PLEASE ATTACH THE RESOLUTION OF THE GOVERNING BODY SHOWING APPROVAL
OF THE REQUEST FOR CDBG FUNDS.
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1
Please complete the following Sections I-V for EACH proposed activity. (For
example, if 3 activities are being proposed, there will be 3 sets of the following pages.)
Activity # 1
Activity Title: Assessment Abatement
II. Activity Information
Has this Activity received CDBG funding before? ☒ Yes ☐ No
Check the eligible activity category of the proposed activity: (See attached definitions)
I. Activity Title
Describe the proposed activity in detail. Please be specific about purpose, location, number
of people or households served, etc.
The City of Hastings 2025 Improvement Program includes street reconstruction and utilities
on Farm St, Frasier St, State St, and 1st St from Farm St to Co Rd 42. Street reclamation
and limited utility work would occur on 1st St from Pleasant Dr to Farm St, Olive St, and
Prairie St. A new sidewalk is proposed along 1st St from Pleasant Dr to Co Rd 42. The City
is proposing to allocate CDBG funding to provide assessment abatement to low- and
moderate-income properties. 6-7 properties could be assisted. Qualifying low-income
households would have 100 percent of their assessments abated, while qualifying moderate
income households would have their assessments abated to the extent of remaining funds
available.
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Affordable Rental Housing
☐ Rehabilitation of Multi-Unit Residential
☐ Fair Housing Activities
☐ Energy Efficiency Improvements
Public Services
☐ Senior Services
☐ Youth Services
☐ Transportation Services
☐ Operational Support
Affordable Homeowner Housing
☐ Homeownership Assistance
☐ New (Re)Construction Homeowner Housing
☐ Rehabilitation/ Energy Efficiency Improvement of Single
Unit Residential
☐ Fair Housing Activities
Public Facilities
☐ Recreational Parks
☐ Public Water/Sewer Improvements
☐ Street Improvements
☐ Sidewalks
☒ Assessment Abatement
☐ ADA Improvements
Homelessness
☐ Coordinated Access to Services & Shelter
☐ Housing Stabilization
☐ Emergency Shelter Operation
Neighborhood Revitalization
☐ Acquisition of Real Property
☐ Clearance and Demolition
☐ Clean-up of Contaminated Site
Economic Development
☐ Employment Training
☐ Economic Development Assistance
☐ Rehabilitation of Commercial/Industrial Buildings
☐ Micro-Enterprise Assistance
☐ Relocation
Planning and Administration
☐ Planning
☐ Administration
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3
Describe the activity schedule:
Is this a continuation of a previously funded activity? ☐Yes ☒No
Is this a time-specific project? ☒Yes ☐No
If this is a time-specific project, please note the start and end dates below:
Proposed Activity Start Date: 7/1/25
Proposed Activity Completion Date: 6/30/26
CDBG funded projects/activities must meet one of the following program objectives. Check
the objective for which the CDBG funds will be used.
If you checked the Low/Mod Housing Benefit box, please answer the following:
How many Low/Mod Households will benefit? 6-7 Households
(Income eligibility must be verified by written documentation)
Where will this activity: Project includes streets located between Pleasant Drive, 1st Street, Prairie
Street and MN Hwy 55.
Click or tap here to enter text.
III. CDBG National Objective
☐ Low/Mod Area Benefit ☐ Low/Mod Limited Clientele Benefit
☒ Low/Mod Housing Benefit ☐ Low/Mod Jobs Benefit
☐ Slum/Blight Area Benefit ☐ Slum/Blight Spot Benefit
☐ Urgent Need (extremely rare; used only for emergencies): (Please explain) Click or tap here to
enter text.
If you checked the Low/Mod Area Benefit box, please answer the following:
In what Census Tract/Block Group(s) do beneficiaries of your Activity live? (Please include map)
Click or tap here to enter text.
How many residents live in this area? Click or tap here to enter text.
What is the percentage of low and moderate-income beneficiaries? Click or tap here to enter text.%
How was this documented? ☐ HUD Data ☐ Survey
(Please include a copy of survey)
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4
If you checked the Low/Mod Limited Clientele Benefit box, please answer the following:
How many Low/Mod People or Households will benefit? Click or tap here to enter text. People
Click or tap here to enter text. Households (Please choose either People or Households for each project).
How will income be verified?
☐ Income Verification Request Forms
☐ Eligibility Status for other Governmental Assistance program
☐ Self Certification (Must request source documentation of 20% of certifications and must inform beneficiary that
all sources of income and assets must be included when calculating annual income)
☐ Presumed benefit (HUD presumes the following to be low and moderate-income: abused children, battered
spouses, elderly persons (62+), severely disabled persons, homeless persons, persons living with AIDS, migrant farm
workers)
If you checked the Low/Mod Jobs Benefit box, please answer the following:
To meet the requirements of the “Jobs” National Objective, the business being assisted must enter into an agreement
showing commitment that at least 51% of jobs created or retained will be available to low/mod income persons. The
business must also be prepared to provide a list of all jobs, detailed information about the jobs being created or
retained, the selection and hiring process, and demographic information about the employees.
Will this activity create or retain full time equivalencies (FTEs)? ☐ Create ☐ Retain
For job(s) that are being retained, please provide evidence that the assisted business has issued a notice to affected
employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial
records that shows the business is likely to cut back on employment in the near future without planned intervention.
Will the job(s) created or retained require a special skill? ☐ Yes ☐ No
What percent of permanent FTEs will be held by or available to low/mod income persons? Click or
tap here to enter text. %
If you checked the Slum/Blight Area or Slum/Blight Spot Benefit box, please answer the
following:
What are the boundaries of the slum/blight area or the address of the slum/blight spot? Click or tap
here to enter text.
(Please provide letter from building inspector or other documentation noting deficiencies and include photos)
What deficiency will be corrected or the public improvement be? Click or tap here to enter text.
If Slum/Blight Area, what percent of buildings are deteriorated? Click or tap here to enter text.%
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IV. Proposed Objectives and Outcomes
Indicate the proposed objective and outcome of the activity/project.
Outcome #1
Availability/Accessibility
Outcome #2
Affordability
Outcome #3
Sustainability
Objective #1
Suitable Living
Environment
☐ Accessibility for the
purpose of creating a suitable
living environment
☐ Affordability for the
purpose of creating a
suitable living environment
☐ Sustainability for the
purpose of creating a
suitable living environment
Objective #2
Decent
Housing
☐ Accessibility for the
purpose of providing decent
housing
☐ Affordability for the
purpose of providing
decent housing
☐ Sustainability for the
purpose of providing
decent housing
Objective #3
Economic
Opportunity
☐ Accessibility for the
purpose of creating economic
opportunities
☐ Affordability for the
purpose of creating
economic opportunities
☐ Sustainability for the
purpose of creating
economic opportunities
Indicate how the activity outcome will be measured and projected number of beneficiaries.
☐ People
☒ Households 6-7
☐ Housing Units
☐ Public Facilities
☐ Jobs
☐ Businesses
☐ Organizations
V. Project Budget
Provide the total project cost and CDBG request.
Total Project Cost: $ 4,250,000
Total CDBG Request: $ $44,879
CDBG Percent of Total Cost: 1.1%
Describe all funding sources.
Source of Funds Amount Committed Pending
City of Hastings Wastewater Fund $ 470,000 ☒ ☐
City of Hastings Water fund $ 800,000 ☒ ☐
City of Hastings Storm Sewer Fund $ 520,000 ☒ ☐
City of Hastings Bonded Debt $1,765,000 ☒ ☐
Property Owner Assessments $ 650,121 ☐ ☒
CDBG Funds $ 44,879 ☐ ☒
Total: $ 4,250,000 ☐ ☒
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Please itemize project expenses, using the following guidance as applicable:
• Acquisition & Improvement Costs - Include purchase price, closing costs, site improvements,
clearance of toxic contaminants, and other acquisition and improvement costs
• Construction/Rehabilitation Costs - Include site improvements, construction (labor, materials,
supplies), installation, permits and other construction/rehabilitation costs
• Professional Fees and Personnel Costs - Include architectural, engineering and code inspection
fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and
other professional/personnel fees
• Other Development Costs - Include relocation, financing costs, environmental reviews,
environmental studies, and other development costs
• Eligible Costs for Planning Projects - Include professional services, project management costs,
and other planning costs
* * * * *
Please review each section for completeness.
Each activity should have separate Sections I through V.
Itemized Use of Funds/Expenses Costs CDBG Funds
Requested
Other
Funding
Sources
Street Storm Sewer, Streetscape – City
of Hastings Bonded Debt & Special
Assessments
$ 2,460,000
$ 44,879
$2,415,121
Water System Infrastructure
Replacement – City of Hastings Water
Fund
$ 800,000
$ 0
$ 800,000
Sanitary Sewer Infrastructure – City of
Hastings Wastewater Fund
$ 470,000 $ 0 $ 470,000
Storm Sewer Infrastructure – City of
Hastings Storms Sewer Fund
$ 520,000 $ 0 $ 520,000
Total: $4,250,000 $ 44,879 $ 4,205,121
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COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) ELIGIBLE ACTIVITIES
Please Note: Although an activity may be deemed eligible for CDBG funding, it does not guarantee funding. The Community
Development Needs for the CDBG Program in the Consolidated Plan lists the priority of needs and dictates which types of eligible
activities may be funded in a given year. All activities must meet a National Objective.
CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government, general
government expenses, or political activities.
Acquisition/Disposition: Includes acquisition of real property, in whole or in part, by purchase, long-term lease, donation, or otherwise
for any public purpose. Real property to be acquired may include land, air rights, easements, water rights, rights-of-way, buildings and
other property improvements, or other interests in real property.
Demolition/Clearance: Includes clearance, demolition, and removal of buildings and improvements including movement of structures
to other sites.
Economic Development Activities: Includes but are not limited to: (1) construction by the grantee or subrecipient of a business
incubator designed to provide inexpensive space and assistance to new firms to help them become viable businesses, (2) loans to pay
for the expansion of a factory or commercial business, and (3) training for by persons on welfare to enable them to qualify for jobs
created by CDBG-assisted special economic development activities. The level of public benefit to be derived from the economic
development activity must be appropriate given the amount of CDBG assistance.
Homeownership Assistance: Includes financial assistance for down payments, closing costs or other part of the purchase process
and counseling for pre-purchase, post-purchase or foreclosure prevention.
Rehabilitation: Includes single-family rehabilitation, multi-family rehabilitation, energy efficiency improvements, public housing
modernization, and rehabilitation of commercial properties.
Relocation: Includes relocation payments and assistance to displaced persons, including individuals, families, businesses, non-profits,
and farms, where required under section 570.606 of the regulations (pursuant to the Uniform Relocation Act).
Public Facilities/Improvements: CDBG funds may be used by the subrecipient or other public or private nonprofit entities for the
acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of
architectural barriers to accessibility), or installation, of public improvements or facilities. This includes neighborhood facilities,
firehouses, public schools, libraries, and shelters for homeless people, as well as water and/or sewer treatment plants. Buildings for the
general conduct of government cannot be acquired or improved with CDBG funds.
Public Services: CDBG funds may be used to provide public services (including labor, supplies, and materials), provided that each of
the following criteria is met: 1) The public service must be either a new service or a quantifiable increase in the level of service; and 2)
The amount of CDBG funds obligated within a program year to support public service activities may not exceed 35% of a city’s
allocation and the total public services of all subrecipients may not exceed 15% of the total grant awarded to Dakota County for that
year.
Planning: Includes studies, analysis, data gathering, preparation of plans, and identification of actions that will implement plans. The
types of plans which may be paid for with CDBG funds include but are not limited to comprehensive plans, individual project plans,
community development plans, capital improvement programs, small area and neighborhood plans, environmental and historic
preservation studies, and functional plans (such as plans for housing, land use, energy conservation, or economic development).
Except for small cities and townships, the amount of CDBG funds obligated within a program year to support planning activities may
not exceed 15% of a community’s allocation.
General Grant Administration: CDBG funds may be used for general administration costs incurred by a subrecipient to administer its
CDBG program. CDBG grant funds obligated to general grant administration may not exceed 10% of the community’s allocation.
Administration costs directly associated with a CDBG activity should be part of the activity as project administration and are not
considered general grant administration expenses. Please talk to the Dakota County CDA before you allocate funds to grant admin.
Planning and General Grant Administration Activities may not exceed 20% of the total grant awarded to Dakota County for
that year.
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