HomeMy WebLinkAboutVIII-14 Approve Assessment Abatement for 2025 Neighborhood Infrastructure ImprovementsCity Council Memorandum
To: Mayor Fasbender & City Council Members
From:Cody Mathisen –City Engineer
Date:October 6, 2025
Item:Approve Assessment Abatement for 2025 Neighborhood Infrastructure Improvements
Council Action Requested:
Council is requested to approve the proposed abatement of assessments to properties within the 2025
Neighborhood Infrastructure Improvements project areas.
Background Information:
The City partners with the Dakota County Community Development Agency (CDA) to provide assessment
abatement for owner-occupied low and moderate-income households. Funding is made available through the
federal Community Development Block Grant (CDBG) program.
The 2025 Neighborhood Infrastructure Improvements project included 1st Street W, 1st Place, Farm Street,
Fraiser Street, Olive Street, State Street, and Prairie Street. The project impacted 103 properties, most of which
are single family residences.
This year, 17 of 103 property owners (~17%) applied for abatement, a notable increase compared to recent years
(6% in 2024, 7% in 2023, and 8% in 2022).Prior to 2022, applications historically ranged from 10–15%.
Following review, the CDA determined that 10 properties qualified for abatement, with 3 being low-income and 7
being moderate-income households. These properties were assessed a combined total of $54,750. Of the 7
applications not approved, 3 exceeded the maximum income threshold and 4 did not provide required
documentation despite multiple follow-up attempts.
Financial Impact:
The combined total of assessments against qualifying households is $54,750.00.A summary of the City’s CDBG
funds available is as follows:
•2025 CDBG abatement allocation: $45,347
•Unspent CDBG Balance from Previous Allocations: $88,362
•City of Hastings Total Available CDBG Funds: $133,709
Federal guidelines require 100% abatement for low-income households. For moderate-income households, the
City may choose between partial or full abatement (0-100%).
Staff Recommendation:
Sufficient CDBG funds are available to provide full abatement for both low-income and moderate-income
households. Staff recommends that council approve 100% abatement for all 10 qualifying properties.
Attachments:
•Summary Table of Eligible Properties for Abatement
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