HomeMy WebLinkAbout20071203 - VI-04VI-4
MEMO
To: Honorable Mayor and City Council
From: Nick Egger -City Engineer
Date: November 26, 2007
Re: 2006 Improvement Program Assessment Abatement
At present, the Dakota County Community Development Agency is currently in the
process of determining the eligibility of applicants for assessment abatement from the
2006 reconstruction project areas. A subsequent memo summarizing the CDA's
qualification review, fund allocation breakdown, listing of the abated assessments, and
staff recommendations will be handed out at the Council meeting on December 3`a.
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MEMO
To: Honorable Mayor and City Council
From: Nick Egger -City Engineer
Date: December 3, 2007
Re: 2006 Improvement Program Assessment Abatement
The Dakota County Community Development Agency has determined that 8 property
owners qualify as low income households with a total abatement of $26,383.50. There
are an additional ?property owners that qualify as moderate income households. These
properties were assessed a total of $34,898.63. Our 2007 Community Development
Block Grant (CDBG) set aside only $52,557.47 to provide assessment abatement for the
2006 Improvement Program.
As you can see, the combined total of assessments against qualifying low and moderate
income households is a little more than $8,700 beyond the funding available. Federal
requirements call for 100% abatement of low income households. The City can fund
anywhere from 0% to 100% abatement for the qualifying moderate income households.
This year, the available funding in excess of low income abatement provides apro-rated
75% abatement share to properties qualifying as moderate income households, which is
somewhat higher than in years past, where the City has typically partially funded
assessment abatement for moderate income households at a 50% rate.
The City does have the option of augmenting the abatement allocation by performing a
transfer of funds from one of several other CDBG accounts (Blighted Property
Acquisition, Emergency Rehabilitation, and Fire Code Rehabilitation) into the
assessment abatement account, and you may recall that a transfer was performed last year
in order. to allow for 35% abatement to moderate income households.
The abatement of 75% of the moderate income household's assessments is substantial,
and with the City having use for funding in the other CDBG categories, it is staff's
recommendation that the Council approve a total abatement rate of 75% for qualifying
moderate income households.
COUNCIL ACTION REQUESTED
Council is requested to approve the enclosed assessment .Z=~_~~~ ri
abatement for low and moderate income households. -~ - M ~~~
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