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Home My WebLink About20070507 - VI-22VI-22 MEMORANDUM TO: Honorable Mayor and City Councilmembers FROM: Dave Osberg, City Administrator DATE: May 3, 2007 SUBJECT: Dakota County CDBG Program RECOMMENDED CITY COUNCIL ACTION It is recommended that the City Council take action authorizing continuation in the Dakota County Community Development Block Grant Program. BACKGROUND Staff has enclosed a letter from Dakota County Community Development Agency Executive Director Mark Ulfers inviting the City of Hastings' continuing participation in the CDBG program. While the letter states that no action is needed, should the City continue participation in the program, Staff would recommend that the City Council take action indicating its continued involvement in the program, reflecting that the decision has been made by the City Council, rather than at the Staff level. C~ J~ Dakota County L/~, Community Development Agency ...................... April 24, 2007 Dave Osberg City of Hastings 101 - 4`h Street East Hastings, MN 55033 RE: PARTICIPATION IN THE DAKOTA COUNTY CDBG PROGRAM /i-tr ~ Dear Mr. , Every three years, the U.S. Department of Housing and Urban Development (HUD) requires urban counties to requalify their entitlement status and participating communities for the purpose of awarding Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds. Dakota County has qualified as an urban county and has received an annual allocation of CDBG funds since 1984. As you will see on the attached summary, CDBG-funded activities have been a key element to keep our communities strong and vibrant. The successful use of these funds is due to the active involvement and support from local government. We hope to continue this partnership. As a city with land in more than one urban county, Hastings has the option of being exclusively in Dakota County, exclusively in Washington County, to be part of both counties, or to be excluded from all urban counties. If you choose to remain a participant exclusively of Dakota County's CDBG and HOME programs, Hastings would continue to be eligible for funding through the Dakota County CDA; however, Hastings would be ineligible to apply for Small Cities or state CDBG programs. If Hastings chooses to continue participation, no action is necessary. The existing Cooperation Agreement will automatically renew unless you specifically request to terminate, per Section III of the agreement. If Hastings chooses to terminate their participation, it must notify both the CDA and the HUD Field Office. of its election 'ru be excluded from Dakota County's CDBG and HOME funding entitlement no later than May 25, 2007. Notice to the HUD Field Office should be addressed to 920 South 2°d Avenue, Suite 1300, Minneapolis, MN 55402. If you have any questions regarding this process or the CDBG and HOME programs, please feel free to contact Dan Rogness at (651) 675-4464. Sincerely, Mark Ulfers Executive Director 1228 Town Centre Drive • Eagan, MN 55123-1066 tel 651-675-4400 • fax 651-675-4444 Community Development Block Grant Program Dakota County, Minnesota Community Development Block Grant (CDBG) funding is distributed by the U.S. Department of Housing and Urban Develop- ment (HUD) to Urban Entitlement Grantees throughout the country. Dakota County be- came an entitlement grantee in 1984. In 22 years, the CDA has administered over $39 million in CDBG. funding in Dakota County. The largest single program funded by CDBG is the Housing Rehabilitation Loan Program. This program provides low- and moderate- income homeowners with loans up to $25,000 to make improvements to their homes. Approximately 100 homes in Dakota County are improved each year through this program. Loan payoffs are recycled and used to fund new applications. The CDBG Program allows local government agencies to fund projects and activities that benefit low- and moderate-income persons or eliminate slum and blight conditions. Each city and township in Dakota County that is eligible to receive CDBG funds sub- mits an annual application to the CDA. Eli- gible programs and activities include acqui- sition or disposition of real property, reloca- tion, public facilities and improvements, public services, housing rehabilitation, homeownership assistance, code enforce- ment, economic development and planning. CDBG Allocation by Activity 2002-2006 n e rclal hab ~~ Activity Type Amount Funded 2002-2008 % of Fundin Rehab housin $3 844 587 42% Ac uisition/Clearance $2 573 556 30% Public Services $1 001 396 12% Rehab commercial $539 692 8% Public Facilities/lm $488 354 6% Other* X362 517 4% TOTAL** $9 921 425 100% *Planning, Homeownership Assistance & Relocation **AdministrationlPlanning is not included. CDBG Funding 1997-2007 Fast Facts about CDBG & Dakota County 00 ~ °o °o ° ° ° ° ~ • o _ o ~ ui ~ o ~n o o ~ o o ~ ~ o ~ ~ ~ rn 0 0 ~n .. N ~ N N ~ ~ EA tNw ~ ~ N Dakota County's CDBG funding has decreased by 17% over the past five years. Funding has been reduced six of the last ten years. • Dakota County Population: 391,558 (2005 estimate) • 21 cities and 12 townships in Dakota County participate in the CDBG Program. Other 4°~ Public Facilities 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 CDBG Funding At Work in Dakota County CDBG helped to redevelop this block in West St. Paul. The block is now home to 0 59 unit affordable senior housing development and 6,600 square feet of ground level commercial space. ,, x S ~ ~~-~~ g . ~I~.i t~•1~~yyy.' s M~w..a^~ ~ ~ v '. '~ ~~~. ~ ~ t? a ~,, ~ ~f - - - _ ~ I_I '- - iii..` ~.a ~' ~, sir. ~ #- ~~. ~:,.-n _ _4 ~_------ Ben Franklin in downtown Lakeville The Exchange Bank Building in The Holland Building in North- received aCDBG grant for a new Farmington (originally built in field was constructed in 1884. fa4ade. The storefront complements 1880) was rehabilitated using CDBG funds were used to assist adjacent structures and echoes tradi- CDBG funds. The building has with building renovation which liana( downtown architecture. two street-level commercial now houses commercial busi- businesses. nesses. • '- .~ • • • AFTER These homes were rehabilitated through the Dakota County Housing Rehabilitation Loan Program. Eligible homeowners can receive a loan up to 525,000 to make improvements to their homes; most loans are 0%de- ferred. BEFORE ~~, ~ ,- , ~„ ~ ~~~ :.,. ' Several cities in Dakota County have used CDBG to build new playgrounds.