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HomeMy WebLinkAbout20111219 - VIII-B-2 City Council Memorandum To: Mayor Hicks and City Council From: John Hinzman, Community Development Director Date: December 19, 2011 Item: Authorize Submittal of 2012 CDBG Application Council Action Requested: The City Council is asked to adopt the attached resolution authorizing submittal of the 2012 Community Development Block Grant (CDBG) application to Dakota County. The entire $56,134 would be allocated towards assessment abatement for low, low\moderate income households from various street improvement projects to be assessed in 2012. Background Information: Please see the attached application and resolution for further information. The City has allocated the majority of CDBG funds towards assessment abatement during the last ten years. Financial Impact: No financial impact for the City. Qualifying home owners may have their entire share of assessed projects paid for. Advisory Commission Discussion: N\A Council Committee Discussion: N\A Attachments: ! Resolution ! Application City of Hastings ! 101 Fourth Street East ! Hastings, MN 55033-1955 ! p:651-480-2350 ! f:651-437-7082 ! www.ci.hastings.mn.us HASTINGS CITY COUNCIL DAKOTA COUNTY, MINNESOTA RESOLUTION NO. ___________ A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF HASTINGS FOR FISCAL YEAR 2012 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING WHEREAS, the City of Hastings is a participating jurisdiction with the Dakota County CDBG Entitlement Program for Fiscal Year 2012 (ending June 30, 2013); 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 2012 CDBG applications to be submitted by January 15, 2012, based on an allocation of funds approved in the Community Development Implementation Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Hastings hereby approves the following: 1. The Fiscal Year 2012 CDBG application is approved for submission to the Dakota County CDA. 2. The Mayor and City Administrator for the City of Hastings are 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, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. Adopted by the City Council of Hastings this 19th day of December, 2011. Ayes: ____ Nays: _____ Absent: ______ ATTEST: Paul J. Hicks, Mayor Melanie Mesko Lee City Clerk 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 19th day of December, 2011, as disclosed by the records of the City of Hastings on file and of record in the office. Melanie Mesko Lee City Clerk ( SEAL) This instrument drafted by: City of Hastings (JWH) 101 4th Street East Hastings, MN 55033 APPLICATION FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Application must be received by the Dakota County Community Development Agency NO LATER THAN DECEMBER 15, 2010 (for Program Year 2010, 7/01/11-6/30/12) General Information Applicant Name: City of Hastings DUNS #: 172843278 Contact Name: John Hinzman Applicant Address: 101 East 4th Street City, State, Zip: Hastings, Minnesota 55033 Phone: (651) 480-2378 Fax: (651) 437-7082 Email: jhinzman@ci.hastings.mn.us Proposed Projects/Activities #1 Title: Assessment Abatement CDBG Request: $56,134 #2 Title: CDBG Request: #3 Title: CDBG Request: #4 Title: CDBG Request: #5 Title: CDBG Request: Total Request: $56,134 PLEASE NOTE: AT LEAST 50% of the proposed funding must qualify as a LOW/MOD benefit and NO MORE THAN 40% of the proposed funding can be for PUBLIC SERVICES. As public services may not account for more than 15% of the County’s total funding, public service requests may need to be decreased once all applications are submitted and reviewed by CDA staff. 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 1 Please complete the following Sections I-VI for EACH proposed project/activity. (For example, if 3 projects/activities are being proposed, there will be 3 sets of the following pages.) Project/Activity # 1 Project/Activity Title: Assessment Abatement I. Project/Activity Information Has this Project/Activity received CDBG funding before? Yes No Check the eligible activity category of the proposed project/activity: (See attached definitions) Acquisition/Disposition: Vacant or undeveloped property Commercial property Residential property Public Facilities/Improvements: Buildings Infrastructure X Assessment abatement Demolition/Clearance Public Services (i.e. child care, recreation programs) Economic Development Planning Rehabilitation Owner occupied housing Rental housing Commercial Homeownership Assistance: Support services (i.e. counseling) Downpayment assistance Other types of purchase financing General Administration Other (please describe): Relocation Describe the project/activity schedule: Proposed Project/Activity Start Date: 7/1/12 Proposed Project/Activity Completion Date: 6/30/13 I. Project/Activity Title Describe the proposed project/activity. The City of Hastings 2012 Improvement Program included street reconstruction projects involving bituminous paving, storm sewer, concrete curb and gutter, and sidewalk\trail construction. Per City policy, all abutting property owners will be assessed for these improvements. The City is proposing to allocate CDBG funding to provide assessment abatement to low and moderate income properties. 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. 2 CDBG funded projects/activities must meet one of the 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? 15-30_Households (Income eligibility must be verified by written documentation) Where will this project/activity be available? (Address of property, neighborhood, city-wide) The project area is bounded on the north by 15th Street, east by Spring Street, south by 18th Street, and west by Pine Street. A total of 121 residential units. If you checked the Low/Mod Limited Clientele Benefit box, please answer the following: How many Low/Mod People or Households will benefit? People/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, severely disabled persons, homeless persons, persons living with AIDS, migrant farm workers) 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): If you checked the Low/Mod Area Benefit box, please answer the following: In what Census Tract/Block Group(s) do beneficiaries of your Project/Activity live? (Please include map) How many residents live in this area? What is the percentage of low and moderate-income beneficiaries? How was this documented? HUD Data Survey (See enclosed map) (Please include a copy of survey) 3 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 lease 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 project/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 No What percent of permanent FTEs will be held by or available to low/mod income persons? % 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? x (Please provide letter from building inspector or other documentation noting deficiencies and include photos) If Slum/Blight Area, what percent of buildings are deteriorated? % What deficiency will be corrected or the public improvement be? 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 project/activity outcome will be measured and projected number of beneficiaries. People Households 15-30 Housing Units Public Facilities Jobs 4 Businesses Organizations V. Priority Needs Check the priority need from the Consolidated Plan for which the CDBG funds will be used: High Priority Needs – Housing Renter, elderly, 0-50% of median income Renter, small related, 0-80% of median income Renter, all other, 0-50% of median income Owner, 0-80% of median income Medium Priority Needs – Housing Renter, elderly, 51-80% of median income Renter, large related, 0-80% of median income High Priority Needs – Community Development Acquisition of Real Property Disposition of Real Property Parks, Recreational Facilities Water/Sewer Improvements Street Improvements Sidewalks Clearance and Demolition Clean-up of Contaminated Site Senior Services Youth Services Rental Housing Subsidies Relocation Construction of Housing Direct Homeownership Assistance Rehabilitation of Single Unit Residential Rehabilitation of Multi-Unit Residential Rehabilitation of Commercial/Industrial Code Enforcement Commercial/Industrial Land Acq./Disposition Commercial/Industrial Infrastructure Development Commercial/Industrial Building Acq., Rehab Planning Medium Priority Needs – Community Development Senior Centers Homeless Facilities Youth Centers Solid Waste Disposal Improvements Flood Plain Improvements Handicapped Services Transportation Services Battered and Abused Spouses Services Crime Awareness Fair Housing Activities Public Housing Modernization Rehabilitation of Other Publicly Owned Residential Residential Historic Preservation Non-Residential Historic Preservation Other Commercial/Industrial Improvements Economic Development Non-Profit Assistance Economic Development Technical Assistance Micro-Enterprise Assistance Low Priority Needs – Community Development These activities should be funded with sources other than CDBG. Privately Owned Utilities Handicapped Centers Neighborhood Facilities Child Care Centers Substance Abuse Services Employment Training Child Care Services Abused and Neglected Child Services Tenant/Landlord Counseling 5 VI. Project Budget Provide the total project cost and CDBG request – Hastings 2010 & 2011 Improvement Program Total Project Cost: $3,000,000 Total CDBG Request: $56,134 CDBG Percent of Total Cost: 1.9% Describe all other funding sources. Source of Funds Amount Committed Pending Assessments $600,000 Water\Sewer Fund $600,000 Bonded Debt $1,800,000 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 sect ion for completeness. Each project/act ivity should have separate Sect ions I through VI . Itemized Use of Funds/Expenses Costs CDBG Funds Requested Bonded Debt/Construction & Rehabilitation Costs (Street, Storm Sewer & Drainage, Landscaping Items, & Professional Fees and Personnel Costs) $1,800,000 Assessments/Construction & Rehabilitation Costs (Street, Storm Sewer & Drainage, & Landscaping Items) $600,000 $56,134 Sewer & Water Funds/Construction & Rehabilitation (Sewer & Water System Repairs & Replacements, and Professional & Personnel Costs) $600,000 Total: $3,000,000 $56,134 6 CDBG ELIGIBLE ACTIVITIES DEFINITIONS The following are summary definitions of Community Development Block Grant 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 Comprehensive Plan sets forth the priority of needs and as such, dictates which types of eligible activities may be funded in a given year. CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government or used for political activities. Acquisition/Disposition: The use of CDBG funds to acquire 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, right-of-ways, buildings and other property improvements, or other interests in real property. Demolition/Clearance: Clearance, demolition, and removal of buildings and improvements including movement of structures to other sites. Economic Development Activities: Economic development activities may include, 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) Providing training needed 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. Rehabilitation: Rehabilitation related activities may include single-family rehabilitation, multi-family rehabilitation, energy efficiency improvements, public housing modernization, and rehabilitation of commercial properties. General Administration: CDBG funds may be used for the general administration costs incurred by a Subrecipient to administer their CDBG program. Administration costs directly associated with a CDBG activity should be part of the activity as project administration. Relocation: CDBG funds may be used for 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 grantee 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. Buildings for the general conduct of government cannot be acquired or improved with CDBG funds. This includes neighborhood facilities, firehouses, public schools, and libraries, as well as water and/or sewer treatment plants. The regulations further specify that facilities that are designed for use in providing shelter for persons having special needs are considered to be public facilities. 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 under this category may not exceed 40% of the 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). Homeownership Assistance: Homeownership assistance activities may include financial assistance for downpayments, closing costs or other part of the purchase process and counseling for pre-purchase, post-purchase or foreclosure prevention.