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VI.1. Reallocation of 2013 and 2014 Community Development Grant (CDBG) Program Funds (CR 2015-015); Beekman
February17,2015CouncilReport2015-015 Reallocationof2013and2014CommunityDevelopmentBlockGrant(CDBG)ProgramFunds ProposedAction. Staffrecommendsadoptionofthefollowingmotion:MovethatCounciladoptResolution2015- 011,ResolutionforReallocating2013and2014UrbanHennepinCountyCommunity DevelopmentBlockGrantProgramFundsandAuthorizingExecutionofSubrecipient AgreementwithHennepinCountyandanyThirdPartyAgreements. Overview . TheCityreceivesCommunityDevelopmentBlockGrant(CDBG)ProgramFundsfromHUD viaHennepinCountyannually.Thefundsmustbeusedtobenefitlowandmoderateincome householdswithintheCity.WhilethefundsareallocatedtotheCityofHopkins,Hennepin CountysetstheoverarchinggoalsfortheuseofCDBGfunds,andadministerstheprogramand thefundsfortheFederalGovernment.TheCDBGfundsthattheCityofHopkinsreceives primarilyfundsahousingrehabilitationloan/grantprogramforlowandmoderateincomehome ownerstomakeimprovementstotheirproperty.AportionoftheCDBGfundsarealsoallocated topublicservicesinthecommunitysuchastheICAfoodshelf,ResourceWest,andHOME Line. In2014,theCityexperiencedthelargestdemandinmanyyearsfortheHousingRehabprogram; fiveloanswereclosedwithanothersevenactiveclientscurrentlyworkingtowardsclosingona loan.Assumingthatalloftheactiveclientsendupclosingontheirloansforthemaximum amountallowable,theCity’sHousingRehabprogramstillhasafundbalanceofapproximately $191,480.TheCountyhasrecentlyindicatedthattheywouldliketoseecitiesspenddowntheir pastreservesandnotcarrybalancesoverfromyeartoyear.Fundingthatisnotspentcanbe takenbackbyHUDorreallocatedtoanothercommunitybyHennepinCounty. Staffisproposingtoreallocate$180,000ofpastCDBGfundstotheCottagevilleParkexpansion project.Thefundswouldlikelygotowardspayingforplayequipmentatthenewpark,whichis anallowableuseofCDBGfundsunderHennepinCounty’srules.Thereallocationensuresthat alloftheCity’sCDBGfundswillbespentinHopkins,andprogressesanimportant infrastructureprojectforthecommunity. PrimaryIssuestoConsider . WillfundsremainintheHousingRehabilitationLoan/Grantprogram? DoestheCitywanttousepastyears’CDBGfundstowardstheCottagevilleParkproject? SupportingInformation. Resolution2015-011 ________________________________________ MegBeekman CommunityDevelopmentCoordinator AnalysisofIssues WillfundsremainintheHousingRehabilitationLoan/Grantprogram? Thereallocationof2013and2014CDBGfundswillleaveafundbalanceof$11,480inthe City’sHousingRehabProgram;however,2015CDBGfundingcanbeallocatedbackintothe program,ensuringthattheprogramremainsavailableforhouseholdsthatmightneeditin2015. Therecommended2015allocationis$102,831,whichwouldfund4-6grants/loansfromthe program.BecausetheCDBGfundingcyclerunsfromJulytoJuneeachyear,the2015CDBG fundswillnotbeavailableuntilJune2015.ThismeansthatanyoneinterestedintheHousing RehabprogrampriortoJulyofthisyearwillbeabletostarttheapplicationprocess,butwillnot beabletodrawdownfundsuntilJuly,whenthefundsareavailable. DoestheCitywanttousepastyears’CDBGfundstowardstheCottagevilleParkproject? BecauseCottagevilleParkisuniquelysituatedbetweentwolowandmoderate-incomecensus blocks,improvementsinthisparkareeligibleforCDBGfunds.Thisisnottrueofanyother parksintheCity.Inaddition,theCityandWatershedDistrictareembarkingonamajorpark improvementandexpansionprojectthatwillcostsignificantlymorethanoriginallyanticipated. Anyadditionalfundingsourcesthatcanbemadeavailabletogotowardstheparkhelpreducethe burdenontheparkfund,whichallowsthosefundstobeusedonotherprojectsintheCityorin CottagevillePark. Previously,Staffhastalkedaboutallocating$250,000fromCDBGfundingtowardsthepark; however,whentheCountydidfurtheranalysisoftheprogramfoundthattherewasnotthat muchavailablewithoutputtingresidentsonawaitlisttoaccesstheHousingRehabdollars, whichwasnotpreferable. Alternatives TheCityCouncilhasthefollowingalternativesregardingthisissue: ApproveResolution2015-011,reallocating2013and2014CDBGfundsasproposedbystaff DenyResolution2015-011andoptnottoreallocatefundstowardsCottagevillePark AmendResolution2015-011andreallocateadifferentamounttotheCottagevillePark Expansionprogram CITYOFHOPKINS HENNEPINCOUNTY,MINNESOTA RESOLUTIONNO.2015-011 REALLOCATING2013AND2014URBANHENNEPINCOUNTYCOMMUNITY DEVELOPMENTBLOCKGRANTPROGRAMFUNDSANDAUTHORIZING EXECUTIONOFSUBRECIPIENTAGREEMENTWITHHENNEPINCOUNTYAND ANYREQUIREDTHIRDPARTYAGREEMENTS WHEREAS, theCityofHopkins,Minnesota,throughexecutionofaJointCooperation AgreementwithHennepinCounty,isparticipatingintheUrbanHennepinCountyCommunity DevelopmentBlockGrant(CDBG)Program;and WHEREAS, theCityofHopkinshasdevelopedaproposaltoreallocate$77,169in 2013and$102,831in2014CDBGfundsfromtheHousingRehabilitationLoan/GrantProgram totheCottagevilleParkExpansionProject;and WHEREAS, theCitypublishednoticeofandhelda30-daypubliccommentperiodfrom January8,2014toFebruary8,2015,ontheproposedreallocation;and NOWTHEREFOREBEITRESOLVED ,thattheCityCounciloftheCityofHopkins hereby 1.Reallocatesfundingfromthe2013and2014UrbanHennepinCountyCommunity DevelopmentBlockGrantProgramasfollows: $77,169of2013CDBGfundsfromtheHousingRehabilitationLoan/Grant ProgramtotheCottagevilleParkExpansionProject $102,831of20014CDBGfundsfromtheHousingRehabilitationLoan/Grant ProgramtotheCottagevilleParkExpansionProject 2.AuthorizeanddirectstafftoexecutethesubrecipientagreementwithHennepinCounty andanyrequiredThirdPartyAgreementsonbehalfoftheCitytoimplementthe reallocation. th AdoptedbytheCityCounciloftheCityofHopkinsthis17dayofFebruary,2015. By:___________________________ EugeneJ.Maxwell,Mayor ATTEST: _______________________________ AmyDomeier,CityClerk