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V.3. 2015 Community Development Block Grant (CDBG) Program (CR 2015-016); Beekman February17,2015CouncilReportCouncilReport2015-016 2015CommunityDevelopmentBlockGrant(CDBG)Program2015CommunityDevelopmentBlockGrant(CDBG)Program2015CommunityDevelopmentBlockGrant(CDBG)Program ProposedAction. 2015- Staffrecommendsadoptionofthefollowingmotion:Staffrecommendsadoptionofthefollowingmotion:MovethatCounciladoptResolutionMovethatCounciladoptResolution 012,ResolutionApprovingProposedUseof2015ApprovingProposedUseof2015UrbanHennepinCountyCommunityUrbanHennepinCountyCommunity DevelopmentBlockGrantProgramFundsandAuthorizingExecutionofSubrecipientDevelopmentBlockGrantProgramFundsandAuthorizingExecutionofSubrecipientDevelopmentBlockGrantProgramFundsandAuthorizingExecutionofS ubrecipient . AgreementwithHennepinCountyandanyThirdPartyAgreementsAgreementwithHennepinCountyandanyThirdPartyAgreements Withthismotion,theCDBGapplicationwillbesuWiththismotion,theCDBGapplicationwillbesubmittedtoHennepinCountyfortheirreviewbmittedtoHennepinCountyfortheirreview andapproval. Overview . AsaparticipatingcityintheUrbanHennepinCountyCDBGprogram,HopkinsiseligibletoAsaparticipatingcityintheUrbanHennepinCountyCDBGprogram,HopkinsiseligibletoAsaparticipatingcityintheUrbanHennepinCountyCDBGp rogram,Hopkinsiseligibleto receiveapreliminaryestimateof$113,831inCDBGfundsforthe2015programyear.Thisisreceiveapreliminaryestimateof$113,831inCDBGfundsforthe2015programyear.Thisisreceiveapreliminaryestimateof$113,831inCDBGfund sforthe2015programyear.Thisis thesameasthe2014allocation,butissubjecttochangeuponnoticefromtheDepartmentofsameasthe2014allocation,butissubjecttochangeuponnoticefromtheDepartmentofsameasthe2014allocation,butissubjecttochangeuponno ticefromtheDepartmentof HousingandUrbanDevelopment.ThefundswillbereceivedonJuly1,2015andmustbeHousingandUrbanDevelopment.ThefundswillbereceivedonJuly1,2015andmustbeHousingandUrbanDevelopment.ThefundswillbereceivedonJuly1,20 15andmustbe expendedbyDecember31,2016.expendedbyDecember31,2016. StaffisrecommendingthattheCityproposetoStaffisrecommendingthattheCityproposetofundthefollowingactivitieswith2015CDBGfundthefollowingactivitieswith2015CDBG funds: HousingRehabilitationLoan/GrantProgramHousingRehabilitationLoan/GrantProgram ResourceWest IntercongregationCommunitiesAssociationIntercongregationCommunitiesAssociation HOMELine AsarequirementoftheCDBGfundingprocess,theCitymustholdapublichearingontheAsarequirementoftheCDBGfundingprocess,theCitymustholdapublichearingontheAsarequirementoftheCDBGfundingprocess,theCitymustholdap ublichearingonthe proposeduseoffundspriortoapprovingtheattachedresolution.TheCity'sproposalmustbeeduseoffundspriortoapprovingtheattachedresolution.TheCity'sproposalmustbeeduseoffundspriortoapprovingtheattachedresoluti on.TheCity'sproposalmustbe submittedtoHennepinCountybyFebruary28,2015.submittedtoHennepinCountybyFebruary28,2015. PrimaryIssuestoConsider . WhatistheintendeduseofCDBGfunds?WhatistheintendeduseofCDBGfunds? Whataretherequestsfor2015CDBGfunding?Whataretherequestsfor2015CDBGfunding? Whatactivitiesarebeingrecommendedforfunding?Whatactivitiesarebeingrecommendedforfunding? SupportingInformation. Resolution2015-012 RequestsforFunds ________________________________________________________________________________ MegBeekman CommunityDevelopmentCoordinatorCommunityDevelopmentCoordinator AnalysisofIssues WhatistheintendeduseofCDBGfunds? CDBGfundsmaybeusedtosupportavarietyofhousingandcommunitydevelopment activities.Theintentoftheprogramistofundprimarily"bricksandmortar"projectsversus socialserviceprograms.Activitiesmustmeetatleastoneofthefollowingobjectivesofthe CDBGprogram: Benefitinglowandmoderateincomepersons Preventionoreliminationofslumsandblight Meetingaparticularlyurgentcommunitydevelopmentneed Additionally,HennepinCountyimposesthefollowingguidelines: 15%maximumforpublicserviceactivities ActivityshouldberankedasahighpriorityintheHennepinCountyConsolidatedPlan. Thoseactivitiesare: Rentalhousingforfamilies,elderly,physicallydisabledpersonsandhomelesspersons o withincomesbelow50%ofmedianincome Supportivehousingforpersonswithmentalillnessandincomesbelow50% o Rehabilitationofowner-occupiedhousingwithincomebelow50% o Homeownershipassistancetohouseholdswithincomebelow80% o Publicservicesand/orfacilitiestoassistfamiliesandseniorstomaintainand/orincrease o self-sufficiencyandindependentliving,andtoassistyouthandtheirfamilieswith counselingandcrisisinterventionservices,andrelatedactivities Neighborhoodrevitalizationactivitiesthataddressissuesofsubstandard/blighted o propertyinscatteredsiteordefinedarearedevelopmentsthatwillalsoprovideaffordable housingon20%oftheunits. Minimumof70%offundsspentonlowtomoderateincomehouseholds o Fundscannotbeavailablefromothersources Whataretherequestsfor2015CDBGFunding? TheCityhasreceivedthreefundingrequestsfrompublicserviceproviderstoassistinfunding activitiesthatsupportHopkinsresidents.AllthreeareserviceprovidersthattheCityhasfunding previously.TheCityisallowedtofundupto15percentofthetotalCDBGallocationonpublic serviceactivities.Basedonthecurrentallocationestimateof$113,831,theCitymayuseupto $17,075ontheseservices.Anyfundsthatgotowardspublicserviceswouldcomeoutofthe fundsthatwouldotherwisegototheHousingRehabilitationLoanandGrantprogram,which supportslowandmoderate-incomeHopkinshomeownerswithhousingrehabilitationprojects. ResourceWesthasrequested$5,000.Thisorganizationisavaluableresourceinthecommunity andsupportstheCityofHopkinsbytakingreferralsfrommanyoftheCity’sdepartments includingthepolice,housingandcommunityservices.TheCityisafrequentpartnerwith ResourceWestinmanycommunityactivities. IntercongregationCommunitiesAssociation(ICA)hasrequested$10,000,anincreaseof$5,000 fromtheirpreviousyearallocation.TheICAservestheareaprimarilyasafoodshelfandsource forfinancialassistancetofamilies.ICA’sservicestatisticsreflectthatHopkinsresidentsreceive 57%ofICA’sserviceswhilesixothercommunitiesreceivetherest.In2014,3,633Hopkins residentsreceivedassistancefromICAinvariousways. HOMELinehasrequested$6,206.HOMELineprovidestenanthotlineservicestolow-income rentersinHopkins.In2014,HOMELine’sTenantHotlineserved165Hopkinsfamilies, preventedanestimated13evictions,andsavedHopkinsresidentsanestimated$18,801. TheCityhasalsobeenindiscussionswiththeBlakeRoadCorridorCollaborative(BRCC) regardingfindingalong-termfundingsourceasthegrantprogram,whichhasbeenproviding operatingexpensesfortheBRCC,iscomingtoanend.CDBGfundsareonepossibleavenuefor thisfundingsource.CertainlytheworkoftheBRCCfitsintothegoalsandguidelinesfortheuse ofCDBGfunds;however,becausetheorganizationisnota501(c)3,itisnotclearthattheyare aneligiblerecipientofCDBGfunds.Inaddition,HUDrequiresverydetaileddatacollectionto verifythatthegoalsoftheprogramarebeingmet,whichBRCCisnotcurrentlydoing.Citystaff isworkingwithHennepinCountytofindoutmoreinformationabouthowBRCCmightfitinto theCDBGprograminthefuture.Basedonstaff’srecommendedfundingallocationsforthe otherpublicserviceorganizations,andassumingBRCCwasaneligiblerecipientofCDBG funds,theCitycouldallocateupto$6,000totheprogramwithoutreducingtheamountsgoingto theotherprograms. Whatactivityisbeingrecommendedforfunding? Inreviewingtherequestsforfunds,staffconsideredtheintentofCDBGtofund“bricksand mortar”projectsoversocialservices.Grantingthefullfundingrequestswouldexceedthe15% maximumthatcanbeusedforsocialserviceactivities. Staffisrecommendingthat$102,831ofCDBGfundsbeusedforhousingrehabilitation activities.TheHousingRehabilitationLoanandGrantprogramisimportantnotonlyinits assistancetohomeownersbutalsotomaintainthequalityoftheCity’shousingstock.Itis anticipatedthat$102,831willassist4-6households. Staffisalsorecommendingmaintainingthepublicservicefundingatthesamelevelaslastyear; foratotalof$11,000beingdistributedamongstResourceWest,ICA,andHOMELine.The CouncilcanchoosetoincreasetheCDBGallocationtoanyorallofthepublicserviceproviders; however,thetotalfundingmaynotexceed$17,075.Anyamountincreasedtofundpublic serviceswouldreducetheamountallocatedtowardsthehousingrehabilitationprogram. Alternatives TheCityCouncilhasthefollowingalternativesregardingthisissue: Holdpublichearing;approve2015CDBGprogramasproposedbystaff. Holdpublichearing;amendtheproposedCDBGactivitiesand/orbudget. CITYOFHOPKINS HENNEPINCOUNTY,MINNESOTA RESOLUTIONNO.2015-012 RESOLUTIONAPPROVINGPROPOSEDUSEOF2015URBANHENNEPINCOUNTY COMMUNITYDEVELOPMENTBLOCKGRANTPROGRAMFUNDS ANDAUTHORIZINGEXECUTIONOFSUBRECIPIENTAGREEMENTSWITH HENNEPINCOUNTYANDANYTHIRDPARTYAGREEMENTS WHEREAS, thecityofHopkins,throughexecutionofaJointCooperationAgreementwith HennepinCounty,iscooperatingintheUrbanHennepinCountyCommunityDevelopmentBlock GrantProgram;and WHEREAS, thecityofHopkinshasdevelopedaproposalfortheuseof2015Urban HennepinCountyCommunityDevelopmentBlockGrantfundsmadeavailabletoit;and WHEREAS, thecityheldapublichearingonFebruary17,2015,toobtaintheviewsof citizensonhousingandcommunitydevelopmentneedsandprioritiesandtheCity'sproposeduseof $113,831fromthe2015UrbanHennepinCountyCommunityDevelopmentBlockGrant. NOWTHEREFOREBEITRESOLVED, thattheCityCouncilofHopkinsapprovesthe followingprojectsforfundingfromthe2015UrbanHennepinCountyCommunityDevelopment BlockGrantProgramandauthorizessubmittaloftheproposaltoHennepinCounty. ActivityBudget HousingRehabilitation$102,831 ResourceWest$5,000 IntercongregationCommunitiesAssociation$5,000 HOMELine$1,000 BEITFURTHERRESOLVED, thattheCityCouncilherebyauthorizesanddirectsthe MayoranditsCityManagertoexecutetheSubrecipientAgreementandanyrequiredThirdParty AgreementonbehalfoftheCitytoimplementthe2015CommunityDevelopmentBlockGrant Program. BEITFURTHERRESOLVED, thatshouldthefinalamountofFY2015CDBGavailableto thecitybedifferentfromthepreliminaryamountprovidedtothecity,theCityCouncilhereby authorizesthecitymanagertoadjustprojectbudget(s)toreflectanincreaseordecreaseinfunding. th AdoptedbytheCityCounciloftheCityofHopkinsthis17dayofFebruary,2015. By:___________________________ EugeneJ.Maxwell,Mayor ATTEST: _______________________________ AmyDomeier,CityClerk OfficePhone:612/728-5770 Hotline:612/728-5767 Fax:612/728-5761 3455BloomingtonAve3455BloomingtonAve www.homelinemn.org Minneapolis,MN55407Minneapolis,MN55407 MegBeekman CityofHopkins 10101stStS Hopkins,MN55343 January23,2015 DearMs.Beekman, ThisletteristorequestfundingintheamountThisletteristorequestfundingintheamountof$6,206fromtheCityofHopkinsHopkins’sCommunity DevelopmentBlockGrantProgramtosupportHOMELine’sservicesforrenters.DevelopmentBlockGrantProgramtosupportHOMELine’sservicesforrenters.DevelopmentBlockGrantProgramtosupportHOMELine’sservicesforrenters. Acopyofthe2015CDBGProgramReCDBGProgramRequestforFundingisenclosed.AlongwiththeCDBAlongwiththeCDBGRequest Form,Iamenclosingsummariesourhotline’sservicetoHopkins. ofofresidentsresidents In2014,HOMELine’sTenantHotlineservedLine’sTenantHotlineserved165Hopkinsfamilies,preventpreventedanestimated13 evictions,andsaved$18,801. HopkinsresidentsanestimatedHopkinsresidentsanestimatedHOMELinehasaddedSomaliandHOMELinehasaddedSomaliand SpanishSpeakingTenantAdvocatestoourstaffandwouldliketoworkwiththecitytomakesureSpanishSpeakingTenantAdvocatestoourstaffandwouldliketoworkwiththecitytomakesureSpanishSpeakingTenantAdvocatestoourstaffa ndwouldliketoworkwiththecitytomakesure theseimmigrantcommunitiesknowaboutHOMELine’sservicesavailableintheirownlanguages.theseimmigrantcommunitiesknowaboutHOMELine’sservicesavailableintheirownlanguages.theseimmigrantcommunitiesknowaboutHOM ELine’sservicesavailableintheirownlanguages. HOMELineisworkingtomeetthcurrentchallengesfacinglow- eeincomerentersandwouldliketheincomerentersandwouldlikethe CityofHopkinstobeourpartnerinmeetingtheseneeds.ourpartnerinmeetingtheseneeds.Weareabletoprovidefullservicestocitytoprovidefullservicestocity residentsbecauseofthetomeet financialcommitmentfromHopkins.WewelcometheopportunityfinancialcommitmentfromHopkins.WewelcometheopportunityfinancialcommitmentfromHopkins.Wewelcometheopportunity withcityelectedofficialsandstafftohelpuscontinuetoprovidethetenanthotlineservicesintheverywithcityelectedofficialsandstafftohelpuscontinuetoprovidethetenanthotlineservicesintheverywithcityelectedoffi cialsandstafftohelpuscontinuetoprovidethetenanthotlineservicesinthevery communitywhereyearsago. westartedourprogram23westartedourprogram23 Wethankyoufortheopportunitytosubmitthisapplication.IfyouhaveanyWethankyoufortheopportunitytosubmitthisapplication.IfyouhaveanyWethankyoufortheopportunitytosubmitthisapplication.Ifyouhaveanyquestionso rneed - additionalinformation,pleasecallmeat612/728additionalinformation,pleasecallmeat612/7285770,extension107orMikeVraa,ourmanaging5770,extension107orMikeVraa,ourmanaging attorneyatextension113. Sincerely, BethKodluboy ExecutiveDirector enclosuresasnoted TenantAdvocacyinMinnesota HOMELine’sTenantHotlineinne’sTenantHotlineinHopkins:2014:2014 O VERVIEW In2014,158HopkinsrentercontactedHOMELine.This householdshouseholdsforTenantHotlineServicesforTenantHotlineServices representsservicetoapproximately395servicetoapproximately395residentswhenallfamilymembershavebeencountedresidentswhenallfamilymembershavebeencounted.Thecost toserveHopkinsin2015is$6,2062015is$6,206. H IGHLIGHTS TopTenReasonsForCalls(2014TopTenReasonsForCalls(2014) In2014Hopkins: ,HOMELinehelpedrentersfrom,HOMELinehelpedrentersfrom 1.Repairs37 2.Eviction22 R18,801 ecoverand/orsaveanestimated$ecoverand/orsaveanestimated$ 3.SecurityDeposit3.SecurityDeposit17 16 4.NoticetoVacate4.NoticetoVacate Preventanestimated13. evictionsevictions 5.Neighbors5.Neighbors12 Renterswithrepairissueswhofollowouradviceare37%Renterswithrepairissueswhofollowouradviceare37% 6.Break11 LeaseLease morelikelytogettheirproblemfixedthanthosewhomorelikelytogettheirproblemfixedthanthosewho 7.Leases7 don’t. 5 8.Privacy/Intrusion8.Privacy/Intrusion 9.References9.References5 IB NCOMEREAKDOWN 10.Application10.Application4 Thevastmajority(92%)ofthesecallersareextremely-low, very-loworlow- income.Theseincomecategoriesareincome.Theseincomecategoriesare Callers'IncomesCallers'Incomes thoseusedbytheU.S.DepartmentofH.U.D.:thoseusedbytheU.S.DepartmentofH.U.D.: ExtremelyLow:IncomesbeloIncomesbelow30%ofmetro Low median. 25% VeryLow:Incomesbetween30%and50%ofcomesbetween30%and50%of VeryLow metromedian 21% ExtremelyExtremely Low:Incomesbetween50%and80%ofcomesbetween50%and80%ofmetro Moderate Low median. 8% 46% Moderate:Incomesabove80%ofIncomesabove80%ofmetromedian. RB ACIALREAKDOWN GB ENDERREAKDOWN 70%Caucasian 26%AfricanAmerican 75%Female 2%Asian/PacificIslander 25%Male 1%NativeAmerican 1%Hispanic 1%Other February9,2015 MegBeekman CommunityDevelopmentCoordinator CityofHopkins st 10101StS Hopkins,MN55343 DearMeg, AttachedisICA’srequestforfundsfromthe2015HopkinsCDBGAllocation.ICAisrequesting $10,000.00forrent/mortgageassistancewhichisredirectedrightbackintotheHopkinscommunity. ICA'sservicestatisticsreflectthatHopkinsresidentsreceive57%ofICA'sserviceswhilesixother communitiesreceivetherest.In2014,3,633HopkinsresidentsreceivedassistancefromICAinvarious ways-foodsupport,financialassistancesupport,andemploymentsearchsupport. Lastyear,ICAinvested$102,123.00intothecommunityofHopkinsbyprovidingrentandmortgage assistanceforthosewhowerestrugglingtomakeendsmeet;356individualsbenefitedfromICA’s financialassistanceprogram.ThisyearICAhasscaledbackourprogramduetobudgetconstraints. ICAiscurrentlyseekingoutnewfundingsourcesforthisprogramandwouldliketocontinueassisting Hopkinsresidents,howeverwithlimitedfunds,wewillbelimitedinourassistance. Thankyouforyourconsiderationoffundingoureffortsaswecontinuewithourmissionofassisting Hopkins’residentsinneed. Sincerely, PegKeenan ExecutiveDirector _____________________________________________________________________________ 12990St.DavidsRoad,Minnetonka,MN55305·www.icafoodshelf.org