V.1. 2016 Community Development Block Grant (CDBG) Program; Beekman (CR2016-019)February 16, 2016 Council Report 2016-019
2016 Community Development Block Grant (CDBG) Program
Proposed Action.
Staff recommends adoption of the following motion: Move that Council adopt Resolution 2016-
014, Resolution Approving Proposed Use of 2016 Urban Hennepin County Community
Development Block Grant Program Funds and Authorizing Execution of Subrecipient
Agreement with Hennepin County and any Third Party Agreements.
With this motion, the CDBG application will be submitted to Hennepin County for their review
and approval.
Overview.
As a participating city in the Urban Hennepin County CDBG program, Hopkins is eligible to
receive a preliminary estimate of $119,362 in CDBG funds for the 2016 program year. This is
the same as the 2015 allocation, but is subject to change upon notice from the Department of
Housing and Urban Development. The funds will be received on July 1, 2016 and must be
expended by December 31, 2017.
Staff is recommending that the City propose to fund the following activities with 2015 CDBG
funds:
Housing Rehabilitation Loan/Grant Program
Resource West
Intercongregation Communities Association
HOME Line
As a requirement of the CDBG funding process, the City must hold a public hearing on the
proposed use of funds prior to approving the attached resolution. The City's proposal must be
submitted to Hennepin County by February 29, 2016.
Primary Issues to Consider.
What is the intended use of CDBG funds?
What are the requests for 2016 CDBG funding?
What activities are being recommended for funding?
Supporting Information.
Resolution 2016-014
Requests for Funds
________________________________________
Meg Beekman
Community Development Coordinator
Analysis of Issues
What is the intended use of CDBG funds?
CDBG funds may be used to support a variety of housing and community development
activities. The intent of the program is to fund primarily "bricks and mortar" projects versus
social service programs. Activities must meet at least one of the following objectives of the
CDBG program:
Benefiting low and moderate income persons
Prevention or elimination of slums and blight
Meeting a particularly urgent community development need
Additionally, Hennepin County imposes the following guidelines:
15% maximum for public service activities
Activity should be ranked as a high priority in the Hennepin County Consolidated Plan.
Those activities are:
o Rental housing for families, elderly, physically disabled persons and homeless persons
with incomes below 50% of median income
o Supportive housing for persons with mental illness and incomes below 50%
o Rehabilitation of owner-occupied housing with income below 50%
o Homeownership assistance to households with income below 80%
o Public services and/or facilities to assist families and seniors to maintain and/or increase
self-sufficiency and independent living, and to assist youth and their families with
counseling and crisis intervention services, and related activities
o Neighborhood revitalization activities that address issues of substandard/blighted
property in scattered site or defined area redevelopments that will also provide affordable
housing on 20% of the units.
o Minimum of 70% of funds spent on low to moderate income households
Funds cannot be available from other sources
What are the requests for 2016 CDBG Funding?
The City has received three funding requests from public service providers to assist in funding
activities that support Hopkins residents. All three are service providers that the City has funding
previously. The City is allowed to fund up to 15 percent of the total CDBG allocation on public
service activities. Based on the current allocation estimate of $119,362, the City may use up to
$17,904 on these services. Any funds that go towards public services would come out of the
funds that would otherwise go to the Housing Rehabilitation Loan and Grant program, which
supports low and moderate-income Hopkins homeowners with housing rehabilitation projects.
Resource West has requested $5,000. This organization is a valuable resource in the community
and supports the City of Hopkins by taking referrals from many of the City’s departments
including the police, housing and community services. The City is a frequent partner with
Resource West in many community activities.
Intercongregation Communities Association (ICA) has requested $10,000, an increase of $5,000
from their previous year allocation. The ICA serves the area primarily as a food shelf and source
for financial assistance to families. ICA’s service statistics reflect that Hopkins residents receive
57% of ICA’s services while six other communities receive the rest. In 2015, 3,486 Hopkins
residents received assistance from ICA in various ways.
HOME Line has requested $6,782. HOME Line provides tenant hotline services to low-income
renters in Hopkins and they report that they have seen an increase in the number of callers over
last year. In 2015, HOME Line’s Tenant Hotline served 167 Hopkins families, prevented an
estimated 14 evictions, and saved Hopkins residents an estimated $22,109.
What activity is being recommended for funding?
In reviewing the requests for funds, staff maintained the current funding allocations to social
services. Granting the full funding requests would exceed the 15% maximum that can be used
for social service activities. However, it should be noted that the City has not increased its
contribution to these three services in several years. Based on the current CDBG allocation, the
City would be contributing 9% to social service organizations.
Resolution 2016-014 allocates $108,362 of CDBG funds to housing rehabilitation activities. The
Housing Rehabilitation Loan and Grant program is important not only in its assistance to
homeowners but also to maintain the quality of the City’s housing stock. It is anticipated that
$108,362 will assist 4-6 households. There are currently three people on a waiting list to receive
these funds.
Resolution 2016-014 would maintain the public service funding at the same level as the last
several years; for a total of $11,000 being distributed amongst Resource West, ICA, and HOME
Line. The Council can choose to increase the CDBG allocation to any or all of the public service
providers; however, the total funding may not exceed $17,904. Any amount increased to fund
public services would reduce the amount allocated towards the housing rehabilitation program.
Alternatives
The City Council has the following alternatives regarding this issue:
Hold public hearing; approve 2016 CDBG program as proposed by staff.
Hold public hearing; amend the proposed CDBG activities and/or budget.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2016-014
RESOLUTION APPROVING PROPOSED USE OF 2016 URBAN HENNEPIN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS
AND AUTHORIZING EXECUTION OF SUBRECIPIENT AGREEMENTS WITH
HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS
WHEREAS,the cityof Hopkins, through execution of a Joint Cooperation Agreement with
Hennepin County, is cooperating in the Urban Hennepin County Community Development Block
Grant Program; and
WHEREAS,the city of Hopkins has developed a proposal for the use of 2016 Urban
Hennepin County Community Development Block Grant funds made available to it; and
WHEREAS,the city held a public hearing on February 16, 2016, to obtain the views of
citizensonhousingandcommunitydevelopmentneedsandprioritiesandtheCity'sproposeduseof
$119,362 from the 2016 Urban Hennepin County Community Development Block Grant.
NOW THEREFORE BE IT RESOLVED,that the City Council of Hopkins approves the
following projects for funding from the 2016 Urban Hennepin County Community Development
Block Grant Program and authorizes submittal of the proposal to Hennepin County.
Activity Budget
Housing Rehabilitation $108,362
Resource West $5,000
Intercongregation Communities Association $5,000
HOME Line $1,000
BE IT FURTHER RESOLVED,that the City Council hereby authorizes and directs the
Mayor and its City Manager to execute the Subrecipient Agreement and any required Third Party
Agreement on behalf of the City to implement the 2016 Community Development Block Grant
Program.
BEITFURTHERRESOLVED,thatshouldthefinalamountofFY2016CDBGavailableto
the city be different from the preliminary amount provided to the city, the City Council hereby
authorizesthecitymanagertoadjustprojectbudget(s)toreflectanincreaseordecreaseinfunding.
Adopted by the City Council of the City of Hopkins this 16th day of February, 2016.
By: ___________________________
Molly Cummings, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk
February 5, 2016
Meg Beekman
City of Hopkins
1010 First Street South
Hopkins, MN 55343
Dear Meg,
As the new Executive Director at ResourceWest, I am grateful to be working with an organization
that is so important to our community. I am also so grateful for the many years of financial support
that the City of Hopkins and Hennepin County has provided toward the Children and Youth
Programs of ResourceWest. The community’s gifts not only strengthen children and families, but
this community as a whole.
I am excited to submit this proposal of funding from ResourceWest. ResourceWest respectfully
requests funding in the amount of $5,000 for fiscal year 2016.
The Hopkins School District has nearly 2600 kids receiving free and/or reduced lunch services (MN
Dept of Education, 2015). ResourceWest is hoping to expand the amount of students that access
services and CDBG has provided funding that is essential for us to reach the needs of this community
through ResourceWest’s Children and Youth Programs.
Please let me know if you require any other information for the 2016 CDBG application.
Sincerely,
Tarrah Palm
ResourceWest Executive Director
February 8, 2016
Meg Beekman
Community Development Coordinator
City of Hopkins
1010 1st St S
Hopkins, MN 55343
Dear Meg,
ICA Food Shelf has been honored to serve the Hopkins Community for 45 years and thankful for the support the
City of Hopkins has provided in the past. For the 2016 year, ICA is requesting $10,000.00 for rent/mortgage
assistance which is redirected right back into the Hopkins community. ICA's service statistics reflect that
Hopkins residents receive 57% of ICA's total services while six other communities receive the rest. In 2015,
3,486 Hopkins residents received assistance from ICA in various ways- food support (1,460,242 pounds of food),
financial assistance support, and employment search support.
Last year ICA was forced to scale back our rent/mortgage program due to budget constraints; however, ICA
managed to invest $64,876.00 into the community of Hopkins by providing rent and mortgage assistance for
those who were struggling to make ends meet; 301 individuals benefited from ICA’s financial assistance
program. ICA is currently seeking out new funding sources for this program and would like to continue assisting
Hopkins residents, however with limited funds, we will be limited in our assistance.
Thank you for your consideration of funding our efforts as we continue with our mission of assisting Hopkins’
residents in need.
Sincerely,
Peg Keenan
Executive Director, ICA Food Shelf
peg@icafoodshelf.org
_____________________________________________________________________________
12990 St. Davids Road, Minnetonka, MN 55305 · www.icafoodshelf.org
Tenant Advocacy in Minnesota
Office Phone: 612/728-5770
Hotline: 612/728-5767
Fax: 612/728-5761
www.homelinemn.org
3455 Bloomington Ave
Minneapolis, MN 55407
Meg Beekman
City of Hopkins
1010 1st St S
Hopkins, MN 55343
February 2, 2016
Dear Ms. Beekman,
This letter is to request funding in the amount of $6,782 from the City of Hopkins’s Community
Development Block Grant Program to support HOME Line’s services for renters.
A copy of the 2016 CDBG Program Request for Funding is enclosed. Along with the CDBG Request
Form, I am enclosing summaries of our hotline’s service to Hopkins residents.
In 2015, HOME Line’s Tenant Hotline served 167 Hopkins families, prevented an estimated 14
evictions, and saved Hopkins residents an estimated $22,109. HOME Line has Somali and Spanish
Speaking Tenant Advocates on our staff and would like to work with the city to make sure these
immigrant communities know about HOME Line’s services available in their own languages.
HOME Line is working to meet the current challenges facing low-income renters and would like the
City of Hopkins to be our partner in meeting these needs.
We thank you for the opportunity to submit this application. If you have any questions or need
additional information, please call me at 612/728-5770, extension 107 or Mike Vraa, our managing
attorney at extension 113.
Sincerely,
Beth Kodluboy
Executive Director
enclosures as noted
HOME Line’s Tenant Hotline in Hopkins: 2015
OVERVIEW
In 2015, 167 Hopkins renter households contacted HOME Line for Tenant Hotline Services. This
represents service to approximately 418 residents when all family members have been counted. In 2015,
there was a 5% increase in the numbers of callers over last year. The cost to serve Hopkins in 2016 is
$6,782.
HIGHLIGHTS
In 2015, HOME Line helped renters from Hopkins:
• Recover and/or save an estimated $22,109
• Prevent an estimated 14 evictions.
• Renters with repair issues who follow our advice are 37%
more likely to get their problem fixed than those who
don’t.
INCOME BREAKDOWN
The vast majority (90%) of these callers are extremely-low,
very-low or low-income. These income categories are those
used by the U. S. Department of H. U. D.:
• Extremely Low: Incomes below 30% of metro
median.
• Very Low: Incomes between 30% and 50% of
metro median
• Low: Incomes between 50% and 80% of metro
median.
• Moderate: Incomes above 80% of metro median.
RACIAL BREAKDOWN
68% Caucasian
25% African American
4% Hispanic
2% Asian/Pacific Islander
1% Native American
1% Other
Top Ten Reasons For Calls (2015)
1. Repairs 26
2. Notice to Vacate 23
3. Eviction 18
4. Security Deposit 18
5. Break Lease 16
6. Roommate 9
7. Neighbors 8
8. Application 8
9. Bed Bugs/Infestation 7
10. Leases 5
Extremely
Low
58%
Low
12%
Very Low
20%
Moderate
10%
Callers' Incomes
GENDER BREAKDOWN
77% Female
23% Male