CDBG Allocation; BeekmanMEMORANDUM
TO:Mayor and City Councilmembers
Mike Mornson, City Manager
FROM:Meg Beekman, Community Development Coordinator
DATE:February 14, 2017
SUBJECT: CDBG Allocation
Background
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
Hennepin County imposes additional guidelines for the use of the funds. One of the guidelines
limits the amount cities may allocate to public service activities to 15 percent of their total
allocation.
Planning & Economic
Development
2017 CDBG Allocation
The 2017 CDBG estimated funding allocation is $140,915. This amount is subject to change
once Hennepin County receives their actual allocation from HUD. Based on this amount the City
may allocate up to $21,137 towards public service activities.
Public Service Activities
Each year the City receives requests for CDBG funds from the following groups:
Resource West
Intercongregation Communities Association
HOME Line
Last year the City allocated $11,000 to public service activities. Resource West received $5,000,
ICA received $5,000, and Home Line received $1,000. The City has not adjusted the allocations
to these three organizations in many years.
This year Home Line is requesting $5,441, ICA is requesting $10,000, and Resource West is
requesting $5,000.
Housing Rehabilitation Program
While the City provides some funding to various public service activities in the community, the
bulk of the CDBG funds have historically been allocated towards the Housing and Rehabilitation
program. This program allows low and moderate income home owners in the community to
receive up to $25,000 in assistance towards housing rehabilitation. The funds allow
approximately four households a year to use the funds.
This program is the only source of funds specifically supporting the preservation of the City’s
single-family housing stock. In the past few years this program has been very popular and well
used. Currently there are two people on the waiting list to receive funds.
Discussion
Based on discussions the Council had at their November work session, staff is recommending the
following allocation:
Resource West - $5,000
ICA - $5,000
HOME Line - $5,000
Housing Rehabilitation Program - $125,915
Staff is requesting the Council discuss and provide direction. This item will be brought back to
the Council for a public hearing and vote at the March 7, 2017 Council meeting.