V.1. 2017 Community Development Block Grant (CDBG) Program; Beekman (CR2017-052)March 21, 2017 Council Report 2017-052
2017 Community Development Block Grant (CDBG) Program
Proposed Action.
Staff recommends adoption of the following motion: Move that Council adopt Resolution 2017-
029, Resolution Approving Proposed Use of 2017 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 $140,915 in CDBG funds for the 2017 program year. The
funds will be received on July 1, 2017 and must be expended by December 31, 2018.
Staff is recommending that the City propose to fund the following activities with 2017 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.
Primary Issues to Consider.
What is the intended use of CDBG funds?
What are the requests for 2017 CDBG funding?
What activities are being recommended for funding?
Supporting Information.
Resolution 2017-029
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 2017 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 $140,915, the City may use up to
$21,137 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.
HOME Line has requested $5,441. HOME Line provides tenant hotline services to low-income
renters in Hopkins.
What activities are being recommended for funding?
In reviewing the requests for funds, staff is recommending an increase in Home Line’s allocation
to $5,000 and maintaining ICA and Resource Wests allocation at $5,000 each.
In addition to $15,000 in public services, Resolution 2017-029 allocates the remaining 2017
CDBG funds of $125,915 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 these funds will assist 4-6 households.
There are currently two households on a waiting list to receive these funds.
Alternatives
The City Council has the following alternatives regarding this issue:
Hold public hearing; approve 2017 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. 2017-029
RESOLUTION APPROVING PROPOSED USE OF 2017 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 2017 Urban
Hennepin County Community Development Block Grant funds made available to it; and
WHEREAS,thecityheldapublichearingonMarch21,2017,toobtaintheviewsofcitizens
on housing and community development needs and priorities and the City's proposed use of
$140,915 from the 2017 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 2017 Urban Hennepin County Community Development
Block Grant Program and authorizes submittal of the proposal to Hennepin County.
Activity Budget
Housing Rehabilitation $125,915
Resource West $5,000
Intercongregation Communities Association $5,000
HOME Line $5,000
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 2017 Community Development Block Grant
Program.
BEITFURTHERRESOLVED,thatshouldthefinalamountofFY2017CDBGavailableto
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 21st day of March. 2017.
By: ___________________________
Molly Cummings, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk
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
January 25, 2017
Dear Ms. Beekman,
This letter is to request funding in the amount of $5,441 from the City of Hopkins’ s Community
Development Block Grant Program to support HOME Line’ s services for renters.
A copy of the 2017 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 2016, HOME Line’ s Tenant Hotline served 132 Hopkins families, prevented an estimated 9
evictions, and saved Hopkins residents an estimated $15,452. HOME Line also has Somali and
Spanish Speaking Tenant Advocates to work with these immigrant communities in their native
languages.
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: 2016
OVERVIEW
In 2016, 132 Hopkins renter households contacted HOME Line for Tenant Hotline Services. This
represents service to approximately 330 residents when all family members have been counted.
HIGHLIGHTS
In 2016, HOME Line helped renters from Hopkins:
Recover and/or save an estimated $15,452
Prevent an estimated 9 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 (86%) 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
66% Caucasian
26% African American
4% Other
2% Asian/Pacific Islander
2% Native American
Top Ten Reasons For Calls
1. Repairs 26
2. Security Deposit 16
3. Break Lease 15
4. Eviction 14
5. Notice to Vacate 9
6. Neighbors 8
7. Expungement 8
8. Application 5
9. Bed Bugs/Infestation 5
10. Leases 5
Extremely
Low
50%
Low
13%Very Low
23%
Moderate
14%
Callers' Incomes
GENDER BREAKDOWN
78% Female
22% Male
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