V.1. 2018 Community Development Block Grant (CDBG) Program; ElverumFebruary 20, 2018 Council Report 2018-029
2018 Community Development Block Grant (CDBG) Program
Proposed Action.
Staff recommends adoption of the following motion: Move that Council adopt Resolution 2018-
015, Resolution Approving Proposed Use of 2018 Urban Hennepin County Community
Development Block Grant Program Funds and Authorizing Execution of Subrecipient Agreement
with Hennepin County.
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 $137,000 in CDBG funds for the 2018 program year. The
funds will be received on July 1, 2017 and must be expended by December 31, 2018.
New this year, CDBG funding for Public Service activities will be awarded through a single
combined, competitive RFP, issued by Hennepin County that will cover all the cities in the
county CDBG program. Fifteen percent of the overall county CDBG allocation will be set-aside
for this purpose. This means that each city’s direct allocation amount was reduced by 15%. This
also means that the City will not be providing any CDBG funds to any public service activities,
as has been done in the past. The City’s previous public service recipients are aware of the
change and will be applying directly to Hennepin County for funding.
The City’s remaining allocation amount is estimated to be $116,450. In the past the City has
allocated the full amount to fund the Housing Rehabilitation Program, which provides grants to
low and moderate income households to do needed code and energy improvements.
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 activities are being recommended for funding?
Supporting Information.
Resolution 2018-015
________________________________________
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:
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 activities are being recommended for funding?
Resolution 2018-015 allocates the full 2018 CDBG funds of $116,450 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 2018 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. 2018-015
RESOLUTION APPROVING PROPOSED USE OF 2018 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 2018 Urban
Hennepin County Community Development Block Grant funds made available to it; and
WHEREAS,the city held a public hearing on February 20, 2018, to obtain the views of
citizensonhousingandcommunitydevelopmentneedsandprioritiesandtheCity'sproposeduseof
$116,450 from the 2018 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 $116,450
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 2018 Community Development Block Grant
Program.
BEITFURTHERRESOLVED,thatshouldthefinalamountofFY2018CDBGavailableto
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 20th day of February, 2018.
By: ___________________________
Molly Cummings, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk