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CR 07-17 2007 CDBG ProgramG~TY OF NOPKINS February 1, 2007 Council Report #2007-017 2007 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM Proposed Action Staff recommends approval of the following motion: Following the public hearing adopt resolution number 2007-12 approving the proposed program for the 2007 Urban Hennepin County Community Development Block Grant (CDBG) Program and authorizing its submittal to Hennepin Count 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 $117,316 in CDBG funds for the 2007 program year. This is a slight increase from the 2006 allocation. The funds will be received on July 1, 2007 and must be expended by December 31, 2008. Staff is recommending that the City propose to fund the following activities with 2007 CDBG funds: • Housing Rehabilitation Loan/Grant Program • Hopkins Minnetonka Family Resource Center 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 22, 2007. Primary Issues to Consider • What is the intended use of CDBG funds? • What activities are being recommended for funding? • Were any other requests for funds received? Supporting Information • Resol ion~7-12 • R est f funds Housing &/I~evelopment~Coordinator Financial~Impact: $ 0 Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: 2007 CDBG program Council Report 2007-017 Page 2 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 "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: Rental housing for families, elderly, physically disabled persons and homeless persons with incomes below 50% of median income Supportive housing for persons with mental illness and incomes below 50% Rehabilitation ofowner-occupied housing with income below 50% Homeownership assistance to households with income below 80% 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 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 Minimum of 70% of funds spent on low to moderate income households Funds can not be available from other sources What activity is being recommended for funding? Staff is recommending that $112,316 of CDBG funds be used for housing rehabilitation activities. The Housing Rehabilitation Loan and Grant program has experienced continued demand during the past year and is important not only in its assistance to homeowners but also to maintain the City's housing stock. It is anticipated that $112,316 will assist 6 households. 2007 CDBG program Council Report 2007-017 Page 3 Staff is also recommending funding the Hopkins Minnetonka Family Resource Center (FRC) in the amount of $5,000. The FRC 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 the receptionist Where any other requests for funds received? The following additional requests were received for 2007 CDBG funding: Organization Amount Puruose HOME Line $4,000 Tenant hotline, high school renter education and immigrant outreach project Senior Community Services $5,000 HOME (Household & Outside Maintenance For Elderly) In reviewing these requests for funds, staff utilized the social service funding practice that requires the service funded to be directly related to the services provided by a department of the City but does not duplicate them and that the request is supported by that department. Because these activities did not meet this threshold, staff is not recommending 2007 CDBG funding. However, these services are eligible activities under CDBG regulations and the Council can elect to fund them. Alternatives The City Council has the following alternatives regarding this issue: Hold public hearing; approve 2007 CDBG program as proposed by staff. • Hold public hearing; amend the proposed CDBG activities and/or budget. C7 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2007-012 RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 2007 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM AND AUTHORIZING SIGNATURE OF SUBRECIPIENT AGREEMENT WITH HENNEPIN COUNTY AND ANY THIRD PARTY AGREEMENTS WHEREAS, the City of 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 Urban Hennepin County CDBG funds made available to it, and WHEREAS, the City of Hopkins held a public hearing on February 6, 2007 to obtain the views of citizens on local and Urban Hennepin County housing and community development needs and the City's proposed use of $117,316 from the 2007 Urban Hennepin County Community Development Block Grant. BE IT RESOLVED, that the City Council of Hopkins approves the following projects for funding from the Urban Hennepin County Community Development Block Grant program and authorizes submittal of the proposal to Hennepin County. Activity Budget Housing Rehabilitation $112,316 Hopkins Minnetonka Family Resource Center $ 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 2007 CDBG Program Adopted this 6th day of February 2007. Attest: Eugene J. Maxwell, Mayor By Terry Obermaier, City Clerk. Hopkins Minnetonka III FAMILY RESOURCE CENTER January 25, 2007 Kersten Elverum City of Hopkins 1010 First Street South Hopkins, MN 55343 Dear Kersten: Thank you for the opportunity to apply for Community Development Block Grant (CDBG) funding from the City of Hopkins. Our Hopkins Minnetonka Family Resource Center would like to apply for funding in the amount of $5,000. The need for services in the city of Hopkins continues to grow -and our statistics reflect that need. Our Year-to-Date Back to School supply statistics indicate we provided supplies to over 800 children -with the majority of those children from the city of Hopkins. Our Center is the distribution site for Second Harvest Food Bank packages (Mothers & Children & Nutrition Assistance Program for Seniors} -and during 2006 we provided 319 food boxes to Hopkins residents. To-date figures from our Winter WarmWear program indicate that over 600 pieces of WarmWear have been distributed to Hopkins children. During Toy Chest time we provided toys to 502 children from the city of Hopkins. The face of Hopkins continues to change and our statistics reflect that change. During Toy Chest our Hopkins figures indicated we served -193 African American children, 144 Caucasian children, 59 Hispanic children, 37 Somali children, 29 multi-racial, the remainder a combination of American Indian, Asian, East African, Pacific Islander and Asian children. Our Resource Center also provides Emergency Food Paks, bus tokens and financial applications to those customers of Intercongregational Community Association who lack transportation to their Minnetonka site. We also provide a variety of information to new and current residents -answering questions about available housing, recreational opportunities, how to find help for an elderly friend - or information about local businesses and services. Your continued support of the work we do for the residents of Hopkins is greatly appreciated. Thank you. . ~ ~~ - ~ - ~ _.. Nora M. Davis Executive Director 915 Mainstreet • Cobblestone Court • Hopkins MN 5 5 34 3 - 7 515 Telephone: 952/988-5350 Fax: 952/988-5358 SENIOR COMMUNITY SERVICES 10709 Wayzata Blvd., Suite 1'11, Minnetonka, MN 55305-1529 Phone: (952) 541-1019 FAX: (952) 541-0841 E-mail: scs@seniorcommunity.org Website: www.seniorcommunity.org BOARD OF DIRECTORS January 16, 2007 David F. Fisher President Phil Kern Kersten Elverum 1st Vice President Housing and Development Coordinator John Gray City of Hopkins 2nd Vice President 1010 First Street S. Laurie Lafontaine Treasurer Hopkins, MN 55343 Marvin Johnson secretary Dear 1VIS. Elverum: John Lawson Past President Senior Community Services is requesting that the City of Hopkins Gloria Johnson allocate $5 000 from it's share of 2007 Community Development Member-at-Large , Block Grant (CDBG) Public Service funds to support the HOME Cheryl Fischer Program. This level of funding will enable Senior Community Member-at-Large Services to continue to provide HOME (Household & Outside Sharon Burnham Maintenance for Elderly) service to Hopkins residents. Enclosed is a James Crist CDBG Funding application filled out to facilitate our request. Marty Guritr Francis Hagen Sandy Hewitt Hopktn's CDBG funds will be leveraged from client fees, funds Aiko Higuchi from the United Way, the Metropolitan Area Agency on Aging Mike Holtr ~ (~~), and Hennepin County. Friends of HOME, an organization Ron Klecker that solicits contributions from individuals, businesses, civic groups Rep. Ann Lenczewski and churches provides support as well. Woody Love Dr. Chinyere (Ike) Njaka Senator Gen Olson Sincerely, Curtis A. Pearson ~ ~ ~' Benjamin F. Withhart ; `' !r'i +.. ~ ~ L711 ~-'°• "`~ Executive Director & C. E. O. Ron Bloch PROGRAMS Program Administrator • Supporting Positive Aging * Transportation * Community Senior Centers • Caregiver Support Services * Senior Outreach • Frail Elder Support Services * H. O. M. E. * Senior Outreach A Founding Member of Eldercare Partners lf~~ I A United Way Agency 2007 CITY OF HOPKINS CDBG PROGRAM REQUEST FOR FUNDING A. GENERAL INFORMATION 1. Community: Hopkins 2. Project Name: HOME (Household & Outside Maintenance for Elderly) 3. Contact Person/Phone Number/email Ron Bloch/(952) 541-1019/ r.bloch@seniorcommunity.org B. PROJECT DATA 1. Funding Request $5,000 2. Is this request to fund an existing CDBG-FUNDED project? X Yes No 3. Leveraged Funds: (What other public or private funds does this project include? If none, then please note none). Amount $ See #10 Source See #10 Amount $ Source Amount $ Source 4. Project Location: Address Citywide X 5. Project Description: See attached Program Summary 6. Consolidated Plan Priorities: (Please see enclosed sheet to identify what priorities the project will meet): Project will address Public Services -Senior Services -High Priority 7. Anticipated results/accomplishments projects will have. (i.e.; number of persons/households to be assisted/served, number of housing units to be rehabilitated built, etc.) In 2006 the project served 25 St. Louis Park residents (20 households) providing a total of 221 jobs/projects. It is anticipated that approximately the same number of residents will be served in 2007. 8. If applicable, describe how project will assist community in achieving Metropolitan Livable Communities Act goals. 9. Implementation Schedule: (Identify major project tasks to occur and date anticipated) On-going delivery of project services including Maintenance (minor carpentry, plumbing, electrical repairs and interior/exterior painting), Chore Services (lawn mowing & snow shoveling), and Homemaking (cleaning, vacuuming, dusting, washing clothes, window cleaning). 10. Budget: (Specify total project budget by major project component, i.e., administration, planning, construction, acquisition, direct grants, public service.) COMPONENT Public Service/Brooklyn Center Public Service/Eden Prairie Public Service/Edina Public Service/Minnetonka Public Service/Richfield Public ServiceBloomington Public Service/Hopkins BUDGET/SOURCE OF FiJNDS CDBG Funds Other Funds (Identify) $18,135 $231,000 Client fees $ 8,000 $ 93,707 United Way $ 9,440 $ 16,560 Edina EEHF $14,900 $ 77,123 MAAA $15,000 $ 77,900 Hennepin County $20,000 $ 22,700 Bloomington HRA $ 5,000 $ 12,000 Donations $95,475 $530,990 Attachment H.O.M.E. (Household & Outside Maintenance for Elderly) Program Summary SLTIVIMARY PARAGRAPH -The H.O.M.E. Program is a homemaker, maintenance and chore services program designed as acost-effective alternative to rising costs of long term care for the elderly. It currently operates in the cities of Bloomington, Brooklyn Center, Crystal, Eden Prairie, Edina, Golden Valley, Hopkins, Minnetonka, New Hope, Plymouth, Richfield, Robbinsdale and St. Louis Park. The Program maintains a core staff of trained individuals to assure prompt, quality services and a skills bank component. Clients are asked to pay for services based on ability (sliding fee scale). TARGET POPULATION -Consumers of H.O.M.E. services are residents age 60+ or people with disabilities who live independently and need some affordable in-home services in order to maintain their residence. The Program serves clients who need assistance but are not financially able to afford the full cost of the service as well as frail older adults who require services designed to meet their needs. SERVICES -The philosophy of the H.O.M.E. Program is to help maintain independence for elders and avoid premature nursing home placement by providing homemaker, maintenance and chore services. Clients are asked to pay based on a sliding-fee scale. Homemaker services include housecleaning, food preparation, grocery shopping, doing laundry and window washing. Assessments are made and services provided according to the specif c needs of each client for type of service, tune and frequency. Chore/home maintenance services include snow removal, lawn care, installation of security features, carpentry, minor plumbing, interior/exterior painting, weatherization, minor roof repair and other jobs needed to enable elderly residents to remain in their homes, as well as maintaining their homes in an accordance with community standards. STAFF -Home maintenance and homemaker services are provided by workers who are trained in the techniques of working with elders. Skills Bank Workers (independent contractors) are also utilized to provide chore services. Staff reports to a Program Director, who is responsible for their supervision and daily Program operation. Other staff and volunteers provide administrative and clerical support. FACB.ITY -Services are delivered in the homes of elderly residents. Program offices are located at Creekside Community Center, 9801 Penn Ave. South, Bloomington and 730 Florida Ave. South, Golden Valley. A satellite office is located at the Minnetonka Senior Center. PLACEMENT PROCEDURE -Clients gain access to the Program either directly by contacting the H.O.M.E, office or by referral from an area agency. FUNDING SOURCES -Revenues are derived from client fees, a service contract with Hennepin County for clients with very low incomes, the Metropolitan Area Agency on Aging (MA.AA) in support of chore services, cities in which the Program operates, the United Way, and contributions from clients and Friends of HOME, an organization that solicits donations from businesses, churches and community groups. HOME r ... ~ ~ 3455 Bloomington Ave Minneapolis, MN 55407 Office Phone: 612/728-5770 H of l i n e :612/728-5767 Fax: 612/728-5761 www.homelinemn.org Kersten Elverum City of Hopkins 1010 First Street South Hopkins, MN 55343 Dear Ms. Elverum, January 22, 2007 This letter is to request funding in the amount of $4,000 from the City of Hopkins's Community Development Block Grant Program. This funding would support HOME Line's Tenant Hotline Services and High School Renter Education, as well as offering new services through our Immigrant Outreach Project. In addition to providing residents in Hopkins our tenant hotline services and high school renter education program, we are now addressing the needs of new immigrant communities. We are excited about this program because it allows individuals with language and cultural barriers to access ~ur services and get the information they need to keep their homes safe, decent, and affordable. I am enclosing a description of our proposal and a fact sheet summarizing our hotline's service to Hopkins residents. HOME Line is building upon our depth of experience in serving Hopkins. We are creating new solutions to meet current challenges and addressing the needs of low income residents is a priority for HOME Line. We would like the City of Hopkins to become our partner in meeting these needs. Please feel free to call Michael Vraa, our Managing Attorney and Hotline Director at 612 728-5770 x 113 if you need further information. We look forward to hearing from you. Sincerely, Beth Kodluboy Executive Director enclosures as noted TenantAdvocacy in Minnesota 2007 URBAN HENNEPIN COUNTY CDBG PROGRAM REQUEST FOR FUNDING ~llable form) (Hopkins) A. GENERAL INFORMATION 1. City: Hopkins 2. Project Name: HOME Line 3. Contact Person/ Phone No. Mike Vraa; 612/728-5770, x-113 B. PROJECT DATA 1. CDBG Funding Requested $ 4, 000 (needs to be same as council resolution} Z. Is this an existing CDBG-funded project? No 3. Project Location: HOME Line's tenant services are citywide. Tenants call our free hotline from their homes. Renter Education presentations are done in the local high schools. Immigrant Outreach would be with individual groups in the communities where they reside or where the social service provider is located. Our physical address is 3455 Bloomington Avenue, Minneapolis. 55407 4. Project Description: (Describe the project in as much detail as possible, including the local need(s) the project will address.) Renters make up nearly 5,104 households in Hopkins, and many of these families have low incomes. When renters have problems involving their homes, those who don't know their rights and responsibilities can end up living in housing that is unsafe, lose money that is rightfully theirs, or make decisions that cost them their home. HOME Line provides renters with the tools necessary to keep their homes safe and affordable. HOME Line will provide three distinct, but related, programs as part of this grant: a tenant hotline that provides free legal advice to tenants about landlord/tenant law, a high school educational program, and our immigrant outreach program that provides services to new immigrants. These services prevent problems ranging from homelessness to illness from unsafe living conditions, and result in reducing the use of the city's emergency resources. While our services are available to all renters free of charge, over 97% of our Hopkins callers are low or very-low income; three quarters (71 %) of Hopkins callers are women; 23.1 % are racial minorities. Our programs are aimed at low income renters, high school students who are about to enter the rental market, and recent immigrants. Tenant Hotline The first of these programs is HOME Line's tenant hotline. The hotline began in 1992 as a service to Suburban Hennepin County residents. Today we serve the entire state (excluding Minneapolis) and have recently taken our 87,OOOth call. Three staff attorneys work full time on the hotline along with 40-60 law student volunteers each year. Hopkins has accounted for 2,945 calls since 1992. Our tenant services to Hopkins have helped save tenants at least $32,600. Last year alone we advised 132 callers from Hopkins. The most common reasons Hopkins residents call our hotline are; repairs, evictions, security deposits, questions about how proper notice to vacate is given, and break lease questions. The need for this service in Hopkins is apparent -- Hopkins residents already rely on this valuable service. High School Renter Education Program The second program is our high school presentation program. To date, we have spoken to 851 classes (over 23,410 students) throughout the metro area. At Hopkins High School alone, we have spoken to 33 separate classes (714 students). This presentation has won awards from both Best Prep and B.E.E.F. (Business Economic Education Foundation) for classroom speaking. The presentation focuses on the things that future renters should know, including how to avoid evictions, how to select roommates, security deposits and understanding leases. By offering free tenant hotline services and free high school renter education programs for high school students, HOME Line has been providing needed services for those most vulnerable. Immigrant Outreach Project . The thvrd program focuses on immigrant outreach efforts. According to the 2000 census, foreign born people make up at least 2,390 or 14.3% of the Hopkins population (a number which will surely continue to grow). Recognizing that many recent immigrants are not sure where to find a variety of useful resources, HOME Line has recently begun working to bridge this gap. Many recent immigrant groups live and work in Hopkins and many of them are living in rental housing with lower incomes and have no knowledge of their rental rights. It is important that we train and work with those social service providers who have contact with these new residents, so they too can use the tenant services to solve their rental problems. 5. Consolidated Plan Priorities: Using the Priority Summary chart below, identify what priority(ies) the project will meet. (Note: If a proposed project is a low urban county priority, you must explain why it has a higher priority in your community.) Rental Housing ~ r _ F E Existing Housing (Rehabilitation}µy~ ~ ~ - ~~~~"~4.~..,.a.~_~.~.~..__..~.~_~_,_~_~,~ , ~_ First Time_Homeownership e e _ _ = - Homelessness .~_.._.-.ti_-~~__~.~..___~.v~-~.~~.,_~w.~,.~.._s~~..~_, , ~~w.-._.~.«~..._~..~,~,.~~_z~-..~~~..___ Q Speeial Needs Housing4..~y___.._ _,_. _. ~._. __r_ .-...__~__.~_-_.~ .}.~_2,~,...~_~`__~.~_ .}.._ ~_o ._ ~.~~ .~_. ~_-~ -- „ _ __~ -~ s b Public Service x H i g h _ <_...~~...~~...w~.~.__.__._.~. ~ __ .___.. _ __ . --- _ _ ____ ----- --- . _ _ - _ _ _ Neighborhood Revitalization F F Transportation Services 6. Describe anticipated results/accomplishments the project will have. (number of persons to receive services, number of affordable housing units to be rehabilitated ar built, etc.) We anticipate between 130 and 140 callers utilizing our hotline services, representing 325 residents. We anticipate speaking at 3 high schools in Hopkins school districts, serving 75 students. The immigrant outreach will vary with community interest. Also see the attached one-page sheet which covers what HOME Line has accomplished in Hopkins in the past. 7. Implementation Schedule: (Ident~ majorproject tasks to occur during/within the first 12 months of the 18 month expenditure period. Expenditure period begins July 1, 2007 and ends December 31, 2008.) Task: Renter counseling oveC hotline Date Ongoing Task: High school presentations Date Late fall and late spring Task: Immigrant Outreach Project Date Ongoing 8. Budget: (Specify total project budget by major funding sources. Attach additional listings where appropriate.) I FUNDING SOURCES 4 f AMOUNT e _ _ „ E C_DB G _ _ _ - . _ ` $ t ,~~.16 ~ 4 2 9...~,..~.,.~.._._ Prior Year~CDBG Funding (for this project) F $ 13, 3 2 9 t Other Federal Funds s ~ecify) ~ ro... r ~~~ 4 $~ 3 0,15 0 ~ (p Low Income Housing Tax Credits ~ $ State (specify) -.~.M,..:~_._.~~_, ~~~,~w.,.~~...T..h~~k,_~..w..~n~,w. Y~.. ~s~~~ ~,~...~u ~~.~ Municipal ~w_,.__~~.r_..~.~_~.....~..r~_.w.~,_~__.~.~.~n.__. ~ =._~~_,_~,~«_~_ $ _ 0 - 12 ,100 ~w.~~~..~~ ~- 8,225 Metropolitan Council _._..~._~T»~~..~.~~.~,._r~,~~_~,.,_.~_._.~. ~ $._ ~.~„~,9.~ ~~.._m~~ , _Private (specify) ~_~~,~_~ .~__,_..~_.~_,_ ~_~___ _a=. ~ ~___,~_,..~~~~.~,.=~x. ` ~-µ, l 8 9, 718 ~ _~. Other (specify) ~ $ 1, 7 0 0 _ _ _ _ ___ Project_Total €T $: 2 80, 6 51II~^ ~~ HOME Line Renters' "Hotline" Hopkins Information on calls during the period 1/1/92 through 12/31/2006 Over the past fifteen years a total of 2,945 Hopkins renters have contacted HOME Line. This represents service to approximately 7,362 residents when all family members have been counted. Number of Calls Per Year 300 207 232 246 256 256 235 233 206 200 168 159 166 139 174 136 132 100 0 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 The vast majority (over 97%) of Hopkins callers to HOME Line are very-low and low income. These income categories are those used by the U.S. Department of H.U.D.: Very-low: incomes below 50% of the metro median Low: incomes between 50% and 80% of the metro median Moderate: incomes above 80% of the metro median. High School Renter's Education HOME Line's High School Renter's Education Program provides advice on tenant rights and responsibilities. This free presentation covers most things that first time renters are likely to encounter, including roommate problems, evictions, security deposits and repair problems. In the last thirteen years, HOME Line has been to Hopkins High School 33 times, speaking to 714 students. HOME Line has also sent speakers to many property manager's meetings (including Hopkins), continuing legal education seminars and trainings for various shelters/resource centers. Callers' income 1992-2006 HOME Line has helped Hopkins residents recover money from their landlords. Tenants have received $15,400 back from improperly withheld security deposits and $17,280 in rent abatements (refunds for substandard conditions). We have also helped prevent 93 evictions in Hopkins. The Hotline receives approximately 9,000 calls per year. Careful records are taken for each call, including the reason the tenant called. These are the top ten topics in Hopkins over the last fifteen years (followed by the number of calls): 1. Repairs 463 2. Evictions 424 3. Security Deposits 310 4. Notice to Vacate 277 5. Break Lease 210 6. Financial Aid 153 7. Tenant Screening 144 8. Housing Search 144 9. Lease Questions 118 10. Privacy/Intrusion 86