V.1. 2021 CDBG Program; YoungquistFebruary 16, 2021 Council Report 2021-012
2021 Community Development Block Grant Program
Proposed Action
Staff recommends adoption of the following motion: Move that the Council adopt Resolution
2021-006, Resolution Approving Proposed Application for 2021 Urban Hennepin County
Community Development Block Grant Program Funds and Authorizing Execution of
Subrecipient Agreement with Urban Hennepin County and Any Third Party Agreements.
With this motion, the Community Development Block Grant (CDBG) application will be
submitted to Hennepin County for review and approval.
Overview
As a participating city in the Urban Hennepin County CDBG program, Hopkins is eligible to
receive a preliminary estimate of $115,000 in federal CDBG funds for the 2021 program
year. The estimate is based on the City’s 2020 CDBG allocation, but is subject to change
upon notice from the U.S. Department of Housing and Urban Development. The funds will
be received on July 1, 2021 and must be expended by December 31, 2022.
Staff recommends allocating this funding to the Housing Rehabilitation Program, which
provides deferred loans to low and moderate income homeowners to make improvements
or repairs that affect the safety and habitability of their home or upgrade the home’s energy
efficiency.
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. City staff will participate on a public service selection committee, which will
determine how the funds will be granted to nonprofits and community partners.
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 is being recommended for funding?
Supporting Information.
• Resolution 2021-006
________________________________________
Jan Youngquist, AICP
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, CDBG funds must be used to address priority goals and needs identified in
Hennepin County’s 2020-2024 Consolidated Plan.
What is being recommended for funding?
Resolution 2021-006 allocates the estimated 2021 CDBG funds of $115,000 to housing
rehabilitation. This activity helps meet the goal of Homeowner Rehabilitation and addresses
the priority needs to Preserve/Create Single Family Homeownership and to Encourage
Neighborhood Revitalization as identified in Hennepin County’s 2020-2024 Consolidated
Plan.
The Housing Rehabilitation Program is important in its assistance to low and moderate
income homeowners and is consistent with Housing Goal 4 from the 2040 Comprehensive
Plan, which is to maintain the quality, safety and character of the existing housing stock.
It is anticipated that these funds will assist 4-5 households. There are currently 13
households on the waiting list to receive funds through the Housing Rehabilitation Program.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2021-006
RESOLUTION APPROVING PROPOSED APPLICATION FOR 2021 URBAN HENNEPIN
COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS AND
AUTHORIZING EXECUTION OF SUBRECIPIENT AGREEMENT WITH
URBAN 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 2021 Urban Hennepin
County Community Development Block Grant funds;
BE IT RESOLVED, that the City Council of Hopkins approves the following project for funding
from the 2021 Urban Hennepin County Community Development Block Grant Program and
authorizes submittal of the proposal to Urban Hennepin County/Consolidated Pool.
Activity Budget
Housing Rehabilitation $115,000
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 Agreements on
behalf of the City to implement the 2021 Community Development Block Grant Program.
BE IT FURTHER RESOLVED, that should the actual amount of FY2021 Community
Development Block Grant funds available to the City be different from the preliminary amount
provided to the City, the City Council hereby authorizes the City Manager to adjust the project budget
to reflect the actual amount of funding available.
Adopted by the City Council of the City of Hopkins this 16th day of February, 2021.
By: __________________________
Jason Gadd, Mayor
ATTEST:
____________________________
Amy Domeier, City Clerk