CR 2004-023 Community Development Block Grant Program
G~TY pF
NOPKINS
February 12, 2004 Council Report #2004-023
2004 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
Proposed Action
Staff recommends approval of the following motion: Following the public hearing, adopt resolution
number 2004-10 approvin;; the proposed program for the 2004 Urban Henn_pin 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
$144,978 in CDBG funds for the 2004 program year. The funds will be received on July 1, 2004 and
must be expended by December 31, 2005.
Staff is recommending that the City propose to fund the following activities with 2004 CDBG funds:
Housing Rehabilitation Loan/Grant Program
Hopkins Area 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 March 5, 2004.
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
• Resolution 2004-10 -
• Request for funds
Kasten lverum
Housin & Development Coordinator
2004 CDBG program
Council Report 2004-023
Page 2
Analysis of Issues
• What is the intended use of CDBG funds?
CDBG funds maybe 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 with incomes below 50% of median income
Rental housing for elderly and physically disabled persons with incomes below 30%
Permanent supportive housing for persons with mental illness
Rehabilitation ofowner-occupied housing with income below 50%
Homeownership assistance to households with income below 50%
• 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 $139,978 of CDBG funds be used for housing rehabilitation activities. The
Housing Rehabilitation Loan and Grant program has experienced an increase in applications during the
past year and is important not only in its assistance to homeowners but also to maintain the City's
housing stock. In order to continue offering housing rehab assistance, it is necessary to fund the
housing rehabilitation program for the full amount. It is anticipated that the $139,978 will assist 10
households.
Staff is also recommending funding the Hopkins Area 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?
A request for $10,000 was received from HOME Line to support their programming including tenant
advocacy and organizing services and renter education programming for High School students.
In reviewing this request for funds, staff utilized the social service funding procedure which requires
the service to be funded to be directly related to the goals of a department of the City and supported by
that department. Because this activity did not meet this threshold, staff is not recommending 2004
CDBG funding for HOME Line.
2004 CDBG program
Council Report 2004-023
Page 3
Alternatives
The City Council has the following alternatives regarding this issue:
• Hold public hearing; approve 2004 CDBG program as proposed by staff.
• Hold public hearing; amend the proposed CDBG activities and/or budget.
• Hold public hearing and continue item until March 2, 2004
LJ
•
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2004-10
RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 2004
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 17, 2004 to obtain the views of
citizens on local and Urban Hennepin County housing and community development needs and the
City's proposed use of $144,978 from the 2004 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 $139,978
Hopkins Area 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 2004 CDBG Program
Adopted this 17th day of February, 2004.
Attest:
By
Eugene J. Maxwell; Mayor
Terry Obermaier, City Clerk.
HOME
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® CD Office Phone: 612/728-5770
3455 Bloomington Avenue Hotline: 612/728-5767
Minneapolis, MN 55407 Fax: 612/728-5761
Kersten Elverum
City of Hopkins
1010 First Street South
Hopkins, MN 55343
Dear Ms. Elverum:
January 21, 2004
This letter is to request funding in the amount of $10,000 from the City of Hopkins' Community
Development Block Grant Program to support HOME Line's services for renters.
HOME Line's tenant hotline receives dozens of calls each year from Hopkins residents. Since we
started up the hotline we have received 2,503 calls from Hopkins renters, over 4% of the total
number of calls to our hotline. Almost all (96%) of these callers are low or moderate income
people. In addition, our award-winning high school presentations (on becoming a successful
first-time renter) have been given 32 times to Hopkins High School classes, reaching 649
students. Our attorneys have also spoken at Hopkins' owners and property managers committee
meetings on issues of tenant/landlord law.
As you know, we worked with the tenants at Hopkins Village in their successful effort to
preserve the project-based rental assistance at the complex. In the past months, we have been
working with co-op board members at Raspberry Ridge to keep the building a cooperative with
resident-controlled decision making. HOME Line is continuing work with the board to make it a
more effective participant in the management of the property.
For the coming year, we anticipate that 150-160 Hopkins households will be helped via our
tenant hotline and 2-3 will prevent being evicted through the assistance of our Court Advocacy
Program (part of Hennepin county's Family Homeless Prevention and Assistance Program). In
addition, we expect to assist Hopkins renters in recovering $2,000-3,000 in returned
security deposits or rent abatements for substandard conditions.
I am enclosing aone-page sheet summarizing our hotline's service to Hopkins residents and a
two-page description of the programs HOME Line offers. Also enclosed is a copy of our proposed
2003 operating budget and a listing of our current funding sources and pending proposals.
We appreciate the opportunity to submit this application. If you have any questions or need
additional information, please call Mike Vraa, our managing attorney, at 612/728-5770,
extension 113.
Since~ely~~ /' ' ,
~,c~-P WGr~~
Charlie Warner
Executive Director
enclosures as noted
Tenant Advocacy in Minnesota
HOME Line Renters' "Hotline"
Hopkins
Information on calls during the period 1/1/92 through 12/31/2003
Over the past twelve years a total of 2,503
Hopkins renters have contacted HOME Line.
This represents service to approximately
6,257 residents when all family members
have been counted.
Number of Calls Per Year
300 1 ~ 207 232 246 256 256 235 233 206
200 159 166 139
100
0
92 93 94 95 96 97 98 99 00 01 02 03
The vast majority (over 96%) 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 twelve years, HOME Line has been
to Hopkins High School 32 times, speaking
to 649 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' Incomes 1992-2003
Very-low
79°~
Mod. Low
40~ 17%
HOME Line has helped Hopkins residents
recover money from their landlords. Tenants
have received $13,595 back from improperly
withheld security deposits and $15,452 in rent
abatements (refunds for substandard
conditions).
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 twelve years (followed
by the number of calls):
1. Repairs 3 83
2. Evictions 380
3. Security Deposits 267
4. Notice to Vacate 200
5. Break Lease 169
6. Financial Aid 145
7. Housing Search 137
8. Tenant Screening 103
9. Lease Questions 99
10. Privacy/Intrusion 77
HOME
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® C~ Office Phone: 612/728-5770
3455 Bloomington Avenue Hotline: 612/728-5767
Minneapolis, MN 55407 Fax: 612/728-5761
HOM ,~ Line's Programs for Renters
(1/04)
HOME Line was established in 1992 at the "anti-poverty" agency serving Minneapolis' suburbs.
Currently, HOME Line has a staff of seven: three staff attorneys who operate the tenant hotline
and education program and three full-time tenant organizers working with tenant organizations
and leaders; all aspects of HOME Line's programs are overseen by a project director. We also
sponsor a VISTA (Volunteers in Service to America) who assists with the hotline. In May 1999,
HOME Line became an independent entity.
The following is a brief description of the programs and activities of HOME Line:
en~nt Advocacy (started in January 1992) -HOME Line offers a free call-in or walk-in
service providing information and advice on Minnesota tenant/landlord law and on court
procedures. This service is managed by a staff of four experienced housing law attorneys. The
tenant advocacy program operates primarily via a telephone "hotline" staffed by the attorneys
and volunteers recruited primarily from area law schools. The tenant advocacy program
currently handles more than 9,000 unduplicated cases per year; since start-up in early 1992,
over 95% of the more than 62,000 households using this service have been low or moderate
income. Detailed records of each call are kept on a computerized database.
Our law student volunteers are given afull-day training program and are supervised by the
staff attorneys. As they become more experienced, they may get the opportunity to represent
tenants in housing court. We have logged more than 19,000 volunteer hours since starting up
the hotline in 1992. Our one-day training sessions are also open to (and well attended by) staff
members of other nonprofit and public agencies working with low income clientele.
Tenant Organizina (May 1992) -Organizing situations often come to our attention through
hotline calls. These problems tend to be maintenance/repair related or instances of management
abuses. Our tenant organizers help tenants work together to solve common problems. The
organizing program also seeks to develop tenant leadership so that those affected can act
effectively as spokespeople for themselves and their neighbors.
During the past few years, our organizing work has focused on the "preservation" issue. We
have spearheaded efforts to organize tenants in 35 federally subsidized apartment complexes
when the owners of this housing have announced plans to convert to market rents, threatening
the displacement of the low income residents. Tenant leaders working with HOME Line and other
state advocacy groups played a major role in securing major state appropriations for
preservation in 1998; the Legislature has continued to fund the state's preservation program
since.
Tenant Advocacy in Minnesota
HOME Line's Programs for Renters
March 2003
Page 2.
Court Advocacy Project (September 1993) -HOME Line provides free legal representation to
renter families with children who are facing eviction. Services are provided by HOME Line's
staff attorneys. The program is funded by and is a part of Hennepin County's "Family
Homelessness Prevention and Assistance Program;" as such, its focus is restricted to Hennepin
county. Approximately 150 households are assisted per year, most are residents of
Minneapolis's northwest suburbs. Since beginning this program, HOME Line's attorneys have
helped to prevent more than1,500 evictions.
Renter Education Program for High schoolers (March 1993) - We have developed a one session
program on the "basics of renting" for young people who will be entering the rental market for
the first time on their own. Instruction covers inspection before move-in, getting repairs
made, potential problems in roommate situations, and the responsibilities of renters. This
class has been presented 575 times in 58 different high schools; over 15,000 students have
participated.
.Policy Advocacv (January 1992) -HOME Line has long been an active participant in the public
policy arena relating to low income housing issues. We have accumulated extensive data bases
on all of the calls to our hotline (over 62,000} which have been used to document to state
legislators that changes in the law are needed. One significant example of this was the passage of
the Tenants Right to Privacy law in 1997 requiring notice when a tenant's unit is entered by the
owner or management. The HOME Line report of hundreds of intrusions into tenants' apartments
convinced the Legislature to enact a "reasonable notice" covenant that is now a required part of
every lease in Minnesota. Our thorough documentation of the state's inventory of federally
assisted housing was a factor in last year's successful preservation funding campaign; every
legislator was provided with a report documenting the assisted housing inventory in his or her
district. The vote for preservation funding was unanimous in both houses.
HOME Line has also been an important voice in the national policy debate over low income
housing. Working with allies in national organizations (National Low Income Housing Coalition,
National Housing Law Project, National Alliance of HUD Tenants, and the National Housing
Trust) Minnesota housing advocates have been at the forefront of national affordable housing
policy: in 1999 Congress adopted the "Wellstone Amendment" requiring notice to tenants when
owners decide to convert to market. This year, we are continuing our involvement in a national
campaign to secure matching federal funding to states, like Minnesota, that put up money for
preservation and to establish a National Housing trust Fund.
Each year for the past nine, HOME Line has conducted an extensive survey of suburban Hennepin
apartment complexes to determine how many apartments qualify for HUD's Section 8 voucher
program (rents within HUD limits) and how many of those were in complexes that actually
accept Section 8 tenants. Our report has been widely cited here and nationally as documented
evidence that tenant-based subsidy programs in tight housing markets like the Twin Cities do
not offer the freedom of locational choice that is at the heart of the voucher concept.
(1/04)
HOME Line Organizational Budget for 2004
2004 budget tapproved by HOME Line board on 10/23/03
I ome 2004
he McKnight Foundation 125,000
Family Homeless Prevention and Assistance Program 30,150
Greater Minnesota Housing Fund 25,000
Minnesota Housing Finance Agency 126,000
HUD (Outreach & Training Assistance Grant) 80,000
Minneapolis Foundation 50,000
Hennepin County/suburban CDBG 25,000
Hennepin County Fair Housing 10,000
Department of Health and Human Services 21,500
Otto Bremer Foundation 10,000
Grassroots fundraising 2,500
Headwaters Fund 5,500
Christian Sharing Fund 6,000
Interest income 1,500
Miscellaneous income 4,000
TOTAL INCOME 522,150
n es
MHFA pass-through 30,000
Tenant training expenses 10,000
VISTA (housing allowance+cost share) 3,600
dvertising 500
ank fees 350
Court/County fees 1,000
Dues & Subs 2,400
Insurance -General 550
Insurance -Health 41,958
Insurance -Worker's Comp. and malpractice 4,100
Equip leases 8,000
Licenses & Permits 800
Meeting Expenses 2,000
Mileage & Parking 5,000
Postage & Delivery 3,000
Professional Services 12,800
Rent 27,720
Repairs, maintenance & cleaning 3,500
Seminars & Education 4,000
Supplies & Printing 4,500
Telephone & Internet 9,000
Utilities 3,000
Equipment purchases 4,000
Salaries 275,872
Pension exp 11,035
~ICA 21,104
UI 2,428
TOTAL EXPENSES 492,217
Contribution to reserves 29,933
HOME
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'...
p
® CD Office Phone: 612/728-5770
3455 Bloomington Avenue Hotline: 612/728-5767
Minneapolis, MN 55407 Fax: 612/728-5761
HQME Line Current Donors
(1/04)
The McKnight Foundation
$125,000 per year for three years; general support
December 2001 -November 2004
U.S. Department of Housing and Urban Development
"Outreach and Training Grant "( OTAG)
$450,000; January 2, 2001 -September 30, 2004
Minnesota Housing Finance Agency
Tenant Organizing and Education Grant
$150,000 over four years; February 3, 2001 -December 31, 2004
Otto Bremer Foundation
General support for statewide services and advocacy
$35,000, two-year grant ($20,000 first year, $15,000 second year), February 2002
The Minneapolis Foundation
General funding to support expansion of activities
$50,000 one-time grant, July 2003-June 2004
Minnesota Department of Human Services
Hotline service to Greater Minnesota
$43,450 two-year grant; July 2003 -June 2005
Christian Sharing Fund of the Archdiocese of St. Paul and Minneapolis
Support for MN Alliance of HUD Tenants (MnAHT) outreach campaign
$12,000; May 2003-April 2004
Headwaters Fund
Training and leadership development for MnAHT tenant leaders
$5,000 one-time; June 2003
Hennepin County -Family Homeless Prevention Program
Legal representation in eviction cases
$30,150 contract; July 1, 2003 -June 30, 2004
Tenant Advocacy in Minnesota
HOME Line Current Donors
January 2004
Page 2.
Hennepin County -Fair Housing Initiative
Educational program on fair housing issues
$10,000 one-time -May 2003
Greater Minnesota Housing Fund
$25,000 for expansion of organizing and advocacy services to Greater Minnesota
October 2002
Bloomington HRA
$10,000 one-time grant for tenant services to Bloomington residents
January 1, 2002 -December 31, 2003
City of Plymouth -Community Development Block Grant (CDBG)
$7,500 for tenant services to Plymouth residents; July 1, 2003 -June 30, 2004
City of Eden Prairie -Community Development Block Grant (CDBG)
$4,013 for tenant services to Eden Prairie residents; July 1, 2003 -June 30, 2004
City of Minnetonka- Community Development Block Grant (CDBG)
$690 for tenant services to Minnetonka residents; July 1, 2003 -June 30, 2004
City of Maple Grove- Community Development Block Grant (CDBG)
$4,191 for tenant services to Maple Grove residents; July 1, 2003 -June 30, 2004
City of Edina -Community Development Block Grant (CDBG)
$996 for tenant services to Edina residents; July 1, 2003 -June 30, 2004
City of Richfield -Community Development Block Grant (CDBG)
$2,500 for tenant services to Richfield residents; July 1, 2003 -June 30, 2004
oo~Hopkins Area
• ~~~FAMILY RESOURCE CENTER
January 23, 2004
Kersten Elverum
Housing Coordinator -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) funds through the city of Hopkins. The Family Resource Center would like to
request funding in the amount of $5,000.
The need for services in the city of Hopkins continues to grow. Requests for our services
come from a variety of city departments -from the police who call looking for assistance
for aresident - to the housing inspector - to the receptionist who calls with a question.
Hopkins families need our services -and our statistics reflect that need. Back to School
provided school supplies to over 700 children this year as compared to 600 last year. Of
that number 400 children were from Hopkins. Toy Chest provided toys to 850 children in
2003- two thirds of those children were from Hopkins. Second Harvest provided 528
food packages at our site last year -with Hopkins residents accounting for 316 of those
packages (263of those packages went to Hopkins seniors).
Our Resource Center also provides Emergency Food paks, bus tokens and financial
applications to those customers of Intercongregation 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 neighbor - or information about local school options.
Financial support through CDBG funding is needed and will be greatly appreciated.
Thank you.
G~~-- ~. ~ ~ . ~ .
:Nora M: D,avis~ , ,
,Executive Director, . ~ ~ ~ _
.; ~ ~-
915 Mainstreet Cobblestone Court • Hopkins MN 55343-7515
Telephone: 952/988-5350 Fax: 952/988-5358