CR 2003-018 2003 Community Development Block Grant Program
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C\1Y OF
2003 COSC program
Council Repoli 20ln-018
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February 18, 2003
HOPKINS
Council Report 2003-018
2003 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
Proposed Action
Staffrecommends approval of the following motion: Following the public heming, adopt resolution
Dumber 2003-016 approvin,g the proposed program for the 2003 Urban Hennepin County COlmnunity
Development Block Orant (CDBG) Program and authorizing its submittal to Helmepin County.
With this motion, the 2003 CDBO application will be submitted to Hennepin County for their review
and approval.
Overview
As a participating city in the Urban Hennepin County COBG program, Hopkins is eligible to receive
$] 45,193 in CDBa funds for the 2003 program year. The funds will be received on July I, 2003 and
must be expended by December 31, 2004.
Staff is recommending that the City propose to fund the following activities with 2003 CDBG funds:
· Housing Rehabilitation Loan/Grant Program - $137,693
· Hopkins Area Family Resource Center - $7,500
o This figure includes $5,000 for general operations and programs and an additional
$2,500 in on-time support for the establishment of a welcome center.
As a requirement of the CDBa funding process, the City must hold a public heming on the proposed
use of funds prior to approving the attached resolution. The City's proposal must be submitted to
Hennepin County by March 7, 2003.
Primary Issues to Consider
· What is the intended use of CDBO funds?
· What activities are being recommended tor funding?
· Were any other requests for funds received?
Supporting Information
· Resolution 2003-016.
· CDBa Eligible Activities.
. Requests for funds.
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/t~c+'jt/:<..'., ~vu.7//
Steven J...'S tahmer
Assistant to the City Manager
2003 CDBG program
Coul1\:il Report 2003-018
Page 2
. Analysis of Primary Issu~
\Vhat is the intended use of CDBG funds?
CDBG funds may be used to supp0l1 a vmiety of housing and community development activities. The
intent of the program is to fund "bricks and m0l1ar" 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 paIiicularly urgent community development need
Additionally, Hennepin County imposes the following guidelines:
· 15% maximum for public service activities
· Minimum allocation of $7,500 per locally administered activity (unless the project also has other
sources of funding)
· Activity should be ranked as a high priOlity in the Hennepin County Consolidated Plan
· Minimum of 70% of funds spent on low to moderate income households
· Funds can not be available fi-om other sources
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What activities are being recommended for funding?
1. Housing Rehabilitation Program
Staff is recommending that the majority of CDBG funds be used for housing rehabilitation
activities. In order to continue offering meaningful housing rehab assistance, it is necessary to
allocate the vast majority of CDBG funds to this program. It is anticipated that the $13 7 ,693
will assist approximately 10 households.
2. Hopkins Area Family Resource Center
Staff also recommends that $7,500 in CDBO funds be allocated to the Hopkins Area Family
Resource Center. The Family Resource Center is a collaborative effort hetween the school
district, the Cities of Hopkins and Minnetonka, area faith communities, foundations, area
businesses, agencies, and individuals which provides numerous important social services to
local families. City and Police Depaliment stafffi'equently refer residents to the Family
Resource Center. Some of the services provided by the Resource Center include:
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· Community Connections provides inf01111ation and refenal service
. Services such as food vouchers.
· Access il1fo1111ation and refelTals, blood pressure checks, etc.
· Food programs for Mothers and Children (MAC) and Seniors (NAPS).
· Tax Preparation Assistance.
. School Supply Drive in late August for low-income children.
· Holiday Toy Chest collection ofhohday toys and distribution to area low-income
families.
2003 CDSO program
Council Rep011 2003-0 I S
Page 3
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In addition to the items listed above, the Resource Center is expanding its services and will
now act as a community-wide welcome center for new residents, and will also provide one-oo-
one counseling for individuals or families with a myriad of obstacles.
The City histOlically SUppOlts the Family Resource Center out of the General Fund. In 2002
the City provided $3,650 in funding for the Family Resource Center. In light of the impending
cuts to State aid, the use of CDBG funds would allow the City to continue suppOliing the
Resource Center while freeing up money in the General Fund that could then be used for other
City purposes. The Resource Center is continuing to expand the services it provides with the
addition of a community welcome center/viliual welcome center. Staff is recommending that
$5,000 of CDBG funds be allocated for general support of the Resource Center, with an
additional $2,500 in one-time funding dedicated to the new welcome center.
Were any other requests for funds received?
1. A request tor S 1 0,000 was received fi'om HOME Line to supPOli their programs which includes
tenant advocacy and organizing services and a renter education programming for High School
students.
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In previous years, HOME Line has received CDBG funds as palt of an allocation to
Community Action for Suburban Hennepin (CASH). HOME Line has since separated from
CASH and relocated their offices to Minneapolis.
In reviewing this request for funds, statT utilized the social service funding procedure which
requires the service to be funded to be directly related to the goals of a department of the City
and sUPP01ted by that depmiment. Because this activity did not meet this threshold, staff is not
recommending 2003 CDBG funding for HOME Line.
2. A general request for funding fi-om the "Hopkins City budget" was also received from Senior
Conununity Services for its H.O.M.E. program. The organization, which provides snow
shoveling, yard work, home repair, painting and homemaking for senior citizens, has requested
support in the amount of$lO,OOO fi-om the City's budget (General Fund or elsewhere).
Because of the budget difficulties which appear to be facing the City given the likelihood of
State aid cuts, staff has recommended that no money from the General Fund be allocated for
such a purpose. Therefore, the H.o.M.E. program was analyzed with regard to whether it
would be appropriate for CDBG funding.
Staff feels that the RO.M.E. program substantially duplicates activities cunently perfo11l1ed by
the Housing Rehabilitation Loan/Grant Program and the Hopkins Activity Center. Because of
this overlap and the City's social service funding policy, CDBG funding is not recommended.
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3. Community Action for Suburban Hennepin (CASH) has also requested $5,000 from the
Hopkins COBG allocation. CASH is a state and federally-celiified community action agency
that serves the suburban areas of Hennepin County and provides valious housing services (e.g.,
toreclosure prevention, reverse lTIottgage, etc.).
In reviewing this request tor funds, staff once again utilized the social service funding
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2003 CDBG program
Council Report 2003-01 S
Page 4
procedure which requires the service to be funded to be directly related to the goals of a
depaJ1ment of the City and supported by that depaltment. Staff feels that the CASH pro!,rram,
while a very wOlthwhile service, does not represent activities central to the role that the City of
Hopkins should play in housing. Moreover, it is the opinion of staff that the Housing
Rehabilitation Loan/Grant Program is simply a higher pliority. Therefore, staff is not
recommending 2003 COBO funding for CASH.
Alternatives
The City Council has the following alternatives regarding this issue:
. Hold public heming; approve 2002 COBO program as proposed by staff.
. Hold public hearing; amend the proposed COBO activities and/or budget.
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2003-016
RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 2003
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 ofa 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 held a public hearing on March 4, 2003 to obtain the views of
citizens on local and Urban Helmepin County housing and community development needs and the
City's proposed use of $145, 193 from the 2003 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 Urban Hennepin County Community Development Block Grant program
and authorizes submittal of the proposal to Hennepin County for review and inclusion in the 2003
Urban Hennepin County Community Development Block Grant Program.
Proj ect
Budget
Housing Rehabilitation Program
Hopkins Area Family Resource Center
$137,693
$7,500
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 2003 CDBG Program
Adopted this 4th day of March, 2003.
By
Eugene J. Max well, Mayor
Attest:
Terry Obermaier, City Clerk.
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CDBG ELIGIBLE ACTIVITIES
Federal statutes and regulations determine what activities are eligible under the CDBG Program.
Generally, three steps are involved in determining if CDBG funds may be used to assist a proposed
activity.
1. Determine if the proposed activity meets one of the following national objectives of the program:
Benefiting low and moderate (L/M) income persons (minimum 70% offunding),
Prevention or elimination of slums or blight (maxlinum 30% of funding); or
Meeting a particularly urgent community development need.
2.
Determine if the activity is included within the listing of eligible activities in the CDBG
regulations, as modified by statutory amendments. A general list of eligible activity categories
follows:
Acquisition of Real Property
Disposition of Real Property
Public Facilities and Improvements
Privately Owned Utilities
Clearance of Buildings and Improvements.
Relocation
Public Services
Interim Assistance - Urgent Need
Removal of Architectuqil Barriers
Housing Rehabilitation
Homeownership Assistance
Code Enforcement
Historic Preservation
Commercial or Industrial Rehabilitation. .
Economic Development Activities
Special Activities by Suhrecipients
Planning and Capacity Building
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Determine if the proposed activity falls within a category of explicitly ineligible acthities listed
below:
Buildings for the General Conduct of Government
General Government Expenses
Political Activities
Purchase of Equipment (generally)
Furnishings and Personal Property (generally)
Operating and :i\1aintenance Expenses
New Housing Construction
Income Payments
NOTE: The current CDBG Program regulations are contained in 24 CFR Part 570, published September
6, 1988 as amended. Contact your CDBG representative if you would like a copy.
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..-Hopkins Area
IIIF AMILY RESOURCE CENTER
January 30, 2003
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 $'1,500.
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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 a resident - to the housing inspector - to the receptionist who calls with a question.
Hopkins families are increasingly looking for assistance and our statistics reflect that need.
Back to School served over 600 children this year as compared to 500 children last year.
Of the 219 families served - J 34 (~f those families (300+ children) were from Hopkins. Our
food program continues to grow ~ Second Harvest provided 597 food packages at our site
last year - H'ith Hopkins residents accounting/or 323 of/hose packages (266 of those
packages went to Hopkins senior5). Toy Chest provided toys to 707 children in 2002, as
compared to 600 children in 200 I. 374 of those children live in Hopkins. The Tax
Assistance Program also saw growth - volunteers from AccountAbility provided tax
services /0 97 Hopkins residents, representing a third of the taxpayers receiving assistance.
Our Information & Referral service received more than 5,900 requests for information or
assistance ~ and more than haft of those requests came from Hopkins residents.
The Resource Center also provides Emergency Food Paks, bus tokens and financial
applications to those customers of lntercongregation Community Association (leA) who
lack transportation to their Minnetonka site. During 2002 we provided more than 200 units
of service at the Family Resource Center to Hopkins residents.
We are also involved in the Welcome Center - an effort to connect and provide needed
information to all new and current residents in the City of Hopkins, Project Starfish - our
one-to-one support - has expanded aUf services to those folks who need additional support.
Financial SUPP0l1 through CDBG funding is needed and will be greatly appreciated.
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Thank you.
ND~
Executive Director
915 Mainstreet Cobblestone Court · Hopkins MN 55343 - 7515
Telephone: 952/988-5350 Fax: 952/988-5358
BOARD OF DIRECTORS
John C. Boeder
President
Gordon Hughes
1 sl Vice President
Peter Coyle
2nd Vice President
John Lawson
Treasurer
John Gray
Secretary
Francis Hagen
Past President
Bob Bean
Member-at-Large
Gloria Johnson
Member-at-Large
Marty Gurltz
.0 Higuchi
ghtJohnson
Marvin Johnson
Laurie Lafontaine
Rep. Ann Lenczewski
Kevin Max
Dr. Chinyere (Ike) Njaka
Dotty O'Brien
Senator Gen Olson
Curtis A. Pearson
Mary Tambornino
Leonard J. Thiel
Tom Ticen
Benjamin F. With hart
Executive Director & G.Eo.
PROGRAMS
. Multi-Purpose
Senior Centers
· Senior Outreach
· H.O.M.E.
. Transportation
.ounding Member of
Idercare Partners
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A United Way
Agency
SENIOR COMMUNITY SERVICES
10709 Wayzata Blvd., Suite 111, Minnetonka, MN 55305
Phone: (952) 541-1019 FAX: (952) 541-0841 E-mail: scs@seniorcommunity.org
January 29, 2003
Hopkins City Council
City of Hopkins
1010 South First Street
Hopkins, MN 55343
Dear Mayor and Members of the City Council:
Senior Community Services respectfully requests a $10,000 grant from
CDBG funds to help support home maintenance, homemaking and
outdoor housing chore services for frail elderly Hopkins residents in
2003. Our agency submitted and received a short-term grant late last
fall from the Minnesota Department of Human Services. More than 20
Hopkins residents have already received services through our agency's
HD.M.E. (Household and Outside Maintenance for Elderly) program.
In order to continue to apply for funding from the State and other
sources, we are requesting allocations from all of the municipalities
being served in order to provide a funding match and to demonstrate
community support for these services. Please feel free to call me with
any questions at 541-1019. On behalf of the older residents of Hopkins
trying to maintain their houses, thank you for your consideration of this
request.
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.Community Actzon
for Suburban Hennepin
Community Services
Emergency Assistance
Homeless Family Support
Transitional Housing
Energy Assistance
Center for Homeownership
Home Buyer Education
Homeowner Counseling
Home Rehab Counseling
Welfare-to-Work
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33 10th Avenue South
Suite 1 SO
Hopkins, MN 55343
Tel 952-933-9639
Fax 952-933-8016
TOD 957-935-4011
Investing in People,
Building Community
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E(JUAL !-fal ISING
OPPORTUNJTY
February 3,2003
Kersten Elverum
City of Hopkins
1010 South First Street
Hopkins, ~ 55343
RE:
Community Action for Suburban Hennepin
20m CDBG Funding Request
Dear Ms. Elverum:
On behalf of Community Action for Suburban Hennepin ("CASH"), thank you
for the opportunity to apply for CDBG funding from the City of Hopkins.
CASH is the state- and federally-certified community action agency serving
suburban Hennepin County. CASH was created in 1985, specifically to
address issues of poverty in suburban Hennepin County, issues that were not
being addressed by other organizations. CASH provides a continuum of
housing services, and works with the 45 suburban and rural communities
(outside of Minneapolis) that make up Hennepin County.
We serve many families in Hopkins each year in our housing programs, which
range from foreclosure prevention to reverse mortgage (these and the other
services are described in greater detail in the attached). With the downswing
in the economy, CASH's services become even more critical to your
community. CASH's programs serve primarily low income (some low-middle
income); job losses and reductions, and a decrease of support services makes
CASH's ability to help people obtain and maintain affordable housing in your
community both necessary and timely.
Unfortunately, funding for many of CASH's programs has been decreased for
the upcoming year, making it harder to offer the same level of quality services
for which are programs are known. CASH - and YOllr residents - need
Hopkins's help more than ever.
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Letter to K Elverum
Page Two
February 3, 2003
CASH is requesting $5,000.00 in assistance from the City of Hopkins, in order to continue
offering its Homeownership services in your community,
Thank you in advance for your consideration. Please feel free to contact me if you need
additional information or have any questions,
Sincerely,
'::~LR-
Executive Director
Att.
HOME
rat
.~( ~ 3455 Bloomington Avenue
Minneapolis, MN 55407
Office Phone: 612/728-5770
Hotline: 612/728-5767
Fax: 612/728-5761
Kersten Elverum
City of Hopkins
1010 First Street South
Hopkins, MN 55343
January 21, 2003
Dear Ms. Elverum:
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 2,363 calls from Hopkins renters, over 4% of the total
number of calls to our hotline (53,360). 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 metings 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
helped Hopkins Village and Raspberry Ridge tenants work together to improve property
management practices at both buildings.
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 a one~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 me at 612/728-5770, extension 106 or Mike Vraa, our
managing attorney at extension 113.
Sincerely,
..>1
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( '.'p' j !- /l/Ct~
l ;;. tl-1-1--(..I'1'
'Charlie Warner
Executive Director
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enclosures as noted
Tenant Advocacy in Minnesota
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February 9, 2003
City of Hopkins
Hopkins,:MN 55343
To Whom It May Concern:
HOME Line has recently requested $10,000 in CDBG funding to continue assisting
residents in rental properties in Hopkins.
HOI\.1E Line has been very instrumental in assisting residents of Hopkins Village
Apmiments and Raspberry Ridge with problems experienced with the owners, elIDe
(Brighton Development Corporation) , and their management company, BDC
Management Company, When HO.ME Line leamed of the problems Hopkins Village
was experiencing, representatives attended our Resident Association Board Meetings..
HOME Line was also aware of common problems at other ClIDC owned and operated
apartment complexes. They arranged for residents of Hopkins Village, Raspberry Ridge
and Franklin Lane to meet and form a coalition to address the problems. HOME Line
also enlisted assistance from the Senior Federation. I'm quite sure that it was only the
involvement of these two organizations that allowed us to obtain a meeting with Richm'd
Brustad, one of the owners of CHDC and BDC.
We encourage your continued participation in funding HOME Line and their assistance
to Hopkins' residents.
Thank you.
Sincerely,
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Janice M, Jepsen