V.1. 2022 Community Development Block Grant Program Funds, YoungquistFebruary 15, 2022 Council Report 2022-014
2022 Community Development Block Grant Program Funds
Proposed Action
Staff recommends adoption of the following motion: Move that the Council adopt Resolution
2022-009, Resolution Approving Proposed Use of 2022 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 application will be submitted to
Hennepin County for review and approval.
Overview
The Community Development Block Grant (CDBG) is a federal program through the U.S.
Department of Housing and Urban Development that helps communities meet community
development needs, particularly that benefit low and moderate income households. As a
participating city in the Urban Hennepin County CDBG program, Hopkins is eligible to
receive a preliminary estimate of $84,111 in CDBG funds for the 2022 program year. The
funds will be received on July 1, 2022 and must be expended by December 31, 2023.
Staff is proposing to allocate 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 Urban
Hennepin County CDBG program. Fifteen percent of the overall Urban Hennepin 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 activities are being recommended for funding?
Supporting Information
• Resolution 2022-009
____________________________________________ 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 activities are being recommended for funding?
Resolution 2022-009 allocates the estimated 2022 CDBG funds of $84,111 to housing
rehabilitation activities. 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—Cultivate Hopkins, which is to maintain the quality, safety and character of the
existing housing stock.
It is anticipated that these funds will assist 3 to 4 households. There are currently 18
households on the waiting list to receive funds through the Housing Rehabilitation Program.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2022-009
RESOLUTION APPROVING PROPOSED APPLICATION FOR 2022 URBAN HENNEPIN
COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) 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 2022 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 2022 Urban Hennepin County Community Development Block Grant Program and
authorizes submittal of the proposal to Urban Hennepin County/Consolidated Pool.
Activity Budget
Housing Rehabilitation $84,111
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 2022 Community Development Block Grant Program.
BE IT FURTHER RESOLVED, that should the actual amount of FY2022 CDBG 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 15th day of February, 2022.
By: __________________________
Patrick Hanlon, Mayor
ATTEST:
____________________________
Amy Domeier, City Clerk