CR 2000-036 2000 Community Development Block Grant Program
CITY OF
-
HOPKINS
Council Report #2000-36
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February 29, 2000
2000 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
Proposed Action
Staff recommends approval of the following motion: Following the public hearing. adopt resolution
number 2000-15 approving the proposed program for the 2000 Urban Hennepin County Community
Development Block Grant (CDBG) Program and authorizing its submittal to Hennepin County.
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 CDnG program, Hopkins is eligible to receive
$148,875 in CDBG funds for the 2000 program year. The funds will be received on July 1, 2000 and
must be expended by December 31, 2001.
Staff is recommending that the City propose to fund the following activities with 2000 CDBG funds:
e · Housing Rehabilitation Loan/Grant Program
. Community Action for Suburban Hennepin (CASH)
As a requirement ofthe 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 17, 2000.
Primary Issues to Consider
. What is the intended use ofCDBG funds?
. What activities are being recommended for funding?
. Were any other requests for funds received?
SUDDortim! Information
. Resolution 2000-15
. CDBG Eligible Activities
. Request for funds - CASH and Greater Minneapolis Day Care Association
.
2000 CDBG program
Council Report 2000-36
page 2
Analvsis of Issues
. What is the intended use ofCDBG funds?
CDBG funds may be used to support a wide range 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
. Maximum of three locally administered activities
. Minimum allocation of $7,500 per locally administered activity
. Activity should be ranked as a high priority in the Hennepin County Consolidated Plan
. . Minimum of 70% of funds spent on low to moderate income households
. What activities are being recommended for funding?
Staff is recommending that the 2000 CDBG funds be allocated as follows:
. $143,875 - Housing Rehabilitation Loan and Grant Program
· $ 5,000 - Community Action for Suburban Hennepin (CASH)
Housing Rehabilitation
The need for a continued housing rehabilitation program has been identified in the Strategic Plan,
Comprehensive Plan and the Housing Analysis Report. Although limited financing for the housing
rehabilitation program is available through the City's revolving loan fund, if alternative funds such as
CDBG are not used to supplement the program, the revolving loan fund will soon be depleted.
It is estimated that fifteen households will receive housing rehabilitation loans or grants using 2000
CDBG funds. The program is administered jointly between the City and Hennepin County. This
activity has been funded through the CDBG program since 1974. The 1999 CDBG allocation to this
activity was $144,000.
Community Action for Suburban Hennepin (CASH)
e
CASH submitted a request for $5,000 in CDBG funds for support of their housing programs. CASH
offers the following housing programs primarily for low and moderate income homeowners and
renters:
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2000 CDBG program
Council Report 2000-36
page 3
. Pre-purchase home buyer education and counseling
. Home Maintenance - repair and rehabilitation advising
. Foreclosure prevention counseling
. Reverse mortgage counseling
. Tenant uhotlineu to assist tenants with rental problems and eviction prevention
Staff of the Planning Department feels that the services offered by CASH complement the housing
programs ofthe City of Hopkins and work towards the goals of preserving and encouraging
homeownership as well as maintaining our housing stock as identified in the the Strategic Plan,
Comprehensive Plan and the Housing Analysis Report. The City first funded this activity with CDBG
funds in 1995. The 1999 CDBG allocation was $5,000.
. Where any other requests for funds received?
The Greater Minneapolis Day Care Association (GMDCA) submitted a request for $20,000 for the day
care subsidy program. GMDCA has received CDBG funds in the past, although they did not request
funds in 1998 and were denied funds in 1999.
In reviewing GMDCA's request for funds, staff utilized the social service funding procedure which
which was recently implemented. This procedure specifically requires that the proposed service to be
funded be directly related to the goals ofa department of the City and solicited by that department.
Because the day care subsidy program did not meet this threshold, staff is not recommending 2000
CDBG funding for GMDCA
Alternatives
The City Council has the following alternatives regarding this issue:
. Hold public hearing; approve 2000 CDBG program as proposed by staff
. Hold public hearing; amend the proposed CDBG activities and/or budget.
This item can not be continued as the application must be submitted to Hennepin County by March 17,
2000. .
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2000-15
RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 2000
URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
AND AUTHORIZING SIGNATURE OF SUBRECIPIENT AGREEMENT WITH HENNEPIN
COUNTY AND ANYTlllRDPARTY 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 held a public hearing on March 6, 2000 to obtain the views of
citizens on local and Urban Hennepin County housing and community development needs and the
City's proposed use of$148,875 from the 2000 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 for review and inclusion in the 2000 Urban Hennepin County
Community Development Block Grant Program.
Proi ect
Budget
Housing Rehabilitation
Community Action of Suburban Hennepin
$143,875
$ 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 2000 CDBG Program
Adopted this 6th day of March, 2000.
By
Eugene 1. Maxwell, Mayor
Attest:
Terry Obermaier, City Clerk.
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CDBG ELIGIBLE ACTIVITIES
Federal statutes and regulations determine \vhat 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 ifthe proposed activity meets one of the following national objectives of the program:
Benefiting low and moderate (L/M) income persons (minimum 70% of funding),
Prevention or elimination of slums or blight (maximum 30% of funding); or
Meeting a particularly urgent community development need.
2.
Determine if the activity is included \yithin 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 - (;rgent Need
Removal of Architectural Barriers
Housing Rehabilitation
Homeownership Assistance
Code Enforcement
Historic Preservation
Commercial or Industrial Rehabilitation
Economic Development Activities
Special Activities by Sub recipients
Planning and Capacity Building
3.
Determine if the proposed activity falls within a category of explicitly ineligible activities 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 Maintenance Expenses
New Housing Construction
Income Payments
NOTE: The current COBG Program regulatIons are contained in 24 CFR Part 570, published September
6, 1988 as amended. Contact your COBG representative if you would like a copy.
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.Community Ad,on
for Suburban Hennepin
January 28, 2000
Community Service,
Ms. Kersten Elverum
City of Hopkins
1010 South First Streel
Hopkins, MN 553+3
Emergency A5,i,tance
Homele5, Family Support
Tran,itional Housing
Energy A~sistance
Dear Ms. Elverum:
Tenant Hotline
This letter is to request funuing in the amount of $5,000.00 from the city's
Community Development Block Grant program. The funding will be used to
support homeowncrship programs and tenant information anu education services.
Center for Homeownership
Home Buyer Education
Homeowner Counseling
Welfare-la-Work
Enclosed is data showing use by resiuents of Hopkins. As you can see, wc are
serving many low-and-modcrate income people in your community and can
continue to do so with CDBU support. In audition to our great appreciation of
CDBG support and the direct services it provides, our funders (HUD in particular)
Ii ke to see that there is widespreau commun i t Y support of our services, and that
CDBG funds leverage and support other program dollars.
Home Rehab Coun5eling
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A few changes occurred at CASH duting the past year.
The tenant organizing function spun off and is now an independent agency
operating under the HOME Line name.
CASH continues to provide direct cmployment of hotline stalT anu
support for the tenaIl t hotli ne and renters' euucati on, also opcrati ng under
the HOME Line name.
We have added reverse mortgage counseling fur seniors as a new program
in our homeownershir centee this service helps seniors who are house~
rich but cash-pam remain in their homes.
33 10th Avenue South
Suite 150
Hopkins, MN 55343
Tel 612-933-9639
Fax 612-933-8016
TOO 612-935-4011
We also have developed a user-friendly web site, at www.cashclln.url!. We would
greatly appreciate your publicizing this site, and providing a link from your
website. It is an easy way for your residents to access housing and other program
information.
Thank you for considering CASH in your CDBG allocations. If you need further
information, please contact ShclTY Coates at 933-9639 ext 222.
Investing in People,
Building Community
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G:t
Very truly yours,
11 '
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"'-oJ- ,J 1,",\. ~ t/~j""''''''-~'-____.~
Sharon A. J ol1nso11
Executive Director
'.J~':J-:,[JTurIIT,
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Page Two
Community Action for Suburban Hennepin
City of Hopkins
Pre-Purchase Home Buyer Education and Counseling
Our f fome Streich home buyer workshops are offered monthly. The workshops provide information on each
step of the home buying process. The curriculum meets or exceeds FHA, MHF A, Fannie Mae and Frcddlc Mac
guidelines. We also offer individual homebuyer counseling to assist potcntial homebuyers in developing an
action plan to overcome bUlTiers to homeownership. DIe most common barrier is the high cost of homes in
suburban Hennepin County. Other baniers are lack of dmvn payment and closing costs, and credit problems.
18 Hopkins households participated in Homebuycr Education and Counseling during 1999.
Home Maintenance, Repair and Rehab Programs
CASH assists suburban Hennepin County homcowncrs who have home maintenance, repair or rehab needs.
Uur staff can provide technical assistance in identifying needed repairs, writing specifications, finding qualified
contractors, evaluating bids, and working with contractors until job completion.
CASH is an administrator for Minnesota Housing Finance Agency's Defened Loan Program. We also provide
information on other loan and grant programs that will finance the cost of home repairs and rehab.
.
Another component of the program is a series of workshops for homeowners. TIIese workshops include topics
such as Weatherization, Drealll House or AIollel' Pi(' HO\I' To KnolV The Dijf"eri!llce, small plumbing repairs
,.ll1d basic home repairs.
During 1999, there ,,,ere 3 Hopkins households that received assistance
from the Home Maintenance, Repair and Rehab Program.
FOl'eclosure Prevention/Post-Purchase Counseling
Technical assistance and emergency loans are available to homeowners facing a dish"essed financial situation
caused by circumstances beyond their contTOl that may lead to the loss of their home. The main reason for
mllItgage default is a loss or rcduction of income.
Since 1993, a total of 75 Hopkins homcowncl"S havc requested foreclosure prevention assistance.
Foreclosure was averted in approximatcly 86u;,. of the cases and 48 Hopkins homes have been saved. A
total of $19,054.00 in financial assistance has been obtained for Hopkins homeowners.
Reverse Mortgage Counseling for Senio.'s
.
The State of Minnesota requires homeowners reccive counseling from a HUD-approved Housing Counseling
Agency before they apply for a reverse mortgage. A FHA reverse mortgage is a loan against home equity that
provides the homeowner \vith cash adl'allces and requires 110 repaymellt for as long as the homeO\vner chooses
to reside in the home. This special type of mortgage is for "cash poor - house rich" senior homeowners.
Homeowners do not need an income to qualify for a reverse mortgage. Most seniors use the cash advances to
help pay for home improvements, health care costs, property taxes and daily living expenses.
.
Community Action for Suburban HennepIn
Homeownership Programs
Report on Hopkins residents served between
January 1, 1999 and"December 31, 1999
CASH is a HUD-approved Housing Counseling Agency that provides a continuum of services to homebuyers
and homeowners in suburban Hennepin County. The housing industry refers to this as "full cycle
homeownership services". The services include: .
+ Pre-Purchase Homebuyer Education & Counseling. (Started August, 1994)
+ Home Maintenance, Repair and Rehab Programs. (Started October, 1996)
+ Foreclosure Prevention Counseling/Post-Purchase Counseling. (Started August, 1992)
+ Reverse Mortgage Counseling for Seniors. (Started July, 1997)
During 1999, approximately 86% of the homeowners and homebuyers served by Community
Action for Suburban Hennepin's Homeownership Programs were low to moderate income
households. .
.
Household Incomes
140~
EJ Low - Below 500/0 of Median Income
500/0
II Moderate - 500/0 to 800/0 of Median Income
D Upper - Over 80% of Median Income
There were minor children in 64% of the households served.
Approximately 17% were households with seniors.
190/0
Type of Household
240/0
II Families with Children
II Single Parent Families
DAdults Only
CSeniors
400/0
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HOME Line Renters' "Hotline"
Hopkins
Information on calls during the period 1/1/92 through 12/31/99
Over the past eight years a total of 1.833
Hopkins renters have contacted HOME Line.
This represents service to approximately
4,582 residents when all family members arc
counted.
Number of Calls Per Year
30. 168
20{}
10. I
o .
.2
232 246 256 256 235 233
i I I I I II
~j 94 95 96 97 98 ~
A vast majority (over 96%) of Hopkins callers
to HOME Line are low and moderate income.
These income categories arc those used by the
U.S. Department oflLUD.:
Low.. incomes below 50% ofthe Metro median
1l1come;
Moderate . incomes between 50 and 80% ofthe Metro
median;
Higher incomes above 80% orthe Metro median.
.
Renter's Education
HOME Line's Community 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 issues.
In the past eight years, HOME Line has been
to 28 classes at Hopkins High. speaking to
576 students.
We have also sent speakers to many property
manager's meetings (ineluding Hopkins),
continuing legal education seminars and
trainings for various shelters/resource centers.
.
Callers' Incomes 1992-1999
Low
78%
~
High Moderate
3% 19%
HOME Line has helped Hopkins residents
recover money from their landlords. Tenants
have received $5,835.33 back from
improperly withheld security deposits and
$13 ,513 in rent abatements (refunds for
substandard conditions).
HOME Line's tenant hotline receives
approximately 5,000 calls per year. Careful
records are taken for each call, including the
reason the tenant called. These are the top ten
topics from Hopkins callers over the last eight
years, followed by the number of calls:
1. Repairs 273
2. Evictions 232
3. Security Deposits 201
4. Notice to Vacate 138
5. Housing 125
6. Financial Aid 123
7. Information Only 121
8. Break Lease 119
9. Leases 76
10.PrivacvlIntrusion 48
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COMMUNITY ACTION FOR SUBURBAN HENNEPIN
FUND REPORT DECEMBER 1999
109. Communitv Services Block Grant '99 1/99-12/99 $ 320,210.00 $ 320,210.00 $ 320,210.00 $ - $ -
120. MN Economic Opportunity Grant '00 7/99-6/00 $ 90,854.81 $ 90,854.81 $ 59,145.19 $ .
209. Enerav Assistance Program '98-'99 07/98 - 9199 $ 1,764,168.00 $ 1,736,456.29 $ 1,736,456.29 $ - $ -
220. Ener~w Assistance Program '99-'00 07/99 - 9/00 $1,187,882.00 $ 672,731.25 $ 672,731.25 $ 29,768.75 $ -
309. Hennepin County Emergencv Services '99 1/99 - 12199 $ 74,461.00 $ 84,657.53 $ 84,657.53 $ - $ 3,657.53
310. Hennepin County FHPAP - Singles '98 - '99 7/98 - 6/99 $ 7,590.00 $ 7,590,00 $ 7,590.00 $ - $ -
319. Hennepin County FHPAP - Singles 99 - 2000 7/99 - 6/2000 $ 7,590.00 $ 6,585.70 $ 6,585.70 $ - $ 2,051.70
321. Hennepin County Volunteer Program '98 7/97 - 6/98 $ 65,128.00 $ 64,595,37 $ 64,595.37 $ - $ -
331. Hennepin County Legal Services 7/97 - 6/99 $ 63,840.00 $ 63,840.00 $ 63,840.00 $ - $ -
339. Hepnepin County Legal Services 7/99 - 6/2000 $ 30,125.00 $ 16,623.55 $ 16,623.55 $ - $ 8,373.55
341. FHPAP - Rapid Exit & Homeless Prevention '98 7/97 - 6/99 $ 113,800.00 $ 110,380.49 $ 110,380.49 $ - $ -
349. FHPAP - Rapid Exit & Homeless Prevention '99 7/99 - 6/2001 $ 71,720,00 $ 25,578.08 $ 25,578.08 $ - $ 11,703.08
351. Hennepin County Mc Knight Cars 7/98 - 7/2000 $ 103,391.00 $ 78,236.75 $ 78,236.75 $ 7,287.85 $ -
352. W Hennepin McKnight Transportation 7/98 - 12/99 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ - $ 1.503.59
359. West Hennepin Welfare to Work '99 1/98 - 12/00 $ 109,902.00 $ 66,627,01 $ 66,627.01 $ - $ 29,803.18
412. MHFA - Home Ownership 10/98 - 1 0/99 $ 40,000.00 $ 6,687,59 $ 6,687.59 $ - $ -
414. Foreclosure Prevention Assistance Proqram '99 11/98 - 10/99 $ 78,200.00 $ 35,137.98 $ 35,137.98 $ 7,634,63 $ -
431. MN Full Cycle Home Ownership 10/97 - 9/99 $ 15,000.00 $ 15,000.00 $ 15,000.00 $ - $ -
432. MN Full Cvcle Home Ownership 1/99 - 12/99 $ 25,000.00 $ 16,758.55 $ 16,758.58 $ 8,241.42 $ -
512. HUD Comprehensive Housing Counseling '98-'99 9/98 - 9/99 $ 44,370.00 $ 47,031.37 $ 47,031.37 $ - $ -
519. HUD Comprehensive Housing Counseling '98-'99 9/99 - 9/00 $ 49,370.00 $ 2,661.37 $ 2,661.37 $ - $ -
521. Project Soar 10/97 - 9/00 $ 219,317.00 $ 113,692.06 $ 113,692.06 $ . $ 10,897.01
530. CFL Transitional Housing 7/98 - 6/99 $ 30,000.00 $ 29,994.46 $ 29,994.46 $ - $ -
539. CFL Transitional Housing 7/99 - 6/00 $ 33,000.00 $ 16,249.43 $ 16,249.43 $ - $ 2,249.43
602. CDBG - Urban '97 6/97 - 6/99 $ 25,830.00 $ 25,830,00 $ 25,830.00 $ - $ -
609. CDBG - Urban 98 7/98 - 6/00 $ 29,186.00 $ 29,185.68 $ 29,186.00 $ - $ 0.32
619. CDBG - Plymouth 7/99 - 6/00 $ 12,500.00 $ . $ -
621. CDBG - SI. Louis Park Emergency Repair '98 1/97 - 9/99 $ 20,000,00 $ 20,000.00 $ 20,000.00 $ - $ -
630. CDBG - St. Louis Park '97 1/98 - 9/99 $ 20,000.00 $ 12,414.00 $ 12,414.00 $ . $ -
639. CDBG - St. Louis Park EmerQency Repair '99 7/98 - 6/00 $ 40,000.00 $ 14,205.00 $ 14,205.00 $ - $ 3,550,00
651. BloominQton Emergency Services Dav Care 99 1/99 - 12/99 $ 8,000.00 $ 7,999.29 $ 7,999.29 $ - $ 1,094.00
655. School System Renters Curriculum 1/1/99.12/99 $ 5,000.00 $ 3,893.57 $ 3,893.57 $ 1,106.43 $ -
Community Action for Suburban Hennepin
Budgeted Expenses for the Period 10-1-99 to 12/31/2000
Prepared 10/25/99
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Budget 2000
5000 Salary $ 721,555.00
5010 Health Ins $ 74,395.00
5011 Dental Ins $ 9,060.00
5012 Disability Ins $ 5,180.00
5013 Retirement $ 28,864.00
5014 FICA $ 55,199.00
5015 Unemployment Ins $ 1,334.87
5016 WC Ins $ 865.88
5017 Tuition Reimbersment $ 420.00
5020 Employe Benefits $ 2,051.00
5030 Accounting I Auditing $ 11,550.00
5031 Legal $ 3,000.00
5032 Comp Cons $ 57,942.00
5039 Other Consultants $ 84,000.00
5040 Rent $ 93,446.83
5041 Telephone $ 24,300.00
5042 Gen Insurance $ 5,394.00
5050 Postage $ 16,025.00
5051 Printing $ 7,803.00
. 5052 Office Supplies $ 8,622.00
5053 Meeting Supplies $ 6,863.00
5054 Other Supplies $ 2,487.00
5055 Pubs & Subs $ 2,226.00
5056 Dues & Lic $ 3,532.00
5059 Pers Recru $ 1,673.00
5060 Credit Report $ 4,054.00
5100 Mileage $ 11,745.00
5110 Parking $ 751.00
5120 Meals $ 727.00
5130 Training $ 11,256.00
5140 Conference $ 7,233.00
5211 Vol Expenses $ 3,942.00
5400 Comp Equipment $ 18,191.00
5401 Copier $ 9,317.00
5410 Software $ 8,933.00
5430 Serv Contract $ 11,901.00
5500 Annual Meetings $ 3,500.00
5501 Per Diem $ 1,540.00
5900 Misc $ 5,969.00
Total Operations Costs $ 1 ,326,847.58
6000 Grants $ 2,300,000.00
Total Grants $ 2,300,000.00
Total Costs $ 3,626,847.58
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GMDCA",
l;REATER !'vlINNEj\P(JLl:-'
DAY CARE j\SSUCIATIUI'<
162:-> L1liot Avenue Suuth
!'vlinncaptlli~, !'vlN 35-10-1 Il,S7
Tel. 16121 "',.rJ - 1 177
h1:\ (612) 3-11--1-356
VoicC'/TDD 1(12) 3-11 2066
Child Care Leadership and Services
Pebruary 3. 2000
Ms. Kristen Elverum
City of Hopkins
] 010 First Street
Hopkins, MN 55343
Dear Ms. Elverum:
Enclosed is a completed application along with a report on CDBG child care funding as
of January 31, 2000. We appreciate the opportunity to apply for 2000 CDBG funds from
the City of Hopkins. We are requesting the funds to help assist low-income families from
your community in meeting the costs of their child care needs so that they can maintain
self-sufficiency.
.
During] 999 we continued to see a \vaiting list for child care assistance. There are over
2.200 families waiting in Hennepin County.. Statewide there are over 7,300 families on
the waiting list. Families wait from] 0 to 14 months before becoming eligible for
serVIces.
We are requesting that the City of Hopkins consider a $20,000 request lar 2000. On the
attached application we outlinc how that money will be used to meet the needs of
L1ll1ilies from your community.
Than].;: you and yom City Council for your consideration of this request. Should you have
any questions regarding the enclosed materials, please feel free to contact me at (612)
349-0550. I look forward to seeing YOll at the public hearing.
Sincerely,
L~.L U:t--1~
Carla .Taco~n
Community Liaison
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PUBLIC EDUC:\TION /\ND ADVOCAC:\
REFERRALS. C/\RFCrVFR TR;\ININC; · FEE SUBSIDIES
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2000
URBAN HENNEPIN COUNTY CDBG PROGRAM
REQUEST FOR FUNDING
A. GENERAL INFORMATION
1. Community:
City of Hopkins
2. Project Name:
Parent's Child Care Assistance Fund
"
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Contact Person/Phone No.:
Carla Jacobson, (612) 349-0550
B. PROJECT DATA
1. Funding Request: $20,000
2. Is this request to fund an existing CDBG-FUNDED project? Yes
3.
Leveraged Funds: Amount: $6.8 million Source: State of Minnesota
(To what extent does project leverage additional public or private fundslfirm
commitment? )
This represents GMDCA's portion of Hennepin County's Basic Sliding Fee
Program dollars. This money is committed by the Federal Government, State of
Minnesota and Hennepin County to help low to moderate income families meet
their child care costs.
4.
Project Location: Address: 1628 Elliot Avenue South, Minneapolis, MN 55404
Citywide: Countywide - we serve all of Hennepin County
s.
Project Description: (Describe the project in as much detail as possible and identify
what, if any, alternative funding sources have been considered for this project.).
GMDCA is requesting $20,000 to serve families who are eligible for Child
Care Assistance through our Parent's Assistance Fund. The Parent's
Assistance Fund is set up to supplement the State Sliding Fee program also
administered by GMDCA but funded through Hennepin County and State
and Federal dollars.
Due to the inadequacy of the State fund to meet the need, we use the Parent's
Assistance Fund to try to fill the gap in cities where CDBG funds arc
allocated. The Parent's Assistance Fund is supported by nine other
communities within Hennepin County.
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2000 URBAN HENNEPIN COUNTY COBC PROGRAM
REQUEST FOR FUNDING
Page Two
The steps involved to receive services are:
1. Parents are referred to GMDCA by child care providers, community
agencies and Hennepin County Children and Family Services, or by word
of mouth and the yellow pages.
2. Callers are screened for eligibility. They must be working, in school, or
have a short-term emergency need (such as a medical crisis) and their
income needs to be below Section 8 housing guidelines. If eligible, their
name is placed on the joint waiting list that we share with Hennepin
County. MFIP families arc immediately referred to Hennepin County
because there is a priority to serve all eligible MFIP families with State
and Federal funds.
3. As city CnBG and/or State Sliding Fcc funds become available, parents
on the list are sent an application for services. At this time, they supply
wage and other income documentation to establish eligibility and the level
of subsidy they will receive.
4. If found eligible, a co-payment is assessed based on family size and
income. The average family has 1.6 children, pays a co-payment of
$86.00 per month and receives a subsidy of $550.00 per month, depending
on type of care and age of children.
5. If a child care provider has not already been chosen, the family chooses
any legally operating provider. We can provide them with a referral
listing to assist them in making a good choice for their family.
6. Once a provider is chosen, the family begins on the program and pays
their family co-payment directly to their provider. The provider bills
GMDCA for the balance of the monthly costs.
7. A famil}' who receives CDBG funds remains on the county-wide waiting
list. When their name reaches the top, their funding comes from the State
Sliding Fee fund and the next family from the Plymouth waiting list is
contacted to apply for services.
6.
Urban County Priorities: Using the list provided, 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.)
In the URBAN HENNEPIN COUNTY, Five Year Priority Needs Summary Child
Care Services is identified as a HIGH priority.
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2000 URBAN HENNEPIN COUNTY CDBG PROGRAM
REQUEST FOR FUNDING
Page Three
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.)
Drawing upon past experience, we would anticipate that we would be able to
serve nine to eleven families with $25,000 in funding. This would mean providing
quality child care services for twelve to twenty children. It is important to
recognize that the current waiting list for families throughout Hennepin County
has over 2,400 names on it. This means that a family will wait 10 to 14 months to
become eligible. Thus, more funding is needed to help families maintain self-
sufficiency while they wait to become eligible.
S. If applicable, decribe how project will assist community in achieving Metropolitan
Livable Communities Act goals.
We do not believe this project would be applicable to the goals of the
Metropolitan Livable Communities Act.
9. Implementation Schedule: (For the time period 7-1-99 to 6-30-01, identify the major
project tasks to be performed and when they will occur.)
Please see the project description for a detailed list of steps in serving: families
through the Parent's Child Care Assistance Fund. These steps are ongoing and
implementation for individual families is based on a first-come, first-served basis.
10. Budget: (Specify total project budget by major project component - i.e.,
administration, planning, construction, acquisition, direct grants, public service.)
Component
Program direct service funds
Administration
BUDGET SOURCE OF FUNDS
CDBG OTHER (identify)
$22,750.00 $6,188,000
$ 1,800.00 612,000 *
$18,200.00 $6,800,000 **
Same Same
Project Budget
Total Project Budget
* This figure represents an average administrative fee. Actual amount is based
upon number of units actually used.
** This represents GMDCA's portion of Hennepin County's Basic Sliding Fee
Program dollars. This money is committed by the Federal Government, State of
Minnesota and Hennepin County to help low to moderate income families meet
their child care costs.