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CR 95-29 Community Development Block Grant Program \ y 0 \ V /:- ~ February 15, 1995 "r "" Council Rpt, #95-029 o P K \ '" . PUBLIC HEARING 1995 COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Proposed Action Staff recommends approval of the following motion: Adopt resolution number 95-9 approving the proposed program for 1995 Urban Hennepin County Community Development Block Grant 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 CDBG program, Hopkins is eligible to receive $166,417 in CDBG funds for the 1995 program year. The funds will be received on July I, 1995 and must be expended by December 31, 1996. Staff is recommending that the City propose to fund the following activities with 1995 CDBG funds: e o housing rehabilitation program o Greater Minneapolis Day Care Association o Community Action for Suburban Hennepin o public housing modernization. As a requirement ofthe CDBG funding process, the City must hold a public hearing on the proposed use offunds prior to approving the attached resolution. The City's proposal must be submitted to the County by March 10, 1995. Primary Issues to Consider o What is the intended use of CDBG funds? o What activities are being recommended for funding? o Where any other requests for funds received? Supporting: Information o Resolution 95-9 o CDBG Eligible Activities o Request from Greater Minneapolis Day Care Association and Community Action for .' ~~He~e.,,_ I Ke ten Elveru , Housing Coordinator - - 1995 CDBG program . Council Rpt 95-029 page 2 Analvsis of Issues o What is the intended use of CDBG funds? CDBG funds may be used to support a wide range of housing and community development activities. Activities must meet at least one of the following objectives of the CDBG program: o Benefiting low and moderate income persons o Prevention or elimination of slums and blight o Meeting a particularly urgent community development need Additionally, Hennepin County imposes the following guidelines: o 20% maximum for public service activities o maximum of three locally administered activities o minimum allocation of$7,500 per locally administered activity. o What activities are being recommended for funding? . Staff is recommending that the 1995 CDBG funds be allocated as follows: 0$100,000 - Housing Rehabilitation o $ 20,000 - Greater Minneapolis Day Care Association 0$ 4,000 - Community Action for Suburban Hennepin 0$42,417 - Public Housing Modernization Activities funded through the Greater Minneapolis Day Care Association and Community Action for Suburban Hennepin will be administered by Hennepin County. 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 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. The City of Hopkins made a total of fourteen loans and/or grants with 1993 CDBG funds. An additional seven to ten loans andlor grants have been or will be made with 1994 CDBG funds. Staff feels that it is important to continue funding the housing rehabilitation program with CDBG . funds at similar levels as previous years. This activity has been funded through the CDBG program since 1974. - -- --- -- --.-- 1995 CDBG program e Council Rpt 95 -029 page 3 Greater Minneapolis Day Care Association (GMDCA) The proposed funding would be used to provide day care assistance to income eligible Hopkins families. As of December 31,1994 there were 42 families on the GMDCA waiting list from Hopkins. GMDCA was able to serve a total of three Hopkins families in 1994 using CDBG funds. This activity has been funded through the CDBG program for several years, including $20,000 for the 1994 program year. Community Action for Suburban Hennepin (CASH) CASH submitted a request for $4,000 in CDBG funds for support of HOME Line, a housing services program of CASH. HOME Line offers the following housing programs for low and moderate income homeowners and renters: o Home Buyer Education and Counseling o Tenant "hotlinell to assist tenants with rental problems o Tenant organizing assistance to educate and train low income tenants to work together . to solve common problems in a complex o Mortgage foreclosure prevention program o Free legal help and financial assistance for families with children facing eviction. Staff feels that the housing programs offered by HOME Line complement the housing programs of the City of Hopkins and that their request for $4,000 is reasonable. This is an activity that the City has not funded with CDBG funds in the past. Public Housing Modernization CDBG funds would be used to insulate and install permanent siding at the 20th Avenue Townhomes. It is an eligible activity which directly benefits low income residents living in the BRA's public housing units and benefits the neighborhood surrounding the townhomes. The BRA has been unsuccessful in its attempts to secure ClAP funding through HOD to finance these improvements. Also, reserve levels are currently below the desired amount. As a result, if CDBG funds are not made available this activity would not be possible. o Where any other requests for funds received? As of the time of this report, there were no other requests for CDBG funds. . ---- - ---- - -.. --- 1995 CDBG program . Council Rpt 95-029 page 4 Alternatives The City Council has the following alternatives regarding this issue: o Hold public hearing; approve 1995 CDBG program as proposed by staff. o Hold public hearing; amend the proposed CDBG activities and/or budget. o Hold public hearing; delay action to the March 7, 1995 City Council meeting. . . CITY OF HOPKINS . HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 95-9 RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 1995 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the City of Hopkins, through execution of a Joint Cooperation Agreement with Hennepin County, is cooperating in the Urban Hennepin County Community Development Block Grant Program; and WHEREAS, the City of Hopkins has developed a proposal for the use of Urban Hennepin County CDBG funds made available to it, and held a public hearing on February 21, 1995 to obtain the views of citizens on local and Urban Hennepin County housing and community development needs and the City's proposed use of$]66,4] 7 from the 1995 Urban Hennepin County Community Development Block Grant. BE IT RESOLVED, that the City 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] 995 Urban Hennepin County Community Development Block Grant Program. Proiect Budget Housing Rehabilitation $100,000 Greater Minneapolis Day Care Association $ 20,000 Community Action of Suburban Hennepin $ 4,000 Public Housing Modernization $ 42,417 Adopted this 2]st day of February, ]995. By Charles D. Redepenning, Mayor Attest: James A. Genellie, City Clerk. . e CDBG ELIGIBLE ACTIVITIES Federal statutes and regulations determine what activities are eligible under the COSG program. Generally, three steps are involved in determining if COSG 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 (UM) income persons. Prevention or elimination of slums or blight; or, Meeting a particularly urgent community development need. 2. Determine if the activIty IS included within the listing of eligible activities in the CDSG regulations, as modified by statutory amendments. A listing 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 Architectural Barriers Housing Rehabilitation Home Ownership Assistance Code Enforcement Historic Preservation Commercial or Industrial Rehabilitation Economic Development Activities Special Activities by Subrecipients 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 CDSG program requlations are contained in 24 CFR Part 570, published September 6, 1988 as amended. Contact your CDSG Rep jf you would like a copy. . FROM GI'lDCR 02.02.1995 17: 17 P. i . (/J GMDCA'M GREATBR MINNEAPOLIS DAY CARE ASSOCIATION 1628 Elliot Avenue Soulh Child Care Leadersl1;11 and Services MinneapollsJ MN 55404-1657 Tel. (612) 341-1177 Pu (612) 341-4356 TDD (612) 341.2066 February 2, 1995 Kristen Elverum City of Hopkins 1010 - 1st Street Hopkins, MN 55343 Dear Kristen, On behalf of the Greater Minneapolis Day Care ABBoeiation (GMDCA), I am req~e9tin8 that the Hopkins City Council eonaider using $20,000.00 of their Year XXI Community Development Block Grant (CDBG) funds for the child care sliding fee program. This amount would continue to help the one Hopkins family now being served. Applications are out now to add more eligible Hopkins families to the program. During the 1994-'95 CDBG funding year, your program bas helped three Hopkins fam111es move toward self-sufficiency. There are currently 42 Hopkins fami- . lies on the waiting list. I have enclosed a report showing the balance in your account a8 of Decembe~ 31, 1994. In January 1995, funds were taken out of your account to pay the Deeember child care costs for the one Hopkins family getting subsidy help. As soon as more families can be added, the account will be drawn down more quickly. When a family calls and 18 proven eligible, their name gose on to the county waiting list. 8S ~ell as the waiting list for their city. Currently. families hAve to wait 41most one year for subsidy help through the county. It 8 city has a subsidy program. the waiting list ~oves more quicklYt as it includes only eligible residents of that city. Once the name of a family on a city program come8 up on the county list. that family is moved to county funding. So the city money can be used to help another resident family. This system maximizes the U$e of city money, but the paperwork arid time moving fami- lies from one program to another slowe the use of city funds. Thank you for your past involvement in this program. Many Hopkins families have peen able to move toward self-sufficiency with you help. Please call if 1 can get any other information for your. [. expect to attend your public hearing fOT the CDBG funds.' Sincerely. ..L~ To Grace Norris . Community Outreach Coordinator .;. . PUBLIC Hl:>UCA nON AND ADVOCACY REFJ~RR^LS · CARH(;fVBI( TRAINING · FRR SUBSIP)ES --.. -- Community Action e for Suburban Hennepin Mr. Jim Kerrigan City of Hopkins 1010 South First Street Hopkins, MN 55343 February 13,1995 Dear Mr. Kerrigan: This letter is to request funding in the amou nt of $4,000 from the city's Community Development Block Grant program for 1995-96. Funds will be used to support HOME Line, the housing services program of Community Action for Suburban Hennepin (CASH). During the past year, HOME Line has added a new service, Home Buyer Education and Counseling, It offers a three-session education workshop open to the public (an announcement of up-coming workshops is enclosed) and free individual counseling to income-eligible families. We also have limited funds to help lower income buyers with their downpayment and the cost of a physical inspection of the property. We have scheduled our June workshop in Hopkins. HOME Line continues to operate four other housing programs for low and moderate income homeowners and renters: -- 1) a tenant "hotline" to assist tenants with rental housing problems; 2) tenant organizing assistance to educate and train low income tenants to work together to solve common problems in a given complex; 3) a mortgage foreclosure prevention program to provide personal, technical, and financial help to homeowners facing foreclosure due to circumstances beyond their control; and 4) free legal help and financial assistance for families with children facing eviction. Another activity of ours is a class for high school students on the basics of being a renter. We have made presentations to high school students at Hopkins High School and at the Eisenhower Community Center, AI! of our programs are described in more detail in the HOME Line Program Description enclosed. We appreciate your willingness to consider our request for support. If you have questions or need additional information, please feel free to contact Charlie Warner, our Housing Programs Director, at 933-9639. Sincerely, Ii" ,II I l ,'''''''' I ,.,/.1 C.,IUJ5Y\itlie t '---_ __'" Sharon A. JOh~s~n -~- Executive Difictor - Enclosures as noted 3 ~ /0111 A",nuL' S.,SLlilc 150. H'/_,/\i/J~. Mh' j53--1-3 . ((iL') ~U3 ~)6J(). FnCiJi.fj(!fL;