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CR 92-58 Urban Hennepin County Community Development February 25, 1992 \ "\ y 0 :aa: o P K \ ~ Cauncil Report 92-58 PUBLIC HEARING FOR THE 1992 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Proposed Acticn staff recommends appraval af the follawing motion: Adopt resolutian number 92-20 appravinq the praposed proqram for Year XVIII Urban Hennepin County Community Development Block Grant Funds and autharizinq its submittal. based on the fallowing: o Re-evaluate Greater Minneapolis Day Care Assaciatian's (GMDC) need far and ability to spend 1992 CDBG funds after 6 month periad; o Request Hennepin Caunty to. amend budget up to a maximum af $12,000 if need is demanstrated by GMDC. with approval of this actian the application will be submitted to Hennepin Caunty for their review and approval. Overview As a participating City in the Urban Hennepin County CDBG Pragram, Hopkins is eligible far $108,007.00 in CDBG funds far Program Year XVIII. Staff is recommending that the City propase to undertake hausing rehabilitatian activities with 1992 CDBG funds, reserving $12,000 of these funds for the Day Care Association for a period af 6 manths. As a requirement of the CDBG funding pracess, the City must hald a pUblic hearing an the prapased use of funds. Primary Issues to Cansider o What is the intended use of these funds? o What activities has the City previausly funded? o Shauld the City af Hapkins submit a request for CDBG funding to Hennepin County? o What activities are being recammended to be funded? o What other activities are eligible far funding? supparting Information o Resolution Number 92-20 a statement of Objectives - CDBG pragram a Lett fram the Greater Minneapolis Day Care Assoc. rm 0 f Senicr Comm. Services - HOME Program Coardinatcr Public Hearing - CDBG Program Rpt. 92-58 Page 2. , Primary Issues to Ccnsider o What is the intended use of these funds? The Cammunity Develapment Block Grant pragram (CDBG) was established by the Housing and Ccmmunity Development Act of 1974 as amended to pravide decent housing, a suitable living environment and expanded ecanomic apportunities primarily far persons with law to moderate incomes. The.funds are primarily intended to be used far "bricks and mortar" items, and nat intended to be used to suppart sacial service activities. The averall objectives of the program are: o to. develop and maintain viable urban communities by providing decent housing, a suitable living environment and expand~d economic appartunities, principally for low and maderate income persans; a to aid in the preventicn or elimination of slums and blight; o to. meet other cammunity develapment needs having a particular urgency. o What activities has the city previously funded? The three activities that the City has financed with Urban Hennepin County CDBG funds are: Housing Rehabilitation, Community Center Impravements and the Greater Minneapalis Day Care Association. o Should the City of Hopkins submit a request for CDBG funding to Hennepin county? The City of Hopkins has agreed to. a three year cammitment far participating in the Urban Hennepin County CDBG pragram (rather than applying for the funds directly to HUD). The CDBG funds fill a gap in available financing for many worthwhile activities. o What activities are being recommended to be funded? Attached in the statement af Objectives is the activities eligible far financing with staff has looked at each eligible activity pcsitive impact an the City and recammends budget: a description of CDBG funds. in terms of it's the following Hausing Rehabilitatian $108,007. Public Hearing - CDBG pragram Rpt.92-58 Page 3 The need far a cantinued housing rehabilitatian program has been identified in the Camprehensive Plan and the housing analysis due to the age of the City's hausing stack and the percentage of low to. moderate incame hcuseholds. Currently, 1QO% of the 1991 CDBG funds allocated to. hausing rehabilitation have been committed to prajects. Although financing for the residential rehabilitatian pragram is available through the revolving lcan fund, if alternative funds are not used to supplement the program, the revolving laan fund would soan be depleted. There has been continual interest in the rehabilitation program. In the last year, 84 applicatians have been mailed, 31 applicatians received, and 20 households determined to be eligible and projects either in process or campleted. As part af the 1992 budgeting process, the City Ccuncil agreed to. provide $12,000 in CDBG funds to the Greater Minneapalis Day Care Association program. This program pravides day care assistance to income eligible Hopkins hauseholds. At this same time, the Council was approached by Vail Place for funding assistance. The Council decided nat to budget CDBG funds far Vail Place, but rather to budget $600 from the General Fund. Although $12,000 has been targeted far day care assistance through the Greater Minneapalis Day Care Associaticn, City staff and Hennepin County representatives are concerned that the Day Care Association may have difficulty spending the CDBG funds in the time allowed. Currently, they still have $4,449.07 in 1990 CDBG funds remaining and the entire $12,230 from their 1991 allacation. Representatives of the Day Care Association have indicated that a desire to spend federal grant funds first combined with staffing difficulties have resulted in the delay. They feel, however, that they do. need the 1992 funds and will be able to spend the funds by the December 31, 1993 deadline. staff is recommending that out of the $108,007 allocated to. hausing rehabilitatian, $12,000 be set aside for 6 months from the date the CDBG funds are autharized. If within this 6 month period the Day Care Associatian can spend the 1990 and 1991 CDBG funds, the City will revise the program budget and allocate up to $12, .000 to. the Day Care Association based on their need for the funds. Public Hearing - CDBG Program Rpt.92-58 Page 4 o What other activities are eligible for funding? Public Services: Under the CDBG Program, the city is limited in the percentage of CDBG funds which can be used for public service activities. The maximum percentage is 15-20% of our allocation. Based on an allacatian of $108,007, approximately $16,000 can be budgeted for public service activities. The prapased Minneapalis Day Care Association assistance is a public service activity. Staff has also. been recently appraached by Senior Community Services for possible funding of their HOME program (Household and Outside Maintenance for Elderly). This program provides housekeeping and general maintenance services to elderly residents an a sliding fee scale and is also considered a public service activity. A similar program is also administered thraugh the City's Community Center. Hawever, the Community Center Caardinatorhas indicated that they do. not have enaugh staff to effectively administer their program and wauld support funding for the HOME Program as a way af offering these needed services. seniar Cammunity Services has indicated a yearly budget of approximately $13,980 to offer the pragram in Hopkins. Hawever, in the first year of operatian the cost would be approximately half to. three-quarters af this amount. They have also. indicated'a willingness to work with the city is securing additional funding through ather saurces such as the Raspberry Festival. Staff feels that the HOME pragram affered thraugh Senior cammunity Services is a warthwhile pragram. The services offered compliment the city's hausing rehabilitation program without duplicating efforts. HOME pragram administrators cauld also. be an excellent referral source for the rehab program. Hcwever, if the City chooses to. fund the HOME pragram with 1992 CDBG funds (at any level) the City should be willing to make a lang term cammitment to. funding the pragram. Given the estimated yearly budget, this would result in very little if any CDBG funds available in the future to fund the Greater Minneapolis Day Care Associatian or other pUblic service activities. Because of this, staff recammends reviewing Senior Community Services' request during the 1993 budget prccess (along with those from the Day Care Assaciation, Vail Place and other Public Hearing - CDBG Program Rpt.92-58 Page 5 public services organizatians). All arganizations can be given an opportunity at this time to make their presentatians. staff would suggest ranking the various programs based on criteria reflecting the City's goals and objectives far community develapment. Administration: currently, the salaries for the staff that administer the hausing rehabilitatian pragram are paid out of the housing rehabilitation revolving laan fund and nat with general fund or CDBG manies. This is done due to the amount of recordkeeping necessary when using CDBG funds for administration. Because bath funds (revolving loan account and CDBG funds) are used far the same purpase, housing rehab, there is no. benefit in using CDBG funds for administration. Hcusing: staff has discussed with Hennepin Caunty the possibility of using CDBG funds for financing the rehabilitation of rental property. Although it wauld be an eligible activity, the relatively small amaunt af funds available would severely limit the number of projects that could be assisted. Therefore the impact af this activity wauld be minimal and the amount of funds available would not be sufficient to satisfy the demand. Alternative rental rehab financing is cantinued to be scught. Neiqhborhaod Revitalization: The amount of funds available do nat allaw the City to. canduct a comprehensive neighborhaad revitalization pragram. Public Facilities: COBG funds used far this activity must primarily benefit low to. moderate income persans. No eligible prajects have been identified. Econamic Development: Staff feels that there are sufficient funds available at this time for ecanamic development cansidering the eligibility guidelines and reparting requirements for this activity. Architectural Barriers: The remaval of architectural barriers far the handicapped is an eligible expense under the City's housing rehabilitatian program. There have been no public buildings in the City af Hcpkins which have been identified to require handicap accessibility improvements. Public Hearing - CDBG Program Rpt.92-58 Page 6 Alternatives The Council has the fallowing alternatives regarding this issue: o Approve the Year XVIII CDBG pragram praposed by staff. o Consider the funding af other activities which meet the requirements far CDBG funding, limiting pUblic service activities to 15-20% of tatal. o Hald Public Hearing but cantinue far further informatian. The Cauncil shauld be aware that requests far funding are due to Hennepin County by April 15, 1992. RESOLUTION NO. 92-20 RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR YEAR XVIII OF THE URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the City of Hapkins, thrcugh exec~tion of a Jaint Cooperation Agreement with Hennepin County, is caoperating in the Urban Hennepin Caunty Community Development Block Grant pragram; and WHEREAS, the City af Hapkins has develaped a proposal far the use of Urban Hennepin County CDBG funds made available to it, and held a pUblic hearing an March 2, 1992 to. obtain the views af citizens an local and Urban Hennepin Caunty hcusing and cammunity development needs and the city's prapased use af $108,007.00 frcm the Year XVIII Urban Hennepin Caunty Cammunity Develapment Black Grant. BE IT RESOLVED that the City Council of the City of Hapkins approves the fallawing praject far fundi~g from the Year XVIII Urban Hennepin Caunty Cammunity Development Black Grant pragram related and applicable pragram income and autharizes submittal af the prapasal to. Hennepin Caunty for review and inclusian in the Year XVIII Urban Hennepin County Cammunity Development Block Grant Program Statement af Objectives and prajected Use af Funds. Housing Rehabilitation $108,007 Adopted this 2nd day af March, 1992. By: Mayor Attest: City Clerk STATEMENT OF OBJECTIVES YEAR XVIII (1992) URBAN HENNEPIN COUNTYCDBG PROGRAM Community Oevelopment Block Grant funds may be used to support a wide range of housing and community development activities. The Statement of Objectives provides a framework for use by Urban Hennepin County participants in develop- ing local community development programs. Urban Hennepin County objectives are supportive of the national COBG objectives and are intended to illustrate their applicatio~ to the satisfaction of the short-term and long-term housing and community development needs of Urban Hennepin County. The national objectives of the COSG program are: developing viable urban communities by providing decent housing, a suitable living environment and expanded economic opportunities principally for low and moderate income persons; aiding in the prevention or elimination of slums or blight; and meeting other community development needs having a particular urgency. Each activity carried out with COBG funds must, of course, be eligible under program regulations (24 CFR 570) as well as fundable pursuant to a national program objective. The Urban Hennepin County COBG objectives are presented by major program subheadings. They are highlighted under the subheading. AOMINISTRATION The CDSG program requires that Urban Hennepin County maximize the benefit of available .funds consistent with the needs of low and moderate income persons and participant communities. In like manner it is a program responsibility to maximize program benefit and effectively administer program funds. Contain program administrative costs through the use of program manage- ment contracts for joint activities funded by several jurisdictions. No more than three activities should be undertaken by any participating community. Each activity should be budgeted with at least $7,500. In cases where the planning allocation is less than $7,500 only one activity should be programmed. When funds are committed jointly with other participants to carry out a single activity these limits need not apply. Facilitate cooperation am~ng participants in the development and imple- mentation of multi-community CDBG activities to address common concerns and needs. Support program activities which will generate program income to maintain a level of program funding. Maintain a process for citizen participation in the development, imple- mentation and evaluation of the Urban-Hennepin County COBG program. Implement Urban Hennepin County COBG assisted activites in compliance with the Urban Hennepin County Antidisplacement and Relocation Plan and the Uniform Relocation Assistance and Real Property Acquisition Policies Act. o PUBLIC SERVICES The CDBG program asserts that the expansion and improvement of the quantity and quality of public services available to low and moderate income persons is essential for the development of viable communities. Provide funding for public services which represent a new service or expanded level of service consistent with CDBG regulations. REMOVAL OF ARCHITECTURAL BARRIERS The Urban Hennepin County CDBG program is committed to the removal of barriers which prohibit or limit individuals with disabilities from accessing services, facilities and accommodations provided for public use. 1/28/92 STATMTOF.OBJ . ' 1/13/92 Jim Kerrigan Director of Planning City af Hapkins 1010 First street Sauth Hapkins, MN 55343 Dear Mr. Kerrigan: I am writing to. update yau on the CDBG funding Child Care fee program. As you have noticed, this past year we have slaw to spend down an the CDBGdollars for yaur pragram. are a two major factars that have come into. play. sliding been There 1) New Federal Child Care funds and aur palicy of having families use any state and Federal child care funds befare we subsidize them with yaur city's CDBG program. The new Federal funds called the Child Care and Development Block Grant (CCDBG) have been targeted for nan-AFDC families who are warking or in schaal. The funds have been released in stages since last winter. It has meant that some families that have been served by yaur city CDBG funds were able to be switched to the new funding. others who have came up an the waiting lists were able to access the new funding and did nat need the city funds. Fallowing these palicies has the effect cf maximizing the maney yaur city puts into. Child Care and assuring that the additianal maney will mean additianal child care subsidy far your city's residents. It also means that in such transition times the spending is slow while the patential for ather funding is pursued with each family. 2) Waiting lists have been building for several years and pracess of cantacting families has been difficult and time cansuming. Many af the families needing child care assistance have been on waiting lists far cne to. two. years. We are committed to. serve peaple in the order they signed up for the pragram. Often, when we contact families their lives have changed ar they need time to assess their optians now that they have child care suppart. If parents need to go to schaal, far example, it may be a few manths be.fare the next semester ar term when they can begin schaol. Giving each family same reasanable time to respand to. the child care subsidy opportunity means that warking thraugh the waiting list can be a slow pracess. Greater Minneapolis' Day Care Association 1628 Elliot Ave. S. · Minneapolis, Minnesota 55404. (612)'341-1177. Fax (612) 341-4356 @~n l.fl'alMIIME5'TI.OCAlIM ~cooperating Fund Drive ~ ~ember Organization . r fI " We too are cancerned abaut the time it is taking to. draw dawn the Year XVI funds. We have met with Larry Blackstad from Hennepin County Planning and have assured him that we will be able to spend the money on child care for low income families in Hcpkins. We still have a waiting list af Hcpkins families who have called aur affice in need af child care assistance. We also hanor the waiting list maintained by Hennepin County which has a number af Hcpkins families cn it. As of taday there is one active family drawing an the Hapkins fund and eight pending applications. Most of the applications are awaiting parent infarmation abaut schoal enrollment or wark. During the period fram July 1, 1990 thraugh June 30th, 1991 Hapkins CDBG funds pravided the following service: Children Served: 8 Families Served: 6 Single Parent Families: 6 Two Parent Families: 0 We do anticipate an angoing need far funding during year XVIII. We believe that the impact of the new federal funds will be significant, but nat sufficient to meet the needs far child care. Mast af the federal funds are concentrated on low income warking families. This is gaad in that this is a group of people who need dependable sliding fee child care assistance an a sliding fee basis. Hawever, right naw there is no pragram except yaur CDBG funding far single parent AFDC families who are nat STRIDE eligible (ie. an AFDC far 3 or more years or under age 24). Many af these parents need child care help to attend school so they can become employable at a level that can suppart a family. Because af the extremely low income of these families, we will be able to serve fewer families in this categary with the same amount of money. We appreciate your cancern about this program and wauld be happy to. meet with yau or any Hopkins representatives to discuss matters further. Sincerely, 52~~~ Associate Director ~N~ Grace Ncrris Community Liaison SENIOR COMMUNITY SERVICES H.O.M.E. PROGRAM DESCRIPTION A. Statement of the Problem: According to 1990 census data, the over-60 population in suburban and rural Hennepin County now exceed the elderly in Minneapolis by 35,100, with the fastest growing segment in the 75+ aged group. Many of these seniors have lived in their current residences for 30 years or more. They enjoy the familiarity of their homes and neighborhoods, and society benefits from the independent lifestyle it offers them. However, as seniors age, the maintenance of a residence becomes increasingly difficult. Adults over 65 represent 49% of the low-income households if'! suburban Hennepin County (Community Action for Suourban Hennepin study). By their mid-70's the elderly themselves know it is no longer wise for them to do things such as climb ladders or perform other household chores. Chronic ailments can keep them from doing routine housework like vacuuming. It is at this point in their lives that they begin to need some support from the community to continue to live in their residences. Not only do they need someone to assist them with their h.ousehold chores. but if their financial resources are limited, they need this assistance at a modest cost. In-home assistance prevents the expensive and demoralizing alternative of placing seniors in long-term care facilities. The large capital investment and intensive personnel needs required for nursing home operations drain private ana public resources. One-third of elderly couples spend themselves into poverty within three months if one of them enters a nursing home (Congressional Report). B. Target Population The H.O.M.E. Program services are targeted at elderly residents, 60 year and over or disabled persons, living in the suburbs. The majority of these individuals live on low to moderate, tixed incomes. Many clients have specific physical disabiiities and others have become too trail to accomplish strenuous household chores. The H.O.M..E. Program serves those clients who need assistance but are not financially capable of paying the full cost of service as well as those elderly residents who are frail, vulnerable adults. C. Client Population: Elderly Served - 1991 Data 85.2% are over 65 years 59% are low income 85% are physically handicapped 76% are women 50% are over 75 years 13% are over 85 years O. Goal: To have a positive affect on the elderly's ability to maintain themselves in their residences, remaining independent. SENIOR COMMUNITY SERVICES PROPOSED H.O.M.E. (HOUSEHOLD AND OUTSIDE MAINTENANCE FOR ELDERLY) PROGRAM IN HOPKINS Hopkins support requested: $13,990 620 Hours of Maintenance (large, small, and skills bank) Serving 40 Hopkins residents $14,300 Subtotal Cost - 4.700 Client Fees $ 9,600 Subtotal needed to cover shortfall 350 Hours of Homemaker Serving 28 Hopkins residents $ 6,590 Subtotal Cost -3.600 Client Fees $ 4,390 Subtotal needed to cover shortfall Total program shortfall: $13,990 Cost to the City of Hopkins per client: $206 Total program costs and shortfalls are based on experience with a population base of similar size and composition. These total costs would likely not be felt until after two. years into program operation because of the start-up time in community awareness. (However, the Activity Center and Senior Outreach are very effective at assisting Hopkins residents in utilizing available serv.ices.) During the first year of operation, likely only half to three-quarters of the projected amount would be needed. The amount of shortfall could be covered with CDSG monies, in combination with funding from other sources (such as the Raspberry Festival and the County) which the City and Senior Community Services could together secure. It would be inappropriate to underfund the program so that resources are depleted within only a few months.