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CR 06-020 2006 CDBG Program ,------- ---- I I I I CITY OF m HOPKINS February I, 2006 Council Report #2006-020 2006 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM Proposed Action Staff recommends approval ofthe following motion: Following the public hearing. adopt resolution number 2006-008 approving the proposed program for the 2006 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 CDBG program, Hopkins is eligible to receive $110,995 in CDBG funds for the 2006 program year. This is a $9,000 reduction from the 2005 allocation; and a $34,000 reduction from 2004. The funds will be received on July I, 2006 and must be expended by December 31, 2007. Staff is recommending that the City propose to fund the following activities with 2006 CDBG funds: . Housing Rehabilitation Loan/Grant Program . Hopkins Minnetonka Family Resource Center As a requirement of the CDBG funding process, the City must hold a public hearing on the propose.d use of funds prior to approving the attached resolution. The City's proposal must be submitted to Hennepin County by February 23, 2006. 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? Finan ial Impact: $ 0 Budgeted: Y/N Related Documents (eIP, ERP, etc.): Notes: Source: 2006 CDBG program Council Report 2006-020 Page 2 Analvsis 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 "bricks and mortar" projects versus social service programs. Activities must meet at least one ofthe following objectives ofthe 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 · Activity should be ranked as a high priority in the Hennepin County Consolidated Plan. Those activities are: Rental housing for families, elderly, physically disabled persons and homeless persons with incomes below 50% of median income Supportive housing for persons with mental illness and incomes below 50% Rehabilitation of owner-occupied housing with income below 50% Homeownership assistance to households with income below 80% · Minimum of70% of funds spent on low to moderate income households · Funds can not be available from other sources What activity is being recommended for funding? Staff is recommending that $105, 995 of CDBG funds be used for housing rehabilitation activities. The Housing Rehabilitation Loan and Grant program has experienced continued demand during the past year and is important not only in its assistance to homeowners but also to maintain the City's housing stock. It is anticipated that $105,995 will assist 6 households. Staff is also recommending funding the Hopkins Minnetonka Family Resource Center (FRC) in the amount of$5,000. The FRC is a valuable resource in the community and supports the City of Hopkins by taking referrals from many of the City's departments including the police, housing and the receptionist 2006 CDBG program Council Report 2006-020 Page 3 . Where any other requests for funds received? The following additional requests were received for 2006 CDBG funding: Organization Amount Purpose HOME Line $4,000 Tenant hotline, high school renter education and immigrant outreach project Housing crisis prevention, emergency financial assistance, food distribution ICA $5,000 In reviewing these requests for funds, staff utilized the social service funding procedure that requires the service to be funded to be directly related to the services provided by a department of the City and supported by that department. Because these activities did not meet this threshold, staff is not recommending 2006 CDBG funding. Alternatives The City Council has the following alternatives regarding this issue: . Hold public hearing; approve 2006 CDBG program as proposed by staff. . Hold public hearing; amend the proposed CDBG activities and/or budget. CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2006-008 RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 2006 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 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 WHEREAS, the City of Hopkins held a public hearing on February 7,2006 to obtain the views of citizens on local and Urban Hennepin County housing and community development needs and the City's proposed use of$110,995 from the 2006 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. Activity Budget Housing Rehabilitation Hopkins Minnetonka Family Resource Center $105,995 $ 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 2006 CDBG Program Adopted this 7th day of February, 2006. By: Eugene J. Maxwell, Mayor Attest: Terry Obermaier, City Clerk HOME ~~ L.!!J ( ~ 3455 Bloomington Avenue Minneapolis, MN 55407 Office Phone: 612/728-5770 Hotline: 612/728-5767 Fax: 612/728-5761 www.homelinemn.org Kersten Elverum City of Hopkins 1010 First Street South Hopkins, MN 55343 January 4, 2006 Dear Ms. Elverum, This letter is to request funding in the amount of $4,000 from the City of Hopkins's Community Development Block Grant Program. This funding would support HOME Line's Tenant Hotline Services and High School Renter Education, as well as offering new services through our Immigrant Outreach Project. In addition to providing residents in Hopkins our tenant hotline services and high school renter education program, we will now be addressing the needs of new immigrant communities. We are excited about this new program because it allows individuals with language and cultural barriers to access our services and get the information they need to keep their homes safe, decent, and affordable. I am enclosing a description of our proposal and a fact sheet summarizing our hotline's service to Hopkins residents. HOME Line is building upon our depth of experience in serving Hopkins. We are creating new solutions to meet current challenges and addressing the needs of low income residents is a priority for HOME Line. We would like the City of Hopkins to become our partner in meeting these needs. Please feel free to call Michael Vraa, our Managing Attorney and Hotline Director at 612 728-5770 x 113 if you need further information. We look forward to hearing from you. Sin,~er~, tdfl J~ Beth Kodluboy Executive Director enclosures as noted Tenant Advocacy in Minnesota Summary f HOME Line's Tenant Services Proposal Renters make up nearly 5,104 households in Hopkins, and many of these families have low incomes. When renters have problems involving their homes, those who don't know their rights and responsibilities can end up living in housing that is unsafe, lose money that is rightfully theirs, or make decisions that cost them their home. HOME Line provides renters with the tools necessary to keep their homes safe and affordable. HOME Line will provide three distinct, but related, programs as part of this grant: a tenant hotline that provides free legal advice to tenants about landlordltenant law, a high school educational program, and our new immigrant outreach program that provides services to new immigrants. These services prevent problems ranging from homelessness to illness from unsafe living conditions, and result in reducing the use of the city's emergency resources. While our services are available to all renters free of charge, over 94% of our callers are low or very-low income; almost three quarters (72.5%) of these callers are women; 21% are racial minorities. Our programs are aimed at low income renters, high school students who are about to enter the rental market, and recent immigrants. Tenant Hotline The first of these programs is HOME Line's tenant hotline. The hotline began in 1992 as a service to Suburban Hennepin County residents. Today, we serve the entire state (excluding Minneapolis and St. Paul) and have recently taken our 78,00Oth call. Three staff attorneys work full time on the hotline along with 40-60 law student volunteers each year. Hopkins has accounted for 2,813 calls since 1992. Our tenant services to Hopkins have helped save tenants at least $ 29,500. The most common reasons Hopkins residents call our hotline are; repairs, evictions, security deposits, questions about how proper notice to vacate is given, and break lease questions. The need for this service in Hopkins is apparent -- Hopkins residents already rely on this valuable service. Hiah School Renter Education Program The second program is our high school presentation program. To date, we have spoken to 660 classes (over 17,000 students) throughout the metro area. Since 1992, HOME Line has spoken to 33 classes (714 students) at Hopkins High School. This presentation has awards from both Best Prep and B.E.E.F. (Business Economic Education Foundation). It focuses on the things that future renters should know, including how to avoid evictions, how to select roommates, security deposits and understanding leases. Immigrant Outreach Proiect The third program focuses on immigrant outreach efforts. According to the 2000 census, foreign born people make up at least 2,390 or 14.3% of the Hopkins population (a number which will surely continue to grow). Recognizing that many recent immigrants are not sure where to find a variety of useful resources, HOME Line has begun working to bridge this gap. An example of how this program works illustrates how we will implement it in Hopkins: The African-Assistance Program is a Brooklyn Park based agency that works on issues affecting recent immigrants from Africa (their criteria for helping someone is that they moved to the U.S. in the last seven years). We sent a staff attorney to conduct a three hour training at their office. In attendance were staff from the African-Assistance Program along with volunteers that frequently work in their office. The three hour session is designed to give a broad overview to the key concepts of landlord tenant law in Minnesota. Now, when HOME Line CDBG Application to Hopkins January 4, 2006 Page 2. a client of their program approaches them with a problem concerning their tenancy, they are put in contact with the specific attorney who spoke at their office. If the client needs to fax in documents or needs a translator, the African-Assistance Program tries to provide this help. The goal of this program is to have the social service agency serve as a conduit between the recent immigrant with a tenant problem and our office. By offering free tenant hotline services and free high school renter education programs for high school students, HOME Line has been providing needed services for those most vulnerable. Many recent immigrant groups live and work in Hopkins and many of them are living in rental housing with lower incomes and have no knowledge of their rental rights. It is important that we train and work with those social service providers who have contact with these new residents, so they too can use the tenant services to solve their rental problems. Costs of Service Even though our services are now statewide, the city of Hopkins still makes up over 2% of our callers. Our hotline services budget is 296,000. The amount we are asking for is less than the cost to provide this valuable service to Hopkins low income renters. HOME Line Renters' "Hotline" Hopkins Information on calls during the period 1/1192 through 12/31/2005 Over the past fourteen years a total of 2,813 Hopkins renters have contacted HOME Line. This represents service to approximately 7 032 residents when all family members , have been counted. The vast majority (over 97%) of Hopkins callers to HOME Line are very-low and low income. These income categories are those used by the U.S. Department ofH.U.D.: Very-low: incomes below 50% of the metro median Low: incomes between 50% and 80% of the metro median Moderate: incomes above 80% of the metro median. High School Renter's Education HOME Line's High School 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 problems. In the last thirteen years, HOME Line has been to Hopkins High School 33 times, speaking to 714 students. HOME Line has also sent speakers to many property manager's meetings (including Hopkins), continuing legal education seminars and trainings for various shelters/resource centers. r<<Imber of Calls Per Year 300 207 232 246 256 256 235 233 206 174 168 159 166 139 136 200 100 o 92 93 94 95 96 97 98 99 00 01 02 03 04 05 Callers' Income 1992-2005 Very Low 80% ~ Moderate Low 3% 17% HOME Line has helped Hopkins residents recover money from their landlords. Tenants have received $14,135 back from improperly withheld security deposits and $15,452 in rent abatements (refunds for substandard conditions). We have also helped prevent 84 evictions in Hopkins. The Hotline receives approximately 8,000 calls per year. Careful records are taken for each call, including the reason the tenant called. These are the top ten topics in Hopkins over the last fourteen years (followed by the number of calls): 1. Repairs 441 2. Evictions 403 3. Security Deposits 298 4. Notice to Vacate 253 5. Break Lease 203 6. Tenant Screening 155 7. Financial Aid 152 8. Housing Search 140 9. Lease Questions 114 10. PrivacylIntrusion 84 INTERCONGREGATION COMMUNITIES ASSOCIATION 3909 Williston Road Minnetonka, MN 55345 Phone: (952) 938-0729 Fax: (952) 938-7822 email: ICA@emergencyfoodshelf.org website: www.icafoodshelf.orl! 339 Third Street Excelsior, MN 55331 Phone: (952) 470-0692 Fax: (952) 470-0692 January 26, 2006 Ms. Kersten Elverum CITY OF HOPKINS 10 10 First St. So. Hopkins, MN 55343 Dear Kersten: Intercongregation Communities Association requests $5,000 from 2006 CDBG funds. We recognize that the CDBG funding is designated for community service and we want you to know about all the services we offer in that regard. Our Housing Crisis Prevention Funding Program-ICA is just one of the many services we provide to our communities. Over 360,000 pounds of emergency food were distributed through our emergency food program in 2005. This benefited over 8,000 households and almost 24,000 individuals. ICA also gives emergency financial assistance in the form of no-interest loans for utility bills, car repair bills, prescriptions, etc. Gas vouchers and bus tokens are given to those who need to get to work or look for work. Our holiday food programs for November and December totaled 30,279 pounds that were shared with 958 households and made the holidays brighter for 2,947 individuals, plus ICA coordinated "Adopt A Family" holiday gifts for nine families in December and the distribution of33 additional food baskets that were donated by the VFW. ICA provides referrals to other programs, as well. If you would like to see budgets for any of our programs, ICA would be glad to provide them. We appreciate any consideration you can give ICA. Sincerely, RCONGRE~TI~,N CO UNITIES ASSOCIATION ~ ~d./' / ette Marie Poesche Executive Director AMP/sb Enclosures INTERCONGREGATION COMMUNITIES ASSOCIATION 3909 Williston Road Minnetonka, MN 55345 Phone: (952) 938-0729 Fax: (952) 938-7822 email: ICA@emergencyfoodshelf.org website: www-icafood.helf.org; 339 Third Street Excelsior, MN 55331 Phone: (952) 470-0692 Fax: (952) 470-0692 CDBG GRANT INFORMATION CITY OF HOPKINS January 26, 2006 Intercongregation Communities Association (ICA) requests $5,000 for community service projects from the Hopkins CDBG program. ICA will, with this grant, assist our Hopkins neighbors as they strive for self-sufficiency. As a general rule, Hopkins residents comprise 51 % of our clients. b. Total operating budget ofthe organization See budget attached. c. Percent of budget used for administration, etc. Percentage of budget for administration for ICA projects is 16%. d. Amounts of funding received from other sources Generally, 22% of our budget amounts are received from individual donations; 30% from foundations and organizations; 20% from our partner congregations; 19% from government agencies; and 9% from others. e. How will your organization's activities benefit the citizens of Hopkins Over 360,000 pounds of emergency food were distributed through our emergency food program in 2005. This benefited over 8,000 households and almost 24,000 individuals. So, at least 180,000 pounds offood benefited 4,000 households of Hopkins in 2005. ICA also gives emergency financial assistance in the form of no-interest loans for utility bills, car repair bills, prescriptions, etc. Gas vouchers and bus tokens are given to those who need to get to work or look for work. Our holiday food programs for November and December totaled 30,279 pounds that were shared with 958 households and made the holidays brighter for 2,947 individuals, plus ICA coordinated "Adopt A Family" holiday gifts for nine families in December and the distribution of 33 additional food baskets that were donated by the VFW. ICA provides referrals to other programs, as well. City of Hopkins CDBG Grant Page 2 January 26, 2006 This is the sixth year for the HCPFP-ICA program. This program is a prevention program with a goal of keeping our families and individuals from being evicted and becoming homeless. We know that in order to make a difference in our communities and to keep our children in our schools, we must help our clients stay in a stable home enviromnent. ICA, along with collaborating agencies, has provided emergency housing assistance totaling $279,530 to 466 households in the five years of this program. In these households, over 500 children were able to stay in their schools. Again, in round figures, 51 % means that over $140,000 has been shared with 235 households in Hopkins. f. Why are the funds necessary Because of the concentration of affordable housing in Hopkins, at least 51 % of our client services benefit individuals in Hopkins. g. What data substantiates the need for this project/service in Hopkins Our numbers continue to demonstrate to us that there is much need for our services in the Hopkins community. ICA is definitely fulfilling our mission of meeting the emergency needs of our neighbors in Hopkins. h. History-Number of Hopkins citizens served ICA served 8,202 households with emergency food in 2005 and 6,728 in 2004--a 22% increase. Again, with half of the households served coming from Hopkins, the needs in Hopkins are continuing to increase at the same pace. i. Are you aware of any other agencies providing a similar service in Hopkins? No. j. If yes (see above), explain why they are not meeting needs. INTERCONGREGATION COMMUNITIES ASSOCIATION 3909 Williston Road Minnetonka, MN 55345 Phone: (952) 938-0729 Fax: (952) 938-7822 email: ICA@emergencyfoodshelf.org wehsite: www.icafoodshelf.org 2006 HCPFP-ICA BUDGET Target Park Nicollet Foundation Thrivent Financial Hopkins CDBG Allocation Minnetonka CDBG Allocation Kopp Foundation Allegra Print and Imaging 34 Congregations Foundation Grants, Civic Organizations Individual Donations Projected Revenues $25,000 Pending 10,000 Pending 1,600 Certain 5,000 Pending 5,000 Pending 5,000 Pending 1,000 Certain 40,000 Pending 60,400 Pending 40,000 Pending $193,000 Total 168 HCPFP-ICA Housing Crisis Households @$1,000each Administrative Support Housing Awareness Training, Education, Printed Materials Postage, Advertising, Public Relations, Posters & Banners 339 Third Street Excelsior, MN 55331 Phone: (952) 470-0692 Fax: (952) 470-0692 Projected Expenses $168,000 20,000 2,000 3,000 $193,000 ePKINS HOOL DISTRICT COMMUNITY EDUCATON 1001 HIGHWAY 7 HOPKINS, MINNESOTA 55305 "Passion for Learntng...Learnlng for Life" Phons (952) 988.4086 Fax (952) 988.4079 Websita www.hopkins.k12.mrr.us January 26, 2006 To Whom It May Concern: As the Coordinator of School & Communities in Partnership, I'm writing in support of ICA's work to help alleviate the housing crisis in the western suburbs that it serves. ICA has worked tirelessly at our monthly collaborative meeting to bring the issues of the working poor to the table. They developed the Housing Crisis Prevention .Fund to help families experiencing a short-term crisis by providing one-time loans to help with housing costs. Not only have they demonstrated leadership in our community around the housings issues, but also they have successfully rallied a large .llumber of volunteers and organizations to collaborate with tllem in tllis work. I support the leadership of leA as they seek additional grants to assist them in this important work. Sincerely, . ~~. Be~y He~g, coo~ . School & Communities in Partnership AN EQUAl. OPPOArUNl1YlAFFIRMATNE ACTION EDUCATOR ANO EMPLOYER .'t;..~ ~ DOMINIUM Development & Acquisition, LLC July II, 2005 To Whom It May Concern: Dominium Development & Acquisition, LLC strongly supports lCA (Intercongregation Communities Association) in their mission to assist to our neighbors in meeting their emergency needs. lCA has served the communities of Hopkins, Minnetonka, Deephaven, Excelsior, Greenhaven, Shorewood, and Woodland for 34 years. ICA has offered hope; emergency food; emergency financial assistance to pay the rent, mortgage, utility bills, car repairs, prescriptions, etc.; and emergency transportation for our seniors to go to their medical appointments. lCA's interest in providing affordable housing for our seven communities is evidenced by their annual fundraiser for their Housing Crisis Prevention Funding Program-lCA. This program was begun in 2000 and since that time, lCA, along with collaborating agencies, has provided emergency housing assistance totaling $203,866 to 365 households. In these households, 430 children were able to stay in their schools. From 2003 to 2004, the number of households assisted with emergency financial assistance increased 37%. The number of families who are struggling financially to keep paying their rent and mortgage continues to increase. Dominium Development & Acquisition is partnering with ICA to make affordable housing more available for our neighbors in need in our communities. lCA's clients will be referred to Dominium for Section 8 housing. Sincerely, DOMINIUM DEVELOPMENT & ACQUISITION, LLC Pc2!- Paul Sween Principal 2355 Polaris Lane North Suite 100 Minneapolis, MN 55447 Phone 763/354-5500 Fax 763/354-5650 Acquisition. Development. Construction. Management ~OARD OF IRECTORS Officers KIM BURMEISTER Chair JUDY CORRADI CARMEN FERGUSON Vice Chair LAURA NEWINSKI Treasurer PATRICK HAGAN Secretary BOARD MEMBERS NEIL BROWN PAMELA BUCHANAN HEATHER BURNS CARRIE D'ANDREA SALLY HAGUE JENNIFER HARKER T ACY MANGAN STEVE NATHE PAUL OMOOT BETH WILLIS Honorary VIRGINIA DAYTON JOANNA VAIL T. MITCHELL WILLEY In Memoriam ~LL BLUBAUGH IE GOLDSTONE E GROSSMAN GLORIA SEGAL Chief Executive Officer KARMIT BULMAN .,<.. fOR .C,"_. :;; ... 0 " .. - . < a z " S ~ <L ' 1-ot ,/>0 ~.f.NI J,.~$~ Certified Member I!I mmunity Partner www.vailplace.org .VAILPIACE Growing Toward Independence July I, 2005 Annette Marie Poeschel Intercongregation Communities Association 3909 Williston Road Minnetonka, MN 55345 Dear Annette: Vail Place, as you know, is a Community Support Program with a mission to help adults with severe and persistent mental illness develop the skills and tools they need to work toward recovery and self-sufficiency. We provide a range ofser- vices, including housing support, pre-vocational training, transitional employment, case management, and social/recreational activities. Everyone we serve is se- verely economically disadvantaged and nearly one-third is homeless or at risk of homelessness. I am pleased to provide this letter of support to Intercongregation Communities Association (ICA). ICA has an excellent reputation for providing emergency food, financial assistance, holiday assistance, and other assistance and referrals for people in need. Vail Place and ICA enjoy an excellent collaborative relationship and are exploring ways to increase our collaboration. I look forward to our continued work together. Sincerely, ck~ 1 V'Jw----. Karmit J. Bulman, Esq. Chief Executive Officer 952.938.9622 ext. 23 kbulman{alvailplace.org 15 - 9th AVENUE SOUTH, HOPKINS, MN 55343 PHONE: (952) 938-9622 (TOO) FAX: (952)938-7934 1412 WEST 36TH STREET, MINNEAPOLIS, MN 55408 PHONE: (612) 824-8061 (TOO) FAX: (612)824-9474 I Hopkins Minnetonka II FAMILY RESOURCE CENTER January 16, 2006 Kersten Elverum City of Hopkins I010 First Street South Hopkins, MN 55343 Dear Kersten: Thank you for the opportunity to apply for Community Development Block Grant (CDBG) funding from the City of Hopkins. Our Hopkins Minnetonka Family Resource Center would like to apply for funding in the amount of $5,000. The need for services in the city of Hopkins continues to grow - and our statistics reflect that need. Our Back to School supply drive provided supplies to over 800 children - and more than 58% ofthose children were from Hopkins. Our Center is the distribution site for, Second Harvest Food Bank packages (Mothers & Children & Nutrition Assistance Program for Seniors) - and during 2005 we provided food boxes to 317 Hopkins residents. To-date figures from our Winter Warm Wear program indicate that over 700 pieces of Warm Wear have been distributed to Hopkins children. During Toy Chest time we provided toys to 478 children from the city of Hopkins. The face of Hopkins continues to change and our statistics reflect that change. During Back to School our Hopkins figures indicated we served - 101 African American children, 93 Somali children, 91 Caucasian children, 29 Hispanic children, 16 East African children with the remainder Russian, and multi-cultural children. And we will continue to distribute supplies as the school year continues! Our Resource Center also provides Emergency Food Pales, bus tokens and financial applications to those customers ofIntercongregational Community Association who lack transportation to their Minnetonka site. We also provide a variety of information to new and current residents - answering questions about available housing, recreational opportunities, how to find help for an elderly friend - or information about local school options. Your continued support of the work we do for the residents of Hopkins is greatly appreciated. Thank you. Y)~.: Nora M. Davis Executive Director 915 Mainstreet. Cobblestone Court. Hopkins MN 55343-7515 Tekphone: 952/988-5350 Fax: 952/988-5358