CR 91-67 Urban Henepiin Cty Community Development Grant
. March 11, 1991 Council Report 91-67
PUBLIC HEARING FOR THE 1991 URBAN HENNEPIN COUNTY COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM
Proposed Action
Staff recommends approval of the following motion: Adopt
resolution number 91-132 approving the proposed program for
Year XVII Urban Hennepin County Community Development Block
Grant Funds and authorizing its submittal.
with approval of this action the application will be
submitted to Hennepin County for their review and approval.
Overview
As a participating City in the Urban Hennepin County
Community Development Block Grant Program, Hopkins is
eligible for $100,957.00 in CDBG funds for Program Year
XVII.
Staff is recommending that the activities the city propose
to undertake with Program Year XVII CDBG funds include
. Housing Rehabilitation and assistance to the Greater
Minnesota Day Care Association.
As a requirement of the CDBG funding process, the City must
hold a public hearing on the proposed use of funds.
Primary Issues to Consider
o What is the intended use of these funds?
o What activities has the City previously financed with
these funds?
o Should the City of Hopkins submit a request for CDBG
funding to Hennepin County?
o What activities are being recommended to be funded?
o What other activities can be undertaken with these
funds?
Supporting Information
o Resolution Number 91-132
o Request for Funding/Year XVII Urban Hennepin county
CDBG Program
0.' Memo regarding HOME program
. ;.// /'
Kersten Elverum, Housing Coordinator
. Public Hearing - CDBG Program
Rpt. 91-67
Page 2
Primary Issues to Consider
o What is the intended use of these funds?
The Community Development Block Grant Program (CDBG) was
established by the Housing and Community Development Act of
1974 as amended to provide decent housing, a suitable living
environment and expanded economic opportunities primarily
for persons with low to moderate incomes. The funds are
primarily intended to be used for "bricks and mortar" items,
and not intended to be used to support social service
activities. The overall objectives of the program are:
o to develop and maintain viable urban communities by
providing decent housing, a suitable living environment and
expanded economic opportunities, principally for low and
moderate income persons;
o to aid in the prevention or elimination of slums and
blight;
o to meet other community development needs having a
. particular urgency.
o What activities has the City previously financed with
these funds?
The three activities that the city has financed with Urban
Hennepin County CDBG funds are: Housing Rehabilitation,
Community Center Improvements and the Greater Minnesota 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 commitment
for participating in the Urban Hennepin County CDBG Program
(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 of Objectives is a description of
the activities eligible for financing with CDBG funds.
staff has looked at each eligible activity in terms of it's
. positive impact on the city and recommends the following
budget:
Greater Minnesota Day Care Assoc. - $15,000
Housing Rehabilitation - $85,957
.----.--...----- - --. - --------..- .
~ Public Hearing - CDBG Program
Rpt.91-67
Page 3
The need for a continued housing rehabilitation program has
been identified in the comprehensive plan and the recently
completed housing analysis due to the age of the city's
housing stock and the percentage of low to moderate income
households. Currently, there are three households on the
waiting list for the rehabilitation grant/loan program with
several more applications expected in the near future.
Seven rehabilitation projects are currently in various
stages of the process. Although financing for the
residential rehabilitation Program is available through the
revolving loan fund, if alternative funds are not used to
supplement the program, the revolving loan fund would soon
be depleted.
As part of the 1990 budgeting process, the city Council
agreed to provide $15,000 in funds for the Greater Minnesota
Day Care Association program. This program provides day
care assistance to income eligible households.
o What other activities can be undertaken with these
funds?
. Administration:
Currently, the salaries for the staff that administer the
housing rehabilitation program are paid out of the housing
rehabilitation revolving loan fund and not with general fund
or CDBG monies. This is done due to the amount of
recordkeeping necessary when using CDBG funds for
administration. Because both funds (revolving loan account
and CDBG funds) are used for the same purpose, housing
rehab, there is no benefit in using CDBG funds for
administration.
Housing:
Staff has discussed with Hennepin County the possibility of
using CDBG funds for financing the rehabilitation of rental
property. Although it would be an eligible activity, the
relatively small amount of funds available would severly
limit the number of projects that could be assisted.
Therefore the impact of this activity would be minimal and
the amount of funds available would not be sufficient to
satisfy the demand. Alternative rental rehab financing is
continued to be sought.
Staff has also discussed the possibility of designating the
funds be used for assistance to low income first time home
buyers. However, funding for a program such as this is
4Ia currently being developed in conjunction with the Minnesota
Housing Finance Agency.
e Public Hearing - CDBG Program
Rpt.91-67
Page 4
Neighborhood Revitalization:
The amount of funds available do not allow the City to
conduct a comprehensive neighborhood revitalization program.
Public Facilities:
CDBG funds used for this activity must primarily benenfit
low to moderate income persons. No eligible projects have
been identified.
Economic Development:
Staff feels that there are sufficient funds available at
this time for economic development considering the
eligibility guidelines and reporting requirements for this
activity.
Public Services:
The proposed Minneapolis Day Care Association assistance is
a public service activity. Because the City is limited to
15-20% of its allocation for public service activities,
. there is very little remaining money which is eligible for
this activity.
staff did look into the possibility of funding the HOME
program, administered by Senior Services. However, it is
felt that the very limited funds would be better utilized in
a more comprehensive housing rehabilitation program such as
the one currently administered by the City.
Architectural Barriers:
The removal of architectural barriers for the handicapped is
an eligible expense under the City's housing rehabilitation
program. There have been no public buildings in the City of
Hopkins which have been identified to require handicap
accessibility improvements.
Alternatives
The council has the following alternatives regarding this
issue:
o Approve the Year XVII CDBG Program proposed by staff.
o Consider the funding of other activities which meet
the requirements for CDBG funding.
. o continue for further information. The Council should
be aware that requests for funding are due to Hennepin
County by April 18, 1991.
. RESOLUTION NO. 91-132
RESOLUTION APPROVING PROPOSED PROGRAM FOR YEAR XVII
URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT
FUNDS AND AUTHORIZING ITS SUBMITTAL
WHEREAS, the city of Hopkins, through execution of a
Joint Cooperation Agreement with Hennepin County, is a
cooperating unit 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, following a public hearing on March 19,
1991 to obtain the views of citizens on local and Urban
Hennepin County housing and community development needs and
the City's following proposed use of $100,957.00 from the
Year XVII Urban Hennepin County Community Development Block
Grant:
proiects Budqet
Minneapolis Day Care Association $15,000.00
. Subsidy
Housing Rehabilitation $85,957.00
Total $100/957.00
BE IT RESOLVED that the city Council of the City of
Hopkins approves the proposed use of Year XVII Urban
Hennepin County community Development Block Grant funds and
program related income and authorizes submittal of the
proposal to Hennepin County for review and inclusion in the
Year XVII Urban Hennepin County Community Development Block
Grant Program Statement of Objectives and Projected Use of
Funds.
Adopted this 19th day of March, 1991.
By:
Mayor
Attest:
. City Clerk
. REQUEST FOR FUNDINGfYEAR xvn
URBAN HENNEPIN COUNTY CDBG PROGRAM:
----------------------------------------------------.-------------------------
THIS SECTION YILL BE COMPLETED BY HENNEPIN COUNTY
National Objectives:
Project Eligibility: I
Citation Hennepin County Date
ER Status: /
Status Environmental Review,Specialist Date
Project Number: /
Number Financial Manager Date
---------- ----.. ---.. -- -- --.... ---......... ------..... ----- ...--- --.... -- --....... -- -..... - --_.... --..........
A. GENERAL INFORMATION
. 1. Community: Hopkins
2. Project Name: Greater Minneapolis Day care Assistance PrCXJram
3. Contact Person:
B. PROJECT DATA
l. Year XVII Grant Request $ 15,000
2. Is this request to fund an existing project? X Yes No
-
3. Leveraged Funds: Amount $ 0 Source
(To what extent does project leverage additional public or private
funds/firm commitment?)
4. Location: Address Citywide ~
(Attach map.)
.
5. Description: (Describe the project in as much detail as possible. .
Provide a statement of anticipated results; what, if any alternative
funding sources have been considered for the project; and for a multi-
year project, describe the program accomplishments to date.)
CDBG fW1ds will b2 used to provide day care assistance to income
eligible individuals and households through the Greater Minneapolis Day
Care sliding fee program.
The prcgram will be administered by the Greater Mirmeapjlis Day Care
Association.
6. Implementation Schedule: (Identify the major project tasks to be
performed during implementation and their timing.) .
Date
Task (Month/Year)
P1."'oqrarn Imp1enentation July 1991-Dec 1991
7. Budget: (Specify total project budget by major project component--
Le. , administration, planning, construction, acquisition, direct
grants, public service.)
BUDGET SOURCE OF FUNDS
Component CDBG Other CDBG (yr)/Other (identify)
[l."lY C."lei'" Subsidy $ 15,000 $ 0 1991 /
$ $ /
$ $ /
Project Budget $ 15.000 $ 0 .
Total $ 15.000
. REQUEST FOR F1JNDINGfYEAR. xvn
ORBAN HENNEPIN COUNTY CDBG PROGRAK
.... --.... ------ ----- --... --..... ...---.. ------.. ------- ------..... ---- ----.. -.. ...--.. ...-- --... -... --.....
THIS SECTION WILL BE COMPLETED BY HENNEPIN COUNTY
National Objectives:
Project Eligibility: /
Citation Hennepin County Date
ER Status: /
Status Environmental Review'Specialist Date
Project Number: /
Number Financial Manager Date
--....-----.... --.. --....-..- ---- --- --.. --- --........ -- ---... -------....... ...--.. ---- --..... --- --... -...--..-...
A. GENERAL INFORMATION
. 1. Community: Hopkins
2. Project Name: IIousmq Rehabi li tation
3. Contact Person: J arres Kerriqan
B. PROJECT DATA
l. Year XVII Grant Request $ 85,957
2. Is this request to fund an existing project? X Yes No
-
3. Leveraged Funds: Amount $ 0 Source
(To what extent does project leverage additional public or private
funds/firm commitment?)
4. Location: Address Citywide E-
(Attach map.)
.
5. Description: (Describe the project in as much detail as possible. .
Provide a statement of anticipated results; what, if any alternative
funding sources have been considered for, the project; and for a multi-
year project, describe the program accomplishments to date.)
COBG funds will be used to provide loans/grants to eligible low to
m::x:lerate incoITi2 horreotffiers in Hopkins. The loan/grant funds will be
used to make structural and energy related iEproverrents to their
property, in compliance with lIennepin County's Rehabilitation
Guidelines. It is anticipated that six households will be assisted with
the funds.
6. Implementation Schedule: (Identify the major project tasks to be .
performed during implementation and their timing.)
Date
Task (MonthlYear)
Provid~ hnusinCJ rehabilitation
loans/grants to eli9ible homeD.vners July 1991-July1992
7. Budget: (Specify total project budget by major project component--
i. e. , administration, planning, construction, acquisition, direct
grants, public service.)
BUDGET SOURCE OF FUNDS
Component CDBG Other CDBG (yr)/Other (identify)
Housmg......Reb:"'lhi 1 i rut} on $ R'1,QS7 $ 0 19<11 /
$ $ /
$ $ /
Project Budget $ Rc; Qc;7 $ n .
.
Total $ 85,957
, ,
. C I T Y o F HOP KIN S
MEMORANDUM
Date: March 14, 1991
To: Mayor Nelson Berg
Hopkins City council Members
From: Kersten Elverum, Housing coordinator
Subject: HOME Program Update
As you may recall, I met with Ron Block of Senior Services
in December to discuss with him the HOME Program,
administered by his agency. The program provides services
to elderly residents such as lawn care, minor home repair,
painting, etc. . . and is paid for by the seniors on a
donation basis. Several area cities make the program
available to their residents through funding it with CDBG
dollars.
. Because of the nature of the program it is considered a
social service activity. Service activities are limited to
15 to 20% of a cities CDBG allocation. When I spoke to Mr.
Block he was under the impression that the county would have
additional CDBG repayment monies available to fund social
service activities, in which case funding the HOME Program
would have no effect on the day care subsidy or monies
available for housing rehabilitation. However, Hennepin
County has indicated that this is not true and that if we
wished to fund the HOME Program with CDBG funds it would
have to come from our regular allocation.
since the City has already indicated that we will request
CDBG funding for the Minneapolis Day Care Association for
the 1991 program year, it is my suggestion that the HOME
program be reviewed as a part of the 1992 budget process and
ranked against other social service activities.
It should be noted that the Hopkins Community Center
operates a senior skills bank which supplies seniors with
capable individuals to perform "home choresll at affordable
rates. For more information on this program, contact Debra
VoId.
.
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