CR 91-50 Set Hearing - Urban Hennepin Cty CDBG Program
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February 26, 1991 0 P K \ ~ I council Report 91-50
SET PUBLIC HEARING DATE FOR THE 1991 URBAN HENNEPIN COUNTY
CDBG PROGRAM
Proposed Action
Staff recommends approval of the following motion:
Set a public hearinq for March 19, 1991 to consider the
pro~osed use of funds for the Year XVII Urban Hennepin
Countv Community Development Block Grant Program.
Overview
The City of Hopkins has received Urban Hennepin County CDBG
funds since 1985 to conduct a variety of activities. As a
participating city in the Urban Hennepin County CDBG
program, Hopkins is eligible for $100,957.00 for the 1991
program year.
One requirement of the CDBG funding process is that
participating cities hold a public hearing on the proposed
use of funds. The public hearing must be held prior to
. April 12, 1991 with requests for funding due by April 18,
, 1991. .The staff is recommending the hearing date be set for
March 19, 1991. At the public hearing the Council and'
public will have an opportunity to discuss the specifics of
the various activities to be considered for funding. Staff
is recommending that the activities the City propose to
undertake with 1991 CDBG funds include assistance to the
Greater Minnesota Day Care Association and housing
rehabilitation.
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
CDBG Program Statement of
CDBG Program citizen
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Housing Coord~nator
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. Public Hearing - CDBG Program
Rpt. 91-50
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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.
o What aotivities has the city previously finanoed 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 aotivities are being reoommended 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
$100,957
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
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. Public Hearing - CDBG Program
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Page 3
several more applications expected in the near future. Five
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 usingcDBG funds for
' administration. Because both funds (revolving loan account
and CDBGfunds) are used for the same purpose, housing
rehab, there is no benefit in using CDBGfunds 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
., currently" beifigdevelopedih c6rij unction with the Minnesota
Housing Finance Agency.
Neighborhood Revitalization:
The amount of'funds available do not allow the City to
~ conduct a comprehensive neighq?rhood revitalization program.
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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
Based upon the action recommended the Council has the
following alternatives regarding this action:
The only alternative available at this time is to set the
public hearing. At that time the Council will have the
ability to designate the activities for funding.
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. STATEMENT OF OBJECTIVES
YEAR XVII (1991) URBAN H~EPIN COUNTY CDBG PROGRAM
Community Development 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 CDBG objectives and are intended to illustrate
their application to the satisfaction of the short-term and long-term housing
and community development needs of Urban Hennepin County.
The national objectives of the CDBG 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 CDBG 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 CDBG objectives are presented by major program
subheadings. They are highlighted under the subheading.
ADMINISTRATION
. The CDBG 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 isa 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.
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- No more than three activities should be undertaken by any participating
coriununity. 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 hot apply.
- Facilitate cooperation among 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 Urpan Hennepin County CDBG program.
- Implement Urban Hennepin County CDBG assisted activites in compliance
. with the Urban Hennepin County Antidisplacement and Relocation Plan and
the Uniform Relocation Assistance and Real Property Acquisition Policies
Act.
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. HOUSING
Urban Hennepin Courtty has established goals which are approved by the Depart-
ment of Housing and Urban Development for the construction of new housing and
the rehabilitation of existing housing for low and moderate income owner and
renter households.
- Facilitate the development of housing activities consistent with Urban
Hennepin County goals and priorities.
- Encourage multi-community cooperation in housing development and rehab-
ilitation programs.
- Support the development of new owner/renter housing affordable to low and
moderate income households.
- Support the rehabilitation of existing rental units and single-family
dwellings.
- Support the development of transitional housing facilities for persons
who are homeless or at risk of becoming homeless.
NEIGHBORHOOD REVITALIZATION
As an intergovernmental effort, Urban Hennepin County includes a broad range
. of communities and neighborhoods, some of which, due to the age 'of their
structures, are in need of assistance for infrastructure rehabilitation/
installation.
- Maintairt and preserve viable neighborhoods and neighborhood commercial
service centers through concentrated community development activities.
PUBLIC FACILITIES AND IMPROVEMENTS
The provision and improvement of public facilities represents a significant
cost to the community and the individual user (particularly those of low and
moderate income).
- Improve existing and assist in the development of new public facilities
which benefit low and moderate income persons. Included in this objec-
.tive are those public and/or nonprofit facilities designed for providing
shelter for persons with special needs.
ECONOMIC DEVELOPMENT
Within the context of the Community Development Block Grant Program economic
development must rela~e to the creation or retention of long-term employment
opportunities for low and moderate income individuals.
- Provide financial assistance to for-profit or non-profit business
. operations which will provide or retain permanent employment oppor-
tunities for low and moderate income persons, at a ratio of at least one
full-time job created or retained for each $10,000 of program funds used.
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. PUBLIC SERVICES
The CDBGprogram 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 material
and architectural barriers which restrict the mobility and accessibility of
elderly or handieapped persons to public buildings, facilities and improve-
mentsand public and private housing.
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. CITIZEN PARTICIPATION PLAN
URBAN HENNEPIN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM:
I. INTRODUCTION
The Community Development Block Grant Program (CDBG) was established by the
Housing and Community Development Act of 1974 as amended. Its primary
objective is the provision of decent housing, a suitable living environment
and expanded economic opportunities, primarily for persons with low and
moderate incomes.
For a housing or community development activity to be eligible for block grant
assistance, it must meet one of the following three criteria:
- - Principally bene~it low- and moderate-income persons.
- - Prevent or eliminate slums and blight.
- - Meet a need having a particular urgency.
The Act provides for the establishment of "Urban'Counties" as entitlement
grantees. In order to provide the maximum number of Hennepin County residents
with housing and community development assistance, Hennepin County and 43
. local units of general government have entered into cooperation agreements
establishing an Urban County. Through these agreements Hennepin County is an
entitlement recipient of Community Development Block Grant funds. The annual
grant is determined by the Department of Housing and Urban Development (HUD) ,
using a formula based on population, extent of poverty and housing overcrowd-
ing, to distribute funds made available by Congress. Since 1975 Urban
Hennepin County has been allocated nearly $51 million for housing and commu-
nity development act.ivities.
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II. INTENT
Basic to the community development process is the opportunity for citizen
involvement. Urban Hennepin County has therefore developed a plan which
facilitates citizen involvement in the formulation of the Community Develop-
\ ment Block Grant Program including its implementation and evaluation. This is
the fifth plan prepared for the Urban Hennepin CountyCDBG progra~ and
reflects current federal requirements.
The "Citizen Participation Plan" is designed to provide the citizens of Urban
Hennepin County with the opportunity to participate in determining the housing
and community development needs in their communities and how CDBG funds can be
used to address those needs.
The plan will remain in effect as long as it is current and necessary.
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. III. PROCESS
Public Hearings
The foundation for ~itizen participation in the development, implementation
and evaluation of the Urban Hennepin County Community Development Block Grant
Program is the public hearing process.
One public hearing will be held by each of the 43 participating units of local
government and two by Hennepin County to provide citizens:
- - with information on program requirements and regulations;
- - the level of grant funds available;
- - the opportunity to present views on local, community development and
housing needs;
- - the opportunity to review proposed program activities; and
- - the opportunity to review and comment on the performance of, the
Urban Hennepin County Community Development Block Grant, Program.
The public hearings held by the participant units of local government are
. scheduled at the direction of the County to initiate the annual review and
preparation of the Statement of Objectives and Projected Use of Funds.
Public hearings will be held in places accessible to the handicapped and
appropriate accommodations will be made to meet the needs of non-English
speaking attendees.
Notices
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In order to give adequate notice of public hearings, Urban Hennepin County
and/or the participating communities will, at least 10 days before each
public hearing, publish a notice detailing particulars in their respective
official newspaper.
Program Amendments
The County Board or the local,governing body, whichever originates a substan-
tial change to the Final Statement of Proposed Use of Funds, shall hold a
public hearing to provide citizens the opportunity to review and comment on
the amendment, except those for disaster activities. Approval of a program
amendment is the responsibility of the County and the local governing body.
IV. OTHER ELEMENTS
Complaints
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~ '.~'" The Urban County will respond to all complaints, written and verbal, in a
. timely and responsible manner. When a written complaint is directed toward a
specific cooperating community, Urban Hennepin County and the af~ected
community will provide a written response within 15 working days.
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. Technical Assistance
Technical assistance to participant units of local government and citizens
interested in the Urban Hennepin County CnBG Program is available through staff
resources of the U.S. Department ,of Housing and Urban Development, cooperating
units and Hennepin County through the Office of Planning and Development. As
the federal agency administering the CDBG Program, HUD provides oversight and
direction to local participants. Each of these staff resources is committed to
provide assistance to citizen organizations, groups of low and moderate income
persons, and groups of residents ~f blighted neighborhoods in accessing and
understanding the Urban Hennepin County CDBG Program.
Access to Information
The Urban County will provide for full public access to program information.
At the time planning begins for the next program year the following will be
provided to citizens residing in participant communities.
l. The anticipated amount of community development block grant funds
available to the Urban County participant communities for community
development and housing activities.
2.. The range of activities that may be undertaken with these funds.
3. The process to be followed in development and approval of the applica-
. tion, including a schedule of meetings and hearings.
4. The role of citizens in the program, as described in the citizen
participation plan.
5. A summary of other important program requirements.
) A~cess to program records and information consistent with state and local laws'
regarding personal privacy and obligations of, confidentiality is available for
citizen review upon written or oral request at the Hennepin County Office of
Planning and Development, 822 South Third Street, Suite 310, Minneapolis, MN
55415, or by calling 348-6418 during normal working hours.
These documents include the following:
l. All mailings' and promotional materials.
2. Records of hearings.
3. All key documents, including all prior applications, grant agreements,
the citizen participation plan, performance reports, other reports
required by HUD, and the proposed and approved application for the
current year.
4. Copies of the regulations and issuance governing the program.
. 5.' Documents regarding other important program requirements, such as
contracting procedures, environmental policies, fair housing and other
equal opportunity requirements, and relocation provisions.
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