CR 12-018 2012 Community Development Block Grant (CDBG) ProgramCITY OF
4*
February 21, 2012 110 P K i NS Council Report #2012-018
2012 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
Proposed Action
Staff recommends approval of the following motion: Following the public hearing
adopt resolution number 2012-010 approving the proposed_ program for the 2012
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 $98,953 in CDBG funds for the 2012 program year. This is
approximately $3,500 less than the 2011 allocation. The funds will be received
on July 1, 2012 and must be expended by December 31, 2013.
Staff is recommending that the City propose to fund the following activities with
2012 CDBG funds:
• Housing Rehabilitation Loan/Grant Program
• Resource West
• Intercongregation Communities Association
As a requirement of the CDBG funding process, the City must hold a public
hearing on the proposed use of funds prior to approving the attached resolution.
The City's proposal must be submitted to Hennepin County by February 23, 2012.
Primary Issues to Consider
• What is the intended use of CDBG funds?
• What activities are being recommended for funding?
• Were any other requests for funds received?
Supportina Information
• Resolution 2012-010
• Requests for fu
C�hvA�4�
Tara Bear
Community Development Coordinator
Financial Impact: $ 0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
2012 CDBG program
Council Report 2012-018
Page 2
Analysis 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 primarily "bricks and
mortar' projects versus social service programs. Activities must meet at least
one of the following objectives of the 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%
Public services and/or facilities to assist families and seniors to maintain
and/or increase self-sufficiency and independent living, and to assist youth
and their families with counseling and crisis intervention services, and
related activities
Neighborhood revitalization activities that address issues of
substandard/blighted property in scattered site or defined area
redevelopments that will also provide affordable housing on 20% of the
units
• Minimum of 70% 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 $88,953 of CDBG funds be used for housing
rehabilitation activities. The Housing Rehabilitation Loan and Grant program has
2011 CDBG program
Council Report 2011-010
Page 3
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 $88,953 will assist 4 households.
Staff is also recommending funding Resource West in the amount of $5,000.
Resource West 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 community services. The City is a frequent partner with
Resource West in many community activites.
Staff is also recommending funding the Intercongregation Communities
Association (ICA) in the amount of $5,000. The ICA serves the area primarily as
a food shelf, and experienced record demand in 2011. The ICA also provides
other services such as financial and transportation assistance, and would use the
$5,000 in CDBG funding primarily to assist Hopkins residents with rent,
mortgage, and utility assistance in order to prevent homelessness.
• Where any other requests for funds received?
The following additional requests were received for 2012 CDBG funding:
Organization Amount Purpose
HOMELine $6,234 Tenant hotline and services
In reviewing this request for funds, staff considered the intent of CDBG to fund
"bricks and mortar' projects over social services. Granting the full HOME Line
request would exceed the 15% maximum that can be used for social service
activities if Resource West and ICA are funded at the requested $5,000 amounts
each. In 2011 the city did allocate $1,000 in CDBG funds to HOMELine, but that
year had seen an increase in allocated funds, a rare occurrence in the previous
years.
However, HOMELine services are eligible activities under CDBG regulations and
the Council can elect to fund them as long as the total social service allocation do
not total more than $14,842.
Alternatives
The City Council has the following alternatives regarding this issue:
• Hold public hearing; approve 2012 CDBG program as proposed by staff.
• Hold public hearing; amend the proposed CDBG activities and/or budget.
RESOLUTION NO. 2012-010
RESOLUTION APPROVING PROPOSED USE OF 2012 URBAN HENNEPIN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS
AND
AUTHORIZING EXECUTION 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 2012 Urban Hennepin County
Community Development Block Grant funds made available to it; and
WHEREAS, the city held a public hearing on February 21, 2012 to obtain the views of citizens on
housing and community development needs and priorities and the City's proposed use of
$98,953 from the 2012 Urban Hennepin County Community Development Block Grant.
BE IT RESOLVED, that the City Council of Hopkins approves the following projects for funding from
the 2012 Urban Hennepin County Community Development Block Grant Program and authorizes submittal of
the proposal to Hennepin County.
Activity Budget
Housing Rehabilitation $88,953
Resource West $5,000
Intercongregation Communities Association $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 2012 Community Development Block Grant Program.
ADOPTED: the 21th day of February, 2012
By Its Mayor, Eugene Maxwell
And Its City Manager, Michael Morrison
ATTEST
Kristine A. Luedke, City Clerk
ResourceWest
Connecting and Strengthening Community
February 13, 2012
Tara Beard'
City of Hopkins
1010 First Street South
Hopkins, MN 55343.
lhn91
cutive Directoi
915 Mainstreet • Hopkins, MN 55343-7515
Telephone: (952) 988-5350 Fax: (952) 988-5358
www.resourcewest.org,
2012
URBAN HENNEPIN COUNTY CDBG PROGRAM
REQUEST FOR FUNDING
A. GENERAL INFORMATION
1. City: Hopkins
2. Project Name: Back -to -School / Winter Warm Wear / Toy Chest
3. Primary Contact Person/ Phone No./Email:
Judy Elling 1952-988-5351/ judy@resourcewest.org
B. PROJECT DATA
1. CDBG Funding Requested $5,000
(needs to be same as council resolution)
2. Is this an existing CDBG-funded project? Yes No
3. Project Location:Address: 915 Mainstreet Hopkins 55343
or It is Citywide
4. Project Description:
This Project provides school supplies, winter outer wear, and Holiday gifts for
children age 0-18 who are from low-income families in the City of Hopkins. These
families qualify for Free & reduced lunch program in the Hopkins & Minnetonka
School Districts (60% of one Hopkins elementary school's students qualify for
Free or Reduced lunch).
The Project helps lessen the financial strain on low-income families when
they receive their children's school supply list (averages $75 per child), when they
need to purchase new coat, snow pants, and boots (average $100 per child), and
during the Holidays (averages $60 per child).
The project allows the participating families to redirect the dollars they would
have spent on these items to housing, energy bills, food, and other family
necessities. This redirecting of dollars helps maintain financial stability in the
home.
A survey conducted of our 2012 Toy Chest participants (which 85% use one
or two of the other programs also) indicated the following:
Will spend the money saved by the Project on:
Monthly Household Income Ran e:
35% said Food
24% less than $750
35% said Bilis
42% between $751 -$1,200
8% said housing/rent
28% between $1,201 - $2,000
1% said medical expenses
6% between 2,001 - $3,000
If you had to buy, where would you get the
money:
Family Size:
13% from not paying bills
29% family of 4
4% buy less of cheaper food
21% family of 3
30% would borrow money
20% family of 5
21% would try to work extra hours
15% familyof 2
5. Consolidated Plan Priorities: Using the Priority Summary chart below, identify
what priority(ies) the project will meet. (Note: If a proposed project is a low urban
county priority, you must explain why. it has a higher priority in your community.)
6. Describe anticipated results/accomplishments the project will have.
These programs will serve approximately:
700 low-income families in Hopkins
7. Implementation Schedule:
(Expenditure period begins July 1, 2012 and ends December31, 2013.)
Task Back -to -School Date: August 2012 - April 2013
Task: Winter Warm Wear Date: Mid -October 2012 - April 2013
Task: Toy Chest Date: December 2012
8. Budget:
UNDING SOURCES
AMOUNT
._-012CDBG ' � ��
T 5,000
Prior YearCDBG Funding (2011 only)
Other Federal Funds s eci
$ _8,350
$ -
ow Income Housing Tax Credits
_
$ �5Z000
State's eci
Municipal - Cy of Minnetonka
etro�olitan Council
74,999 — _
rivate s ec' - foundations
FL24�9
Cher s eci —Individual ContributionsOther
— ResourceWest General O eratinProject
Total Inco
,Pr o ect Expenses
OUN_T
Back -to -School ;
10 500
Winter Warm Wear
4 500
Toy Chest _
_
$ �5Z000
Salaries & Benefits �_
541999��F^__
thea
Project Total Expenses$ Expense
74,999 — _
2012
URBAN HENNEPIN COUNTY CDBG PROGRAM
REQUEST FOR FUNDING
(fillable form. Use one form per project)
A. GENERAL INFORMATION
1. City: Hopkins
2. Project Name: ICA Food Shelf
3. Primary Contact Person/ Phone No./Email Cathy Maes/952-938-0729
director@icafoodshelf.org
B. PROJECT DATA
1. CDBG Funding Requested $10,000
(needs to be same as council resolution)
2. Is this an existing CDBG-funded project? X Yes No
3. - Project Location: 12990 St Davids Road, Minnetonka
Assisting neighbors in Hopkins Citywide
4. Project Description: (Describe the project in as much detail as possible, including the
local need(s) the project will address.)
ICA's ongoing mission is to supply food and financial assistance to those in
need who reside in Hopkins. Money would be utilized to keep residences in
their homes.
5. Consolidated Plan Priorities: Using the Priority Summary chart below, identify what
priority(ies) the project will meet. (Note: If a proposed project is a low urban county
priority, you must explain why it has a higher priority in your community.)
6. Describe anticipated results/accomplishments the project will have. (number of
persons to receive services, number of affordable housing units to be rehabilitated or built,
etc.) ICA's continues to experience an increase in needs; services are up 81% from
2008. Hopkins remains our highest need based area with 56.8% of our services
targeted meeting the needs of those who reside in Hopkins. 10% of funds ICA
received came from the Hopkins's community in 2011, $101,655.00.
7. Implementation Schedule: (Identify major project tasks to occur during/ within the
first 12 months of the 18 month expenditure period. Expenditure period begins July 1,
2012 and ends December 31, 2013.)
Task: Housing Assistance Date 7-1 to 12-31-2012
Task: Utilities Assistance Date 7-1 to 12-31-2012
Task: Transportation Assistance Date 7-1 to 12-31-2012
8. Budget: (Specify total project budget by major funding sources. Attach additional
listings where appropriate.)
FUNDING SOURCES AMOUNT
2012 CDBG $10,000
Prior Year CDBG Funding (2011 only) $5000
Other Federal Funds (specify) FEMA $7991
Low Income Housing Tax Credits $0
State (specify) $0
Municipal Northwest Hennepin Human $93,791
Services
Metropolitan Council $0
Private (specify) Donations $383,038
Other (specify) Grants $100,000
Project Total $600,000
-2
HOPKINS
FINANCIAL SERVICES FROM ICA
2011
Financial Assistance Households Individuals Assistance
2011 Rent Assistance 288 800 $181,721
2011 Utilities Assistance 60 211 $18,284
2011 Transportation Assistance 627 1755 $ 7,504
*Work, Medical, School, interview, and Food Shelf
$207,509
2011 Donations Received
$981,164 ........ Total funding received
$101,654 ......... Total funding received from the Hopkins Community
2012
URBAN HENNEPIN COUNTY CDBG PROGRAM
REQUEST FOR FUNDING
(fillable form. Use one form per project)
A. GENERAL INFORMATION
1. City: Hopkins
2. Project Name: HOME Line's Tenant Advocacy Services
3. Primary Contact Person/ Phone No./Email Mike Vraa, 612 728-5770 x 113,
mikev@homelinenm.org
B. PROJECT DATA
1. CDBG Funding Requested $ 6,234
(needs to be same as council resolution)'
2. Is this an existing CDBG-funded project? EYes ONo
3. Project Location: 3455 Bloomington Avenue, Minneapolis. 55407. HOME Line's
tenant services are citywide. Tenants call our free hotline from their homes.
4. Project Description: (Describe the project in as much detail as possible, including the
'local need(s) the project will address.)
Renters make up nearly 5,077 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 security deposits that are
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's Tenant Hotline provides free legal advice to tenants about landlord/tenant law.
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.
The Tenant Hotline Services began in 1992 as a service to Suburban Hennepin County residents.
Today we serve the entire state and have recently taken our 136,000th call. Four staff attorneys
and a tenant advocate work full time on the hotline along with 75-100 law student volunteers
each year. Hopkins has accounted for 3,771 calls since 1992.
Our Tenant Hotline Services to Hopkins have helped save tenants at least $23,459 this year
alone. We have also helped to prevent the eviction of 15 Hopkins families. Last year alone we
advised 169 renter households from Hopkins. The most common reasons Hopkins residents call
1
our hotline are: evictions, repairs, and Security Deposits. The need for this service in Hopkins is
apparent -- Hopkins residents already rely on this valuable service.
Tenants living in rental units (usually single-family homes or duplexes) are encountering an
ongoing problem in Hopkins: the landlord being foreclosed on. Typically, the tenant has done
nothing wrong and is usually current on their rent when they are served with a notice of an
impending sheriff's sale (usually within 2-3 weeks). Faced with this information, many renters
simply vacate the rental unit. The law, however, probably allows them to stay in the home for 6-
9 months following the sheriff's sale. Since 2008, HOME Line's phone number has been
included in all foreclosure notices and briefly explains renter's rights in these situations. The
difference between leaving in 3 weeks or having an additional 6 to 9 months to find suitable new
housing cannot be overstated -people find adequate and livable new housing (and may have
enough time to actually buy a home if they are on a homeownership track) and their kids may be
able to complete their school year.
Our primary objective with renters facing foreclosures is to provide information and advice.
Once the tenant understands they don't have to leave prior to the sale, they can plan their lives
accordingly instead of racing to vacate in three weeks into a less than ideal housing situation. The
goal is to make sure as many tenants know this as possible. HOME Line expects to serve 5 renter
households in foreclosure situations in Hopkins in the nextyear. In 2011, we helped 5 renter
households in Hopkins facing foreclosure issues.
By offering free tenant hotline services, HOME Line has been providing needed services for
those most vulnerable.
While our services are available to all renters free of charge, 93% of our Hopkins callers have
low incomes; (77%) of these callers are women; 36% are racial minorities. Our programs are
aimed at low-income renters. We identify the key demographics at the beginning of each call.
5. Consolidated Plan Priorities: Using the Priority Summary chart below, identify what
priority(ies) the project will meet.(Note: If a proposed project is a low urban county
priority, you must explain why it has a higher priority in your community.)
6. Describe anticipated results/accomplishments the project will have. (number of
2
persons to receive services, number of affordable housing units to be rehabilitated or built,
etc.)
We anticipate assisting approximately 170 Hopkins renter households over the hotline during the
program year, saving tenants $22,000 dollars in rent abatements and security deposits, preventing
15 evictions, and assisting 5 tenants facing landlord foreclosure. Also see the attached one-page
sheet, which covers what HOME Line has accomplished in Hopkins in the past.
7. Implementation Schedule: (Identify major project tasks to occur during/within the
first 12 months of the 18 month expenditure period. Expenditure period begins July 1,
2012 and ends December 31, 2013.)
Task: Tenant Hotline Services
Date: Ongoing
8. Budget: (Specify total project budget by major
funding sources. Attach additional
listings where; appropriate.)
-FUNDING SOURCES
AMOUNT
2012 CDBG
$76,293
Prior Year CDBG Funding (2011 only)
$69,121
Other Federal Funds (FHPAP)
$57,500
Low Income Housing Tax Credits
$0
State (MN DHS)
$10,000
Municipal(Bloomington, Eden Prairie)
$12,958
Metropolitan Council
$0
Private (listed below)
$181,000
Other (Trainings,Contributions,Book Sales)
$70,800
Project Total
$477,672
Additional Funding sources Amount
Pruate
Greater Minnesota Housing Fund Foreclosure
10,000
Hugh J. Andersen Foundation
11,000
McKnight Foundation
75,000
Minnesota State Bar Foundation
500
Otto Bremer Foundation
50,000
Ramsey County Bar Foundation
2,000
Foreclosure Funders Council
32,500
GoVernt*to ; untiin .o h
,
DHS Prison Reintegration Grant
10,000
Family Homeless Prevention & Assistance
Program
22,500
Hennepin County
35,000
Bloomington Health & Human Services Grant
7,958
New Hope CDBG
4,759
3
Brooklyn Park CDBG
14,424
Eden Prairie
5,000
Edina CDBG
1,689
Hennepin County Consolidated Pool CDBG
7,620
Maple Grove CDBG
3,000
Hopkins CDBG
1,000
Minnetonka CDBG
1,919
Brooklyn Center CDBG
7,968
Plymouth CDBG
6,210
Ramsey County CDBG
20,000
St. Paul COPP11,500
y rer
Other FUnd
Community Shares
4,000
Contributions
20,000
Hotline Training
20,000
Tenant Rights Book
10,000
Interest Income
200
Miscellaneous Income
1,600
Other (Attorney Fees, etc.)
15,000
4
HOME Line's Tenant Hotline in Hopkins: 2011
OVERVIEW
In 2011, 169 Hopkins renter households contacted HOME Line for Tenant Hotline Services. Hopkins is
the 13th (out of 466) most served city by our tenant hotline in Minnesota, accounting for 1.47% of all of
our tenant hotline calls. This represents service to approximately 423 residents when all family members
have been counted. Over the past 20 years, HOME Line has served 3,771 Hopkins renter households.
The cost to serve the city of Hopkins in 2012 is $6,234.
HIGHLIGHTS
In 2011, HOME Line helped renters from Hopkins:
• Recover and/or save an estimated $23,459 ($497,207
since 1992):1
• Prevent an estimated 15 evictions (278 since 1992).
• Renters with repair issues who follow our advice are 37%
more likely to get their problem fixed than those who
don't.
• In landlord foreclosure, a significant issue in Hopkins,
the average amount of days stayed after the sheriff's sale
by renters we have helped is 180 days, and the average
amount of money saved by renters in a landlord
foreclosure is $5,935 in 2011 ($43,919 since 1992).
Top Ten Reasons For Calls (2011)
1.
Evictions
28
2.
Repairs
25
3.
Security Deposit
18
4.
Notice to Vacate
11
5
Break Lease
11
6.
Privacy Intrusion
8
7.
Leases
8
8.
Change Lease
8
9.
Neighbors
7
10. Bed Bugs/Infestation
7
INCOME BREAKDOWN
The vast majority (93%) of these callers are extremely -
low, very -low or low-income. These income categories Callers' Income 2011
are those used by the U. S. Department of H. U. D.:
• Extremely Low: Incomes below 30% of the metro
median.
• Very Low: Incomes between 30% and 50% of the
metro median
• Low: Incomes between 50% and 80% of the metro
median.
• Moderate: Incomes above 80% of the metro
median.
I Based on research completed by a University of Minnesota School of Statistics Ph.D. Candidate.