CR 2013-019 Community Development Black Grant ProgramFebruary 19, 2013 HO P K INS Council Report #2013-019
2013 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
Proposed Action
Staff recommends approval of the following motion: Following the public hearing,
adopt resolution number 2013-011 approving the proposed program for the 2013
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 a preliminary estimate of $98,953 in CDBG funds for the 2013
program year. This is the same as the 2012 allocation, but is subject to change
upon notice from the Department of Housing and Urban Development. The
funds will be received on July 1, 2013 and must be expended by December 31,
2014.
Staff is recommending that the City propose to fund the following activities with
2013 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 28, 2013.
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?
Supporting Information
• Resolution 2013-011
• Requests for funds
Tara Beard
Community Development Coordinator
Financial Impact: $ 0 Budgeted: YM Source:
Related Documents (CIP, ERP, etc.):
Notes:
2013 CDBG program
Council Report 2013-019
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
re:
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
2013 CDBG program
Council Report 2013-019
Page 3
is important not only in its assistance to homeowners but also to maintain the
quality of 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 2012. 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 $5,595 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 2013 CDBG program as proposed by staff.
• Hold public hearing; amend the proposed CDBG activities and/or budget.
RESOLUTION NO. 2013-011
RESOLUTION APPROVING PROPOSED USE OF 2013 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 2013 Urban Hennepin County
Community Development Block Grant funds made available to it; and
WHEREAS, the city held a public hearing on February 19, 2013 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 2013 Urban Hennepin County Community Development Block Grant.
BE IT RESOLVED, that the City Council of Hopkins approves the following projects for funding from
the 2013 Urban Hennepin County Community Development Block Grant Program and authorizes submittal of
the proposal to Hennepin County.
Activi 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 Managerto execute the Subrecipient Agreement and any required Third Party Agreement on behalf ofthe
City to implement the 2013 Community Development Block Grant Program.
BE IT FURTHER RESOLVED, that should the final amount of FY2013 CDBG available to the city
be different from the preliminary amount provided to the city, the City Council hereby authorizes the city
manager to adjust project budget(s) to reflect an increae or decrease in funding.
ADOPTED: the 19th day of February, 2013
By Its Mayor, Eugene Maxwell
And Its City Manager, Mike Morrison
ATTEST
Kristine A. Luedke� City Clerk
February 1, 2013
Tara Beard, AICP
City of Hopkins
101015tStS
Hopkins, MN 55343
Dear Tara,
Attached is ICA's request for funds from the 2013 Hopkins CDBG allocation. From 2008
to today ICA has seen the need increase by 113%. ICA continues to work hard to meet
the needs within the Hopkins community. Of the 38,121 (duplicated) who received
groceries from ICA in 2012, 57% are Hopkins residents. Of those utilizing our newest
program, Employment Assistance, 80% are Hopkins residents.
Thank you for your consideration of funding our efforts as we continue with our
mission of assisting Hopkins' residents in need.
Sincerely,
Cathy Mae
Executive Director
12990 St. Davids Road, Minnetonka, MN 55305 • www.icafoodshelf.org
2013
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
Primary Contact Person/ Phone No./Email: Cathy Maes, 952-279-0291,
director@icafoodshelf.org
B. PROJECT DATA
CDBG Funding Requested S 15,000
(needs to be same as council resolution)
2. Is this an existing CDBG-funded project? X Yes [-]No
3. Project Location: ICA serves residents of Hopkins through our main site located at
12990 St Davids Road, Minnetonka, MN 55305
4. Project Description: (Describe the project in as much detail as possible, including the
local need(s) the project will address.)
ICA has provided financial assistance to Hopkins residents for 15 years. The program
assists neighbors who are strained financially to cover their monthly
rent/mortgage/utility bills. It is a privilege to serve the community in this manner;
providing struggling neighbors with food, financial assistance, and, most recently,
employment assistance.
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.)
P oriti .'"k'
Rental Housing
Existing Housing (Rehabilitation)
First Time Homeownership
Homelessness X
Special Needs Housing
Public Service X
Neighborhood Revitalization
Transportation Services
1
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 Food Shelf provides financial assistance, utility assistance, and employment
assistance. Of the clients ICA serves in the 7 communities from Hopkins to Shorewood,
57% reside in Hopkins. In 2012, $168,889 was provided directly on
housing/utilities/transportation/employment assistance for 892 households (2,519
individuals). In the last 18 months that ICA has been providing employment assistance, 79
Hopkins residents have received employment assistance to date, with 17 of these securing
a job.
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,
2013 and ends December 31, 2014.)
Task: Housing Assistance
Task: Utility Assistance
Task: Employment Assistance
Date: 7/1/2013 to 7/31/2014
Date: 7/1/2013 to 7/31/2014
Date: 7/1/2013 to 7/31/2014
8. Budget: (Specify total project budget by major funding sources. Attach additional listings
where appropriate.)
FUNDING SOURCES AMOUNT
2013 CDBG $15,000
Prior Year CDBG Funding (2012 only) $5,000
Other Federal Funds (specify) FEMA
$11,782
Low Income Housing Tax Credits
$
State (specify)
$
Municipal Northwest Hennepin Human Services
$56,500
Metropolitan Council
$
Private (specify)
$366,718
Other (specify)
$75,000
Project Total $530,000
2
M
ResourceWest
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January 28, 2013
Tara Beard
City of Hopkins
1010 First Street South
Hopkins, MN 55343
Dear Tara:
Enclosed is our application for CDBG funding ($5,000) for fiscal year 2013.
Over the last 4 years we have seen a noticeable increase in the number of families accessing our
services. The CDBGs have given us a financial edge is addressing the growing the needs of the
low-income community in Hopkins. We appreciate all the support the City of Hopkins and
Hennepin County have given us over the years.
Please let me know if you require any other information for the 2013 CDBG application.
Thank you for you past support and your continued support!
Sincerely,
F
udy'1hfMS_
executive Direcr
915 Mainstreet * Hopkins, MN 55343 * (952) 988-5350 * www.resourcewest.org
2013
URBAN HENNEPIN COUNTY CDBG PROGRAM
REQUEST FOR FUNDING
(fillable form. Use one form per project)
A. GENERAL INFORMATION
1. City: Hopkins
2. Project Name: ResourceWest - Back -to -School / Winter Warm Wear / Toy Chest
Primary Contact Person/ Phone No./Email
Judy Elting (952) 988-5351 judy@resourcewest.org
B. PROJECT DATA
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
and 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:
Wills end the money saved by the Project on:
Monthly Household Income Range:
35% said Food
24% less than $750
35% said Bills
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% famil of 5
21% would try to work extra hours
15% family of 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.)
Rental Housing
Existing Housing (Rehabilitation)
First Time Homeownership
Homelessness
Special Needs Housing
Public Service x
___...___.____ __._.. _..........._ —
Neighborhood Revitalization
Transportation Services
6. Describe anticipated results/accomplishments the project will have.
These programs will serve approximately:
700 low-income families in Hopkins
7. Implementation Schedule: (Idents major project tasks to occur during/ within the
first 12 months of the 18 month expenditure period. Expenditure period begins July 1,
2013 and ends December 31, 2014.)
Task: Back -to -School
Task: Winter Warm Wear
Task: Toy Chest
8. Budget:
Date: August 2013 - April 2014
Date: Mid -October 2013 - April 2014
Date: December 2013
FUNDING SOURCES
AMOUNT
--------..._.._
2012 CDBG
$
5,000
Prior Year CDBG Funding (2012 only)
$
_8,350 _
Other Federal Funds (specify)
.._........._._.__ _._..__._
$
-__._.
_------- -............ _._____.-..__e.- ..... _......
Low Income Housing Tax Credits
_ _.-. _._... -_ .... ... ....___--
$
-
State (specify) .... ......... .... ......._..._._.._._........... ...... _
$
-
Municipal - City of Minnetonka
-�
$
4,500 _
-
Metropolitan Council
------.----------..___—
$
--___ _
--- ._..._._.._.._..._--______ _._.
Private (specify) - foundations
$
4,000
Other (specify) - Individual Contributions
$
57,000
Other - ResourceWest General Operating
$
15,499
— Project Total Income
$
84,999
Project Expenses
AMOUNT ..._........
Back -to -School
___-------......_.._ ___
$ 10,500
Winter Warm Wear
$ 9,500
_
Toy Chest
$ 10,000
Salaries & Benefits
$ 54,999
Other -
Project Total Expenses
$ 84,999
3455 Bloomington Ave
Minneapolis, MN 55407
Tara L Beard, AICP
Community Development Coordinator
City of Hopkins
1010 1st St S
Hopkins, MN 55343
Dear Ms. Beard:
Office Phone: 612/728-5770
Hotline: 612/728-5767
Fax: 612/728-5761
www.homelinemn.org
January 17, 2013
This letter is to request funding in the amount of $5,595 from the City of Hopkins's Community
Development Block Grant Program to support HOME Line's services for renters.
A copy of the 2013 CDBG Program Request for Funding is enclosed. Along with the CDBG Request
Form, I am enclosing summaries of our hotline's service to Hopkins residents.
In 2012, HOME Line's Tenant Hotline served 149 Hopkins families, prevented an estimated 10
evictions, and saved Hopkins residents an estimated $20,846. HOME Line is working to meet the
current challenges facing low-income renters and would like the City of Hopkins to be our partner in
meeting these needs.
Hopkins is one of only two cities in suburban Hennepin County that do not pay for the Tenant Hotline
Services. Due to these funding difficulties, HOME Line has had to deprioritize Hopkins callers to the
Tenant Hotline. Hopkins residents get moved to the back of the line when we are busy, which is
frequently. This has meant a reduction in services that unfortunately will continue until we are able to
cover the costs of providing the services needed in Hopkins by renter families. Despite the cutbacks,
we still were able to assist some renter households. We cannot continue to provide full services to
city residents without a financial commitment from Hopkins. We welcome the opportunity to meet with
city elected officials and staff to help us continue to provide the tenant hotline services in the very
community where we started our program 21 years ago.
We thank you for the opportunity to submit this application. If you have any questions or need
additional information, please call me at 612/728-5770, extension 107 or Mike Vraa, our managing
attorney at extension 113.
Sincerely,
Beth Kodluboy
Executive Director
enclosures as noted
Tenant Advocacy in Minnesota
2012
URBAN HENNEPIN COUNTY CDBG PROGRAM
REQUEST FOR FUNDING
A. GENERAL INFORMATION
Community: Hopkins
Project Name: HOME Line's Tenant Advocacy Services
Contact Person/Phone Number/emailMike Vraa, 612 728-5770 x 113, mikev@homelinemnorg
B. PROJECT DATA
Funding Request $ 5,595
2. Is this request to fund an existing CDBGFUNDED project? x Yes No
3. Project Location: Address: 3455 Bloomington Avenue, Minneapolis. 55407.
HOME Line's tenant services are citywide. Tenants call our free hotline from their homes or
email one of our staff attorneys directly through our website.
4. Project Description:
Briefly describe the proposed project. The narrative should include the need or problem to be
addressed in relation to the Consolidated Plan (see attached table), as well as the population to be
served or the area to benefit. Describe the work to be performed, including the activities to be
undertaken or the services to be provided, the goals and objectives, method of approach,
implementation schedule and anticipated results/accomplishments.
We anticipate assisting approximately 150 Hopkins renter households over the hotline during the
program year.
Renters make up nearly 3,919 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 began in 1992 as a service to Suburban Hennepin County residents. Today
we serve the entire state (excluding Minneapolis) and have recently taken our 148,000th call.
Four staff attorneys work full time on the hotline along with 75-100 law student volunteers each
year. 149 Hopkins renter households called in 2012. In 2012, we helped to prevent an estimated
10 evictions of Hopkins families. The most common reasons Hopkins residents call our hotline
are repairs, break lease questions, security deposits and evictions. The need for this service in
Hopkins is apparent -- Hopkins residents already rely on this valuable service.
While our services are available to all renters free of charge, 91% of our Hopkins callers have
low incomes; almost two thirds (66%) of these callers are women; 34% 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: Public Services: Family Services, Senior Services, and Youth
Services.
FUNDING SOURCES AMOUNT
CDBG
72,647
Prior Year CDBG Funding (for this project)
69,121
Other Federal Funds (specify)
150,000
Low Income Housing Tax Credits
0
State (specify) MN DHS
15,000
Municipal
18,456
Metropolitan Council
0
Private (specify) Foundations (attached)
126,000
Other (Training, Interest, Contributions)
61,300
Tota 1
512,524
6. Describe anticipated results/accomplishments projects will have. (i.e.; number of
persons/households to be assisted/served, number of housing units to be rehabilitated/built, etc.)
We anticipate between 150 and 175 callers utilizing our hotline services, representing 450
residents. Also see the attached page, which covers what HOME Line has accomplished in
Hopkins in 2012.
7. Implementation Schedule: (Identify major project tasks to occur and date anticipated)
Task: Tenant Hotline Date Ongoing
Budget: (Specify total project budget by major funding sources. Attach additional listings
where appropriate.)
FUNDING SOURCES AMOUNT
CDBG 72,647
Prior Year CDBG Funding (for this
69,121
project)
Other Federal Funds (specify)
150,000
Low Income Housing Tax Credits
0
State (specify) MN DHS
15,000
Municipal
18,456
Metropolitan Council
0
Private (specify) Foundations (attached)
126,000
Other (Training, Interest, Contributions) 61,300
Tota 1 512,524
Additional Funding sources
Amount
Greater Minnesota Housing Fund
29,000
Hugh J. Andersen Foundation
9,000
McKnight Foundation
75,000
Minnesota State Bar Foundation
1,000
Ramsey County Bar Foundation
2,000
Minnesota Housing Finance Agency
10,000
Family Housing Fund
10,000
Family Homeless Prevention & Assistance
Program
22,500
Hennepin County
35,000
DHS Prison Grant
5,000
TRN grant (HUD)
150,000
Bloomington Health & Human Services Grant
7,958
Brooklyn Center CDBG
6,051
Brooklyn Park CDBG
7,000
Crystal
1,000
Eden Prairie
5,000
Hopkins CDBG
2,225
Hennepin County Consolidated Pool CDBG
8,227
Maple Grove CDBG
3,000
Minnetonka CDBG
3,213
New Hope CDBG
2,038
Plymouth CDBG
6,210
Ramsey County CDBG
22,488
Richfield CDBG
5,364
St. Paul COPP
4,016
Community Shares
3,000
Contributions
15,000
Hotline Training
22,500
Tenant Rights Book
3,000
Interest Income
200
Miscellaneous Income (Health Care Credit)
1,600
Other (Attorney Fees, etc.)
15,000
Total Income
492,588
HOME Line's Tenant Hotline in Hopkins: 2012
OVERVIEW
In 2012, 149 Hopkins renter households contacted HOME Line for Tenant Hotline Services. This
represents service to approximately 373 residents when all family members have been counted. The cost
to serve Hopkins in 2013 is $5,595.
HIGHLIGHTS
In 2012, HOME Line helped renters from Hopkins:
• Recover and/or save an estimated $20,846.
• Prevent an estimated 14 evictions.
• 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, the average amount of days
stayed after the sheriff's sale by renters we have helped is
180 days, and the amount of money saved by renters in
landlord foreclosure is $5,935 in 2012.
INCOME BREAKDOWN
The vast majority (91 %) of these callers are extremely -
low, very -low or low-income. These income categories
are those used by the U. S. Department of H. U. D.:
• Extremely Low: Incomes below 30% of metro
median.
• Verb Incomes between 30% and 50% of
metro median
• Low: Incomes between 50% and 80% of metro
median.
• Moderate: Incomes above 80% of metro median.
RACIAL BREAKDOWN
65%
Caucasian
32%
African American
1 %
Asian
1%
Hispanic
Top Ten Reasons For Calls (2012)
1.
Eviction
30
2.
Repairs
15
3.
Security Deposit
14
4.
Leases
13
5
Break Lease
9
6.
Notice to Vacate
7
7.
Foreclosure
5
8.
Neighbors
4
9.
Application
4
10. Fees
4
Callers' Income 2012
Extremely
Low
62%
GENDER BREAKDOWN
66% Female
34% Male
Low
13%
Very Low
16%