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CR 2014-018 (2014 Community Development Block Grant CDBG Program-40 February 18, 2014 Cit,of Hopkins Council Report 2014-018 2014 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM Proposed Action Staff recommends approval of the following motion: Following the public hearing, adopt resolution number 2014-009 approving the proposed program for the 2014 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 $111,861 in CDBG funds for the 2014 program year. This is the same as the 2013 allocation, but is subject to change upon notice from the Department of Housing and Urban Development. The funds will be received on July 1, 2014, and must be expended by December 31, 2015. Staff is recommending that the City propose to fund the following activities with 2014 CDBG funds: • Housing Rehabilitation Loan/Grant Program • Resource West • Intercongregation Communities Association • HOME Line 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 27, 2014. Primary Issues to Consider • What is the intended use of CDBG funds? • What are the requests for 2014 CDBG funding? • What activities are being recommended for funding? Supporting Information • Resolution 2014-009, •�/ Requests for funds e- Beekman Comvhunity Development Coordinator Financial Impact: $ 0 Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: 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: o Rental housing for families, elderly, physically disabled persons and homeless persons with incomes below 50% of median income o Supportive housing for persons with mental illness and incomes below 50% of median income o Rehabilitation of owner -occupied housing for persons with income below 50% of median income o Homeownership assistance to households with income below 80% of median income o 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 o 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 o Minimum of 70% of funds spent on low to moderate income households • Funds can not be available from other sources What are the requests for 2014 CDBG Funding? The City has received three funding requests from public service providers to assist in funding activities that support Hopkins residents. All three are service providers that the City has funded previously. The City is allowed to fund up to 15 percent of the total CDBG allocation on public service activities. Based on the current allocation estimate of $111,861, the City may use up to $16,779 on these services. This amount will come out of the funds that would otherwise go to the Housing Rehabilitation Loan and Grant program, which supports low and moderate income Hopkins homeowners with housing rehabilitation projects. ResourceWest has requested $5,000. This organization 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 ResourceWest in many community activities. Intercongregation Communities Association (ICA) has requested $10,000, an increase of $5,000 from their previous year allocation. The ICA serves the area primarily as a food shelf and source for financial assistance to families, and has experienced a 131 percent increase in demand for their services since 2008. Due to the increased demand from Hopkins residents for services, ICA is expanding their operation to bring services closer to Hopkins, and will be opening a new site on K -Tel Drive in May of this year. HOME Line has requested $6,379. In 2013 and 2011, the City funded them $1,000 each; however, their requests exceeded that amount. HOME Line provides tenant hotline services to low-income renters in Hopkins. In 2013, they served 165 Hopkins families. What activities are being recommended for funding? In reviewing this request for funds, staff considered the intent of CDBG to fund "bricks and mortar" projects over social services. Granting the full funding requests would exceed the 15% maximum that can be used for social service activities. Staff is recommending that $100,861 of CDBG funds be used for housing rehabilitation activities. The Housing Rehabilitation Loan and Grant program 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 $100,861 will assist 4-6 households. Staff is also recommending maintaining the public service funding at the same level as last year, for a total of $11,000 being distributed amongst Resource West, ICA, and HOME Line. The Council can choose to increase the CDBG allocation to any or all of the public service providers; however, the total funding may not exceed $16,779. Any amount increased to fund public services would reduce the amount allocated towards the housing rehabilitation program. Alternatives The City Council has the following alternatives regarding this issue: • Hold public hearing; approve 2014 CDBG program as proposed by staff. • Hold public hearing; amend the proposed CDBG activities and/or budget. ResourceWest February 10, 2014 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 2014. 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 2014 CDBG application. Thank you for you past support and your continued support! Sincerely, lli , MS xecutive Direc r 915 Mainstreet * Hopkins, MN 55343 * (952) 988-5350 * www.resourcewest.org REQUEST FOR FUNDING - PUBLIC SERVICE KiURBAN HENNEPIN COUNTY CDBG PROGRAM YEAR 2014 General Information: City: Hopkins Co -Applicant: ResourceWest Type of Entity: Private Subrecipient Project Name: ResourceWest Contact: Judy Elling Phone: 952-988-5351 Activity Data: lye, ,oun 1 re .1u1i �. a aP.I ebbe) CDBG Funding Request: $ 5,000.00 Resolution: Is this an existing CDBG-funded project? Yes Project Location: 915 Mainstreet (1011 First St 5 - after March 2, 2014) Hopkins MN 55343 Describe below the activity in detail, Including priority needs) It meets within the 2010-2014 Hennepin County Consolidated Plan. Click link below. is 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 alify for Free & reduced lunch program in the Hopkins & Minnetonka School Districts (60% of one Hopkins elementary school's students qualify for Free or Reduced ich). 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 rchase 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 redirec 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 home. A survey conducted of our 2012 Toy Chest participants (which 85% use one or two of the other programs also) indicated the following: II spend the money saved by the Project on: mthly Household Income Range: Y said Food Y less than $750 & said Bills Y between $751 -$1,200 said housing/rent X between $1,201 - $2,000 said medical expenses between 2,001 - $3,000 w had to buy, where would you get the money: My Size: 6 from not paying bills i family of 4 buy less of cheaper food o family of 3 e would borrow money 6 family of 5 would try to work extra hours family of 2" Please choose the activity, and national objective that this project will meet from the drop down lists below. The activity priority level is noted next to each dropdown item as: (High), (Medium), (Low). Activity: oth, Senior/youth/Employment/Housing/Transportation National Objective: L/M Income Area Benefit If the proposed project is a low urban county priority, you must explain below why it has a higher priority in your community. Please describe anticipated results/accomplishments the project will have: programs will serve approximately: 700 low-income families in Hopkins Approximate number of persons to receive services: 700-1200 Implementation Schedule: Identify major project tasks to occur during/within the first 12 months. Task Emergency Financial Assistance Data. ongoing Task: Referral Networking for services related to housing, employment, transportation, senior, and youth Date. ongoing Task: Computer Technology Center -assist people in writing resumes and looking employment, housing, & childcare Date: ongoing Task: Back -to -School supplies for low-income children Date: ongoing Task: Winter Warm Wear for low-income children DMc: ongoing Task: Toy Chest- toys for low income children Date: ongoing Budget: Specify total project budget by major funding sources. Attach additional listings where appropriate. FUNDING SOURCES AMOUNT SPECIFY FUNDING SOURCE CDBG $ 5,000.00 Prior Year CDBG Funding - This Project 5,000.00 Other (specify) 70,000.00 .Grants (foundations, state, federal) Other (specify) 200,000.00 Individival, business, civic, and faith donations Other (specify) 120,000.00 Fundraisers Other (specify) - Other(specify) Project Total. $ 400,000.00 Signature: Signed via email (2/10/2014) Data: 2/10/2014 Printed Name: Judy Elling, LGSW, MSW-PDPA Title: Executive Director February 10, 2014 Meg Beekman Community Development Coordinator City of Hopkins 1010 15` St S Hopkins, MN 55343 Dear Meg, Attached is ICA's request for funds from the 2014 Hopkins CDBG Allocation. Tracking from 2008, ICA has seen the need for food and rent assistance increased by 131%. Minnesota Food Bank - Second Harvest Heartland and Hunger Free Minnesota hired the Boston Consulting Firm to conduct a study on food insecurity. The results indicate the Hopkins community is as poor as the urban core. This information is verified by ICA's own service statistics. Hopkins residents receive 57% of ICA's services while six other communities receive the rest. Last year, 2013, proved to be another record breaking year; 3,103 Hopkins residents secured food from ICA and 485 individuals benefited from ICA's financial assistance program. Due to the increasing numbers, ICA is expanding our operation and opening a site located on K -Tel Drive strategically bringing services closer to the Hopkins residents. This new site will encompass all the same programs offered at our St. David's site with the projected opening date of May 1, 2014. Thank you for your consideration of funding our efforts as we continue with our mission of assisting Hopkins' residents in need. Sincerely, Peg Keenan Executive Director 12990 St. Davids Road, Minnetonka, MN 55305 • www.icafoodshelf.org HOME 3455 Bloomington Ave Minneapolis, MN 55407 Kersten Elverum City of Hopkins 1010 1st St S Hopkins, MN 55343 Dear Ms. Elverum, Office Phone: 612/728-5770 Hotline: 612/728-5767 Fax: 612/728-5761 www.homelinemn.org January 21, 2014 This letter is to request funding in the amount of $6,379 from the City of Hopkins's Community Development Block Grant Program to support HOME Line's services for renters. A copy of the 2014 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 2013, HOME Line's Tenant Hotline served 165 Hopkins families, prevented an estimated 12 evictions, and saved Hopkins residents an estimated $22,086. 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. We are able to provide full services to city residents because of the 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 23 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 HOME Line's Tenant Hotline in Hopkins: 2013 OVERVIEW In 2013, 165 Hopkins renter households contacted HOME Line for Tenant Hotline Services. This represents service to approximately 413 residents when all family members have been counted. The cost to serve Hopkins in 2014 is $6,379. HIGHLIGHTS In 2013, HOME Line helped renters from Hopkins: • Recover and/or save an estimated $22,086. • Prevent an estimated 12 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 $4,748 in 2012. INCOME BREAKDOWN The vast majority (90%) 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. • Very Low: 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 68% Caucasian 28% African American 3% Hispanic 1% Native American Top Ten Reasons For Calls (2013) 1. Repairs 23 2. Eviction 19 3. Security Deposit 18 4. Notice to Vacate 13 5 Leases 11 6. Neighbors 8 7. Bed Bugs/Infestation 8 8. Break Lease 7 9. Foreclosure 4 10. Roommate 4 Callers' Income 2013 GENDER BREAKDOWN 74% Female 26% Male Proposed CDBG Brooklyn Center CDBG 6,703 Brooklyn Park CDBG 7,063 Hopkins CDBG 6,379 Edina CDBG 3,065 Hennepin County Consolidated Pool CDBG 8,227 Maple Grove CDBG 3,000 New Hope CDBG 4,075 Plymouth CDBG 7,350 Ramsey County CDBG 22,488 Richfield CDBG 5.364 4✓'„enr i a: ,a., .. .. MA� lmS..e�:.i;. .. .. .3'"cf,,y,', ,". 1Mk���k d ��� .. McKnight Foundation 40,000 Otto Bremer Foundation 37,000 Family Housing Fund 25,000 F.R. Bigelow Foundation 17,020 St. Paul Foundation 12,580 Hugh J. Andersen Foundation 6,660 Ramsey County Bar Foundation 2,000 Minnesota State Bar Foundation 1,500 Hennepin County Bar Foundation 1,000 Community Shares 2,220 Contributions 3,700 Hotline Training 16,650 Tenant Rights Book 2,220 Interest Income 148 Miscellaneous Income 148 Other (Attorney Fees, etc.) 12,000 CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2014-009 RESOLUTION APPROVING PROPOSED USE OF 2014 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM FUNDS 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 2014 Urban Hennepin County Community Development Block Grant funds made available to it; and WHEREAS, the city held a public hearing on February 18, 2014 to obtain the views of citizens on housing and community development needs and priorities and the City's proposed use of $111,861 from the 2014 Urban Hennepin County Community Development Block Grant. NOW THEREFORE BE IT RESOLVED, that the City Council of Hopkins approves the following projects for funding from the 2014 Urban Hennepin County Community Development Block Grant Program and authorizes submittal of the proposal to Hennepin County. Activity Budeet Housing Rehabilitation $100,861 Resource West $5,000 Intercongregation Communities Association $5,000 HOME Line $1,000 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 2014 Community Development Block Grant Program. BE IT FURTHER RESOLVED, that should the final amount of FY2014 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 increase or decrease in funding. Adopted by the City Council of the City of Hopkins this 1 e day of February, 2014. By Its Mayor, Eugene Maxwell And Its City Manager, Mike Mornson ATTEST Kristine A. Luedke, City Clerk