HomeMy WebLinkAbout3.b. CDBG Amendment for Assessment Abatement ProgramAGENDA ITEM: CDBG Amendment for Assessment
Abatement Program
AGENDA SECTION:
Update
PREPARED BY: Kim Lindquist, Community Development
Director
AGENDA NO. •13.
ATTACHMENTS: None
APPROVED BY:
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RECOMMENDED ACTION: Staff is proposing to proceed with a Major Amendment to the
FY06 CDBG allocation to permit funding of the assessment abatement program for 2009.
4 ROSEMOUNT
CITY COUNCIL
City Council Work Session Meeting: February 11, 2009
EXECUTIVE SUMMARY
ISSUE
Each year the City of Rosemount receives a CDBG allocation from Dakota County. The amount of
money is based upon the appropriation from Congress and allocated to Dakota County communities
based upon an adopted formula. Typically, the City has received around $65,000 annually. Each year the
City must choose what the money will be used for based upon identified program priorities. In FY06, the
City designated funds for the Downtown Revitalization program which allows businesses to match the
funds for building improvements. The CDBG funds would be used to bring properties into compliance
with existing building code requirements and the owners match would be used for facade improvements.
While this program has been available for several years, and has been widely publicized with the building
owners, there have been no participants.
Last year, the City used its CDBG allocation to assist in paying for street assessments to qualifying
households. In total, 30 households applied with 20 receiving financial aid. The program was successful
and $25,700 was expended. Staff intended to roll over the retuning funds to provide assessment relief to
financially qualifying households for the 2009 pavement management project. There are two pieces of
information that could make this year's assistance more problematic than last years. First, the assessment
amount is significantly higher than last year. This year all the assessments are slated at $5600 when last year
they were $1,990 for single family homes and $1,050 for townhome units. The second issue, that staff was
unaware of last year, is under the program, all households at or below 50% of the median income are
entitled to have their entire assessment paid as part of the program. Households in the 50 -80% would be
able to receive some financial assistance, if funding was available, but the program does not require full
payment by the City.
To try and estimate the number of households out of the 72 within the 2009 pavement management
project area, the CDA sent out a scoping income survey. Thirty -four surveys were received and seven,
approximately 20% of those received, indicated they were at or below the low income range. An
additional 55% of the respondents appeared to fall into the 50 -80% median income levels. Extrapolating
from the surveys received, fifteen households could qualify for the full assessment payment which would
require $84,000 in expenditures through the CDBG fund. Any remaining funds would be equally split by
the 50 -80% median income qualifiers.
At the present time there is $37,400 remaining from the 2008 CDBG allocation. Staff is also
recommending that funds allocated to the Downtown Revitalization program be used for the assessment
abatement program, bringing the total amount available to $101,800. An amendment to the FY06 CDBG
application would need to be processed to permit this change and the CDA staff has begun that procedure
so that amendment processing does not negatively affect the street project and assessment payment
schedule. While staff understands that the Downtown Revitalization program is an important tool to have
for Downtown building owners, there are certain requirements in the CDBG funds relating to spending of
funds within certain timeframes. The CDA staff would like the City to expend existing funds to assist in
county -wide compliance, with the thought that a future allocation could replenish funds for the
Revitalization program, if desired.
SUMMARY
Staff would like to move forward with the assessment abatement program as outlined above. The funds
would come from the 08 allocation and redesignated funds from FY06. It is hoped that these funds would
provide enough revenue to pay assessments for all households under 50% of the median income. Any
remaining funds would be distributed evenly among households falling between 50 -80% of median
income, upon income verification.
Staff wanted to update the City Council regarding the assessment abatement program and inform them
that funds from the Downtown Revitalization program would be used for the program as needed.
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