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HomeMy WebLinkAbout6.j. Approval of CDBG Resolution FY2020 EXECUTIVE SUMMARY City Council Meeting: January 7, 2020 AGENDA ITEM: Approval of CDBG Resolution FY2020 AGENDA SECTION: Consent PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 6.j. ATTACHMENTS: Resolution, CDBG Application APPROVED BY: LJM RECOMMENDED ACTION: Motion to Adopt a Resolution Approving the 2020 CDBG Application. BACKGROUND The city is allocated approximately $50,000 annually in Community Development Block Grant (CDBG) funds. This money comes from the Federal Government and is disbursed through the Dakota County Community Development Agency (CDA). In the past several years Rosemount has used the allocation to make ADA improvements to public facilities such as the Ericson Shelter, sidewalks along Connemara, and steps and sidewalks at the Steeple Center. More recently the City used funds for well capping. Staff is recommending the FY2020 funds be allocated to the CDA-run Home Improvement Loan Program. This program serves households in Dakota County earning 50%-80% of the area median income (AMI). If the City designates the CDBG allocation to the Loan Program, those funds will be directed to Rosemount residents. There are currently three Rosemount households on the waiting list for the program, and the additional funds will help reduce wait times. The County administers, and provides funding, to the program which is distributed on a first come, first served basis. The final amount of CDBG funds available to the City may increase or decrease. Any change in the total amount will mean a resulting increase or decrease in the amount allocated to the Home Improvement Loan Program. RECOMMENDATION Staff recommends approval of the attached resolution of support for the allocation of $55,588 of the 2020 CDBG funds for the Home Improvement Loan Program. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2020 - A RESOLUTION APPROVING THE APPLICATION OF THE CITY OF ROSEMOUNT FOR FISCAL YEAR 2020 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING WHEREAS, the City of Rosemount is a participating jurisdiction with the Dakota County CDBG Entitlement Program for Fiscal Year 2020 (ending June 30, 2021); and WHEREAS, the Dakota County Community Development Agency (CDA) is a Subgrantee of Dakota County for the administration of the CDBG Program; and WHEREAS, the Dakota County CDA has requested fiscal year 2020 CDBG application to be submitted by January 17, 2020, based on an allocation of funds approved in the Annual Action Plan. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Rosemount hereby approves the following: 1. The Fiscal Year 2020 CDBG application is approved for submission to the Dakota County CDA. 2. The Mayor for the City of Rosemount is authorized to execute the application and all agreements and documents related to receiving and using the awarded CDBG funds. 3. The Dakota County CDA is designated as the administrative entity to carry out the CDBG program on behalf of the City of Rosemount, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. ADOPTED this 7th day of January, 2020 by the City Council of the City of Rosemount. _________________________________ William H. Droste, Mayor ATTEST: ___________________________________ Erin Fasbender, City Clerk APPLICATION FOR PROGRAM YEAR 2020 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Application must be received by the Dakota County Community Development Agency NO LATER THAN JANUARY 17, 2020 For July 1, 2020 – June 30, 2021 Applicant Name: City of Rosemount DUNS #: Contact Name: Eric Van Oss Applicant Address: 2875 145th Street City, State, Zip: Rosemount, MN 55068 Phone:651-322-2059 Email: eric.vanoss@ci.rosemount.mn.us Proposed Activities Activity Funding Amount #1 Title: Home Improvement Loan Program CDBG Request: $ 55,588 #2 Title: CDBG Request: $ #3 Title: CDBG Request: $ #4 Title: CDBG Request: $ #5 Title: CDBG Request: $ Total Request: $ 55,588 PLEASE NOTE: AT LEAST 50% of the proposed funding must qualify as a LOW/MOD benefit and NO MORE THAN 40% of the proposed funding can be for PUBLIC SERVICES, with the caveat that public services may not account for more than 15% of the County’s total funding. Because of this federal requirement, a municipality’s public service request may need to be decreased once all applications are submitted and reviewed by CDA staff. Please plan accordingly. Certification I certify that the information contained in this application is true and correct and that it contains no misrepresentations, falsifications, intentional omissions, or concealment of material facts. I further certify that no contracts have been awarded, funds committed, or construction begun on the proposed project(s), and that none will be made prior to notification from the Dakota County CDA based on HUD’s issuance of a Release of Funds Notice. Signature of Authorized Official Date Title of Authorized Official PLEASE ATTACH THE RESOLUTION OF THE GOVERNING BODY SHOWING APPROVAL OF THE REQUEST FOR CDBG FUNDS 1 Please complete the following Sections I-V for EACH proposed activity. (For example, if 3 activities are being proposed, there will be 3 sets of the following pages.) Activity # 1 Activity Title: Home Loan Program II. Activity Information Has this Activity received CDBG funding before? ☒ Yes ☐ No Check the eligible activity category of the proposed activity: (See attached definitions) Affordable Rental Housing ☐ Rehabilitation of Multi-Unit Residential ☐ Fair Housing Activities ☐ Energy Efficiency Improvements Public Services ☐ Senior Services ☐ Youth Services ☐ Transportation Services ☐ Operational Support Affordable Homeowner Housing ☐ Homeownership Assistance ☐ New (Re)Construction Homeowner Housing ☒ Rehabilitation/ Energy Efficiency Improvement of Single Unit Residential ☐ Fair Housing Activities Public Facilities ☐ Recreational Park Improvements ☐ Public Water/Sewer Improvements ☐ Street Improvements ☐ Sidewalks ☐ Assessment Abatement Homelessness ☐ Rapid Rehousing Assistance ☐ Homelessness Prevention ☐ Emergency Shelter Operations ☐ Addition of Permanent Supportive Housing Units ☐ Shelter Renovation/Construction Neighborhood Revitalization ☐ Acquisition of Real Property ☐ Clearance and Demolition ☐ Clean-up of Contaminated Site ☐ Address Water/Sanitation Hazards Economic Development ☐ Employment Training ☐ Economic Development Assistance ☐ Rehabilitation of Commercial/Industrial Buildings Planning and Administration ☐ Planning ☐ Administration I. Activity Title Describe the proposed activity in detail. Please be specific about purpose, location, number of people or households served, etc. Allocation of funding to CDA to administer on behalf of Home Loan Program eligible Rosemount residents. 2 Describe the activity schedule: Is this a continuation of a previously funded activity? ☒Yes ☐No Please note the start and end dates below for the activity. Proposed Activity Start Date: Ongoing Proposed Activity Completion Date: CDBG funded projects/activities must meet one of the following program objectives. Check the objective for which the CDBG funds will be used. If you checked the Low/Mod Housing Benefit box, please answer the following: How many Low/Mod Households will benefit? 4-5 Households (Income eligibility must be verified by written documentation) Where will this activity occur? (Address of property, neighborhood, or citywide) Citywide III. CDBG National Objective ☐ Low/Mod Area Benefit ☐ Low/Mod Limited Clientele Benefit ☒ Low/Mod Housing Benefit ☐ Low/Mod Jobs Benefit ☐ Slum/Blight Area Benefit ☐ Slum/Blight Spot Benefit ☐ Urgent Need (extremely rare; used only for emergencies): (Please explain) If you checked the Low/Mod Area Benefit box, please answer the following: In what Census Tract/Block Group(s) do beneficiaries of your Activity live? (Please include map) How many residents live in this area? What is the percentage of low and moderate-income beneficiaries? % How was this documented? ☐ HUD Data ☐ Survey (Please include a copy of survey) 3 If you checked the Low/Mod Limited Clientele Benefit box, please answer the following: How many Low/Mod People or Households will benefit? Number of People: Number of Households: (Please choose either People or Households for each project). How will income be verified? (check one of the boxes below) ☐ Income Verification Request Forms ☐ Eligibility Status for other Governmental Assistance program ☐ Self Certification (Must request source documentation of 20% of certifications and must inform beneficiary that all sources of income and assets must be included when calculating annual income) ☐ Presumed benefit (HUD presumes the following to be low and moderate-income: abused children, battered spouses, elderly persons (62+), severely disabled adults, homeless persons, persons living with AIDS, migrant farm workers) If you checked the Low/Mod Jobs Benefit box, please answer the following: To meet the requirements of the “Jobs” National Objective, the business being assisted must enter into an agreement showing commitment that at least 51% of jobs created or retained will be available to low/mod income persons. The business must also be prepared to provide a list of all jobs, detailed information about the jobs being created or retained, the selection and hiring process, and demographic information about the employees. Will this activity create or retain full time equivalencies (FTEs)? ☐ Create ☐ Retain For job(s) that are being retained, please provide evidence that the assisted business has issued a notice to affected employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial records that shows the business is likely to cut back on employment in the near future without planned intervention. Will the job(s) created or retained require a special skill? ☐ Yes ☐ No What percent of permanent FTEs will be held by or available to low/mod income persons? % If you checked the Slum/Blight Area or Slum/Blight Spot Benefit box, please answer the following: What are the boundaries of the slum/blight area or the address of the slum/blight spot? (Please provide letter from building inspector or other documentation noting deficiencies and include photos) What deficiency will be corrected or the public improvement be? If Slum/Blight Area, what percent of buildings are deteriorated? % 4 IV. Proposed Objectives and Outcomes Indicate the proposed objective and outcome of the activity/project. Outcome #1 Availability/Accessibility Outcome #2 Affordability Outcome #3 Sustainability Objective #1 Suitable Living Environment ☐ Accessibility for the purpose of creating a suitable living environment ☐ Affordability for the purpose of creating a suitable living environment ☐ Sustainability for the purpose of creating a suitable living environment Objective #2 Decent Housing ☐ Accessibility for the purpose of providing decent housing ☒ Affordability for the purpose of providing decent housing ☐ Sustainability for the purpose of providing decent housing Objective #3 Economic Opportunity ☐ Accessibility for the purpose of creating economic opportunities ☐ Affordability for the purpose of creating economic opportunities ☐ Sustainability for the purpose of creating economic opportunities Indicate how the activity outcome will be measured and projected number of beneficiaries. ☐ People ☒ Households 4-5 ☐ Housing Units ☐ Public Facilities ☐ Jobs ☐ Businesses ☐ Organizations V. Project Budget Provide the total project cost and CDBG request. Total Project Cost: $ 55,588 Total CDBG Request: $ 55,588 CDBG Percent of Total Cost: 100% Please list all funding sources including CDBG. Source of Funds Amount Committed Pending Dakota County CDA $ 55,588 ☒ ☐ $ ☐ ☐ $ ☐ ☐ Total: $ ☐ ☐ 5 Please list all project/activity expenses, including CDBG. The following guidance may assist in determining project/activity costs. For acquisition/clearance, public facilities or improvements, slum/blight, assessment abatement, and similar: • Acquisition & Improvement Costs - Include purchase price, closing costs, site improvements, clearance of toxic contaminants, and other acquisition and improvement costs • Construction/Rehabilitation Costs - Include site improvements, construction (labor, materials, supplies), installation, permits and other construction/rehabilitation costs • Professional Fees and Personnel Costs - Include architectural, engineering and code inspection fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and other professional/personnel fees • Other Development Costs - Include relocation, financing costs, environmental reviews, environmental studies, and other development costs • Eligible Costs for Planning Projects - Include professional services, project management costs, and other planning costs For public services: • Operations Costs – Include cost of materials, supplies, facility rental, transportation cost, fees from vendors or subrecipients • Staff Costs – Include direct and indirect service costs, e.g. salary or hourly wages, benefits, vacation (cannot be accrued), flex leave. Please note, a CDBG subrecipient timesheet must be included with all reimbursement requests. * * * * * Please review each section for completeness. Each activity should have separate Sections I through V. Itemized Use of Funds/Expenses Costs CDBG Funds Requested Other Funding Sources Estimated $13,000 per eligible household permits 4-5 households to participate $ 55,588 $ 55,588 $ $ $ $ $ $ $ $ $ $ $ $ $ Total: $ $ $ 6 CDBG ELIGIBLE ACTIVITIES DEFINITIONS The following are summary definitions of Community Development Block Grant Eligible Activities: Please Note: Although an activity may be deemed eligible for CDBG funding, it does not guarantee funding. The Community Development Needs for the CDBG Program in the Consolidated Plan sets forth the priority of needs and as such dictates which types of eligible activities may be funded in a given year. CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government or used for political activities. Acquisition/Disposition: The use of CDBG funds to acquire real property, in whole or in part, by purchase, long-term lease, donation, or otherwise, for any public purpose. Real property to be acquired may include: land, air rights, easements, water rights, right-of-ways, buildings and other property improvements, or other interests in real property. Demolition/Clearance: Clearance, demolition, and removal of buildings and improvements including movement of structures to other sites. Economic Development Activities: Economic development activities may include, but are not limited to: (1) Construction by the grantee or subrecipient of a business incubator designed to provide inexpensive space and assistance to new firms to help them become viable businesses, (2) Loans to pay for the expansion of a factory or commercial business, and (3) Providing training needed by persons on welfare to enable them to qualify for jobs created by CDBG-assisted special economic development activities. The level of public benefit to be derived from the economic development activity must be appropriate given the amount of CDBG assistance. Rehabilitation: Rehabilitation related activities may include single-family rehabilitation, multi-family rehabilitation, energy efficiency improvements, public housing modernization, and rehabilitation of commercial properties. General Administration: CDBG funds may be used for the general administration costs incurred by a Subrecipient to administer their CDBG program. Administration costs directly associated with a CDBG activity should be part of the activity as project administration. Relocation: CDBG funds may be used for relocation payments and assistance to displaced persons, including individuals, families, businesses, non-profits, and farms, where required under section 570.606 of the regulations (pursuant to the Uniform Relocation Act). Public Facilities/Improvements: CDBG funds may be used by the grantee or other public or private nonprofit entities for the acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of architectural barriers to accessibility), or installation, of public improvements or facilities. Buildings for the general conduct of government cannot be acquired or improved with CDBG funds. This includes neighborhood facilities, firehouses, public schools, and libraries, as well as water and/or sewer treatment plants. The regulations further specify that facilities that are designed for use in providing shelter for persons having special needs are considered to be public facilities. Public Services: CDBG funds may be used to provide public services (including labor, supplies, and materials), provided that each of the following criteria is met: 1) The public service must be either a new service or a quantifiable increase in the level of service; and 2) The amount of CDBG funds obligated within a program year to support public service activities under this category may not exceed 40% of the City’s allocation and the total public services of all Subrecipients may not exceed 15% of the total grant awarded to Dakota County for that year. Planning: Includes studies, analysis, data gathering, preparation of plans, and identification of actions that will implement plans. The types of plans which may be paid for with CDBG funds include, but are not limited to: Comprehensive plans; Individual project plans; Community development plans, Capital improvement programs; Small area and neighborhood plans; Environmental and historic preservation studies; and Functional plans (such as plans for housing, land use, energy conservation, or economic development). Homeownership Assistance: Homeownership assistance activities may include financial assistance for down payments, closing costs or other part of the purchase process and counseling for pre-purchase, post-purchase or foreclosure prevention.