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HomeMy WebLinkAbout6.j. Approval of CDBG Resolution FY2020 E X E C U T I V E S U M M A R Y City Council Meeting: January 5, 2021 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 2021 CDBG Application. BACKGROUND The City is allocated approximately $60,000 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. As staff has indicated previously, it is at times difficult to expend the funds and meet all the program criteria. When there is not a timely use of the CDBG allocation, staff has recommended contributing to the home loan program administered by the CDA. At this time the final CDBG award amount is not set. Staff is recommending the FY2021 funds be allocated to two actives. The first activity would allocate $20,000 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 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 second activity would be to allocate $40,783 of the 2021 CDBG funds for a commercial grant/loan program. CBDG funds can be used to bring properties into compliance with code requirements. The City would use the allocated funds to create a grant or matching loan program for downtown businesses to access funds for accessibility, mechanical or structural code upgrades. The final details of the program will be discussed further at an upcoming Port Authority meeting. Listing the two activities allows the City to transfer funds more easily from one activity to the other. Because there is a deadline for expenditure of funding, staff is building-in some flexibility for the funds within these two categories. RECOMMENDATION Staff recommends City Council approval of the attached resolution approving the FY 2021 CDBG application. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2021-01 A RESOLUTION APPROVING THE APPLICATION FOR FISCAL YEAR 2021 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING WHEREAS, the City of Rosemount is a participating jurisdiction with the Dakota County Community Development Block Grant (CDBG) Entitlement Program for Fiscal Year 2021 (ending June 30, 2022); 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 2021 CDBG applications be submitted by January 15, 2021, based on an allocation of funds approved in the Annual Action Plan. THEREFORE, BE IT RESOLVED that the City of Rosemount hereby approves the following: 1. The Fiscal Year 2021 CDBG application is approved for submission to the Dakota County CDA. 2. The Mayor and City Clerk 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. th ADOPTED this 5 day of January by the City Council of the City of Rosemount. William H. Droste, Mayor ATTEST: Erin Fasbender, City Clerk APPLICATION FOR PROGRAM YEAR 2021 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Application must be received by the Dakota County Community Development Agency NO LATER THAN JANUARY 15, 2021 For July 1, 2021 – June 30, 2022 General Information Applicant Name: City of Rosemount DUNS #: 076495183 Contact Name: Eric Van Oss Applicant Address:2875 145th Street W 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: $ Click or tap here to enter text. #2 Title: Economic Development Activities CDBG Request: $ Click or tap here to enter text. #3 Title: Click or tap here to enter text. CDBG Request: $ Click or tap here to enter text. #4 Title: Click or tap here to enter text. CDBG Request: $ Click or tap here to enter text. #5 Title: Click or tap here to enter text. CDBG Request: $ Click or tap here to enter text. Total Request: $ Click or tap here to enter text. 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. As public services may not account for more than 15% of the County’s total funding, public service requests may need to be decreased once all applications are submitted and reviewed by CDA staff. 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 Improvement 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 Parks ☐ Public Water/Sewer Improvements ☐ Street Improvements ☐ Sidewalks ☐ Assessment Abatement ☐ ADA Improvements Homelessness ☐ Coordinated Access to Services & Shelter ☐ Housing Stabilization ☐ Emergency Shelter Operation Neighborhood Revitalization ☐ Acquisition of Real Property ☐ Clearance and Demolition ☐ Clean-up of Contaminated Site Economic Development ☐ Employment Training ☐ Economic Development Assistance ☐ Rehabilitation of Commercial/Industrial Buildings ☐ Micro-Enterprise Assistance ☐ Relocation 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. Rosemount will use CDBG funds for the CDA Home Improvement Loan Program that serves households in the Dakota County earning 50%-80% of the area median income (AMI). 2 Describe the activity schedule: Is this a continuation of a previously funded activity? ☒Yes ☐No Is this a time-specific project? ☐Yes ☒No If this is a time-specific project, please note the start and end dates below: Proposed Activity Start Date: Click or tap here to enter text. Proposed Activity Completion Date: Click or tap here to enter text. 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? 2 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) Click or tap here to enter text. 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) Click or tap here to enter text. How many residents live in this area? Click or tap here to enter text. What is the percentage of low and moderate-income beneficiaries? Click or tap here to enter text.% 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? Click or tap here to enter text. People Click or tap here to enter text. Households (Please choose either People or Households for each project). How will income be verified? ☐ 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 persons, 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? Click or tap here to enter text. % 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? Click or tap here to enter text. (Please provide letter from building inspector or other documentation noting deficiencies and include photos) What deficiency will be corrected or the public improvement be? Click or tap here to enter text. If Slum/Blight Area, what percent of buildings are deteriorated? Click or tap here to enter text.% 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 ☒ Housing Units ☐ Public Facilities ☐ Jobs ☐ Businesses ☐ Organizations V. Project Budget Provide the total project cost and CDBG request. Total Project Cost: $ 20,000 Total CDBG Request: $ 20,000 CDBG Percent of Total Cost: 100% Describe all other funding sources. Source of Funds Amount Committed Pending Dakota County CDA Staff Time/Partnership ☒ ☐ Click or tap here to enter text. $ ☐ ☐ Click or tap here to enter text. $ ☐ ☐ Total: $ ☐ ☐ 5 Please itemize project expenses, using the following guidance as applicable: • 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 * * * * * Please review each section for completeness. Each activity should have separate Sections I through V. 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 # 2 Activity Title: Economic Development Activities II. Activity Information Itemized Use of Funds/Expenses Costs CDBG Funds Requested Other Funding Sources Allocation Toward Home Improvement Loan Fund $ 20,000 $ 20,000 $ CDA Funding Click or tap here to enter text. $ $ $ Click or tap here to enter text. $ $ $ Click or tap here to enter text. $ $ $ Click or tap here to enter text. $ $ $ Total: $ 20,000 $ 20,000 $ I. Activity Title 6 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 Parks ☐ Public Water/Sewer Improvements ☐ Street Improvements ☐ Sidewalks ☐ Assessment Abatement ☐ ADA Improvements Homelessness ☐ Coordinated Access to Services & Shelter ☐ Housing Stabilization ☐ Emergency Shelter Operation Neighborhood Revitalization ☐ Acquisition of Real Property ☐ Clearance and Demolition ☐ Clean-up of Contaminated Site Economic Development ☐ Employment Training ☐ Economic Development Assistance ☒ Rehabilitation of Commercial/Industrial Buildings ☐ Micro-Enterprise Assistance ☐ Relocation Planning and Administration ☐ Planning ☐ Administration Describe the proposed activity in detail. Please be specific about purpose, location, number of people or households served, etc. Rosemount will use CDBG funds for rehabilitation of existing non-compliant commercial buildings. Funds will be used to bring buildings up to building code, ADA, or mechanical standards within the City’s designated Downtown. 7 Describe the activity schedule: Is this a continuation of a previously funded activity? ☐Yes ☒No Is this a time-specific project? ☐Yes ☒No If this is a time-specific project, please note the start and end dates below: Proposed Activity Start Date: Click or tap here to enter text. Proposed Activity Completion Date: Click or tap here to enter text. 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? Click or tap here to enter text. 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) Click or tap here to enter text. 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) Click or tap here to enter text. How many residents live in this area? Click or tap here to enter text. What is the percentage of low and moderate-income beneficiaries? Click or tap here to enter text.% How was this documented? ☐ HUD Data ☐ Survey (Please include a copy of survey) 8 If you checked the Low/Mod Limited Clientele Benefit box, please answer the following: How many Low/Mod People or Households will benefit? Click or tap here to enter text. People Click or tap here to enter text. Households (Please choose either People or Households for each project). How will income be verified? ☐ 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 persons, 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? Click or tap here to enter text. % 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? Downtown Rosemount. The boundaries coincide with the TIF Redevelopment District boundaries approved by the City Council in May 2004. The district was found to meet the blight test for redevelopment activities. The district was also highlighted in the “Development Framework for Downtown Rosemount” in 2004 and updated in 2017. (Please provide letter from building inspector or other documentation noting deficiencies and include photos) What deficiency will be corrected or the public improvement be? ADA, mechanical and structural deficiencies as determined by the Mn State Codes If Slum/Blight Area, what percent of buildings are deteriorated? When the TIF district was established in 2004 71% of the buildings were found to be structurally substandard. 9 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 ☐ Housing Units ☐ Public Facilities ☐ Jobs ☒ Businesses 1-3 ☐ Organizations V. Project Budget Provide the total project cost and CDBG request. Total Project Cost: $ 40,783 Total CDBG Request: $ $40,783 CDBG Percent of Total Cost: 100% Describe all other funding sources. Source of Funds Amount Committed Pending Click or tap here to enter text. $ ☐ ☐ Click or tap here to enter text. $ ☐ ☐ Click or tap here to enter text. $ ☐ ☐ Total: $ ☐ ☐ 10 Please itemize project expenses, using the following guidance as applicable: • 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 * * * * * 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 Click or tap here to enter text. $ $ $ Click or tap here to enter text. $ $ $ Click or tap here to enter text. $ $ $ Click or tap here to enter text. $ $ $ Click or tap here to enter text. $ $ $ Total: $ $ $ 11 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 sub-recipient 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 downpayments, closing costs or other part of the purchase process and counseling for pre-purchase, post-purchase or foreclosure prevention.