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HomeMy WebLinkAbout6.o. 2022 CDBG Allocation EXECUTIVE SUMMARY City Council Meeting: January 4, 2022 AGENDA SECTION: AGENDA ITEM: 2022 CDBG Allocation Consent PREPARED BY: Adam Kienberger, Community AGENDA NO. 6.o. Development Director ATTACHMENTS: Resolution, CDBG Application, CDA APPROVED BY: LJM Estimated Funds Letter RECOMMENDED ACTION: Motion to adopt a resolution approving the 2022 CDBG application BACKGROUND Annually, the City receives federal Community Development Block Grant (CDBG) funds which are distributed by the Dakota County CDA. The City was recently informed by the Dakota County Community Development Agency (CDA) that our estimated allocation for Program Year 2022 (July 1, 2022 – June 30, 2023) is $60,625. In 2021 we received $60,783 in Community Development Block Grant (CDBG) funds which were allocated between Home Improvement Loan Program and Economic Development Grant Program activities. To secure the grant money that is available, the city must prepare and submit an application that specifies eligible activities or projects to which the city intends to allocate the available funding. A completed application is due in January accompanied by an approved City Council resolution. The final allocation amount may change as HUD finalizes their budget process over the next several months. Proposed Activities City staff is proposing that the estimated $60,000 be allocated to a single activity for 2022 – Home Improvement Loan Program while we work with the CDA to reallocate existing CDBG funds for a Zoning Code Analysis and Update this winter. This recommendation was discussed and approved by the Port Authority at their November meeting. Home Improvement Loan Program The Home Improvement Loan Program is a program administered by the CDA to benefit low/moderate income households in Rosemount making eligible improvements to their homes. This program was funded last year and grants us the maximum opportunity to benefit a wide audience in Rosemount and meet HUD’s spenddown requirements in a timely manner. Some program details include: The Home Improvement Loan Program assists low- and moderate-income homeowners with making repairs and improvements to their homes. Home Improvement Loans are commonly used for:  Roof replacement  Furnace replacement  Electrical and plumbing repairs  Insulation  Improvements for special needs, such as ramps, bathroom or kitchen modifications Home Improvement Loans feature:  Zero percent interest  No monthly payments  Repayable when ownership changes or you move from the property. You may be required to repay the loan if you refinance your home or take out a home equity loan.  $15,000 loan minimum; $25,000 loan limit RECOMMENDATION Staff recommends City Council approval of the attached resolution approving the FY 2022 CDBG application. 2 CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2022-04 A RESOLUTION APPROVING THE APPLICATION FOR FISCAL YEAR 2022 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 2022 (ending June 30, 2023); 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 2022 CDBG applications be submitted by January 14, 2022, based on an allocation of funds approved in the Annual Action Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Rosemount hereby approves the following: 1. The Fiscal Year 2022 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 4 day of January, 2022. William Droste, Mayor ATTEST: Erin Fasbender, City Clerk APPLICATION FOR PROGRAM YEAR 2022 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Application must be received by the Dakota County Community Development Agency NO LATER THAN FRIDAY, JANUARY 14, 2022 For July 1, 2022 – June 30, 2023 General Information Applicant Name: City of Rosemount DUNS #: 076495183 Contact Name: Adam Kienberger th Applicant Address:2875 145 Street W City, State, Zip: Rosemount, MN 55068 Phone:651-322-2020 Email:adam.kienberger@ci.rosemount.mn.us Proposed Activities Activity Funding Amount #1 Title: Home Improvement Loan Program CDBG Request: $ 60,625 #2 Title: Click or tap here to enter text. 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: $ 60,625 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 I. Activity Title 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 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). Has this Activity received CDBG funding before? ☒ Yes ☐ No Check the eligible activity category of the proposed activity: (See attached definitions) Affordable Rental Housing Public Services ☐ Rehabilitation of Multi-Unit Residential ☐ Senior Services ☐ Fair Housing Activities ☐ Youth Services ☐ Energy Efficiency Improvements ☐ Transportation Services ☐ Operational Support Affordable Homeowner Housing Public Facilities ☐ Homeownership Assistance ☐ Recreational Parks ☐ New (Re)Construction Homeowner Housing ☐ Public Water/Sewer Improvements ☒ Rehabilitation/ Energy Efficiency Improvement of Single ☐ Street Improvements Unit Residential ☐ Sidewalks ☐ Fair Housing Activities ☐ Assessment Abatement ☐ ADA Improvements Homelessness Neighborhood Revitalization ☐ Coordinated Access to Services & Shelter ☐ Acquisition of Real Property ☐ Housing Stabilization ☐ Clearance and Demolition ☐ Emergency Shelter Operation ☐ Clean-up of Contaminated Site Economic Development Planning and Administration ☐ Employment Training ☐ Planning ☐ Economic Development Assistance ☐ Administration ☐ Rehabilitation of Commercial/Industrial Buildings ☐ Micro-Enterprise Assistance ☐ Relocation 1 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. III. CDBG National Objective CDBG funded projects/activities must meet one of the following program objectives. Check the objective for which the CDBG funds will be used. ☐ 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) Citywide 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) If you checked the Low/Mod Housing Benefit box, please answer the following: How many Low/Mod Households will benefit? Up to 4 households (Income eligibility must be verified by written documentation) Where will this activity occur? (Address of property, neighborhood, or citywide) Citywide Click or tap here to enter text. 2 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.% 3 IV. Proposed Objectives and Outcomes Indicate the proposed objective and outcome of the activity/project. Outcome #1 Outcome #2 Outcome #3 Availability/Accessibility Affordability Sustainability ☐ Accessibility for the ☐ Affordability for the ☐ Sustainability for the Objective #1 purpose of creating a suitable purpose of creating a purpose of creating a Suitable Living living environment suitable living environment suitable living environment Environment ☒ Accessibility for the ☒ Affordability for the ☒ Sustainability for the Objective #2 purpose of providing decent purpose of providing purpose of providing Decent housing decent housing decent housing Housing ☐ Accessibility for the ☐ Affordability for the ☐ Sustainability for the Objective #3 purpose of creating economic purpose of creating purpose of creating Economic opportunities economic opportunities economic opportunities Opportunity Indicate how the activity outcome will be measured and projected number of beneficiaries. ☐ People ☐ Public Facilities ☐ Businesses ☒ Households 4 ☐ Jobs ☐ Organizations ☒ Housing Units 4 V. Project Budget Provide the total project cost and CDBG request. Total Project Cost: $ 60,625 Total CDBG Request: $ 60,625 CDBG Percent of Total Cost: 100% Describe all other funding sources. Source of Funds Amount Committed Pending CDBG $ 60,625 ☒ ☐ Click or tap here to enter text. $ ☐ ☐ Click or tap here to enter text. $ ☐ ☐ Total: $ ☐ ☐ 4 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 CDBG Funds Other Funding Itemized Use of Funds/Expenses Costs Requested Sources Allocation toward Home Improvement Loan $ 60,625 $ CDA $ 60,625 Fund 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. $ 60,625 $ Total: $ 60,625 * * * * * Please review each section for completeness. 5 November 9, 2021 Ms. Adam Kienberger City of Rosemount 2875 145th Street W. Rosemount, MN 55068 RE: CDBG Fiscal Year 2022 Allocation Estimate Dear Mr. Kienberger, Dakota County receives an annual allocation of Community Development Block Grant (CDBG) funds, which is a federal program administered by the Department of Housing and Urban Development (HUD). The program is designed to assist local governments with various community development projects and programs that primarily aid low- and moderate-income residents. Dakota County is considered an “Entitlement County”, and, as such, receives an annual allocation of federal CDBG funds. The Dakota County Board of Commissioners has chosen to allocate the CDBG funds amongst the various cities and townships in the County, as well use the funds for particular County programs. The Dakota County Community Development Agency (CDA) administers this program on behalf of Dakota County. Each year, the city’s CDBG allocation is rebalanced to account for updated information in the American Community Survey provided by the Census Bureau for each city. Per HUD rules, the CDBG allocation is based on three factors: a community’s population, people in poverty, and overcrowded housing units. Each city receives a percentage of the annual Dakota County CDBG allocation based on the three factors. Because these factors change over time, the allocation each city receives will change over time. The CDBG allocation Dakota County will receive for the 2022 Program Year is not yet known. However, we believe it is prudent for each city to anticipate the County will receive a similar amount to what was received for the 2021 Program Year, which was $1,938,727. The amount each city will actually receive for the upcoming 2022 Program Year won’t be known until the federal budget is approved. This amount may be more or less than what your city received for 2021. With that in mind, the estimated allocation for Rosemount for FY 2022 is $60,625. Please provide a contingency plan in your 2022 Program Year application that specifies which program will receive more or less funds based on the final allocation. If you have any questions, please feel free to contact me at (651) 675-4464 or mdykes@dakotacda.state.mn.us. Best Regards, DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY Margaret M. Dykes Asst. Director of Community and Economic Development