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.
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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.
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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
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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.
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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