HomeMy WebLinkAbout6.a. 2023 CDBG Allocation
EXECUTIVE SUMMARY
Port Authority Meeting Date: November 15, 2022
AGENDA ITEM: 2023 CDBG Allocation AGENDA SECTION:
New Business
PREPARED BY: Adam Kienberger, Community
Development Director AGENDA NO. 6.a.
ATTACHMENTS: Rosemount Dashboard, Letter of
Understanding for 2022 Funds APPROVED BY: LJM
RECOMMENDED ACTION: Motion to recommend City Council adopt a resolution
approving the 2023 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 2023 (July 1, 2023 – June 30, 2024) is approximately $60,000. In
2022 we received $57,265 in Community Development Block Grant (CDBG) funds which were allocated
to the Home Improvement Loan Program.
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 2023. Last year we
reallocated a portion of our funds for a Zoning Code Analysis and Update which is currently underway.
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.
2
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
The attached CDBG status report shows existing funds and to which year they were allocated. In order to
ensure we continue to receive our allocation, cities are required to spend down these funds within four
years or they can revert to the CDA for reallocation to active programs.
Based on an update from CDA staff this week, the program utilized $10,000 in the month of October and
$36,275.10 so far in FY2022 (which started on July 1, 2022). This demonstrates a continued demand and
successful implementation benefiting Rosemount residents.
RECOMMENDATION
Staff is requesting discussion by the Port Authority on the allocation of Rosemount’s 2023 CDBG
allocation. A resolution approving the City’s 2023 CDBG would be brought to the City Council in either
late December or early January.
ROSEMOUNT CDBG STATUS REPORT --- FUND BALANCES
3-Oct-22
Years Subject to
Recapture 6/30/2023 6/30/2024 6/30/2025 6/30/2026
Activity 2019 2020 2021 2022
Revolving Loan
Funds Total
Percent by
Activity
Home Improvement Loan Program -$ 27,706.61$ 17,600.00$ 50,393.00$ -$ 95,699.61$ 61.5%
Planning Activity 19,217.00$ -$ 40,783.00$ -$ -$ 60,000.00$ 38.5%
TOTAL (by year)19,217.00$ 27,706.61$ 58,383.00$ 50,393.00$ -$ 155,699.61$ 100.0%
TOTAL BUDGET 44,294.30$ 59,668.00$ 58,383.00$ 50,393.00$
PERCENT TO BE EXPENDED BY YEAR 56.6%53.6%0.0%0.0%
NOTE: Project administration costs for CDA-run Home Improvement Loan program have been subtracted from the allocation shown above.
FY2022 Timeliness Ratio*3.09
Timeliness Ratio of 1.5 is no more than** 75,589.50$ $19,217.00 Amount that needs to be spent by June 30, 2023
$80,110.11 Amount that needs to be spent to reach 1.5 Timeliness Ratio
Rosemount Residential Rehab
Loans Completed CDBG City Allocation CDBG HOPE MHFA Total
0 57,265.00$ -$ -$ -$ -$
Loans in Process 4
Residents on Waiting List 8
* This ratio needs to be below 1.5 by May 2, 2023.
** This amount is the maximum amount that the City can have available in order to meet timeliness.
4-Year Expenditure Deadline
PY2022 Expenditures