HomeMy WebLinkAbout6.f. 2023 CDBG Allocation
EXECUTIVE SUMMARY
City Council Meeting: January 17, 2023
AGENDA ITEM: 2023 CDBG Allocation AGENDA SECTION:
Consent
PREPARED BY: Adam Kienberger, Community
Development Director AGENDA NO. 6.f.
ATTACHMENTS: Resolution, CDA Estimated Funds Letter APPROVED BY: LJM
RECOMMENDED ACTION: Motion to 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 $36,521. In 2022 we received
$50,393 in Community Development Block Grant (CDBG) funds which were allocated to the Home
Improvement Loan Program activity. This projected decrease is largely due to the allocation formula used
(HUD Formula A) which takes into account a number of economic and demographic factors including
poverty, overcrowding and population increases. Generally speaking, Rosemount performed better than
many of the other communities within Dakota County in these categories resulting in a smaller share of
the county-wide allocation.
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 $36,521 again be allocated to a single activity for 2023 – Home
Improvement Loan Program. 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.
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
RECOMMENDATION
Staff is requesting approval of the attached resolution approving the FY 2023 CDBG application.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO. _________
A RESOLUTION APPROVING THE APPLICATION
FOR FISCAL YEAR 2023 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 2023
(ending June 30, 2024); 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 2023 CDBG
applications be submitted by January 20, 2023, 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 2023 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.
ADOPTED this 17th day of January, 2023.
By:
ATTEST:
December 15, 2022
Ms. Adam Kienberger
City of Rosemount
2875 145th Street W.
Rosemount, MN 55068
RE: CDBG Fiscal Year 2023 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 2023 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 2022 Program Year, which was $1,908,838.
The amount each city will actually receive for the upcoming 2023 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 2022. With that in mind, the estimated allocation for Rosemount for FY 2023 is
$36,521. Please provide a contingency plan in your 2023 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