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HomeMy WebLinkAboutX-C-01 Resolution 2022 CDBG Budget City Council Memorandum To: Mayor Fasbender & City Councilmembers From: John Hinzman, Community Development Director Date: January 2, 2022 Item: Resolution: Authorize Submittal of 2022 CDBG Budget Council Action Requested: Adopt the attached resolution authorizing submittal of the 2022 Community Development Block Grant (CDBG) budget to Dakota County. The estimated funding of $73,612 would be allocated towards assessment abatement. Action requires a simple majority of Council. Background Information: CDBG funding is intended to fund activities for low and low\moderate income individuals including affordable housing, anti-poverty, and infrastructure development. Dakota County receives a direct allocation of CDBG funding from the US Department of Housing and Urban Development (HUD) and sub-allocates funding to individual cities within the County. Assessment Abatement – Similar to past years, CDBG funding would be allocated toward providing assessment abatement for local public infrastructure projects; allowing qualifying homeowners to reduce or eliminate their assessment. This year’s project generally involves Park Lane and Park Court; 5th and Ash Streets; 13th Street-Hillside-Lilac Court; and the Riverwood Area. Financial Impact: CDBG funds will assist low to low\moderate income households in abating assessments and housing repairs. Advisory Commission Discussion: N\A Council Commission Discussion: N\A Attachments: • Resolution X-C-01 CITY OF HASTINGS RESOLUTION NO. ___________ A RESOLUTION APPROVING THE APPLICATION FOR FISCAL YEAR 2022 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING WHEREAS, the City of Hastings 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 Hastings hereby approves the following: 1. The Fiscal Year 2022 CDBG application is approved for submission to the Dakota County CDA. 2. The City Administrator for the City of Hastings 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, subject to future Subrecipient Agreements that may be required for specific CDBG-funded activities. Adopted by the City Council of Hastings this 3rd day of January, 2022 Ayes: ____ Nays: _____ Absent: ______ ATTEST: Mary D. Fasbender, Mayor Kelly Murtaugh, City Clerk X-C-01 I HEREBY CERTIFY that the above is a true and correct copy of resolution presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 3rd day of January, 2022, as disclosed by the records of the City of Hastings on file and of record in the office. Kelly Murtaugh City Clerk ( SEAL) This instrument drafted by: City of Hastings (JH) 101 4th Street East Hastings, MN 55033 X-C-01 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS APPLICATION FOR PROGRAM YEAR 2022 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 Hastings DUNS #: 172843278 Contact Name: John Hinzman Applicant Address:101 East 4th Street City, State, Zip: Hastings, MN 55033 Phone:651-480-2378 Email:jhinzman@hastingsmn.gov Proposed Activities Activity Funding Amount #1 Title: Assessment Abatement CDBG Request: $ 73,612 #2 Title: CDBG Request: $ #3 Title: CDBG Request: $ #4 Title: CDBG Request: $ #5 Title: CDBG Request: $ Total Request: $ 73,612 PLEASE NOTE: AT LEAST 50% of the proposed funding must qualify as a LOW/MOD benefit and NO MORE THAN 40% of the any one community’s 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 be decreased once all applications are submitted and reviewed by CDA staff. X-C-01 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. X-C-01 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: Assessment Abatement II. Activity Information Has this Activity received CDBG funding before? ☒ Yes ☐ No Check the eligible activity category of the proposed activity: (See attached definitions) I. Activity Title Describe the proposed activity in detail. Please be specific about purpose, location, number of people or households served, etc. The City of Hastings 2022 Improvement Program includes street reconstruction projects involving bituminous paving, storm sewer, concrete curb and gutter, and sidewalk\trail construction. The project would involve Park Lane and Park Court; 5th and Ash St; 13th Street-Hillside Street-Lilac Court; Riverwood area. We estimate serving 22 households with an average assessment of $4,027. Per City policy, all abutting property owners will be assessed for these improvements. The City is proposing to allocate CDBG funding to provide assessment abatement to low and moderate income properties. Qualifying low income households would have 100 percent of their assessments abated, while qualifying moderate income households would have their assessments abated to the extent of remaining funds available. X-C-01 2 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 X-C-01 3 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: 7/1/22 Proposed Activity Completion Date: 6/30/23 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? 22 Households (Income eligibility must be verified by written documentation) Where will this activity occur? (Address of property, neighborhood, or citywide) Park Lane and Park Court; 5th and Ash St; 13th Street-Hillside Street-Lilac Court; Riverwood area. 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) 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) How many residents live in this area? What is the percentage of low and moderate-income beneficiaries? % How was this documented? ☐ HUD Data ☐ Survey (Please include a copy of survey) X-C-01 4 If you checked the Low/Mod Limited Clientele Benefit box, please answer the following: How many Low/Mod People or Households will benefit? People 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? % 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? (Please provide letter from building inspector or other documentation noting deficiencies and include photos) What deficiency will be corrected or the public improvement be? If Slum/Blight Area, what percent of buildings are deteriorated? % X-C-01 5 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: $ 4,172,826 Total CDBG Request: $ 73,612 CDBG Percent of Total Cost: 1.8% Describe all other funding sources. Source of Funds Amount Committed Pending City of Hastings Wastewater Fund $ 372,168 ☐ ☒ City of Hastings Water Fund $ 577,084 ☐ ☒ City of Hastings Bonded Debt (Net) $ 1,850,404 ☐ ☒ Property Owner Assessments $1,077,010 ☐ ☒ City Property Assessments $ 222,549 ☐ ☒ CDBG Funding $73,612 ☐ ☒ Total: $ 4,172,826 ☐ ☒ X-C-01 6 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 City of Hastings Bonded Debt & Special Assessments – Street, Storm Sewer, and Streetscape $ 3,223,575 $ 73,612 $ 3,149,963 City of Hastings Water Fund – Water System Infrastructure Replacements $ 577,084 $ $ 577,084 City of Hastings Wastewater Fund – Sanitary Sewer Infrastructure $ 372,168 $ $ 372,168 $ $ $ $ $ $ Total: $4,172,826 $ 73,612 $ 4,100,215 X-C-01 7 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 lists the priority of needs and 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 down payments, closing costs or other part of the purchase process and counseling for pre-purchase, post-purchase or foreclosure prevention. X-C-01