HomeMy WebLinkAboutItem 06.fMay 17, 2013 Item No.
RESOLUTION AUTHORIZING CONTINUED PARTICIPATION IN THE DAKOTA
COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
MAY 20, 2013 CITY COUNCIL MEETING
Proposed Action
Staff recommends adoption of the following motion: Adopt a resolution to authorize continued
participation in the Dakota County Community Development Block Grant, Home Investment
Partnership, and Emergency Solutions Grant Programs.
Adoption of this resolution will result in the City continuing its participation in the HUD funded
Community Development Block Grant (CDBG) Program, Home Investment Partnership (HOME)
Program, and the newly available Emergency Solutions Grant (ESG) Program administered by the
Dakota County CDA for fiscal years 2014 -2016.
Overview
As a city with a population above 50,000, HUD classifies Lakeville as a "metropolitan city ". With such a
classification, Lakeville is eligible to receive its own CDBG entitlement allocation but not a HOME or
ESG allocation. The Dakota County CDA has recently notified the City of Lakeville that it may once
again elect to defer its Metropolitan City Entitlement Status for the fiscal years 2014 -2016 to remain a
part of Dakota County's urban county classification.
Staff has reviewed the options available for participation in the CDBG program. While the City would
receive additional funding if it chose to be an entitlement City, it would assume all of the
administrative responsibilities of the program which require 15 -20% of the total CDBG funding to be
received. The net total increase in available grant funds would be minimal.
Three other cities in Dakota County are also eligible to be entitlement cities under the CDBG program.
All three of these cities continue to participate in the County program administered by the CDA.
Lakeville and other entitlement eligible cities have the opportunity to reconsider their options for
participation in the CDBG program every three years.
The City has had an excellent working relationship with the Dakota County CDA with the CDBG
program and thus staff recommends continued participation in the County program.
Primary Issues to Consider
• Would the additional funding that would be received justify the additional administrative
expenses? Staff would contend that the answer to this question is no.
Supporting Information
• Resolution authorizing participation in the County -wide CDBG, HOME, and ESG programs for fiscal
years 2014 -16.
• Attached letter from the Dakota County CDA dated April 22, 2013.
• Attached letter from HUD da a 6, 2013
David L. Olson, Community and Economic Development Director
Financial Impact: $ Budgeted: Y/N Y Source: CDBG Funds
CITY OF LAKEVILLE
RESOLUTION NO.
APPROVAL OF THE CONTINUATION OF COOPERATIVE AGREEMENT FOR THE
DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT, HOME
INVESTMENT PARTNERSHIP, AND ESG PROGRAMS
FOR FISCAL YEARS 2014 THROUGH 2016
WHEREAS, the City of Lakeville has been a participating jurisdiction with the Dakota
County Community Development Block Grant (CDBG) Entitlement Program for Fiscal
Years since 1984; and
WHEREAS, the Dakota County CDA is a Subgrantee of Dakota County for the
administration of the CDBG and HOME Investment Partnership Programs; and
WHEREAS, the Dakota County CDA has requested that the City of Lakeville affirm its
continued participation in the Dakota Country CDBG, HOME, and ESG entitlement
programs for the next three fiscal years; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Lakeville
hereby chooses to defer its metropolitan city entitlement status for the U.S. Department
of Housing and Urban Development's CDBG and HOME programs; and
BE IT FURTHER RESOLVED that the Dakota County CDA is designated as the
administrative entity to carry out the CDBG, HOME, and ESG programs on behalf of the
City of Lakeville, subject to future Subrecipient Agreements that may be required for
specific CDBG- funded activities.
DATED this day of 2013.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
Dakota County
r1b E Community Development
Agency
CDA
April 22, 2013
Steve Mielke, City Administrator
City of Lakeville
20195 Holyoke Avenue
Lakeville, MN 55044
1228 Town Centre Drive I Eagan, MN 55123
PHONE 651 - 675-4400 1 TDD /m 711
www.dakotacda.org
RE: PARTICIPATION IN THE DAKOTA COUNTY CDBG, HOME, & ESG PROGRAMS
Dear Mr. Mielke:
Every three years, the U.S. Department of Housing and Urban Development (HUD) requires urban
counties to requalify their entitlement status and participating communities for the purpose of awarding
Community Development Block Grant (CDBG) and HOME Investment Partnership Program funds.
Dakota County has qualified as an urban county and has received an annual allocation of CDBG funds
since 1984. CDBG- funded activities have been a key element to keep our communities strong and
vibrant. For the first time, Dakota County will also be receiving Emergency Solutions Grant (ESG)
Program funds.
The ESG Program assists individuals and families to quickly regain stability in permanent housing after
experiencing a housing crisis or homelessness. The ESG Program will be administered by the Dakota
County Social Services department. Receiving ESG funding requires ESG to be incorporated into the
Cooperation Agreement between Dakota County and the City of Lakeville. A supplement agreement to
the Cooperation Agreement will be sent to you in the near future for your signature.
The successful use of these federal programs is due to the active involvement and support from local
government. We hope to continue this partnership. As a city with a population above 50,000, HUD
classifies Lakeville as a "metropolitan city ". With such a classification, Lakeville is eligible to receive its
own CDBG entitlement allocation but not a HOME or ESG allocation. To date, Lakeville has chosen to
defer its status as a metropolitan city and remain a part of Dakota County's urban county classification.
The city needs to make a choice again for the next three year period of 2014 -2016.
If you choose to remain a participant of Dakota County's CDBG, HOME, and ESG programs, Lakeville
would continue to be eligible for funding through the Dakota County CDA. Whether the City chooses
to defer or accept their metropolitan city entitlement status it must notify in writing both the
Dakota County CDA and HUD Field Office no later than June 1, 2013. Notice to the HUD Field
Office should be addressed to 920 South 2 nd Avenue, Suite 1300, Minneapolis, MN 55402. Attached is a
sample letter you may use to defer your metropolitan city status if you choose that option. If you choose
to accept a city entitlement status, you can use this same sample letter by changing it from deferral to
acceptance.
If you have any questions regarding this process or the CDBG, HOME, and ESG programs, please feel
free to contact me at (651) 675 -4467 or at lhenning (adakotacda. state. mn.us
Sincerely,
Lisa Henning
Asst. Director of Community & Economic Development
QPP TµEN r
9Q4 DFvs�
U.S. Department of Housing and Urban
Development
Minneapolis Field Office
920 Second Avenue South, Suite 1300
Minneapolis, Minnesota 55402 -4012
MAY0620
Mr. Steve Mielke, City Administrator
City of Lakeville
20195 Holyoke Avneue
Lakeville, MN 55044
Dear Mr. Mielke:
SUBJECT: Eligibility for the Community Development Block Grant Program
For several years your community has been eligible to be an entitlement city in the
Community Development Block Grant (CDBG) program. This would have annually provided
you with a direct award of CDBG funds. Instead, your community has chosen to participate in
Dakota County's CDBG program. The agreement with the county is now up for renewal and we
want to remind you of the city's options. Lakeville has four possible options. It can:
1. Accept status as an entitlement grantee in the CDBG program;
2. Accept status as an entitlement grantee and enter into a joint agreement with Dakota
County;
3. Defer status as an entitlement grantee and participate through the State CDBG
program; or
4. Defer status as an entitlement grantee and continue to participate, as you are, as part
of Dakota's Urban County CDBG program.
Of course, options two through four would require the concurrence of the county or the
state. Your community may become a participant in Dakota's urban county CDBG program
during any year in the county's three year qualification period (Fiscal Years 2014- 2016).
However, once a community becomes a participant in a county's CDBG program, it must remain
with the county for the entire period of qualification that remains when the cooperation
agreement is executed.
We would appreciate a response by May 31, 2013. We are trying to coordinate our
discussion with you on this matter with staff from Dakota County. Thus, if you have any
questions about this matter, please feel free to contact Lisa Henning at (651) 675 -4467 or email
at lhenning @dakota.state.mn.us or John Swanson at (612) 370 -3019, extension 2105, or at
john
Sincerely,
?7("" t. cwzt�
Michele K. Smith, Director
Office of Community Planning and Development
www.hud.gov espanol.hud.gov