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Home My WebLink AboutItem 06.eMay 17, 2013 io Item No. Substantial Amendment to the 2012 CDBG Program Year Activities May 20, 2013 City Council Meeting Proposed Action Move to adopt a substantial budget amendment to the Dakota County Community Development Block Grant (CDBG) Program for Federal Fiscal Year 2012 as described in Exhibit A. Passage of this motion will result in the allocation of the $119,888 reimbursement of CDBG funds from the sale of the former Senior Center to fund the rehab of Dakota County CDA - owned public housing units on Ideal Way. Overview The CDA has request that the City consider use of the funds that were reimbursed to the CDBG program as a result of the sale of the former Senior Center be allocated to the rehab of the CDA -owned public housing units on Ideal Way. The amount of reimbursement was equal to the percentage of CDBG funds that funded the original construction of the former Senior Center multiplied by the market value of the Senior Center at the time it was sold. The City Council discussed this request at the April 23 Council Work Session. The use of reimbursed CDBG funds for this purpose will assist in preserving affordable housing units in Lakeville, will provide the timely expenditure of the CDBG funds in accordance with HUD guidelines, and will allow other CDA funds to be made available for redevelopment activities in the Downtown area. Staff recommends approval of the CDBG Budget Amendment as proposed. Primary Issues to Consider • Is this an appropriate use of the City's CDBG funds? The City has previously provided funds for development of affordable CDA housing projects including Main Street Manor and Meadowlark Townhomes. Supporting Documentation • CDBG Budget Amendment Request Form Z� �_16�ZL David L. Olson Community and Economic Development Director Financial Impact: $ Budgeted: Y/N _Y_ Source: _CDBG Related Documents (CIP, ERP, etc.): _Attachments A and B Notes: EXHIBIT A Dakota County CDBG Budget Amendment Request Form Date: May 13, 2013 Total Amendment(s): $ 119,888 From: City/Township of Lakeville Please identify Activity Budgets you are requesting to be amended in the CDBG Program. The Dakota County CDA will fill in the shaded areas. You have various amendment options, including: 1. Amend a budget by transferring its balance from one activity to a different activity within the same program year (i.e., transfer $10,000 from acquisition to rehab in FY04). 2. Amend a budget by transferring its balance to a newly created activity within the same program year (i.e., transfer $25,500 from clearance to a newly created rehab activity in FY03). 3. Amend a budget by deleting it entirely with no previous expenditures, and transferring that budget to one or more existing /new activities within the same program year (i.e., delete a relocation activity originally budgeted for $15,000 and transfer it to another existing public service activity in FY02). NOTE: The CDA will determine whether the proposed amendment is either administrative or substantial in nature. If it is substantial (i.e., deleting an activity), then the CDA will need to publish the amendment for public comment and obtain CDA Board approval. A substantial amendment process will take approximately 45 days to complete. The CDA can assist with the identification of original budgets and fund balances. Amending budgets WITH new and /or deleted activities: Name of Activity and Program Year Original Proposed Budget CDA Account Number Budget Budget Change Program Income from sale of $119,888 - $119,888 $0 Senior Center — FY12 Public Housing Rehabilitation $0 $119,888 $119,888 activity — Ideal Way NEW — FY12 Prepared by: Local Program Administrator Approved by: City or Township Finance Officer If c a n ew act co the f s e c tions. Describe the proposed project /activity. The Ideal Way Townhomes, an eight -unit public housing townhome development built and placed into service in 1982 -1983, is now 30 years old and in need of improvements. The scope of rehab work for the Ideal Way Townhomes includes new architectural shingle roofs, gutters, and gutter covers; Hardie Board siding, new windows, new insulated garage doors, improved exterior lighting upgraded to LED, addition of concrete pads for TV dish reception to reduce the disarrayed appearance of dishes, and landscape improvements near rear doors. Check the eligible activity category of the proposed project /activity: ❑ Acquisition /Disposition: Vacant or undeveloped property Commercial property Residential property ❑ Demolition /Clearance ❑ Economic Development ❑ Public Facilities /Improvements: Buildings Infrastructure Assessment abatement ❑ Public Services (i.e. child care, recreation programs) ❑ Planning ® Rehabilitation Owner occupied housing X Rental housing (public housing) Commercial ❑ General Administration ❑ Relocation Describe the project /activity schedule: ❑ Homeownership Assistance: Support services (i.e. counseling) Downpayment assistance Other types of purchase financing ❑ Other (please describe): Proposed Project /Activity Start Date: June 2014 Proposed Project /Activity Completion Date: September 2014 CDBG funded projects /activities must meet one of the 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): Indicate how the project /activity outcome will be measured and projected number of beneficiaries. ❑ People ❑ Public Facilities ❑ Organizations ❑ Households ❑ Jobs ® Housing Units 8 ❑ Businesses 2 Check the priority need from the Consolidated Plan for which the CDBG funds will be used: High Priority Needs — Housing ❑ Renter, elderly, 0 -50% of median income ❑ Renter, small related, 0 -80% of median income ❑ Renter, all other, 0 -50% of median income ❑ Owner, 0 -80% of median income Medium Priority Needs — Housing ❑ Renter, elderly, 51 -80% of median income ❑ Renter, large related, 0 -80% of median income High Priority Needs — Community Development Medium Priority Needs — Community Development ❑ Acquisition of Real Property ❑ Senior Centers ❑ Disposition of Real Property ❑ Homeless Facilities ❑ Parks, Recreational Facilities ❑ Youth Centers ❑ Water /Sewer Improvements ❑ Solid Waste Disposal Improvements ❑ Street Improvements ❑ Flood Plain Improvements ❑ Sidewalks ❑ Handicapped Services ❑ Clearance and Demolition ❑ Transportation Services ❑ Clean -up of Contaminated Site ❑ Battered and Abused Spouses Services ❑ Senior Services ❑ Crime Awareness ❑ Youth Services ❑ Fair Housing Activities ❑ Rental Housing Subsidies ❑ Public Housing Modernization ❑ Relocation ❑ Rehabilitation of Other Publicly Owned Residential ❑ Construction of Housing ❑ Residential Historic Preservation ❑ Direct Homeownership Assistance ❑ Non - Residential Historic Preservation ❑ Rehabilitation of Single Unit Residential ❑ Other Commercial /Industrial Improvements ® Rehabilitation of Multi -Unit Residential ❑ Economic Development Non - Profit Assistance ❑ Rehabilitation of Commercial /Industrial ❑ Economic Development Technical Assistance ❑ Code Enforcement ❑ Micro - Enterprise Assistance ❑ Commercial /Industrial Land Acq. /Disposition ❑ Commercial /Industrial Infrastructure Development ❑ Commercial /Industrial Building Acq., Rehab ❑ Planning Provide the total project cost and CDBG request. Total Project Cost: $140,000 (estimate) Total CDBG Request: $119,888 Describe all other funding sources. Source of Funds Amount Committed Pending CDBG $119,888 ❑ CDA funds $20,112* ® ❑ Total: $140,000 (estimate) * The final costs of the project have yet to be determined. The CDA is committed to funding the difference of the project. K Itemized Use of Funds /Expenses Costs CDBG Funds Requested Townhome exterior improvements (i.e. siding, gutters, landscaping, windows, garage doors, concrete ads $140,000 $119,888 Total: $140,000