HomeMy WebLinkAboutItem 07January 3, 2014 Item No.
2014 Community Development Block Grant (CDBG) Application
January 6, 2014 City Council Meeting
Proposed Action
Staff recommends adoption of the following motions:
Move to adopt a resolution authorizing the submittal of the 2014 CDBG application in the
amount of $104,675.
Passage of this motion will result in the submittal of a 2014 CDBG Grant Application in the
amount of $104,675 for funding the Housing Rehabilitation Loan Program, Spot Acquisition
and Clearance Program, and a new Senior Activities program.
Overview
The City has been informed that it will be receiving approximately $104,675 in CDBG funding
in 2014. Use of these funds is contingent upon the City submitting and receiving approval of
an application that identifies activities that meet at least one of the federal objectives of
either benefiting low /moderate income persons or eliminating slum and blight. At least 50%
of the proposed activities for 2014 must be activities or projects that provide benefit to
low /moderate income (LMI) individuals. A breakout of the recommended allocation is
included in Attachment B.
The new Senior Activities program recommended for the 2014 allocation is proposed to
increase programming at the Lakeville Heritage Center by offering reduced rates to eligible
seniors age 62 and older.
Primary Issues to Consider
What are the eligible activities for which Lakeville can allocate its 2014 CDBG
program funds? (See Attachment A)
How will the 2014 CDBG allocation process impact previous year's activities and
allocations? The City Council will be discussing this topic at an upcoming work
session along with ongoing CDBG funded activities.
David L. Olson
Community and Economic Development Director
Financial Impact: $ 104,675 Budgeted: Y/N Y Source: CDBG
Related Documents (CIP, ERP, etc.): _Attachments A and B
Notes:
Attachment A
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 Comprehensive Plan sets forth the priority of needs and as such, 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 subrecipient 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 downpayments,
closing costs or other part of the purchase process and counseling for pre - purchase, post - purchase or foreclosure
prevention.
Attachment B
2014 CDBG Application
The Dakota County CDA requires that all cities submit applications with at least 50% of the
proposed allocation for 2014 being activities or projects that provide benefit to low /moderate
income (LMI) individuals. 2014 funding will be available July 2014 through June 2015.
Staff recommends that half of the 2014 CDBG funding (estimated to be $52,337) be made
available for the Spot Acquisition and Clearance Program. This program has been used
successfully to acquire and demolish blighted structures in Lakeville. Most recently a
foreclosed vacant house at the intersection of County Road 50 and Ipava Avenue was
acquired and demolished.
Staff further recommends that the other half of the 2014 CDBG allocation be split between
between the existing Housing Rehabilitation Loan Program and a new Senior Activities
program ($42,338 and $10,000 respectively) meeting the 50% LMI requirement. The Housing
Rehabilitation Loan Program is an ongoing program administered by the CDA, and the City
has been allocating funding to this program for a number of years.
The new Senior Activities program is being proposed to expand the offerings at the Lakeville
Heritage Center for seniors ages 62 and older. New activities will be able to offer reduced
rates to seniors that will help reduce barriers to participation. Community Development staff
has been working closely with Parks and Recreation staff to outline eligible activities and
administration of the proposed CDBG program allocation.
The 2014 CDBG application is recommended to be submitted as follows. The 2013 allocation
approved last year is also provided below as a reference:
2014 Program
Activities
2013 Program
Activities
Housing Rehab
$42,338
Housing Rehab
$53,438
Spot Acq & Clearance
$52,337
Spot Acq & Clearance
$31,433
Senior Activities
$10,000
Senior Transportation
$31,434
TOTAL Allocation
$104,675
$116,305
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION APPROVING THE APPLICATION OF THE
CITY OF LAKEVILLE FOR FISCAL YEAR 2014 DAKOTA COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDING
WHEREAS, the City of Lakeville is a participating jurisdiction with the Dakota County
CDBG Entitlement Program for Fiscal Year 2014 (ending June 30, 2015); 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 2014 CDBG
applications to be submitted by January 15, 2014, based on an allocation of funds
approved in the Community Development Implementation Plan.
NOW, THEREFORE, BE IT RESOLVED that the City of Lakeville hereby approves the
following:
1. The Fiscal Year 2014 CDBG application is approved for submission to the
Dakota County CDA.
2. The Mayor and City Clerk are 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.
DATED this day of
2014.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk