HomeMy WebLinkAboutItem 08February 12, 2015 0 Item No.
2015 Community Development Block Grant (CDBG) Application
February 17, 2015 City Council Meeting
Proposed Action
Staff recommends adoption of the following motions:
Move to adopt a resolution authorizing the submittal of the 2015 CDBG application in the
amount of $124,370.
Passage of this motion will result in the submittal of a 2015 CDBG Grant Application in the
amount of $124,370 for funding the Housing Rehabilitation Loan Program, ADA Compliance
Improvements, Economic Development Planning, and Downtown Code Improvements and
Commercial Rehab programs.
Overview
The City has been informed that it will be receiving approximately $124,370 in CDBG funding
in 2015. 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 2015 must be activities or projects that provide benefit to
low/moderate income (LMI) individuals. A breakout of the recommended allocation for 2015
is included in Attachment B.
Primary Issues to Consider
• What are the eligible activities for which Lakeville can allocate its 2015 CDBG
program funds? (See Attachment A)
David L. Olson
Community and Economic Development Director
Financial Impact: $ 124,370 Budgeted: Y/N Y Source: CDBG
Related Documents (CIP, ERP, etc.): _Attachments A and B
Envision Lakeville Community Values: _Diversified Economic Development, A Home for All
Ages and Stages of Life
CITY OF LAKEVILLE
RESOLUTION NO.
RESOLUTION APPROVING THE APPLICATION OF THE
CITY OF LAKEVILLE FOR FISCAL YEAR 2015 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 2015 (ending ,tune 30, 2016); 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 2015 CDBG
applications to be submitted by February 27, 2015, 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 2015 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 2015.
CITY OF LAKEVILLE
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
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
2015 CDBG Application
The Dakota County CDA requires that all cities submit applications with at least 50% of the
proposed allocation for 2015 being activities or projects that provide benefit to low/moderate
income (LMI) individuals. 2015 funding will be available July 2015 through June 2016.
One of the more commonly identified LMI activities in other cities in Dakota County is the
Home Rehabilitation Loan program (residential rehab) administered by the Dakota County
CDA. Preservation of the existing residential neighborhoods adjacent to the Downtown has
been identified as a goal of the City Council approved Downtown Development Guide.
Another area identified by staff is the Valley Park area, one of Lakeville's older neighborhoods.
Currently there are very few application in the queue and thus staff has recently completed a
mailing to approximately 1300 homeowners promoting this program. Attached is a copy of a
CDA brochure that describes this program in greater detail and also includes the current
income guidelines for the program. Staff would recommend a funding level for this program
of $66,370 for 2015.
In 2013, the City was granted authority to use previously unused CDBG funds to study and
fund accessibility improvements to City facilities under the Americans with Disabilities Act
(ADA). From the study, funding was used to install power -assist doors with electronic entry
access at the entrances to City Hall. In 2015, staff recommends funding to address remaining
projects at City facilities along with $20,000 in funding in 2015.
In 2013 completed a community visioning process utilizing CDBG funding. This process,
"Envision Lakeville, provided input and data to the City's 2014-2016 Strategic Plan for
Economic Development. Utilizing 2015 CDBG funding, staff recommends funding of $10,000
for implementation of "Envision Lakeville".
Another activity previously funded with prior year's allocations was the Downtown Code
Improvement Program. With growing interest in redevelopment in and around the
Downtown Improvement Area, staff recommends $28,000 in funding for Commercial
Rehabilitation. In addition, staff also recommends expanding the eligible area from the
Downtown Special Services District to the Redevelopment Project Area 1 used for TIF
purposes. Attached are maps of the Special Services District and Redevelopment Project Area
1.
The 2015 CDBG application is recommended to be submitted as follows. The 2014 allocation
approved last year is also provided below as a reference:
2015 Program Activities
2014 Program Activities
Housing Rehab
$66,370
Housing Rehab
$52,186
ADA Compliance
$20,000
Spot Acq & Clearance
$62,184
Downtown Code Improv
$28,000
Senior Activities
$10,000
Planning Econ Dev
$10,000
TOTAL Allocation
$124,370
TOTAL Allocation
$124,370
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