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HomeMy WebLinkAboutItem 06.iLakeville Date: May 2, 2016 Item No. RESOLUTION AUTHORIZING CONTINUED PARTICIPATION IN THE DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM Proposed Action Staff recommends adoption of the following motion: Move to adopt a resolution to authorize continued participation in the Dakota County Community Development Block Grant, Home Investment Partnership, and Emergency Solutions Grant Programs. 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 Community Development Block Grant (CDBG) entitlement allocation but not 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 2017-2019 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 on 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 2017-19. • Anacnea letter rrom the UaKota county ui)A aatea April 125, ZU16 Financial Impact: $ Budgeted: YN N❑ Source: CDBG Funds Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Choose an item. Report Completed by: David L. Olson, Community and Economic Development Director 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 2017 THROUGH 2019 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 ATTEST: Charlene Friedges, City Clerk 2016. CITY OF LAKEVILLE Matt Little, Mayor April 18, 2016 Justin Miller Dakota County Community Development Agency City of Lakeville 20195 Holyoke Avenue Lakeville, MN 55044 1228 Town Centre Drive I Eagan, MN 55123 PHONE 651-675-4400 1 TDD1m 711 www.dakotacda.org RE: PARTICIPATION IN THE DAKOTA COUNTY CDBG, HOME, & ESG PROGRAMS Dear Mr. Miller: 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), HOME Investment Partnership Program, and Emergency Solutions Grant (ESG) 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. The HOME program was designed exclusively to create affordable housing for low-income households. The ESG program assists individuals and families to quickly regain stability in permanent housing after experiencing a housing crisis or homelessness. 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 2017-2019. If you choose to remain a participant of Dakota County's CDBG, HOME, and ESG programs, then 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, 2016. Notice to the HUD Field Office should be addressed to 920 South 2nd Avenue, Suite 1300, Minneapolis, MN 55402, Attention Christine Delarbre. 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 contact me at (651) 675-4464 or at mdykesdakotacda.state. mn.us. incerely, 1 h. (� Maggi Dykes Asst. Director of Community & Economic Development