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HomeMy WebLinkAboutItem 06.l Date: Item No. 2018 Community Development Block Grant Application Proposed Action Staff recommends adoption of the following motions: Move to adopt a resolution authorizing the submittal of the 2018 Community Development Block Grant (CDBG) application in the amount of $132,224. Overview The City has been informed that it will be receiving approximately $132,224 in CDBG funding in 2018, which is a slight decrease of 4% from 2017. Use of these funds is contingent upon the City submitting and receiving approval of an application to the Dakota County Community Development Agency 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 2018 must be activities or projects that provide benefit to low/moderate income (LMI) individuals. A breakout of the recommended allocation for 2018 is included in Attachment A. In 2017, CDBG funds were used to provide programming to seniors at the Heritage Center, and begin the Lakeville LOOP (a new, weekly senior circulator bus service). Additionally, the Home Rehabilitation Loan program will issue a direct mailing campaign in January to Lakeville homes that may qualify for these services. The City currently has two active loans and three residents on a waiting list. Dakota County is expected to receive approximately $1.78 million of the federal allocation for the Community Development Block Grant program. This amount is divided between 14 cities, as well as a consortium of townships and small cities throughout Dakota County. Supporting Information • Resolution Authorizing Submittal of Community Development Block Grant Application • Attachment A – 2018 CDBG Application Description and Breakdown • Home Improvement Loan Program brochure • Lakeville LOOP brochure Financial Impact: $ Budgeted: Y☒ N☐ Source: Related Documents: (CIP, ERP, etc.): Envision Lakeville Community Values: Diversified Economic Development Report Completed by: David L. Olson, Community & Economic Development Director January 16, 2018 132,224 CDBG CITY OF LAKEVILLE RESOLUTION NO. ____ RESOLUTION AUTHORIZING SUBMITTAL OF THE 2018 COMMUNITY DEVELOPMENT BLOCK GRANT APPLICATION TO THE DAKOTA COUNTY COMMUNITY DEVELOPMENT AGENCY WHEREAS, the City of Lakeville is a participating jurisdiction with the Dakota County Community Development Block Grant (CDBG) Entitlement Program for Fiscal Year 2018 (ending June 30, 2019); 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 2017 CDBG applications be submitted by January 19, 2018, based on an allocation of funds approved in the Annual Action Plan. NOW, THEREFORE, BE IT RESOLVED that the City of Lakeville hereby approves the following: 1. The Fiscal Year 2018 CDBG application is approved for submission to the Dakota County CDA. 2. The Mayor and City Clerk for the City of Lakeville 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. ADOPTED by the Lakeville City Council this _____ day of _______________, 2018 ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk Attachment A 2018 CDBG Application The Dakota County CDA requires that all cities submit applications with at least 50% of the proposed allocation for 2018 being activities or projects that provide benefit to low/moderate income (LMI) individuals. 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 2006 Downtown Development Guide. Another area identified by staff is the Valley Park area, one of Lakeville’s older neighborhoods. 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 recommends funding this program at $66,112 for 2018. The City of Lakeville plans to continue to fund the Acquisition and Clearance program to purchase and clear substandard properties on a spot basis throughout the City. This activity has been successfully used in the past. Staff recommends funding this program at $31,112 for 2018. In 2017, the City of Lakeville partnered with DARTS to begin the Lakeville LOOP, a senior circulator bus service that runs five hours a day for one day a week, which stops at six senior housing locations and four retail stops. Deviated stops are also possible along the route. At least 50 rider registrations have been received since the LOOP’s inception in November, so the funds to continue the service are being requested in the amount of $20,000 in 2018. Senior Services has also been a popular program at the Heritage Center, serving nearly 90 seniors in 2017. The City of Lakeville plans to enhance the senior services our community can offer, by partnering with DARTS to fund outdoor chores and minor home repairs services under this CDBG activity. Total allocation request in 2018 is $15,000. The 2018 CDBG application is recommended to be submitted as follows. The 2017 allocation approved last year is also provided below as a reference: 2018 Program Activities 2017 Program Activities Housing Rehab $66,112 Housing Rehab $68,764 Spot Acquisition & Clearance $31,112 Spot Acquisition & Clearance $38,764 Senior Transportation $20,000 Economic Development Plan $30,000 Senior Services $15,000 TOTAL Allocation $132,224 TOTAL Allocation $137,528 Home Improvement Loan Programs11/17The Dakota County CDA is a local lending partner with Minnesota Housing for the state funded Rehabilitation Loan program. This program assists very low-income homeowners in financing basic home improvements that directly affect the safety, habitability, energy efficiency and accessibility of their homes. To be eligible, borrowers must occupy the property, have less than $25,000 in financial assets and meet program income limits. For more information about Minnesota Housing’s loan programs visit www.mnhousing.gov. Minnesota Housing Rehabilitation Loans Dakota County Home Improvement Loan Programs 1228 Town Centre DriveEagan, MN 55123Low interest loans to help homeowners finance their fix-ups. Loans Terms • 0% interest • No monthly payments • Minimum loan = $15,000 • Maximum loan = $25,000 • Repayable when the home is no longer the homeowner’s primary residence or when the home is sold. Homeowners may also be required to repay the loan if they refinance or take out a home equity loan. • Dakota County CDA home improvement loans are not forgiven. Repayment is required. The Process • If you qualify, the CDA will inspect your home, prepare specifications and assist you in obtaining at least two bids for the work to be done. • Loan proceeds are kept on account for you by the CDA and payments are made directly to the contractors on your behalf when the work is completed. • Inspection of work upon completion is required by both you and the CDA before payment is made. • Special provisions may apply to emergency situations and accessibility improvements, which can be obtained by contacting the CDA. How to Apply Home Improvement Loan applications can be downloaded from the CDA’s website at www.dakotacda.org or call (651) 675-4400 to request an application by mail. Completed applications will be reviewed for eligibility and all personal information will be kept private per Minnesota State Law. Program funding is limited and there is a waiting list for loans. Questions? Contact the CDA Housing Rehab Specialists at (651) 675-4400. Home Improvement Loan Program The Home Improvement Loan Program is funded by the federal Community Development Block Grant Program through the U.S. Department of Housing and Urban Development. Additional funding is provided by the Dakota County HOPE Program. The Dakota County CDA has programs for homebuyers and homeowners to be successful. For more information about home improvement loans, weatherization funds, mortgage foreclosure counseling, homebuyer education or first time homebuyer resources, visit www.dakotacda.org Dakota County homeowners needing financial assistance to make improvements to their homes can apply for a Home Improvement Loan from the Dakota County Community Development Agency (CDA). Common improvements include adding insulation, furnace replacements, exterior upgrades (roofs, siding, windows) and special needs modifications (such as ramps or roll-in showers). How to Qualify Applicants must own and reside their home, meet equity and credit requirements and have a gross annual income that does not exceed the federally mandated limits for the program. For information about the program and income limits, visit www.dakotacda.org. Q: Can I use the LOOP if I use a scooter, wheelchair or walker? A: Yes. The driver will help load your mobility device and assist you as needed. Anyone can request to use the lift. Q: What do I need in order to ride the LOOP? A: A rider card that is available via application. Applications can be found at the Heritage Center & on the bus. Q: What is the cost? A: $3 all-day fare every Thursday. For questions about the LOOP bus route or schedule, please call DARTS at 651-234-2272. One Stop, Many Options On-Demand Stops FAQs Many stops have multiple businesses within a walkable block. Need a special stop? Ask your driver or call 651-234-2272 to ask for a stop within two blocks of the LOOP route. Thank you to our community partners See Back for Schedule The LOOP is a Thursday bus service that takes seniors to and from local destinations. Bus Route & Stop Times Copy 11/09/2017 9am-2pm | Every Thursday | $3 per day The Fountains at Hosanna!Kingsley ShoresCub Foods & Dollar TreeTargetWinsor PlazaFairfield TerraceMain Street ManorHighview HillsLakeville Heritage CenterDakota Co. Heritage LibraryA.M. P.M. Note: The LOOP bus will not run Thursday, Nov. 23 due to the Thanksgiving holiday. 9:00 9:12 9:16 9:24 9:35 9:37 9:479:39 9:44 9:50 10:00 11:00 12:00 1:00 10:12 10:16 10:24 10:35 10:37 10:39 10:44 10:47 10:50 11:12 11:16 11:24 11:35 11:4411:37 11:39 11:47 11:50 12:12 12:16 12:24 12:35 12:37 12:39 12:4712:44 12:50 1:12 1:16 1:24 1:35 1:37 1:39 1:44 1:47 1:50 Thank you to our community partners