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HomeMy WebLinkAboutItem 06.q Date: Item No. 2019 Community Development Block Grant Application Proposed Action Staff recommends adoption of the following motions: Move to adopt a resolution authorizing the submittal of the 2019 Community Development Block Grant (CDBG) application in the amount of $135,486. Overview The City has been informed that it will be receiving approximately $135,486 in CDBG funding in 2019, which is comparable to the 2018 funding level. 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, eliminating slum and blight or for planning purposes. At least 50% of the proposed activities for 2019 must be activities or projects that provide benefit to low/moderate income (LMI) individuals. A breakout of the recommended allocation for 2019 is included in Attachment A. In 2019, CDBG funds are proposed to be used to provide programming to seniors at the Heritage Center, provide assistance to Lakeville seniors with outdoor chores and minor home repairs, fund the Lakeville LOOP (a weekly senior circulator bus service for Lakeville seniors), and to update the City’s economic development strategic plan. Additionally, the Home Rehabilitation Loan program will be used to assist qualifying residents in need of home improvements. Dakota County is expected to receive approximately $1.94 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 – 2019 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 7, 2019 135,486 CDBG CITY OF LAKEVILLE RESOLUTION NO. ____ RESOLUTION AUTHORIZING SUBMITTAL OF THE 2019 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 2019 (ending June 30, 2020); 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 2019 CDBG applications be submitted by January 18, 2019, 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 2019 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 7th day of January, 2019 ______________________________ Douglas P. Anderson, Mayor _________________________________ Charlene Friedges, City Clerk Attachment A 2019 CDBG Application The Dakota County Community Development Agency (CDA) requires that all cities submit applications with at least 50% of the proposed allocation for 2019 being activities or projects that provide benefit to low/moderate income (LMI) individuals. One of the more commonly identified LMI activities 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 have been identified as a goal of the City Council approved 2018 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 includes the current income guidelines for the program. Staff recommends funding this program at $92,123 for 2019. In late 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 can stop at six senior housing locations and several retail locations. Deviated stops are also possible along the route. At least 70 rider registrations have been received since the LOOP’s inception, and the $25,000 will be used to continue the service through 2019. Senior Services has been a very popular program at the Heritage Center, serving nearly 221 seniors in 2018. The City of Lakeville enhanced the services our community can offer to seniors by partnering with DARTS in 2018 to fund outdoor chores and minor home repairs services under this CDBG activity. Total allocation request in 2019 is $10,863. The City of Lakeville plans to fund the Economic Development Planning activity in order to update its Economic Development Strategic Plan, which is used to help guide the City’s future economic development goals and initiatives. The current strategic plan covers calendar years 2017-2019. Staff recommends funding this program at $7,500 for 2019. The 2019 CDBG application is recommended to be submitted as follows. The 2018 allocation approved last year is also provided below as a reference: 2019 Program Activities 2018 Program Activities Housing Rehab $92,123 Housing Rehab $66,112 Senior Transportation $25,000 Spot Acquisition & Clearance $31,112 Senior Services $10,863 Senior Transportation $20,000 Economic Development Plan $7,500 Senior Services $15,000 TOTAL Allocation $135,486 TOTAL Allocation $132,224 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 Effective May 2018 9am-2pm | Every Thursday | $3 per day Cub FoodsTargetWinsor PlazaFairfield TerraceMain Street ManorHighview HillsLakeville Heritage CenterDakota Co. Heritage LibraryA.M. P.M. 9:00 9:03 9:07 9:10 9:13 9:15 9:439:26 9:36 10:00 11:00 12:00 1:00 10:03 10:07 10:10 10:13 10:15 10:26 10:36 10:43 11:03 11:07 11:10 11:13 11:3611:15 11:26 11:43 12:03 12:07 12:10 12:13 12:15 12:26 12:4312:36Walmart 1:03 1:07 1:10 1:13 1:15 1:26 1:36 1:43 Walkable locations from Cub Foods: Walgreens Culver’s Wendy’s Erbert & Gerbert’s Taco Bell Walkable locations from Target: Applebee’s Caribou Coffee Marshalls Starbucks Quiznos