BE IT RESOLVED, that the Hennepin County Consortium 2021 Action Plan be approved; that the plan be submitted to the U. S. Department of Housing and Urban Development; and that the County Administrator be designated as the authorized official to act on behalf of Hennepin County in matters related thereto; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreements A2110725, A2110726, and A2110727 with the U.S. Department of Housing and Urban Development for the 2021 Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program, during the period July 1, 2021 through June 30, 2026, with the estimated total combined receivable amount of $4,938,146; that following review and approval by the County Attorney's Office, the County Administrator be authorized to sign the agreements, certifications, and other documents as necessary, on behalf of the county; and that the Controller be authorized to accept and disburse funds as directed; and

BE IT FURTHER RESOLVED that sponsorship and acceptance of grant funding for the programs by the Hennepin County Board of Commissioners does not imply a continued funding commitment by Hennepin County for these programs when grant funds are no longer available; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate 27 CDBG implementation funding agreements, during the period July 1, 2021 through June 30, 2026, with an estimated total combined not to exceed amount of $2,350,191; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other related documents as necessary, on behalf of the county; and that the Controller be authorized to disburse funds as directed; and

BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate 4 HOME implementation funding agreements, during the period July 1, 2021 through June 30, 2066, with an estimated total combined not to exceed amount of $1,912,556; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other related documents as necessary, on behalf of the county; and that the Controller be authorized to disburse funds as directed.

History: The U.S. Department of Housing and Urban Development (HUD) requires Hennepin County to adopt a Five-Year Consolidated Plan in order to receive HUD entitlement funds for the following programs: Community Development Block Grant Program (CDBG), HOME Investment Partnerships Program (HOME), and the Emergency Solutions Grant Program (ESG). Hennepin County is the lead agency for a Consortium that includes the HUD entitlement jurisdictions of suburban Hennepin County and the cities of Bloomington, Eden Prairie, and Plymouth. The 2020-2024 Consolidated Plan identified housing and community development priorities and goals. The goals were established based on demographic and economic data, input from community engagement, consideration of the priorities already established by the Consortium and HUD, and an assessment of the funding resources anticipated to be available during the Consolidated Plan period.

The 2021 Action Plan is Hennepin County's application to HUD for the 2021 CDBG, HOME, and ESG allocations and follows the priorities and goals outlined in the 2020-2024 Consolidated Plan.

Funding available under the 2021 Action Plan is $5,212,455. This includes $4,938,146 in estimated 2021 Program Year awards (CDBG: $2,917,592, HOME: $1,770,274, ESG: $250,280), as well as $274,309 recaptured from prior year HOME funds.

A summary of proposed funding by goals of the 2021 Action Plan follows:

• Preserve/create multifamily rental opportunities - $1,472,744
• Preserve/create single family homeownership - $2,257,154
• Create housing opportunities for homeless populations - $250,280
• Support education, outreach and services - $437,639
• Support neighborhood revitalization - $217,500
• Fair housing, Administration, and Community Housing Development Organization operating - $577,138

To meet the above goals, the county will implement $4,262,747 through funding agreements (Attachment 1), and directly implement the CDBG Administration ($320,935), CDBG Homeowner Rehabilitation Program ($246,466 from the Consolidated Pool plus funds from direct allocation cities), and HOME Administration ($132,027). ESG funds ($250,280) will be administered by the county’s Human Services and Public Health Department. Hennepin County HOME funding agreements are typically in the form of a 30-40-year loan and must be expended within five years. Any future program income may be allocated to the Homeowner Rehabilitation Program or administration.

A public hearing for the 2021 Action Plan took place on April 13, 2021, before the Administration, Libraries and Budget Committee . In addition, the 2021 Action Plan was made available to the public for the HUD required 30-day public comment period between April 1, 2021 and April 30, 2021. The public comment period and public hearing are submission requirements of the Consolidated Plan and the Action Plan; public comments and the county's written response will be incorporated into the final document submitted to HUD.

In addition to funding grant agreements, the county is required to execute a number of certifications as identified in Attachment 2.

The county has participated in the CDBG Program since 1974, the ESG Program since 1988, and the HOME Program since 1992.

Current Request: Approve submission of the 2021 Action Plan; authorization to negotiate federal entitlement awards for the CDBG, HOME and ESG programs, estimated combined total receivable amount of $4,938,146, during the period July 1, 2021 through June 30, 2026; authorization to negotiate 27 CDBG implementation funding agreements during the period July 1, 2021 through June 30, 2026 for an estimated total combined not to exceed amount of $2,350,191, and authorization to negotiate 4 HOME implementation funding agreements, during the period July 1, 2021 through June 30, 2066 with an estimated total combined not to exceed amount of $1,912,556.

Impact/Outcomes: This funding will assist in the creation or preservation of 88 affordable rental units, including Union Park Flats in St. Louis Park, the creation or preservation of 88 owner-occupied homes, the provision of rapid rehousing for 60 homeless households and tenant based rental assistance for 40 households, the renovation of a park in Brooklyn Park and sidewalks in Osseo, and public services assistance to over 3,000 low-income people.

The Grant Identification Numbers for CDBG: CON000000000475; HOME: CON000000000484 and ESG: CON000000000449