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 2022 Action Plan is Hennepin County's application to HUD for the 2022 CDBG, HOME, and ESG allocations and follows the priorities and goals outlined in the 2020-2024 Consolidated Plan.

Funding available under the 2022 Action Plan is $6,261,294. This includes $4,980,105 in estimated 2022 Program Year awards (CDBG: $2,959,551, HOME: $1,770,274, ESG: $250,280), as well as $1,281,189 of program income from prior year HOME funds.

A summary of proposed funding by goals of the 2022 Action Plan follows:

• Preserve/create multifamily rental opportunities - $2,620,000
• Preserve/create single family homeownership - $2,180,367
•  Create housing opportunities for homeless populations - $250,280
•  Support education, outreach and services - $450,000
•  Support neighborhood revitalization - $178,350
•  Fair housing, Administration, and Community Housing Development Organization operating - $582,297

To meet the above goals, the county will implement $5,343,717 through funding agreements (Attachment 1), and directly implement the CDBG Administration ($355,270), CDBG Homeowner Rehabilitation Program ($180,000 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 2022 Action Plan took place on April 12, 2022, before the Administration, Libraries and Budget Committee. In addition, the 2022 Action Plan was made available to the public for the HUD required 30-day public comment period between April 1, 2022 and April 30, 2022. 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 2022 Action Plan; authorization to negotiate federal entitlement awards for the CDBG, HOME and ESG programs, estimated combined total receivable amount of $4,980,105, during the period July 1, 2022 through June 30, 2027; authorization to negotiate 23 CDBG implementation funding agreements during the period July 1, 2022 through June 30, 2027 for an estimated total combined not to exceed amount of $2,424,281, and authorization to negotiate 6 HOME implementation funding agreements, during the period July 1, 2022 through June 30, 2067 with an estimated total combined not to exceed amount of $2,919,436.

Impact/Outcomes: This funding will assist in the creation of 159 affordable rental units, including Balsam II Apartments in Dayton, Richfield Flats in Richfield, and Wangstad Commons in Brooklyn Center, rehabilitation of 17 rental units for people with disabilities in Rogers, and 18 rental units in Maple Grove, creation or preservation of 99 owner-occupied homes, the provision of rapid rehousing for 50 homeless households and tenant based rental assistance for 35 households, the renovation of Broadway Park Playground in Crystal, and public services assistance to over 12,354 low-income people.