| | | | | | | | Board Action Request
19-0186
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| | | | | | | | Item Description:
Submission of Hennepin County Consortium 2019 Action Plan; neg Agmts A199571, A199572, and A199573 w/HUD for the 2019 CDBG, HOME, ESG Programs, 07/01/19-06/30/24, est recv $4,841,856; neg 31 CDBG agmts, 070/1/19-06/30/24, est NTE $2,400,134; neg 5 HOME agmts, 07/01/19-06/30/64, est NTE $1,672,661 |
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| | | | | | | | Resolution:
BE IT RESOLVED, that the Hennepin County Consortium 2019 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 A199571, A199572, and A199573 with the U.S. Department of Housing and Urban Development for the 2019 Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program, during the period July 1, 2019 through June 30, 2024, with the estimated total combined receivable amount of $4,841,856; 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 31 CDBG implementation funding agreements, during the period July 1, 2019 through June 30, 2024, with an estimated total combined not to exceed amount of $2,400,134; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other 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 five HOME implementation funding agreements, during the period July 1, 2019 through June 30, 2064, with an estimated total combined not to exceed amount of $1,672,661; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other documents as necessary, on behalf of the county; and that the Controller be authorized to disburse funds as directed. |
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| | | | | | | | Background:
History: On behalf of the Hennepin County Consortium, the U.S. Department of Housing and Urban Development (HUD) requires the county to adopt a Five-Year Consolidated Plan in order to receive HUD entitlement funds for the following programs: Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program. The Consortium includes the HUD entitlement jurisdictions of suburban Hennepin County and the cities of Bloomington, Eden Prairie, and Plymouth. Hennepin County is the lead agency for the Consortium.
The 2019 Action Plan is Hennepin County's application to HUD for the 2019 CDBG, HOME, and ESG allocations and follows the priorities and goals outlined in the 2015-2019 Consolidated Plan.
Funding available under the 2019 Action Plan is $4,841,856: 2019 CDBG award of $2,897,879; 2019 HOME award of $1,691,846; and 2019 ESG award of $252,131. In addition, the 2019 Action Plan would also allocate $150,000 from prior year recaptured funds from HOME, to total $4,991,856.
A summary of proposed funding by goals of the 2015-2019 Consolidated Plan follows:
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Preserve/create multifamily rental opportunities - $963,600
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Preserve/create single family homeownership - $2,232,873
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Create housing opportunities for homeless populations - $554,792
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Support education, outreach and services - $434,682
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Support neighborhood revitalization - $210,000
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Fair housing and Administration - $545,909
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Community housing development organization operating - $50,000
To meet the above goals, the county will implement $4,072,795 through funding agreements (see Attachment 1); and directly implement the CDBG Administration ($347,745), CDBG Homeowner Rehabilitation Program ($150,000 from the Consolidated Pool plus funds from Direct Allocation Cities), HOME Administration ($169,185), and the ESG ($252,131). Any future program income may be allocated to the Homeowner Rehabilitation Program or administration.
A public hearing for the 2019 Action Plan took place on April 16, 2019 before the Public Works Committee. In addition, the 2019 Action Plan was available to the public for a 30-day public comment period between April 1, 2019 and April 30, 2019. The public comment period and hearing are submission requirements of the Action Plan; public comments will be incorporated into the final document submitted to HUD.
Special note regarding HOME funding agreements: Hennepin County HOME funding agreements are typically in the form of a 30-40 year loan (depending upon other financer's requirements); consistent with HUD regulations, funds must be expended within five years. Loan documents typically include the loan agreement, promissory note, mortgage, and declaration of covenants and restrictions. In addition, during the term of the loan, the county may be asked to sign various related documents such as subordinations and insurance endorsements.
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 2019 Action Plan; authorization to negotiate federal entitlement awards for the CDBG, HOME, and ESG programs, estimated total combined receivable amount of $4,841,856, during the period July 1, 2019 through June 30, 2024; authorization to negotiate 31 CDBG implementation funding agreements during the period July 1, 2019 through June 30, 2024 for an estimated total combined not to exceed amount of $2,400,134, and authorization to negotiate five HOME implementation funding agreements, during the period July 1, 2019 through June 30, 2064, with an estimated total combined not to exceed amount of $1,672,661.
Impact/Outcomes: This funding will assist in the construction or rehabilitation of 115 affordable rental units, the rehabilitation of 58 owner-occupied homes, the creation of 12 new affordable homeownership opportunities, the provision of rapid rehousing for 60 homeless households, tenant based rental assistance for 30 homeless households, the renovation of a public facility which will serve 3,000 people, and public services assistance to over 17,000 low-income people.
The Grant Identification Numbers for CDBG: CON000000000475; HOME: CON000000000484 and ESG: CON000000000449 | |
| | | | | | | | | Recommendation from County Administrator: Recommend Approval | |
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