History: The U.S. Department of Housing and Urban Development (HUD) requires Hennepin County to adopt a Consortium 2020-2024 Consolidated Plan (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). 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 Consolidated Plan identifies housing and community development priorities and goals. The goals are 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.

Staff coordinated with a wide array of internal and external partners in the development of the Consolidated Plan and Action Plan, including over 100 residents that participated in listening sessions, and over 2,000 residents that completed an online survey.

The goals reflect all anticipated public and private funding per the HUD guidelines for the Consolidated Plan. The priorities refer to the use of the Consortium HUD funds.

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

Funding available under the 2020 Action Plan is $4,984,568: 2020 CDBG award of $2,934,713; 2020 HOME award of $1,795,225; and 2020 ESG award of $254,630. In addition, the 2020 Action Plan would also allocate $351,929 from prior year recaptured funds from HOME, to total $5,336,497.

A summary of proposed funding by goals of the 2020 Action Plan follows:

• Preserve/create multifamily rental opportunities - $1,536,191
• Preserve/create single family homeownership - $2,348,852
• Create housing opportunities for homeless populations - $254,630
• Support education, outreach and services - $440,207
• Support neighborhood revitalization - $174,929
• Fair housing, Administration, and Community Housing Development Organization operating - $631,688

To meet the above goals, the county will implement $4,429,526 through funding agreements (Attachment 1), and directly implement the CDBG Administration ($322,818), CDBG Homeowner Rehabilitation Program ($150,000 from the Consolidated Pool plus funds from direct allocation cities), and HOME Administration ($179,523). 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 2020-2024 Consolidated Plan and the 2020 Action Plan took place on April 14, 2020, before the Public Works Committee. In addition, the 2020-2024 Consolidated Plan and the 2020 Action Plan were made available to the public for the HUD required 30-day public comment period between April 9, 2020 and May 8, 2020. 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.

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 2020-2024 Consolidated Plan and the 2020 Action Plan; authorization to negotiate federal entitlement awards for the CDBG, HOME and ESG programs, estimated combined total receivable amount of $4,984,568, during the period July 1, 2020 through June 30, 2025; authorization to negotiate 28 CDBG implementation funding agreements during the period July 1, 2020 through June 30, 2025 for a total combined not to exceed amount of $2,461,895, and authorization to negotiate 5 HOME implementation funding agreements, during the period July 1, 2020 through June 30, 2065, with a total combined not to exceed amount of $1,967,631.

Impact/Outcomes: Over the next five years, the funding will assist in the construction or preservation of 1,025 affordable rental units, the rehabilitation of 250 owner-occupied homes, 185 new affordable homeownership opportunities, rapid housing for 300 homeless households, tenant-based rental assistance for 200 homeless households, and public services and neighborhood revitalization projects to assist over 22,110 low-income people.

Together it is anticipated these activities will create or preserve approximately 1,400 rental units including special needs and homeless units, create or maintain 250 owned homes, and provide public service and neighborhood revitalization projects to over 36,000 low to moderate-income people.