DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
title
Approval Of Dakota County Consortium 2025-2029 Five-Year Consolidated Plan And Fiscal Year 2025 One-Year Action Plan For Community Development Block Grant, HOME Investment Partnerships, And Emergency Solutions Grant Programs
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PURPOSE/ACTION REQUESTED
- Approve the Dakota County Consortium 2025-2029 Five-Year Consolidated Plan (2025-2029 Consolidated Plan) and Fiscal Year (FY) 2025 One-Year Action Plan (2025 Action Plan) for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Programs.
- Authorize the Chair to sign the U.S. Department of Housing and Urban Development (HUD) application and certifications for FY 2025 CDBG, HOME, and ESG Programs; execute a grant agreement between the County and HUD for the acceptance of CDBG, HOME, and ESG funds; and execute a subrecipient agreement between the County and the Dakota County Community Development Agency (CDA) for the administration of the CDBG, HOME, and ESG programs.
- Designate the Dakota County CDA Director of Community and Economic Development as the certifying officer for environmental reviews associated with the CDBG, HOME, ESG Programs, and Capital Fund projects.
SUMMARY
The CDA administers the federal CDBG, HOME, and ESG programs on behalf of Dakota County. These federal programs receive annual grants in amounts determined by Congress to be used towards housing and community development activities. Federal regulations require the completion of a Five-Year Consolidated Plan and subsequent annual Action Plans to guide the use of the federal funds. The Consolidated Plan establishes the grantee’s funding priorities and distribution process. The proposed activities in the 2025 Action Plan meet the proposed housing and community development priorities in the 2025-2029 Consolidated Plan for the period of July 1, 2025, through June 30, 2030.
CDBG. Dakota County was allocated $1,893,442 in FY 2025 CDBG funds, a one percent increase from FY 2024. Proposed uses for the FY 2025 CDBG grant are as follows: affordable housing rehab (64%), public services (12%), neighborhood revitalization (5.5%), planning (4%), downpayment assistance (2.5%), and grant administration (12.5%). An additional estimated $400,000 from CDBG revolving loan income can only be used for residential rehab projects. Based on applications received from participating communities, the CDA recommends CDBG funding for 26 city and township activities, three Countywide activities, and two grant administration activities.
HOME. The Dakota County HOME Consortium was allocated $2,193,828.34 in FY 2025 HOME funds, which is a three percent increase from FY 2024. With program income, the available funding for the Consortium is $2,549,959.03. Proposed uses for the FY 2025 Dakota County HOME funds totaling $907,655.92, including program income, are affordable rental housing (36.5%), affordable homeowner housing (36.5%), Community Housing Development Organization activities (13%), and grant administration (14%). The CDA recommends funding the four Dakota County HOME activities.
ESG. Dakota County was allocated $164,692 in FY 2025 ESG funds, a 4.7 percent decrease from FY 2024. Proposed uses for the FY 2024 ESG funds include emergency shelter operations (60%), rapid re-housing activities (27.5%), homelessness prevention activities (2%), Homeless Management Information System (3%), and grant administration (7.5%). The Affordable Housing Coalition recommended approval of a draft ESG budget on February 13, 2025.
The public hearing for the 2025-2029 Consolidated Plan and 2025 Action Plan was held on April 22, 2025. No comments were received at the public hearing, nor were comments submitted to the CDA.
RECOMMENDATION
recommendation
Dakota County and CDA staff recommend approval of the Dakota County Consortium 2025-2029 Five-Year Consolidated Plan and FY 2025 One-Year Action Plan and the designation of the Dakota County CDA Director of Community and Economic Development as the certifying officer for the CDBG, HOME, and ESG Programs, along with Capital Fund projects. end
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EXPLANATION OF FISCAL/FTE IMPACTS
For FY 2025, Dakota County will receive a CDBG grant of $1,893,442, a HOME grant of $907,655.92, including program income (Consortium total of $2,549,959.03), and an ESG grant of $164,692.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, Dakota County is an Entitlement County for funds through the Community Development Block Grant (CDBG) Program and Emergency Solutions Grant (ESG) Program and a Participating Jurisdiction for the HOME Investment Partnerships (HOME) Program; and
WHEREAS, Dakota County’s Participating Jurisdiction status under the HOME Program pertains to a multi-jurisdiction consortium created in 1992 that includes Anoka, Washington, and suburban Ramsey Counties and the City of Woodbury (HOME Consortium); and
WHEREAS, Dakota County is designated as the Lead Agency for the HOME Consortium, responsible for certain administrative and reporting functions of the HOME Program; and
WHEREAS, the Dakota County Community Development Agency (CDA) administers the CDBG, HOME, and ESG programs on behalf of Dakota County, thereby requiring agreements between the U.S. Department of Housing and Urban Development (HUD) and Dakota County for the CDBG, HOME, and ESG funds and between Dakota County and the Dakota County CDA for CDBG, HOME, and ESG program administration; and
WHEREAS, HUD requires the development and submission of the 2025-2029 Five-Year Consolidated Plan that outlines the strategies and objectives of Dakota County’s use of the federal funds; and
WHEREAS, HUD further requires the development and submission of the Fiscal Year (FY) 2025 One-Year Action Plan that proposes the allocation of the annual CDBG, HOME, and ESG funds to local governments and housing providers in the County; and
WHEREAS, CDA staff have worked with participating communities and agencies to identify CDBG, HOME, and ESG activities for FY 2025; and
WHEREAS, the proposed activities for HUD funds meet the housing and community development priorities identified in the Dakota County 2025-2029 Five-Year Consolidated Plan; and
WHEREAS, the Dakota County FY 2025 CDBG allocation is $1,893,442 with $400,000 of anticipated program income; the Dakota County FY 2025 HOME allocation is $907,655.92, including program income (Consortium total of $2,549,959.03); and the Dakota County FY 2025 ESG allocation is $164,692; and
WHEREAS, CDA staff recommends allocating FY 2025 CDBG funds to 26 eligible activities for cities and townships, three Countywide activities, and two grant administration activities as follows: affordable housing rehab (64%), public services (12%), neighborhood revitalization (5.5%), planning (4%), downpayment assistance (2.5%), and grant administration (12.5%); and
WHEREAS, CDA staff recommends allocating FY 2025 HOME funds to four eligible activities as follows: affordable rental housing (36.5%), affordable homeowner housing (36.5%), Community Housing Development Organization activities (13%), and grant administration (14%); and
WHEREAS, CDA staff recommends allocating FY 2025 ESG funds to five eligible activities as follows: emergency shelter operations (60%), rapid re-housing activities (27.5%), homelessness prevention activities (2%), Homeless Management Information System (3%), and grant administration (7.5%); and
WHEREAS, HUD requires a public notice be published and a public hearing be held to receive comments and inform the public on the Dakota County Consortium 2025-2029 Five-Year Consolidated Plan and the FY 2025 One-Year Action Plan; and
WHEREAS, public notice of a minimum 30-day public comment period was published in the Hastings Journal and the Star Tribune on March 6, 2025, and a public hearing notice was published in the Hastings Journal and Star Tribune on April 3, 2025, and posted on the Dakota County CDA website at www.dakotacda.org <http://www.dakotacda.org>; and
WHEREAS, the Dakota County Board of Commissioners conducted a public hearing on April 22, 2025, to receive comments on the Dakota County 2025-2029 Five-Year Consolidated Plan and Fiscal Year 2025 One-Year Action Plan, and no comments were received at the hearing nor were comments submitted to the CDA.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners approves the Dakota County Consortium 2025-2029 Five-Year Consolidated Plan and Fiscal Year 2025 One-Year Action Plan for submission to the Department of Housing and Urban Development and hereby approves the 2025 Residential Anti-Displacement and Relocation Assistance Plan, the 2025 Written Standards for the Emergency Solutions Grant Program, and the 2025 Citizen Participation Plan; and
BE IT FURTHER RESOLVED, That the County Board Chair is hereby authorized to sign the application to the Department of Housing and Urban Development for Fiscal Year 2025 Community Development Block Grant, HOME Investment Partnerships, and Emergency Solutions Grant Programs and the Local Government and Specific Community Development Block Grant, HOME Investment Partnerships, and Emergency Solutions Grant Certifications; and
BE IT FURTHER RESOLVED, That the County Board Chair is hereby authorized to execute Fiscal Year 2025 Community Development Block Grant, HOME Investment Partnerships, and Emergency Solutions Grant agreements with the Department of Housing and Urban Development for the acceptance of Community Development Block Grant funds totaling $1,893,442, HOME Investment Partnership funds totaling $2,549,959.03 for the Consortium with $907,655.92 distributed to Dakota County including program income, and Emergency Solutions Grant funds totaling $164,692; and a subrecipient agreement with the Dakota County Community Development Agency for the administration of the Community Development Block Grant, HOME Investment Partnerships, and Emergency Solutions Grant Programs, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the Dakota County Community Development Agency Director of Community and Economic Development is hereby designated as the certifying officer for environmental reviews for the Community Development Block Grant, HOME Investment Partnerships, Emergency Solutions Grant Programs, and Capital Fund Projects.
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: 2025 Attachments Memo
Attachment: 2025-2029 Consolidated Plan Executive Summary
Attachment: 2025 CDA Certifications Memo and Certifications
Attachment: 2025 Residential Anti-Displacement Policy and Relocation Plan
Attachment: 2025 Dakota County HOME Consortium Citizen Participation Plan
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Stwora
Author: Maggie Dykes