DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
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Approval Of Dakota County Fiscal Year 2026 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 Fiscal Year (FY) 2026 One-Year Action Plan (2026 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 2026 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. The 2026 Action Plan outlines the strategies and objectives for CDBG, HOME, and ESG funds to local governments and housing providers in Dakota County. The proposed activities for the U.S. Department of Housing and Urban Development (HUD) funds meet the priorities established in the 2025-2029 Five-Year Consolidated Plan approved by Resolution No. 25-314 (June 24, 2025).
CDBG. Dakota County was allocated $2,015,752 in FY 2026 CDBG funds. Proposed uses for the FY 2026 CDBG grant are affordable housing rehab (64%), public services (12%), public facilities (4%), neighborhood revitalization (2%), down payment assistance (3%), planning (2%), and grant administration (13%). There is an additional estimated $350,000 for residential rehab activities from revolving loan income, which can only be used for residential rehab projects. Based on applications received from participating communities, the CDA recommends that 23 city and township activities, two Countywide activities, and one grant administration activity be funded.
HOME. The Dakota County HOME Consortium was allocated $2,258,228.07. Including program income, the FY 2026 HOME allocation is $3,070,410.20. Proposed uses for the Dakota County HOME funds totaling $918,712.28, including program income, are affordable rental housing (36%), affordable homeowner housing (36%), Community Housing Development Organization (CHDO) activities (13%), and grant administration (15%). The CDA recommends that the four Dakota County activities receive HOME funds.
ESG. Dakota County was allocated $166,414 in FY 2026 ESG funds. Proposed uses for the FY 2026 ESG funds include emergency shelter operations (60%), rapid re-housing activities (28%), homelessness prevention activities (1.5%), the Homeless Management Information System (3%), and grant administration (7.5%). The Affordable Housing Coalition recommended approval of the draft ESG budget on February 12, 2026.
The public hearing for the 2026 Action Plan was held on April 21, 2026. 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 FY 2026 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.
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EXPLANATION OF FISCAL/FTE IMPACTS
For FY 2026, Dakota County will receive a CDBG grant of $2,015,752, a HOME grant of $918,712.28, including program income (Consortium total of $3,070,410.20), and an ESG grant of $166,414.
☐ 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 Fiscal Year (FY) 2026 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 has worked with participating communities and agencies to identify CDBG, HOME, and ESG activities for FY 2026; 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 2026 CDBG allocation is $2,015,752 with $350,000 of anticipated program income, the Dakota County FY 2026 HOME allocation is $918,712.28, including program income (Consortium total of $3,070,410.20), and the Dakota County FY 2026 ESG allocation is $166,414; and
WHEREAS, CDA staff recommends allocating FY 2026 CDBG funds to 23 eligible activities for cities and townships, two Countywide activities, and one grant administration activity as follows: affordable housing rehab (64%), public services (12%), public facilities (4%), neighborhood revitalization (2%), down payment assistance (3%), planning (2%), and grant administration (13%); and
WHEREAS, CDA staff recommends allocating FY 2026 HOME funds to four eligible activities as follows: affordable rental housing (36%), affordable homeowner housing (36%), CHDO activities (13%), and grant administration (15%); and
WHEREAS, CDA staff recommends allocating FY 2026 ESG funds to five eligible activities as follows: emergency shelter operations (60%), rapid re-housing activities (28%), homelessness prevention activities (1.5%), the Homeless Management Information System (3%), and grant administration (7.5%); and
WHEREAS, HUD requires that a public notice be published, and a public hearing be held to receive comments and inform the public on the Dakota County 2026 One-Year Action Plan; and
WHEREAS, public notice of a minimum 30-day public comment period was published in the Dakota Tribune on March 13, 2026, and a public hearing notice was published in the Dakota County Tribune on March 27, 2026, and in the Star Tribune on April 2, 2026, and on the websites of participating cities, the Dakota County CDA website at www.dakotacda.org, and the Dakota County website at www.co.dakota.mn.us; and
WHEREAS, the Dakota County Board of Commissioners conducted a public hearing on April 21, 2026, to receive comments on the Dakota County Fiscal Year 2026 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 Fiscal Year 2026 One-Year Action Plan for submission to the Department of Housing and Urban Development, and hereby approves the 2026 Residential Anti-Displacement and Relocation Assistance Plan, the 2026 Written Standards for the Emergency Solutions Grant program, and the 2026 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 2026 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 2026 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 $2,015,752, HOME Investment Partnership funds totaling $2,258,228.07 for the Consortium with $918,712.28 distributed to Dakota County including program income, and Emergency Solutions Grant funds totaling $166,414; 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, and Capital Fund Programs.
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PREVIOUS BOARD ACTION
25-314; 6/24/25
ATTACHMENTS
Attachment: 2026 Action Plan Attachments Memo
Attachment: 2026 Dakota County Action Plan Executive Summary
Attachment: 2026 CDA Certifications Memo and Certifications
Attachment: 2026 Residential Anti-Displacement Policy and Relocation Plan
Attachment: 2026 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