DEPARTMENT: Finance
FILE TYPE: Regular Action
TITLE
title
Authorization To Allocate Local Affordable Housing Aid Funds To Dakota County Community Development Agency And Amend 2025 Non-Departmental Budget
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PURPOSE/ACTION REQUESTED
Authorize allocation of Local Affordable Housing Aids Funds to the Dakota County Community Development Agency (CDA) and amend the 2025 Non-Departmental Budget
SUMMARY
Local Affordable Housing Aid (LAHA) is aid to metropolitan local governments of seven counties, including Dakota County, and 63 cities (Attachment: Statewide and Local Affordable Housing Aid Frequently Asked Questions). LAHA is funded through a dedicated sales tax in the seven-county metropolitan area.
During the 2025 budget process, the County Board approved a budget of $4.9 million of LAHA funding. This included investments for Emergency Rental Assistance, Apartment Services, Prevention and Navigation Services, Housing Clinic, Family Voucher Program, and Permanent Supportive Housing and Rapid Re-Housing Services.
Based on LAHA revenues to date, staff projects annual LAHA revenues of $9,800,000. During the October 22, 2024, Community Services Committee meeting, the Board gave direction to budget 50 percent of LAHA in the Dakota County Social Services budget and hold 50 percent for future discussion of CDA allocation. Board authorization is needed to budget and distribute LAHA funds to the CDA in 2025 for qualifying projects, consistent with the County’s Housing Business Plan. The CDA’s proposed Fiscal Year (FY) 2025-2026 budget will include the appropriated LAHA funds for eligible activities and projects.
Staff will also briefly discuss options for the 2026 allocation process.
RECOMMENDATION
recommendation
Staff recommends that the Board of Commissioners allocate half of LAHA revenues received by Dakota County to the CDA in County fiscal year 2025. The County will make distributions equal to 50 percent of each allocation on July 21 and December 26 to the CDA for eligible projects.
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EXPLANATION OF FISCAL/FTE IMPACTS
Authorization is requested to amend the 2025 Non-Departmental Budget by $4,900,000 to reflect use of LAHA funds to be allocated to the CDA.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, Local Affordable Housing Aid (LAHA) is aid to metropolitan local governments of seven counties, including Dakota County, and 63 cities; and
WHEREAS, LAHA is funded through a dedicated sales tax in the seven-county metropolitan area; and
WHEREAS, during the 2025 budget process, the County Board approved a budget of $4.9 million of LAHA funding that included investments for Emergency Rental Assistance, Apartment Services, Prevention and Navigation Services, Housing Clinic, Family Voucher Program, and Permanent Supportive Housing and Rapid Re-Housing Services; and
WHEREAS, based on LAHA revenues to date, staff projects annual LAHA revenues of $9,800,000; and
WHEREAS, during the October 22, 2024, Community Services Committee meeting, the Board gave direction to budget 50 percent of LAHA in the Dakota County Social Services budget and hold 50 percent for future discussion of Community Development Agency (CDA) allocation; and
WHEREAS, Board authorization is needed to budget and distribute LAHA funds to the CDA in 2025 for qualifying projects, consistent with the County’s Housing Business Plan; and
WHEREAS, the CDA’s proposed Fiscal Year (FY) 2025-2026 budget will include the appropriated LAHA funds for eligible activities and projects; and
WHEREAS, staff will also briefly discuss options for the 2026 allocation process.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Deputy County Manager to accept Local Affordable Housing Aid (LAHA) funding; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby amends the 2025 Non-Departmental Budget as follows:
|
Expense |
|
Community Development Agency Allocation |
$4,900,000 |
|
Total Expense |
$4,900,000 |
|
|
|
Revenue |
|
LAHA Funding |
$4,900,000 |
|
Total Revenue |
$4,900,000 |
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Statewide and Local Affordable Housing Aid Frequently Asked Questions
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: Paul Sikorski
Author: Paul Sikorski