DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Joint Powers Agreement Allocating 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 execution of joint powers agreement (JPA) allocating 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 execute a JPA sending 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.
This action is based on direction from the Community Services Committee meeting on June 10, 2025. This item clarifies that the distribution of the funds to the CDA will be complete pursuant to the terms of a JPA.
RECOMMENDATION
recommendation
Staff recommends that the Board of Commissioners authorize execution of a JPA allocating 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 Dakota County Community Development Agency (CDA) allocation; and
WHEREAS, staff recommends authorizing a budget allocation and execution of a joint powers agreement distributing 50 percent of the 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.
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 authorizes the County Manager to execute a joint powers agreement with the Dakota County Community Development Agency (CDA), sending 50 percent of the LAHA funds to the CDA in 2025 to be used on qualifying projects consistent with the County’s Housing Business Plan; 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