DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Information
TITLE
title
Fiscal Year 2023 Countywide Community Development Block Grant Allocation Request
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PURPOSE/ACTION REQUESTED
Review potential Countywide Community Development Block Grant (CDBG) activity requests for Fiscal Year (FY) 2023.
SUMMARY
The CDBG program is a federal entitlement program that provides funds to communities to address community development needs that meet at least one of three National Objectives: benefit to low- and moderate-income persons; prevention or elimination of slums or blight; or meeting an urgent need. Congress determines CDBG program funding, and the Department of Housing and Urban Development (HUD) administers the program. HUD requires a Five-Year Consolidated Plan and subsequent Annual Action Plans. The CDA administers the CDBG program on behalf of Dakota County (the County).
The County’s CDBG allocation for FY 2022 was $1,908,838. Because HUD has not released the grant amount for FY 2023, the FY 2022 allocation is used for planning purposes. Per the approved 2020-2024 Consolidated Plan, CDBG funds are distributed so that approximately 75 percent go directly to Dakota County cities and townships, and 25 percent goes to the County. In past years, the County has covered the general CDBG administration costs for the County and the cities and townships. These costs include CDA staff time, compliance requirements, and HUD-mandated programmatic responsibilities. This year, the CDA is proposing the general grant administration costs of 12 percent, or $229,060, be deducted from the total grant amount and the remaining portion be distributed using the 75/25 split. Staff believes it is fairer to distribute the general grant administration costs among all CDBG recipients because the CDA must provide significant time overseeing and monitoring the municipal subrecipients. The amount that would be split between the cities and the County totals $1,679,778, with $1,259,833 going to the cities and townships and $419,944 going to the County. CDBG funds are allocated to Dakota County cities and townships (including Northfield) based on a HUD formula that uses population, overcrowding (more than one person per room in a residential structure), and poverty levels. Cities with populations of more than 10,000 receive about 97 percent of the amount allocated to the cities and townships, or $1,218,082. Approximately three percent, or $41,751, is allocated to the smaller cities and townships in a competitive pool. The small cities and townships have requested more funds than are available to them, but these could be fully funded using a portion of the Countywide pool. The CDBG Committee, comprised of the three County Commissioners representing small cities and townships, the chair of the County Planning Commissioner, and the chair of the Township Board Officers Association, will meet in March to discuss the small cities and townships’ applications. The Countywide requests this year are for existing programs: $209,099 for the existing CDA-administered Home Improvement Loan program, $100,000 for the CDA-administered housing counseling program; $5,000 for CDA-administered landlord training for fair housing compliance; and $50,000 for the County’s well-sealing program. If the County receives additional CDBG funds from HUD, the funds could be allocated to the Home Improvement Loan program and the well-sealing program. If the County receives less funding, the Home Improvement Loan and Housing Counseling programs will be reduced.
Staff expects to bring the draft Dakota County FY 2023 Annual Action Plan (the Action Plan) to the Physical Development Committee of the Whole for review on March 21, 2023. The Countywide CDBG activities will be included in the Action Plan. A public hearing is anticipated for the County Board meeting on April 25, 2023, with final approval at the County Board meeting on May 9, 2023, if HUD has provided the FY 2023 allocation by that time.
RECOMMENDATION
recommendation
None. Staff is providing information to the Board to use FY 2023 CDBG funds for the following Countywide activities: $209,099 for the CDA-administered housing rehab program; $100,000 for the CDA-administered housing counseling program; $5,000 for the CDA-administered landlord training for fair housing compliance; and $50,000 for County-administered well sealing program.
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EXPLANATION OF FISCAL/FTE IMPACTS
Dakota County’s FY 2023 CDBG allocation has not been released. The final allocations for activities may be modified depending on the final CDBG amount appropriated by Congress. This will be brought to the County Board as part of the 2023 Annual Action Plan review
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
Information only; no action requested.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Proposed FY 2023 Countywide CDBG Activities
Attachment: Five-Year History of County CDBG Allocations
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☒ N/A
CONTACT
Department Head: Erin Stwora
Author: Maggie Dykes