DEPARTMENT: Finance
FILE TYPE: Consent Action
TITLE
title
Authorization To Amend Joint Powers Agreement With Dakota County Community Development Agency For Local Affordable Housing Aid And Amend Non-Departmental And Social Services Budget
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RESOLUTION
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WHEREAS, Local Affordable Housing Aid (LAHA) is aid to metropolitan local governments of the seven county metro area; and
WHEREAS, LAHA is funded through a dedicated sales tax in the seven-county metropolitan area; and
WHEREAS, during the 2026 budget process, the County Board approved a budget of $10,926,497 of LAHA funding that included investments for Emergency Rental Assistance, Apartment Services, Financial Support to Affordable Non-Profit Providers, Affordable Housing Development and Financing, Operations and Management of Distressed Residential Properties, Supportive Services for Supportive Housing, Emergency Shelter Operations, and Other Projects Subject to Approval by Minnesota Housing; and
WHEREAS, based on LAHA revenues to date, staff projects annual LAHA revenues of $11,259,587; and
WHEREAS, during the June 16, 2026, Finance Work Session, the Board gave direction to budget 50% of LAHA revenues in the Dakota County Social Services budget and distribute 50% of LAHA revenues to the Dakota County Community Development Agency (CDA); and
WHEREAS, staff recommends authorizing a budget allocation and execution of a joint powers agreement distributing 50% of the LAHA funds to the CDA in 2026 and future years for qualifying projects consistent with the County’s Housing Business Plan; and
WHEREAS, the CDA’s proposed fiscal year 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 Deputy County Manager to amend the joint powers agreement with the Dakota County Community Development Agency (CDA), sending 50% of the LAHA funds to the CDA in 2026 and future years 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 2026 Non-Departmental Budget as follows:
Expense
Community Development Agency Allocation: $712,871
Unallocated LAHA: ($1,092,650)
Total Expense: ($379,780)
Revenue
LAHA Funding: ($379,780)
Total Revenue: ($379,780)
; and
BE IT FURTHER RESOLVED, That the Dakota County Board of Commissioners hereby amends the 2026 Social Services Budget as follows:
Expense
LAHA Expenses: $712,871
Total Expense: $712,871
Revenue
LAHA Funding: $712,871
Total Revenue: $712,871
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BACKGROUND
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.
This action is based on direction from the June 16, 2026, Finance Work Session. 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 an amendment of a JPA allocating 50% of LAHA revenues received by Dakota County to the CDA in County fiscal year 2025. The County will make distributions equal to 50% of each allocation to the CDA for eligible projects.
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FINANCIAL AND STAFFING IMPACTS
There is no levy cost for this request in 2026. An amendment to the 2026 Social Services Budget in the amount of $712,871 and an amendment to the 2026 Non-Departmental Budget in the amount of ($379,780) will be funded from the LAHA Allocation. Any unused funds will be requested for carry over to the 2027 Budget.
|
Funding Source |
2026 Adopted Budget |
Approved 2026 Amended Budget |
|
LAHA - CDA Allocation |
$4,916,923 |
$5,629,794 |
|
LAHA - Unallocated |
$1,092,650 |
$0 |
|
LAHA - Social Services |
$4,916,923 |
$5,629,794 |
|
Total |
$10,926,496 |
$11,259,588 |
PREVIOUS BOARD ACTION
25-285; 6/24/25
ATTACHMENTS
Attachment: Statewide and Local Affordable Housing Aid Frequently Asked Questions
CONTACT
Department Director: William Wallo
Author: Karen Cater