DEPARTMENT: Physical Development Administration
FILE TYPE: Regular Action
TITLE
title
Public Hearing To Receive Comments On Dakota County Fiscal Year 2024 Action Plan For Community Development Block Grant, HOME Investment Partnerships, And Emergency Solutions Programs
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PURPOSE/ACTION REQUESTED
Conduct a public hearing to receive comments on the draft Dakota County Fiscal Year (FY) 2024 One-Year Action Plan (2024 Action Plan) for the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Programs.
SUMMARY
The Dakota County Community Development Agency (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 FY 2024 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 Five-Year Consolidated Plan (2020-2024) approved by Resolution No. 20-231 (May 5, 2020). HUD has not released the grant amounts for the three entitlement programs for FY 2024. Until the grant amounts are released, staff is using the FY 2023 budget amounts for planning purposes. Possible changes to the grant amounts are discussed in each program’s section below. The draft Executive Summary of the draft FY 2024 Action Plan, and affidavits of the public hearing notice are included as attachments.
CDBG. Dakota County was allocated $1,961,800 in FY 2023 CDBG funds. Funding for activities generally will be increased or decreased proportionally depending on any increase or decrease to the FY 2024 grant amount though funding for public service activities will not exceed 15 percent of the total grant per statute. Proposed uses for the FY 2024 CDBG grant are as follows: affordable housing rehab (64%), public services (15%), neighborhood revitalization (8%), planning (1%), and grant administration (12%). There is an additional estimated $400,000 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 24 city activities, four Countywide activities, and two grant administration activities be funded.
HOME. The Dakota County HOME Consortium was allocated $2,630,806 in FY 2023 HOME funds. With program income, the estimated available funding for the Consortium is $3,093,076. Proposed uses for the FY 2024 Dakota County HOME funds totaling $995,084 including program income, are as follows: affordable rental housing (72%), Community Housing Development Organization (CHDO) activities (14%), and grant administration (14%). HOME activities will be proportionally increased or decreased based on the final HOME allocation received from HUD, except the CHDO activities will remain at 15 percent of the total HOME allocation. The CDA recommends the three Dakota County activities receive HOME funds.
ESG. Dakota County was allocated $167,767 in FY 2023 ESG funds. Proposed uses for the FY 2024 ESG funds include emergency shelter operations (59%), rapid re-housing activities (31%), homelessness prevention activities (3%), Homeless Management Information System (HMIS) (0.5%), and grant administration (6.5%). If additional funds are received in FY 2024, funds will be added to the HMIS and Administration activities, subject to statutory limits. If funds are reduced, the
Emergency Shelter, Homelessness Prevention, and Rapid Rehousing activities will each be reduced by the percentage of the decrease. The Affordable Housing Coalition recommended approval of a draft ESG budget on February 8, 2024.
RECOMMENDATION
recommendation
Dakota County and CDA staff recommend the County Board conduct public hearing to receive comments on the draft Dakota County Fiscal Year 2024 Action Plan. Final action on the FY 2024 Action Plan will be requested when HUD releases the final allocations.
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EXPLANATION OF FISCAL/FTE IMPACTS
For FY 2024, Dakota County is anticipated to receive a CDBG grant of $1,961,800, a HOME grant of $995,084, including program income (Consortium total of $3,093,076), and an ESG grant of $167,767.
☐ 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, the Dakota County Community Development Agency (CDA) administers the CDBG, ESG, and HOME 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, ESG, and HOME funds and between Dakota County and the Dakota County CDA for CDBG, ESG, and HOME program administration; and
WHEREAS, HUD further requires the development and submission of the Fiscal Year (FY) 2024 One-Year Action Plan that proposes 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 2024; and
WHEREAS, the proposed activities for HUD funds meet the housing and community development priorities identified in the approved 2020-2024 Five-Year Consolidated Plan; and
WHEREAS, HUD has not released the grant amounts for the three entitlement programs for FY 2024, and the draft 2024 One-Year Action Plan uses the FY 2023 approved budgets for the three programs for planning purposes; and
WHEREAS, if there are changes to the budget amounts when HUD releases the final FY 2024 grant amount, the budgets will be amended as follows: the CDBG budget generally will be increased or decreased proportionally depending on any increase or decrease to the grant amount, though funding for public service activities will not exceed 15 percent of the total grant per statute; the HOME budget generally will be increased or decreased proportionally depending on any increase or decrease to the grant amount except that the budget for the Community Housing Development Organization (CHDO) activities will remain at 15 percent; and the HMIS and Administration activities will be increased if there is additional ESG funding, and the Emergency Shelter, Homelessness Prevention, and Rapid Rehousing activities rapid re-housing activity budget will be decreased if ESG funds are decreased; and
WHEREAS, the anticipated Dakota County FY 2024 CDBG allocation is $1,961,800 with $400,000 of anticipated program income; the anticipated Dakota County FY 2024 HOME allocation is $995,084, including program income (Consortium total of $3,093,076); and the anticipated Dakota County FY 2024 ESG allocation is $167,767; and
WHEREAS, CDA staff recommends allocating FY 2024 CDBG funds to 24 eligible activities for cities and townships, four Countywide activities, and two grant administration activities as follows: affordable housing rehab (64%), public services (15%), neighborhood revitalization (8%), planning (1%), and grant administration (12%); and
WHEREAS, CDA staff recommends allocating FY 2024 HOME funds to three eligible activities as follows: affordable rental housing (72%), Community Housing Development Organization (CHDO) activities (14%), and grant administration (14%); and
WHEREAS, CDA staff recommends allocating FY 2024 ESG funds to five eligible activities as follows: emergency shelter operations (59%), rapid re-housing activities (31%), homelessness prevention activities (3%), Homeless Management Information System (HMIS) (0.5%), and grant administration (6.5%); and
WHEREAS, HUD requires a public hearing to receive comments and inform the public on the Dakota County FY 2024 Annual Action Plan; and
WHEREAS, the Notice of Public Hearing was published in the Star Tribune on April 9, 2024, and posted on the websites of the participating cities, the Dakota County CDA website at www.dakotacda.org <http://www.dakotacda.org>, and the Dakota County website at www.co.dakota.mn.us <http://www.co.dakota.mn.us>.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners conducted a public hearing for April 23, 2024, at 9:00 a.m. in the Board Room, Administration Center, 1590 Highway 55, Hastings, MN, to receive comments on the draft Fiscal Year 2024 One-Year Action Plan, including proposed Community Development Block Grant Program activities funded with an anticipated budget of $1,961,800, HOME Investment Partnerships Program activities funded with an anticipated budget of $995,084, including program income (Consortium total of $3,093,076), and Emergency Solutions Grant Program activities with an anticipated budget of $167,767.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Draft FY 2024 Action Plan Executive Summary
Attachment: Public Hearing Notice and Affidavit of Publication
BOARD GOALS
☒ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACT
Department Head: Erin Stwora
Author: Maggie Dykes