DEPARTMENT: Social Services-Housing & Community Resources
FILE TYPE: Consent Action
TITLE
title
Authorization To Accept Department Of Housing And Urban Development Grant Funds, Execute Grant Agreement, And Amend 2026 Social Services Budget
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PURPOSE/ACTION REQUESTED
Authorization to accept U.S. Department of Housing and Urban Development (HUD) Continuum of Care (CoC) grant funds in the amount of $846,061 for the grant period June 1, 2026-May 31, 2027, execute a grant agreement, and amend the 2026 Social Services Budget.
SUMMARY
The U.S. Department of HUD Continuum of Care Rapid Re-Housing (CoC RRH) program provides rental assistance and case management to re-house people experiencing homelessness. Dakota County has received grant funds from HUD to provide this service for over twenty years. HUD issues CoC funds through a competitive grant process called a Notice of Funding Opportunity (NOFO).
By Resolution No. 26-059 (February 3, 2026), Dakota County Social Services received approval from the Board of Commissioners to apply for CoC RRH funds June 1, 2026 through May 31, 2027, in an amount not to exceed $1,000,000. Applications were due to HUD by February 9, 2026. Dakota County applies for HUD CoC funds through the Suburban Metro Area Continuum of Care (SMAC), which includes Anoka, Carver, Dakota, Scott and Washington Counties.
HUD awarded Dakota County Social Services $846,061 in CoC RRH funds for the period of June 1, 2026 through May 31, 2027. These funds provide rental assistance to 48 families (at any given time) experiencing homelessness. Dakota County is required to provide a 25 percent match as part of this award. The match is provided by Local Affordable Housing Aid (LAHA) funds which pays for staff time to provide housing search and case management services to families on this grant.
The purpose of the program is to assist families moving from homelessness to independent living by securing safe, stable housing through temporary housing assistance. Dakota County Supportive Housing Unit (SHU) staff assists clients to build independent living skills and increase income. Staff work closely with the Dakota County Community Development Agency (CDA) to ensure that clients are on the appropriate waiting lists for permanent housing subsidies, if necessary. At the end of the program, families may transition to other rental subsidies or to self- payment of rent without moving to a different unit.
The grant allows for administrative costs, which will be 10% of the award. Within this 10%, this grant allows for indirect administrative costs at a rate of 15% of qualifying expenses (limited to wages, benefits and purchased services).
OUTCOMES
June 1, 2024-May 31, 2025
How Much? 65 households served
How Well? 64 percent households of color served
Is Anyone Better Off? 74 percent exited to stable housing
RECOMMENDATION
recommendation
Staff recommends acceptance of the Department of Housing and Urban Development (HUD) Continuum of Care grant funds for the period of June 1, 2026 through May 31, 2027, in the amount of $846,061, execution of the grant agreement, and amendment to the 2026 Social Services budget by $14,210 to reflect increased revenue and expenses.
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EXPLANATION OF FISCAL/FTE IMPACTS
The County will contribute a 25 percent required match, funded through Local Affordable Housing Aid (LAHA). The matching funds are included in the 2026 Adopted Social Services Budget within the General Fund. The Adopted 2026 Social Services budget also included $831,851 in estimated revenues and expenditures for this grant. A budget amendment of $14,210 is being requested to increase this budget to the final grant amount of $846,061 for the grant period June 1, 2026 through May 31, 2027.
☐ None ☐ Current budget ☐ Other
☒ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, the U.S. Department of Housing and Urban Development (HUD) Continuum of Care Rapid Re-Housing (CoC RRH) program provides rental assistance and case management to re-house people experiencing homelessness; and
WHEREAS, Dakota County has received grant funds from HUD to provide this service for over twenty years; and
WHEREAS, HUD issues CoC funds through a competitive grant process called a Notice of Funding Opportunity (NOFO); and
WHEREAS, by Resolution No. 26-059 (February 3, 2026), Dakota County Social Services received approval from the Board of Commissioners to apply for CoC RRH funds June 1, 2026 through May 31, 2027, in an amount not to exceed $1,000,000; and
WHEREAS, applications were due to HUD by February 9, 2026; and
WHEREAS, Dakota County applies for HUD CoC funds through the Suburban Metro Area Continuum of Care (SMAC), which includes Anoka, Carver, Dakota, Scott and Washington Counties; and
WHEREAS, HUD awarded Dakota County Social Services $846,061 in CoC RRH funds for the period of June 1, 2026 through May 31, 2027; and
WHEREAS, these funds provide rental assistance to 48 families (at any given time) experiencing homelessness; and
WHEREAS, Dakota County is required to provide a 25 percent match as part of this award; and
WHEREAS, the match is provided by Local Affordable Housing Aid (LAHA) funds which pays for staff time to provide housing search and case management services to families on this grant; and
WHEREAS, the purpose of the program is to assist families moving from homelessness to independent living by securing safe, stable housing through temporary housing assistance; and
WHEREAS, Dakota County Supportive Housing Unit (SHU) staff assist clients to build independent living skills and increase income; and
WHEREAS, staff work closely with the Dakota County Community Development Agency (CDA) to ensure that clients are on the appropriate waiting lists for permanent housing subsidies, if necessary; and
WHEREAS, at the end of the program, families may transition to other rental subsidies or to self- payment of rent without moving to a different unit; and
WHEREAS, the grant allows for administrative costs, which will be 10% of the award; and
WHEREAS, this grant allows for indirect administrative costs at a rate of 15% of qualifying expenses (limited to wages, benefits and purchased services); and
WHEREAS, staff recommends accepting Department of HUD CoC grant funds for the period of June 1, 2026 through May 31, 2027 in an amount of $846,061, executing the grant agreement, and amending the 2026 Social Services budget to reflect revenue and expenses.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes an Assistant County Manager, Community Services, to accept U.S. Department of Housing and Urban Development for Continuum of Care Rapid Re-Housing grant funds in an amount of $846,061 for the grant period of June 1, 2026 through May 31, 2027, execute the grant agreement subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That unless the grant program requirements change, an Assistant County Manager, Community Services, is hereby authorized to amend the grant to extend the grant term up to two years after initial expiration date, accept additional grant funds, and continue grant-funded full-time equivalents, consistent with County contracting policies, and inclusion of grant funds in future yearly Recommended and Approved Budgets, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the 2026 Social Services budget is hereby amended as follows:
|
Expense |
|
Housing Services |
$14,210 |
|
Total Expense |
$14,210 |
|
|
|
Revenue |
|
HUD Revenue |
$14,210 |
|
Total Revenue |
$14,210 |
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PREVIOUS BOARD ACTION
26-059; 02/03/26
ATTACHMENTS
Attachment: None.
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACTS
Department Head: Emily Schug
Author: Madeline Kastler