DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
title
Schedule Public Hearing For Dakota County Consortium 2025-2029 Five-Year Consolidated Plan And Fiscal Year 2025 One-Year Action Plan For Community Development Block Grant, HOME Investment Partnerships, And Emergency Solutions Grant Programs
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PURPOSE/ACTION REQUESTED
Schedule a public hearing for 9:00 a.m. on April 22, 2025, to receive comments on the draft Dakota County Consortium 2025-2029 Five-Year Consolidated Plan (2025-2029 Consolidated Plan) and Fiscal Year (FY) 2025 One-Year Action Plan (2025 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. Federal regulations require the completion of a Five-Year Consolidated Plan and subsequent annual Action Plans to guide the use of federal funds. The Consolidated Plan establishes the grantee’s distribution process and funding priorities. The U.S. Department of Housing and Urban Development (HUD) has not released the grant amounts for the three entitlement programs for FY 2025. Until the grant amounts are released, HUD requires the FY 2024 budget amounts must be used for planning purposes. Possible changes to the grant amounts are discussed in each program’s section below. The executive summary of the draft 2025-2029 Consolidated Plan and 2025 Action Plan is attached. Also attached is the draft public hearing notice and brief summaries of the three entitlement programs.
CDBG. Dakota County was allocated $1,873,895 in FY 2024 CDBG funds. Funding for activities generally will be increased or decreased proportionally depending on any increase or decrease to the FY 2025 grant amount, subject to statutory requirements. Proposed uses for the FY 2025 CDBG grant are as follows: affordable housing rehab (64%), public services (12%), neighborhood revitalization (5%), down payment assistance (2%), planning (4%), and grant administration (13%). 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 that 26 city and township activities, three Countywide activities, and two grant administration activities be funded.
HOME. HUD procedures state the FY 2024 Dakota County HOME Consortium allocation must be used for planning purposes. The Dakota County HOME Consortium was allocated $2,127,171 in FY 2024. Including program income, the FY 2025 HOME allocation could be $2,458,250. Proposed uses for the Dakota County HOME funds totaling $864,077, including program income, are affordable rental housing (36%), affordable homeowner housing (36%), Community Housing Development Organization (CHDO) activities (14%), and grant administration (14%). Though HUD requires the use of the previous year’s allocation for planning, preliminary federal budget discussion indicated that the HOME program could be cut by as much as 60 percent. HOME activities will be proportionally increased or decreased based on the final HOME allocation received from HUD, except the CHDO activities will not exceed 15 percent of the total HOME allocation. The CDA recommends the four Dakota County activities receive HOME funds.
ESG. Dakota County was allocated $172,422 in FY 2024 ESG funds. Proposed uses for the FY 2025 ESG funds include emergency shelter operations (60%), rapid re-housing activities (27.5%), homelessness prevention activities (2%), Homeless Management Information System (3%), and grant administration (7.5%). Funding for activities generally will be increased or decreased proportionally depending on any increase or decrease to the FY 2025 grant amount, subject to statutory requirements. The Affordable Housing Coalition recommended approval of the draft ESG budget on February 13, 2025.
RECOMMENDATION
recommendation
Dakota County and CDA staff recommend a public hearing be scheduled for 9:00 a.m. on April 22, 2025, in the Board Room, Administration Center, 1590 Highway 55, Hastings, MN, to receive comments on the draft Dakota County 2025-2029 Consolidated Plan and FY 2025 One-Year Action Plan.
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EXPLANATION OF FISCAL/FTE IMPACTS
For FY 2025, Dakota County is anticipated to receive a CDBG grant of $1,873,895, a HOME grant of $864,077, including program income (Consortium total of $2,458,250), and an ESG grant of $172,422. These amounts will likely change when HUD releases the final FY 2025 allocations for the federal programs.
☐ 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 requires the development and submission of the 2025-2029 Five-Year Consolidated Plan that outlines the strategies and objectives of Dakota County’s use of the federal funds; and
WHEREAS, HUD further requires the development and submission of the Fiscal Year (FY) 2025 One-Year Action Plan that proposes the 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 2025; and
WHEREAS, the proposed activities for HUD funds meet the housing and community development priorities identified in the draft 2025-2029 Five-Year Consolidated Plan; and
WHEREAS, HUD has not released the grant amounts for the three entitlement programs for FY 2025, and the draft 2025 One-Year Action Plan uses the FY 2024 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 2025 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 subject to statutory limits on public service activities and planning and grant administration activities; the HOME budget generally will be increased or decreased proportionally depending on any increase or decrease to the grant amount except that funding for Community Housing Development Organization (CHDO) activities will not exceed 15 percent; and the ESG budget generally will be increased or decreased proportionally depending on any increase or decrease to the grant amount subject to statutory limits on emergency shelter operations and grant administration activities; and
WHEREAS, the anticipated Dakota County FY 2025 CDBG allocation is $1,873,895 with $400,000 of anticipated program income, the anticipated Dakota County FY 2025 HOME allocation is $864,077, including program income (Consortium total of $2,458,250), and the anticipated Dakota County FY 2025 ESG allocation is $172,422; and
WHEREAS, CDA staff recommend allocating FY 2025 CDBG funds to 26 eligible activities for cities and townships, three Countywide activities, and two grant administration activities as follows: affordable housing rehab (64%), public services (12%), neighborhood revitalization (5%), down payment assistance (2%), planning (4%), and grant administration (13%); and
WHEREAS, four eligible activities as follows: affordable rental housing (36%), affordable homeowner housing (36%), CHDO activities (14%), and grant administration (14%); and
WHEREAS, CDA staff recommend allocating FY 2025 ESG funds to five eligible activities as follows: emergency shelter operations (60%), rapid re-housing activities (27.5%), homelessness prevention activities (2%), Homeless Management Information System (3%), and grant administration (7.5%); and
WHEREAS, the requested public hearing is to receive comments and inform the public on the draft Dakota County 2025-2029 Five-Year Consolidated Plan and the 2025 One-Year Action Plan that outlines the strategies and objectives for the proposed allocation of FY 2025 CDBG, ESG, and HOME funds.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby schedules a public hearing for April 22, 2025, at 9:00 a.m. in the Board Room, Administration Center, 1590 Highway 55, Hastings, MN, to receive comments on the draft Dakota County 2025-2029 Five-Year Consolidated Plan and the Fiscal Year 2025 One-Year Action Plan, including proposed Community Development Block Grant Program activities funded with an anticipated budget of $1,873,895, HOME Investment Partnerships Program activities funded with an anticipated budget of $864,077, including program income (Consortium total of $2,458,250), and Emergency Solutions Grant Program activities with an anticipated budget of $172,422; and
BE IT FURTHER RESOLVED, That Dakota County staff is hereby authorized and directed to work with the Dakota County Community Development Agency to publish the public hearing notice in the Dakota County Tribune and the Star Tribune and to post said notice on the websites of the participating cities, the Dakota County Community Development Agency 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>.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Draft 2025-2029 Consolidated Plan Executive Summary
Attachment: Draft Public Hearing Notice
Attachment: Summary of Federal Entitlement Programs
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