DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Action
TITLE
title
Approval Of Amendments To Dakota County Consortium HOME Program And Dakota County Community Development Block Grant Program
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PURPOSE/ACTION REQUESTED
• Approval of substantial amendments to the HOME Investment Partnerships (HOME) budgets, including available program income for Program Years 2019, 2020, 2021, and 2022 to create the Twin Cities Habitat for Humanity homeowner activities and the Denmark Trail Townhomes affordable rental housing activity, and cancels the Nicols Pointe affordable rental activity and the Ramsey County FirstHOME homeowner activity.
• Approval of substantial amendments to the 2020 and 2021 Community Development Block Grant (CDBG) Programs to create the Twin Cities Habitat for Humanity Property Acquisition activity
SUMMARY
Three types of substantial amendments to the CDBG and HOME Programs are permissible by the U.S. Department of Housing and Urban Development (HUD): creation of a new activity or cancellation of an activity; increase or decrease of an activity budget by $100,000 or more at one time, and change to the location and/or national objective of an activity. The Dakota County Community Development Agency (CDA) administers the HOME and CDBG programs on behalf of Dakota County and the Dakota County HOME Consortium, which includes the Counties of Anoka, Dakota, Ramsey, Washington, and the City of Woodbury.
HOME Program Amendments to the 2019, 2020, 2021, and 2022 Action Plans
Twin Cities Habitat for Humanity, Inc. (Habitat) applied for $400,000 of available HOME funds to assist with homeowner activities for the acquisition and rehabilitation of 10 homes located in Eagan, Hastings, Burnsville, Rosemount, and West St. Paul. Habitat will sell the homes to families meeting income eligibility requirements. The partnership between the CDA, Dakota County and Habitat has proven successful in permanently housing families in Dakota County in the past 12 years. Awarding HOME funds to Habitat is considered a substantial amendment as it is adding new homeowner activities to the Action Plans.
The CDA also requests approximately $1.3 million of available HOME funds be allocated for an affordable rental housing activity to assist with the construction of the 40-unit Denmark Trail Townhomes to be located in Farmington. The CDA has awarded local levy funds, available Tax Increment Financing funds, and Low-Income Housing Tax Credits to the $12.8 million affordable rental housing project. Awarding HOME funds to the Denmark Trail Townhome activity is considered a substantial amendment as it is adding a new affordable rental housing activity to the Action Plans.
There would also be substantial amendments in the Action Plans to cancel the Nicols Pointe affordable rental housing activity in the 2020 Action Plan to which $575,000 of HOME funds was allocated, and to cancel the Ramsey County FirstHOME homeowner activity from the 2019 and 2020 Action Plans.
CDBG Program Amendments
Habitat also applied for $100,000 of CDBG funds to assist with the acquisition of 10 single-family homes located in Eagan, Hastings, Burnsville, Rosemount and West St. Paul. The CDBG funds will be used to close a funding gap and allow additional HOME funds to be used for Denmark Trail Townhomes. Habitat is a non-profit developer and the CDBG program can be used for property acquisition. Habitat is expected to close on the properties by March 31, 2023.
The CDBG Program received a substantial amount of program income generated from the CDA-administered Home Improvement Loan activity in the last two years. Over $1.1 million was received in both Fiscal Year 2020 and Fiscal Year 2021. The entitlement CDBG funds could be reallocated without adversely impacting the Home Improvement Loan program and will help ensure CDBG funds are spent quickly. If the Board approves the reallocation of funds, the 2020 and 2021 Dakota County Annual Action Plans must be amended to create the Twin Cities Habitat Acquisition activity in both years and fund it with a total budget of $100,000.
The CDA’s Citizen Participation Plan requires public notification of substantial amendments for the HOME and CDBG Programs. A public notice for the substantial amendments described above was placed in the Star Tribune on January 2, 2023 and also on the CDA and Dakota County websites. No comments were received.
RECOMMENDATION
recommendation
Dakota County and CDA staff recommend approval of the substantial amendments to the 2019, 2020, 2021, and 2022 Dakota County HOME Consortium Program, and the 2020 and 2021 Dakota County CDBG Program.
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EXPLANATION OF FISCAL/FTE IMPACTS
None.
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, Dakota County is an Entitlement County for funds through the Community Development Block Grant (CDBG) Program and a Participating Jurisdiction for the HOME Investment Partnerships (HOME) Program; and
WHEREAS, the Counties of Anoka, Dakota, Ramsey, and Washington and the City of Woodbury (referred to together as the “Dakota County HOME Consortium”) created a consortium under Title I of the Cranston-Gonzalez National Affordable Housing Act (Act) for purposes of acting as a participating jurisdiction under the Act and HOME Investment Partnerships Program Final Rule 24 CFR Part 92, which, as amended, sets forth regulations governing the applicability and use of funds under Title II; and
WHEREAS, Dakota County is designated as the “Lead Agency” for the Dakota County HOME Consortium, responsible for certain administrative and reporting functions of the HOME Program; and
WHEREAS, the Dakota County Community Development Agency (CDA) administers the HOME and CDBG funds on behalf of Dakota County; and
WHEREAS, three types of substantial amendments to the HOME and CDBG Programs are permissible by the US Housing and Urban Development Department (HUD): creation of a new activity or cancellation of an activity; increase or decrease of an activity budget by $100,000 or more at one time; and change to the location and/or national objective of an activity; and
WHEREAS, Twin Cities Habitat for Humanity (Habitat), a non-profit developer, requests available HOME and CDBG funds to assist with the acquisition and rehabilitation of 10 homes located in Eagan, Hastings, Burnsville, Rosemount and West St. Paul; and
WHEREAS, the CDA requests approximately $1.3 million of available HOME funds including program income to assist with the construction Denmark Trail Townhomes, a 40-unit affordable rental housing development to be located in Farmington; and
WHEREAS, CDA staff recommends substantial amendments to the Dakota County HOME Consortium 2021 and 2022 Action Plans to create the Twin Cities Habitat for Humanity Acquisition and Rehabilitation homeowner activities in those years and fund the activities with a total budget of $400,000; and
WHEREAS, CDA staff recommends substantial amendments to the Dakota County HOME Consortium 2020, 2021 and 2022 Action Plans to create the Denmark Trail Townhomes affordable rental housing activity in those years and fund the activity with a HOME budget of $1,279,574;
WHEREAS, CDA staff recommends substantial amendments to the Dakota County 2020 and 2021 CDBG Programs to create the Twin Cities Habitat for Humanity Acquisition activity in those years and fund the activity with a total budget of $100,000; and
WHEREAS, CDA staff recommends substantial amendments to the Dakota County HOME Consortium Program to cancel the Nicols Pointe affordable rental housing activity in the 2020 Action Plan and transfer $575,000 to the Denmark Trail Townhomes affordable rental housing activity, and to cancel the Ramsey County FirstHOME homeowner activity in the 2019 and 2021 Action Plans; and
WHEREAS, public notice of the substantial amendments was placed in the Star Tribune on January 2, 2023, and also on the CDA and Dakota County websites, in accordance with the approved Citizen Participation Plan process, and no public comments were received on the proposed amendments.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby approves the substantial amendments to the 2019, 2020, 2021 and 2022 Dakota County Consortium HOME Investment Partnerships Program, and the 2020 and 2021 Dakota County Community Development Block Grant Programs.
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PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Affidavit of Publication and Public Hearing Notice
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 and Kathy Kugel, Dakota County CDA