DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Information
TITLE
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Fiscal Year 2023 Countywide Community Development Block Grant Allocation Request
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PURPOSE/ACTION REQUESTED
Review potential Countywide Community Development Block Grant (CDBG) activity requests for Fiscal Year (FY) 2023.
SUMMARY
The CDBG program is a federal entitlement program that provides funds to communities to address community development needs that meet at least one of three National Objectives: benefit to low- and moderate-income persons; prevention or elimination of slums or blight; or meeting an urgent need. Congress determines CDBG program funding, and the Department of Housing and Urban Development (HUD) administers the program. HUD requires a Five-Year Consolidated Plan and subsequent Annual Action Plans. The CDA administers the CDBG program on behalf of Dakota County (the County).
The County's CDBG allocation for FY 2022 was $1,908,838. Because HUD has not released the grant amount for FY 2023, the FY 2022 allocation is used for planning purposes. Per the approved 2020-2024 Consolidated Plan, CDBG funds are distributed so that approximately 75 percent go directly to Dakota County cities and townships, and 25 percent goes to the County. In past years, the County has covered the general CDBG administration costs for the County and the cities and townships. These costs include CDA staff time, compliance requirements, and HUD-mandated programmatic responsibilities. This year, the CDA is proposing the general grant administration costs of 12 percent, or $229,060, be deducted from the total grant amount and the remaining portion be distributed using the 75/25 split. Staff believes it is fairer to distribute the general grant administration costs among all CDBG recipients because the CDA must provide significant time overseeing and monitoring the municipal subrecipients. The amount that would be split between the cities and the County totals $1,679,778, with...
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