DEPARTMENT: Physical Development Administration
FILE TYPE: Consent Information
TITLE
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Fiscal Year 2026 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) 2026.
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 Dakota County Community Development Agency (CDA) administers the CDBG program on behalf of Dakota County (the County).
The County's CDBG allocation for FY 2025 was $1,893,442. Because HUD has not released the grant amount for FY 2026, the FY 2025 allocation is used for planning purposes. Per the approved 2025-2029 Consolidated Plan, CDBG funds are distributed so that approximately 75 percent goes directly to Dakota County cities and townships, and approximately 25 percent goes to the County. The CDA incurs costs to administer the CDBG program, and the costs can be reimbursed by CDBG. These costs include CDA staff time, compliance requirements, and HUD-mandated programmatic responsibilities. This year, the CDA proposes 13 percent or $253,000 to cover grant administration costs, which will be deducted from the total grant amount. The amount to be split between the cities and the County totals $1,640,442, with $1,249,671 going to the cities and townships and $390,771 going to the County. CDBG funds are allocated to Dakota County cities and townships (including Northfield) based on a HUD formula that uses population, overcrowding (more than one person...
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