DEPARTMENT: Physical Development Administration
FILE TYPE: Regular Action
TITLE
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Approval Of Up To $9 Million American Rescue Plan Funds To Dakota County Community Development Agency For Nicols Pointe Project And Amendment Of 2023 Non-Departmental Budget
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PURPOSE/ACTION REQUESTED
Approve up to $9 million of American Rescue Plan (ARP) funds for Nicols Pointe project and amend the 2023 Non-Departmental Budget.
SUMMARY
Dakota County received $83.3 million of ARP State and Local Fiscal Recovery Funds (SLFRF) in 2021. The SLFRF program provided resources to government entities to respond to the COVID-19 pandemic and support families and businesses struggling with its public health and economic impacts; maintain vital support services; and build a strong, resilient, and equitable recovery by making investments that support long-term growth and opportunity.
The U.S. Department of Treasury published a Final Rule on January 6, 2022, detailing ARP SLFRF eligible uses. The construction of affordable housing is an eligible use. The Final Rule states "...development, repair, and operation of affordable housing and services or programs to increase long-term housing security" is an enumerated eligible use to respond to the negative economic impacts of the pandemic on households and communities.
The Dakota County Community Development Agency (CDA) is seeking financing to develop, own, and operate Nicols Pointe, a 24-unit apartment building in Eagan that will be affordable to persons aged 55 and up, with a preference for Veterans. All units will be income-restricted for households at or below 60 percent of the Area Median Income (AMI). The current 60 percent AMI for a one-person household is $49,320.
The CDA Board of Commissioners authorized the CDA Executive Director to request up to $9 million of ARP SLFRF from Dakota County for the project at their January 24, 2023 meeting (Resolution #23-6642). The project has received city approvals and is designed and read...
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