Sponsor: Community & Economic Development
Title
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2024-2025 Community Development Block Grant - HOME Investment Partnerships Act Action Plan/Proposed Use of Funds
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Recommendation
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1. Approve the 2024-2025 Community Development Block Grant -HOME Investment Partnerships Act Action Plan/Proposed Use of Funds.
2. Authorize the County Manager to accept the 2024-2025 Entitlement Award of $1,202,421 of Community Development Block Grant and $524,806 of HOME Investment Partnerships Act Funds.
3. Authorize the County Manager to execute documents with the U.S. Department of Housing and Urban Development, related to the submission and execution of the 2024-2025 Community Development Block Grant-HOME Investment Partnerships Act Program Action Plan/Proposed Use of Funds.
4. Authorize the County Manager to execute and amend HOME Investment Partnership Acts Program agreements in a form approved by the County Attorney’s Office, provided the amounts are within the budget of the approved plan.
5. Authorize the County Manager to execute and amend Community Development Block Grant agreements in accordance with procurement policies and procedures, provided the amounts are within the budget of the approved plan.
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Background and Rationale
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Ramsey County has received Community Development Block Grant (CDBG) funding as an “urban county” for more than 27 years. The U.S. Department of Housing and Urban Development (HUD) provides these annual grants to “develop viable urban communities by providing decent housing, a suitable living environment, and by expanding economic opportunities, principally for low- and moderate-income persons”. The Dakota County Consortium is the “participating jurisdiction” for Ramsey County’s receipt of HOME Investment Partnerships Act Program Funds (HOME), which are limited to projects constructing affordable housing in suburban Ramsey County. The Consortium consists of Anoka, Dakota, Ramsey, and Washington Counties, as well as the city of Woodbury.
The Consolidated Plan, required by HUD, guides the investment of entitlement CDBG and HOME funds over a five-year period. The Consolidated Plan is designed to help states and local jurisdictions assess their affordable housing and community development needs and market conditions, and to make data-driven, place-based investment decisions. The consolidated planning process serves as the framework for community members and organizations to provide input and identify housing and community development priorities that align and focus funding. The Consolidated Plan is carried out through Annual Action Plans, which provide a summary of the actions, activities, and the specific federal and non-federal resources that will be used each year to address the priority needs and specific goals identified in the consolidated planning process. Ramsey County reports on accomplishments and progress towards Consolidated Plan goals in the Consolidated Annual Performance and Evaluation Report. The 2024-2025 Annual Action Plan will be the fifth, and last, annual plan of the current five-year Consolidated Plan.
The 2024-2025 Annual Action Plan/Proposed Use of Funds addresses needs of low and moderate-income persons in the suburban Ramsey County service area. Overall priorities for this year’s funding include public services related to housing instability and housing rehabilitation, after consultation with suburban municipalities and community partners each year. The plan addresses the statutory requirements for receiving annual entitlement funds from HUD and is consistent with department strategies to foster prosperity and access to opportunities.
Projects recommended for funding in HUD’s fiscal year 2024 (July 1, 2024 - June 30, 2025) are consistent with the current Consolidated Plan. Ramsey County anticipates receiving a 2024 allocation of $1,202,421 in CDBG funding and $511,510 in HOME funding. Ramsey County has $247,626 of CDBG program income from the repayment of CDBG loans from previous years and $183,315 of HOME program income from the repayment of HOME loans from previous years. In addition, Ramsey County is able to reallocate $268,286 of unspent or unallocated CDBG funds from previous years The total available HOME funding is $694,825 and the total amount of CDBG funding available is $1,718,333. If the actual entitlement awards from HUD are smaller or larger than the anticipated award amounts, then all proposed funding amounts will increase or decrease proportionately.
Summary of Proposed Distribution of CDBG Funds
Minnesota One Stop for Communities, Housing Rehabilitation - scattered sites
suburban countywide $85,000
Hammer Residences, Home Revitalization - scattered sites suburban countywide $131,000
HOME Line Tenant Hotline - suburban countywide $40,000
HousingLink, Beyond Backgrounds Program - suburban countywide $22,400
Slipstream Inc., Critical Repair Program - suburban countywide $544,099
Slipstream Inc., Single Family Home Rehab Loan Program - suburban countywide $450,000
Open Arms of MN, Nutrition Program - suburban countywide $20,000
Hearts and Hammers, housing rehab activities- suburban countywide $10,000
White Bear Area Foodshelf, Food Support- suburban countywide $20,000
Keystone Food Services, Food Support- suburban countywide $20,000
Ramsey County Housing Stability Department, Rapid Stabilization Program -
suburban countywide $135,430
Administration and Planning $240,404
Total $1,718,333
CDBG Sources of Funds
Fiscal Year 2024 Allocation $1,202,421
Program Income on Hand $247,626
Previously Unspent or Unallocated Funds from Prior Years $268,286
Total Available Funding $1,718,333
Summary of Proposed Distribution of HOME Funds
Lupe Development, New Senior Rental Construction, near County Road B,
Little Canada, MN $576,784
Community Housing Development Organization (CHDO)
Set Aside $78,694
Administration and Planning (less Dakota CDA Admin) $39,347
Total $649,825
HOME Source of Funds
HOME Program Allocation FY2024 (less Dakota CDA Admin) $511,510
Program Income on Hand $183,315
Total Available Funding $649,825
In addition, CHDO Set Aside from the 2022 and 2023 Annual Action Plans will be used for the rehabilitation of a vacant home located at 531 Lexington Avenue, Shoreview, MN by Community Action Partnership of Ramsey and Washington Counties, Ramsey County’s only CHDO-eligible organization. The activity will be funded in the amount of $150,800.
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County Goals (Check those advanced by Action)
☒ Well-being ☒ Prosperity ☒ Opportunity ☒ Accountability
Racial Equity Impact
In Ramsey County, Black/African American, American Indian and other residents of color are more likely to be renters than White residents. Renters of color and American Indian residents are more likely to be cost-burdened by housing costs than White residents. According to the Mapping Prejudice Project and the Economic Competitiveness and Inclusion Plan, Ramsey County also has one of the largest homeownership gaps between White residents and Black residents in the nation. Strategic investments in affordable rental and owner-occupied housing by the county can help reduce these racial disparities in housing. Furthermore, HOME-funded units are 100% affordable and subject to rigorous fair housing requirements. This prohibits discrimination by direct providers of housing, such as landlords and real estate companies, whose practices make housing unavailable to persons because of race or color, religion, sex, national origin, familial status or disability.
Community Participation Level and Impact
Goals and objectives for CDBG and HOME funds are set during the consolidated planning process, following the community outreach and participation strategies required by that plan. As required two public meetings were held to gather community input on the recommended projects and a public notice was given in the local newspaper. The meetings occurred on February 1, 2024 and May 7, 2024. Additionally, projects were selected through the 2024 Housing Development and 2024 CDBG Public Services and Housing Programs Solicitations, which was designed with input from community providers and governmental partners.
☒ Inform ☒ Consult ☒ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Community & Economic Development, in partnership with the County Attorney’s Office and Finance, solicited for eligible activities through two competitive solicitations. The 2024 Housing Development Solicitation was open to projects the expanded or preserved the supply of affordable housing and the 2024 CDBG Public Services and Housing Programs Solicitation. The process for selection included a review for eligibility and completeness, an interdepartmental scoring team and financial analysis for housing development projects. All projects included in the Annual Action Plans/Proposed Use of Funds were selected through this process. The 2024 CDBG process was informed by Ramsey County’s Purchasing And Contracting Transformation effort and subsequent grant agreements will be incorporated into the centralized contract management system. 2024-2025 CDBG and HOME funding become available through HUD and the Dakota County HOME Consortium on July 1, 2024 pending HUD approval of the Annual Action Plan.
Ramsey County anticipates receiving a 2024 allocation of $1,202,421 in CDBG funding and $511,510 in HOME funding. Ramsey County has $247,626 of CDBG program income received through the repayment of CDBG loans from previous years and $183,315 of HOME program income received through the repayment of HOME loans from previous years. In addition, Ramsey County is able to reallocate $268,286 of unspent or unallocated CDBG funds from previous years The total available HOME funding is $694,825 and the total amount of CDBG funding available is $1,718,333. If the actual entitlement awards from HUD are smaller or larger than the anticipated award amounts, then all proposed funding amounts will increase or decrease proportionately.
Last Previous Action
On May 9, 2023, the Housing Redevelopment Authority approved the 2023-24 Community Development Block Grant-HOME Investments Partnerships Act Annual Action Plan/Proposed Use of Funds (Resolution H2023-006).
Attachments
1. Narrative Project Descriptions
2. CDBG-HOME Public Notice and Affidavit