Sponsor: Community & Economic Development
Title
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2026-2027 Community Development Block Grant - HOME Investment Partnerships Act Annual Action Plan/Proposed Use of Funds
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Recommendation
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1. Approve the 2026-2027 Community Development Block Grant -HOME Investment Partnerships Act Action Plan/Proposed Use of Funds.
2. Authorize the County Manager to accept the 2026-2027 Entitlement Award of $1,253,429 of Community Development Block Grant and $502,833 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 2026-2027 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 Partnerships Act 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 a form approved by the County Attorney’s Office, 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 30 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 2026-2027 Annual Action Plan will be the second plan of the current five-year Consolidated Plan.
The 2026-2027 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, public facilities and housing rehabilitation. 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. A competitive solicitation will occur later in the year to select specific activities within the proposed project areas listed below.
Summary of Proposed Distribution of CDBG Funds
Public Services (15% of available funds) $234,514
Housing Rehabilitation (52% of available funds) $812,985
Public Facilities and Infrastructure (13% of available funds) $203,245
Administration and Planning 20% of available funds) $312,685
Total $1,563,429
CDBG Sources of Funds
Fiscal Year 2026 Allocation $1,253,429
Previously Unspent or Unallocated Funds from Prior Years $310,000
Total Available Funding $1,563,429
Summary of Proposed Distribution of HOME Funds
Single Family/Owner-Occupied Housing $506,910
CHDO Set Aside $77,366
Administration and Planning (less Dakota CDA Admin) $38,683
Total $622,959
HOME Source of Funds
HOME Program Allocation FY2026 (less Dakota CDA Admin) $502,883
Program Income on Hand $120,076
Total Available Funding $622,959
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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 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 12, 2026 and April 23, 2026. Additionally, specific activities will be selected through the forthcoming 2026 Housing Development and 2026 CDBG Solicitations. Additional outreach will occur to inform community on those funding opportunities.
☒ Inform ☐ Consult ☐ Involve ☐ Collaborate ☐ Empower
Fiscal Impact
Ramsey County anticipates receiving a 2026-2027 allocation of $1,253,429 in CDBG funding and $502,883 in HOME funding. Ramsey County has $310,000 of CDBG funding on hand from previous grant years. In addition, Ramsey County has $120,076 of available HOME program income received through the repayment of HOME loans from previous years. Funding will go towards owner-occupied/single family projects selected through a competitive Housing Development Solicitation. 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. This contingency language is listed in the public notice.
Last Previous Action
On May 6, 2025, the Housing Redevelopment Authority approved the 2025-29 Community Development Block Grant-HOME Investments Partnerships Act Consolidated Plan which included the 2025-2026 Annual Action Plan (Resolution H2025-009).
Attachments
1. Public Notice and Affidavit