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1a Community Develop. Block GraCITYOF 690 City Center Drive PO Box 147 Cha,/~assen, Mim~esota 55317 Phone 952.93Z1900 Generd Fax 952.93Z5739 Engineering Dqaronent Fax 952.93Z9152 Building Depm'onent Fax 952934.2524 IISb Site u,ww. ci. chanhasse,, m~t. us MEMORANDUM TO: Scott Botcher, City Manager FROM: Bob Generous, AICP, Senior Planner DATE: February 21,2001 SUB& 2001 Community Development Block Grant Funding Request PROPOSAL Staff is recommending that the city submit an. application for the use of Community Development Block Grant (CDBG) to assist with senior housing prqjects within the community. Cun'ently, we are discussing projects with Presbyterian Homes and Doug Hansen for senior housing in the community. Staff is proposing applying for grants to assist both projects. For the Presb~erian Homes project, the city would assist with land acquisition. For the Hansen project, we would propose assistance for public infrastructure. BACKGROUND The City of Chmfl~assen is a part of the Consolidated. Pool for 2001 allocation for Community Development Block Grant (CDBG) funding. We have to compete with twenty-eight other communities for funding. This is the seventh year Hennepin County has established the pool. This is the fourth year Chanhassen has been in the pool. In the 2001. there is a total of $452,781 in the consolidated pool funding. Of this amount, $155,000 is set-aside for single-family residential rehabilitation, $67,900 is set-aside for public services and public service organizations, and $229,881 is available for other projects. It is from this last group that the city would request funding. If the city' s project is selected .for allocation, staff_i_s, reco~mm, endi ~ng that the money be used for senior housing, providing units for low income housing (less than 50 percent of median income). ANALYSIS As you are aware, CDBG dollars have national objectives that each activity must meet including: Cin, of Cha,hassen. A ¢ivu.,im, commtmin, u,ith c/ea, h~ke.c ana/it~, schooh, a cham#,~ dou,,to~t,,, thrivina bmi, es.¢es, a,d heantigd oar. ks. A ~reat olace to live. work. and obi: Scott Botcher February 21,2001 2001 CDBG Funding Request Page 2 · benefit low and moderate income persons · aid in the prevention of slum or blight · meet community development needs having a particular urgency Hennepin County has given the following priorities that should be used as a guide for the use of CDBG funds. These priorities include: Housing Rental and Supportive Housing: planning, site acquisition, related infrastructure for development of new units and rehabilitation of existing units for low-income households (less than 50 percent of median income) and persons with special needs. Home Ownership: planning, site acquisition, related infrastructures, down payment assistance for low-income, first-time home buyers, and rehabilitation of existing units occupied by low-income households. Homeless Persons: plmming, site acquisition, related infrastructure for development of new units and rehabilitation of existing units for homeless persons including shelter and transitional housing. Community Development Neighborhood redevelopment/revitalization, senior centers, family services, youth services, removal of architectural barriers/ADA compliance, lead-based paint abatement and planning activities to address comlnunity revitalization needs. Public Services Services to senior citizens, disabled persons and youth, childcare assistance and transportation services. The Senior Housing Projects will meet the Housing (elderly rental), Community Development (senior facilities), and Public Services (senior services) priorities of the county. In addition, the allocation will benefit low and moderate income persons. Scott Botcher February 21,2001 2001 CDBG Funding Request Page 3 RECOMMENDATION Staff recommends that City Council approve the attached resolution for the submittal of applications for the use of CDBG funds for senior housing. Attachments 1. Resolution. 2. Memo from He~mepin County Office of Planning and Development dated January 12. 2001. \\cfs 1 \vol2\plan\bg\cdbg\CDBG.01 .doc DATE: MOTION BY: CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA RESOLUTION NO: SECONDED BY: RESOLUTION APPROVING PROJECTED USE OF FUNDS FOR 2001 URBAN HENNEPIN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM WHEREAS, the City of Chanhassen, through execution of a Joint Cooperation Agreement with Hennepin County, is cooperating in the Urban Hennepin County Community Development Block Grant Program; and WHEREAS, the City of Chanhassen is preparing a proposal for the use of Urban Hennepin County CDBG funds made available to it to assist in meeting the needs of the City and Hennepin County in housing and community development needs and priorities. WHEREAS, the City of Chanhassen has two potential senior housing projects for which the City would submit a grant application: Presbyterian Homes and Santa Vera Apartments. The City's higher priority proposal for the use of the 2001 Urban Hennepin County Community Development Block Grant Funds is to assist in land acquisition and infrastructure improvements in the Presbyterian Homes project. The City's second highest priority proposal for the use of the 2001 Urban Hennepin County Community Development Block Grant Funds is to assist in infrastructure improvements in the Santa Vera Apartments project. WHEREAS, the City of Chanhassen proposes to make a portion of said senior housing affordable' to Iow and moderate income seniors. BE IT RESOLVED, that the City Council of the City of Chanhassen approves the submittal of the following application for funding from the Consolidated Pool of the Urban Hennepin County Community Development Block Grant Program and authorizes submittal of the proposal to Hennepin County for review and inclusion in the 2001 Urban Hennepin County Community Development Block Grant Program. Project Bud.qet Presbyterian Homes Santa Vera Apartments $200,000.00 $ 50,000.00 BE IT FURTHER RESOLVED, that the City Council hereby authorizes and directs the Mayor and City Manager to execute the Subrecipient Agreement and any required Third Party Agreement on behalf of the City toO implement the 2001 CDBG Program. Passed and adopted by the Chanhassen City Council this 26th day of February, 2001. ATTEST: Scott A. Botcher, City Clerk/Manager Linda C. Jansen, Mayor YES NO ABSENT mo J/ N 1_ (; ZOO1 ~iTY OF CH?,i~t-IA$SF--N DATE: TO: FROM: SUBJECT: January 12, 2001 Urban Hennepin C°unty C°ns°lidated P°°l C°mmuniti' i ~{~}~/ Rod Waara, Administrative Manager ~i~ Hennepin Count3, Office of Planning and Development~ .~.~t' 2001 Urban Hennepin Count3, Consolidated Pool CDBG Program Accompanying is the 2001 Urban Hennepin County CDBG Program planning packet for Consolidated Pool communities. The following items have been included to assist communities in the process of selecting activities for CDBG funding: 2001 Consolidated Plan Schedule Map of Consolidated Pool Communities Priority Summary and HUD Table 2A-B List of CDBG Eligible Activities Application Form Consolidated Pool Application Review Criteria Sample Resolution The preliminary 2001 Urban Hennepin County CDBG Program allocation is $3.66 million. Note: This is not the final amount. Cities will be notified of the final amount as soon as it is available fi'om HUD. Recaptured 1998 CDBG funds totaling $47,834 have been added to the community planning allocations. All cities that had funds recaptured have been notified. CONSOLIDATED POOL This is the fifth year of the Consolidated Pool process and the second year of the 2000-2002 Joint Cooperation Agreement. Under this agreement, planning allocations to communities that would receive $75,000 or less have been placed into a Consolidated Pool. In accordance with this agreement, a total of $452,781 in CDBG funding has been made available for Consolidated Pool communities. The twenty- nine communities included in the Pool are identified on the enclosed map. , SELECTION COMMITTEE A selection committee, comprised of representatives from Consolidated Pool cities, has been created to assist with the application process. The committee will review applications and prepare funding recommendations to the Hennepin County Board of Commissioners. Hennepin County Office of Planning & Development, Development Planning Unit, 10709 Wayzata Boulevard, Suite 260, Mim~etonka, MN 55305 Mail Code: 604 Phone: (612) 541-7080 Fax: (612) 541-7090 TDD/TTY: (612) 541-7981 APPLICATION PR 0 CESS All applications must meet HUD eligibility criteria and must be consistent with the endorsed Hennepin County housing and community development priorities. The selection committee has established review criteria by which all applications will be ranked. A copy of these criteria is attached. Communities are encouraged to review these criteria carefully in preparing their applications. The following procedures have been established by the selection committee to simplify the application process: Single-family residential rehabilitation has a set-aside of $155,000. This figure approximates the annual average amount programmed for rehabilitation by the Consolidated Pool, until last year. In 2000, because of the large number of applications, the rehabilitation set-aside was reduced to $100,000. Note that new lead-based paint regulations are expected to significantly increase the cost of rehabilitation. The rehabilitation set-aside will be available to assist households in an5' of the Consolidated Pool communities on a first-come, first-serve basis. Only households living in the Consolidated Pool area will be eligible for these set-aside rehabilitation funds. If a ciD' wishes to target rehabilitation funding as part of a neighborhood revitalization effort, the), may apply for separate funding. Public services and public service organizations will be applying directly to the Consolidated Pool selection committee for CDBG funding. A public service set-aside of $67,900 has been established. A separate application for these funds is being mailed to organizations that have previously expressed interest in this funding. The balance of funds--$229,881--wiI1 be available for CDBG projects initiated by individual cities or clusters of cities. Only those communities that comprise the Consolidated Pool are eligible to compete for these funds. The minimum project cost is $7,500. Individual communities may submit up to three project applications, but the accompanying resolution must indicate council-assigned priority. Communities are strongly encouraged to develop joint initiatives to address mutual needs by consolidating their resources into cluster projects. This is particularly true where several communities may join together on affordable housing initiatives. CONSOLIDATED PLAN This is the seventh year the CDBG Annual Action Plan is being developed under the Consolidated Plan process. ItZTD instituted this process as a replacement for the independent planning and submission for the CDBG, HOME, Emergency Shelter Grant (ESG) Programs and the Comprehensive Housing Affordability Strategy (CHAS). The Plan is intended to focus HUD resources and other federal, state and local resources on high priority needs. COU~TX~qViDE HOUSING ANq3 COMMUNITY DEVELOPMENT PIUOI~TIES The 2000-2004 housing and community development priorities are similar to the 1995-1999 priorities. Changes include fair housing and tenant/landlord counseling changing to high priority from medium priority, and micro-bus/ness changing to a low priority from a medium priority. A summary of priorities and goals by strategy is shown in the attached tables. new strategy has been developed for neighborhood revitalization activities that address slum or blight issues on scattered sites and in defined areas. CDBG-assisted activities associated with neighborhood revitalization projects (removal of slum/blight properties) will only be considered a high priority when a minimum of 20 percent of any housing created or rehabbed through redevelopment will be affordable to low and moderate income households. This would apply to scattered-site as well as area slum/blight activities. The reason for this change is to better focus CDBG funding on activities consistent with priorities and to reduce the amount of CDBG used for non-low and moderate income benefit activities. See section below on Low and Moderate Income Benefit. Countywide priorities should be used as a guide when you consider the t/se of CDBG funds to address local needs. The county will consider the relationship of proposed projects to countywide priorities in the evaluation of proposals. If you propose to use CDBG funds for a project that does not have a high count)m'ide priority, you must clearly demonstrate why the project has a higher priority in ),our community. AFFORDABLE HOUSING There is a significant need in suburban Hermepin County for affordable housing for low-income households and the CDBG Program is an important resource to assist communities in addressing this critical need for affordable housing. Affordable housing, appropriate to the needs of different types of households, has been identified · as a high priority for the use of HUD resources in the Consolidated Plan. Activities are encouraged that will develop or improve housing for low-income households, assist persons who are homeless or at risk of becoming homeless, persons xvith disabilities, families with children and the elderly. High priority activities for CDBG fundina Affordable Housing: Rental housing for elderly and plo,sically disabledPersons with income below 30perCent of median income. Rental housing for families with income below 50 percent of median income. Permanent supportive housing for persons with mental illness. Rehabilitation of owner-occupied housing with income below 50percent of median income · / Homeownership assistance to households with income below 50percent of median income Eligible activities include: acquisition of property, development related infrastructure, development soft- costs, downpayment assistance for first-time homebuyers, and rehabilitation of existing units. Public Services/Facilities and Neighborhood Revitalization: ,/ Public sero,ices and~or facilities to assist families and seniors to maintain and/or increase self- sufficiency and independent living (including transportatio~O, and to assist youth and their families with counseling and crisis intervention services and recreational activities. Neighborhood revitalization activities that address issues of substandard/blighted property in scattered site and defined area redevelopment and provide affordable housing on 20percent of the units. General planning activities and the removal of architectural barriers will be considered a low CDBG funding priority, unless the activity is directly related to an otherwise eligible housing and/or community development activit3,. The purpose of this change, which began with the 1997 program, is to focus funding on activities consistent with CDBG priorities. LOW/MODERATE-INCOME BENEFIT The authorizing statutes for the CDBG program requires that each funded'activity meet one of the three national objectives: benefiting low and moderate-income persons; prevent.lng or eliminating slums and or blight; and meeting urgent needs. The statute also states that each grantee must ensure that at least 70 percent of the expenditures during the program 5'ear must be used for activities benefiting very Iow and low-income persons. For the Consolidated Pool this translates into the requirement that 70 percent of all Pool funds will have to benefit low-income persons. HUD allows Urban Hennepin Count3, CDBG funds to be used for eligible area benefit activities in census tracts where the percent of low and moderate-income persons are 37 percent or more. This is an exception to the requirement that a majority of persons in an area must be low and moderate-income. Maps have been provided to communities with qualifying census tract block groups. Please contact your CDBG representative if you need a map or have a question about eligible low and moderate-income benefit activities. AFFIRMATIVELY FURTHER FAIR HOUSING As recipients of HUD funds, Hennepin Count3, and each subrecipient community have agreed to affirmatively further fair housing. Hem~epin Count3, encourages all communities to be pro-active in addressing conditions that create impediments to fair housing cho/ce. As a potential condition to receiving future funds, HUD will evaluate our efforts to further fair housing choice. To continue count3~vide efforts to address barriers, Hennepin.County plans on allocating $30,000 fi'om its administrative budget for fair housing services. Services will include fair housing choice outreach, counseling and referral services, training and education pro,'ams and enforcement of fair housing laws and ordinances. TIMELINESS HUD requires that CDBG funding be expended in a timely manner. This past program year has shown a slower than expected rate of expenditure of CDBG funds along with a higher than expected rate of program income. To assure continuing compliance with timeliness requirements, selection committee ~nembers careflflly consider project schedules and, especially, completion dates in the review of all applications. SUBI~fISSION REQUIREMENTS CO UNCIL A CTfON Prior to March 9, 2001, each community wishing to apply for Consolidated Pool funding must pass a council resolution on the proposed use of CDBG funds. A sample resolution is enclosed. The resolution includes language authorizing the signature of 2001 subrecipient and third party agreements. A public hearing is not required if a community is submitting an application for CDBG Consolidated Pool funding. PR OJECT PR OPOS~LS A completed Consolidated Pool application must be submitted for each project. If multiple proposals are submitted, the accompanying resolution must indicate the c/t3, council-assigned priority. The application and corresponding council resolution must be submitted to this office by March 9, 2001. , Hennepin County staff will review each application for completeness and to determine CDBG eligibility, program benefit and the relationship to countywvide priorities. If information is missing, or if there are other difficulties, staff will contact you and assist with revisions. o . Completed applications will be reviewed by the selection committee against the county's priority needs and Consolidated Pool application review criteria. Upon ranking the applications, the committee will prepare and submit a funding recommendation to the Hennepin County Board of Commissioners. HOME AIYD EMERGENCY SHELTER GRANT (ESG) PROGRAMS Using a separate solicitation process, the county is currently requesting proposals for $1.925 million of HOME funds and $123,000 of ESG funds. All cities will receive separate notification for the HOME Program. If your city, for-profit or non-profit housing developer is interested in HOME program funding please contact Tonj a West-Hafner at 952/541-7089. If your city, a nonprofit emergency shelter and/or sen, ice provider or transitional housing provider is interested in ESG funds, please contact Mark Hendrickson at 952/541-7084. ESG funding is currently targeted to funding emergency shelter sen, ices and transitional housing for homeless families under the Family Homeless Prevention and Assistance Pro,am. ASSISTANCE If you have an3' questions about this process or need assistance, please feel free to contact Jim Ford at 952/541- 7091. Enclosures