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2 Hennepin CO CDBG FundsCITYOF City Center Drive, PO Box 147 ~anhassen, Minnesota 55317 Phone 612.93Z 1900 ;eneral Fax 612.93Z5739 ,~neering t ax 612.93Z9152 dic Safe~ tax 612.934.2524 ".b www. ci. chanhassen, mn. us MEMORANDUM TO: Scott Botcher, City Manager FROM: Kate Aanenson, AICP, Community Development Director DATE: June 7, 1999 SUB J: Reallocation of 1997-1998 Community Development Block Grant Funding BACKGROUND The 1997-98 allocation for CDBG was $50,729. The city did not receive funding for the year 1998-99, but did for the year 1999-2000. The 1997-98 request was to target home buyers that were in the 50 percent of median income for the metropolitan area. The original proposal was to provide a loan for $27,300, with a maximum housing price of $95,000. ANALYSIS Staff has been working with the Chanhassen Bank and Carver County HRA to advertise the availability of funding. To date, 2 years later, we have been unsuccessful in providing assistance. Staff is recommending reallocating the 1997-98 CDBG dollars ($50,729) for land acquisition. Staff is working with Habitat for Humanity and Carver County to relocate existing homes that the city owns. The additional allocationwill help to secure a lot(s) for these existing homes or building habitat homes. A public hearing is required for the reallocation of the CDBG funding. RECOMMENDATION Staff is recommending that the 1997-1998 CDBG funding of $50,729 be reallocated for land acquisition for affordable housing. Attachment: Resolution 2ity of Chanhassen. A growing comrnum{y with clean lakes, quali{y schools, a charming downtown, thriving businesses, and beautiful parks. A great place to live, work, and fla~. DA TE: CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ~ r RESOLUTION ~ ~ . ~ SECONDED BY: MOTION BY: ' RESOLUTION APPROVING REALLOCA TIONOF 1997-1998 URBAN HENNEPIN COUNTY. COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM- . WHEREAS, the City of Chanhassen, through execution of a doint Cooperation Agree ~t~.nt with Hennepin County, is cooperating in the Urban Hennepin County Community Development BIo~k Grant Program; and' - WHEREAS, the City of Chanhassen held a public hearing on June 14, 1999, to obtain ~e'vieWs of the .c.i.t.?_ons and local and Urban Hennepin County housing and community development n.~e~dsand the Citys proposed use of $50,729' from the 1997-1~98 Urban Hennepin County C~munity Development Block Grant. · ' BE IT RESOLVED, that the City Council of the City of Chanhassen approves the realio~ation of- $50,729· from the 1997-1998 Community Development Block Grant Program for/and acquisition. ~ - BE IT FURTHER RESOLVED, thatthe City Council hereby authorizes and-directs the. ~or and _ City-Manager to execute the Subrecipient Agreen~ent and any required Third Party Agreement ~ bel~alf Passed and adopted by the Chanhassen City Council this ~ 4~ day of June,-1-999. ~ - ' Scott A. Botcher, Citg Clerk/Manager' Nancy K~ Mancino, Mayor