DATE: December 18, 2018
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
Community Development Block Grant-Fiscal Year 2019 Allocation
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to review and determine the 2019 Fiscal Year (FY) application for Community Development Block Grant (CDBG).
BACKGROUND:
Each year the HRA has the opportunity to apply for CDBG funds through the Dakota County Community Development Agency (CDA).
On November 27, 2018, the HRA voted to allocate FY 2019 CDBG Funds to Manufactured Home Rehabilitation (MH Rehab), Manufactured Home Down Payment Assistance (MH DPA) and Manufactured Home Demolition & Clearance (MH-Demo).
In previous years, 1995 - 2009, the HRA has utilized CDBG funds to provide rehabilitation assistance, down payment assistance and acquisition/demolition & clearance for manufactured homes. The manufactured home acquisition, demolition & clearance program ended in 2015. Manufactured home rehabilitation, down payment assistance and demolition are clearly allowable uses of CDBG funds.
ANALYSIS:
In Fiscal Year (FY) 2019, the HRA is eligible to apply to CDA for $63,352 in CDBG funds.
Manufactured Home Rehabilitation (MH Rehab)
In previous years, the HRA has utilized CDBG funds for MH Rehab. At several points in time, the HRA provided grants of $4,000 to $8,000 MH Homeowners for rehabilitation.
Because manufactured housing is not considered to be real property but is rather valued as personal property, the appreciation in value associated with real property does not usually apply to such housing. For this reason, loans made for improvements to manufactured housing are often denied using the test of economic feasibility. However, manufactured housing makes up a large element of low-income housing in the City, and rehabilitation needs in this segment of the housing stock are considerable.
CDBG funds provided by the HRA ...
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