DATE: January 22, 2019
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
Quarterly Report-Community Development Block Grant
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to review Community Development Block Grant (CDBG) quarterly report.
BACKGROUND:
The HRA receives approximately $63,000 in CDBG funds each year through the Dakota County Community Action Agency (CDA). Funds that are not utilized in a 4-year period are subject to recapture by the Department of Housing & Urban Development (HUD). Funds that are not utilized in a 3-year period are subject to recapture and redistribution by the CDA.
Four residential rehab projects were completed in the spring of 2018 utilizing $18,878 in CDBG funds. One down payment assistance loan of $15,000 was made in 2018 utilizing CDBG funds.
At the January 10, 2019 special meeting, the HRA voted to transfer funding from the Historic District Rental Rehabilitation program to the Northern Oaks Rehab project. The Historic District Rental Rehabilitation program did not receive any applications in 2018. Funds for the program were subject to reallocation to the CDA on June 30, 2019.
The Northern Oaks Rehab project will begin in March, 2019. The project will go out to bid after the transfer of funds is complete. Three Rivers Community Action (TRCA) anticipates completion of the project by October 2019.
ANALYSIS:
In conversations with the CDA, staff has learned some additional strategies for utilizing CDBG funds in a more effective and timely manner. Examples would include:
Residential Rehab
* Raising the amount of the maximum CDBG contribution from $10,000 to $20-25,000 for rehab projects.
* Lowering the required homeowner contribution to zero.
* Utilizing a zero % interest deferred loan which is payable when the home is sold, refinanced, 1st mortgage is paid off, or the home is no longer used as sole residence.
Down Payment ...
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