DATE: January 28, 2020
TO: Members of the Housing & Redevelopment Authority
FROM: Janine Atchison, Housing Coordinator
Title
4th Quarter Community Development Block Grant Report
Body
SUMMARY AND ACTION REQUESTED:
The Housing & Redevelopment Authority (HRA) to review 4th quarter Community Development Block Grant (CDBG) report.
BACKGROUND:
The City of Northfield received a $61,591 CDBG allocation in fiscal year (FY) 2019 (July 1, 2019 - June 30, 2020) through the Dakota County Community Development Agency (CDA).
In their annual CDBG application, made in January each year, the City requests funds for the next FY. The application must designate the programs or uses and the amount of funds allocated to that program or use. Once the City receives the FY allocation, unused funds, after 3 years, are subject to recapture and redistribution by the CDA. Any funds, not expended within a period of 4 years, are subject to recapture by the U.S. Department of Housing & Urban Development (HUD).
The HRA currently has funds available for Down Payment Assistance loans, Residential Rehabilitation for owner occupied homes, Rental Rehabilitation for Northern Oaks Townhomes, and Manufactured Home rehabilitation.
ANALYSIS:
The CDA anticipates the FY 2020 CDBG allocation at $65,312.00. As per the HRA recommendation to the City Council, the funds will be divided between the Residential Rehab Program ($35,840) and the Down Payment Assistance Program ($29,472).
Down Payment Assistance
The City made only 1 down payment assistance (DPA) loan in 2019. Although there is no lack of interest in homeownership, the purchase price of housing in Northfield is beyond the mortgage capacity of households at 80% or less of the area median income.
Through conversations with other Cities and organizations providing down payment assistance loans, Staff has learned that many organizations now offer DPA loans of $30,000 to $60,000 to first time homebuyers. Although, loans at or a...
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