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Res 2017- 13 CDBG Funding for 2017CITY OF MENDOTA HEIGHTS DAKOTA COUNTY, MINNESOTA RESOLUTION 2017-13 RESOLUTION APPROVING THE APPLICATION OF THE CITY OF MENDOTA HEIGHTS FOR FISCAL YEAR 2017 DAKOTA COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING WHEREAS, the City of Mendota Heights is a participating jurisdiction with the Dakota County CDBG Entitlement Program for Fiscal Year 2017 (July 1, 2017 through June 30, 2018); and WHEREAS, the Dakota County Community Development Agency is a sub -grantee of Dakota County for the administration of the CDBG Program; and WHEREAS, the Dakota County Community Development Agency has requested federal fiscal year 2018 CDBG applications be submitted by January 20, 2017, based on allocation of funds approved in the Community Development Implementation Plan. NOW THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Mendota Heights, Minnesota that the following points be approved: 1. The Federal Fiscal Year 2017 CDBG application is approved for submission to the Dakota County Community Development Agency. 2. The City Administrator of the City of Mendota Heights is authorized to execute the application and all agreements and documents relating to receiving and using the awarded CDBG funds. 3. The Dakota County Community Development Agency is designated as the administrative entity to carry out the CDBG Home Rehabilitation Loans program on behalf of the City of Mendota Heights. Adopted by the City Council of the City of Mendota Heights this seventeenth day of January, 2017. CITY COUNCIL CITY OF MENDOTA HEIGHTS ‘YlilatAJ Neil Garlock Mayor ATTEST Lorri Smith City Clerk CDA Dakot Ct unty Cammunsty ©cvk?topnicnt Agency APPLICATION FOR 2017 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS Application must be received by the Dakota County Community Development Agency NO LATER THAN JANUARY 20, 2017 (for Program Year 2017, 7/01/17-6/30/18) General Information Applicant Name: City of Mendota Heights DUNS #: 146-367-607 Contact Name: Mark McNeill Applicant Address: 1101 Victoria Curve City, State, Zip: Mendota Heights, MN 55118 Phone: 651-452-1850 Email: Markm©mendota-heights.com CDBG Request: Proposed Activities Activity Funding Amount #1 Title: Housing Rehabilitation Loans CDBG Request: $17,889 #2 Title: CDBG Request: #3 Title: CDBG Request: #4 Title: CDBG Request: #5 Title: CDBG Request: Total Request: PLEASE NOTE: AT LEAST 50% of the proposed funding must qualify as a LOW/MOD benefit and NO MORE THAN 40% of the proposed funding can be for PUBLIC SERVICES. As public services may not account for more than 15% of the County's total funding, public service requests may need to be decreased once all applications are submitted and reviewed by CDA staff. Certification I certify that the information contained in this application is true and correct and that it contains no misrepresentations, falsifications, intentional omissions, or concealment of material facts. 1 further certify that no contracts have been awarded, funds committed, or construction begun on the proposed project(s), and that none will be made prior to notification from the Dakota County CDA based on HUD's issuance of a Release of Funds Notice. Signature of Authorized Official air Title of Author+d Official fl ao r7 D PLEASE ATTACH THE RESOLUTION OF THE GOVERNING BODY SHOWING APPROVAL OF THE REQUEST FOR CDBG FUNDS Activity Title Please complete the following Sections I-V for EACH proposed activity. (For example, if 3 activities are being proposed, there will be 3 sets of the following pages.) Activity # 1 Activity Title: Housing Rehabilitation Loans II. Activity Information Describe the proposed activity. Provide funding to low/mod homeowners within the City of Mendota for eligible home improvements ranging from new roof, new windows, replace furnace, bathroom remodel, kitchen remodel, accessibility improvements, and many more. The funding per loan has a minimum of $15,000 and a maximum of $25,000. The loan is a 0% deferred loan that will be paid back at time of purchase or when home no longer is primary residence for homeowner. Has this Activity received CDBG funding before? Yes No Check the eligible activity category of the proposed activity: (See attached definitions) Affordable Rental Housing I 1 Rehabilitation of Multi -Unit Residential P Rental Assistance Subsidies n Fair Housing Activities ❑ Energy Efficiency Improvements Public Service ❑ Senior Services n Youth Services n Transportation Services n Operational Support Affordable Homeowner Housing n Homeownership Assistance n New (Re)Construction Homeowner Housing Community Development ❑ Recreational Parks n Water/Sewer Improvements Street Improvements Li Sidewalks ❑ Beautification —1 Assessment Abatement // Rehabilitation/ Energy Efficiency Improvement of Single Unit Residential ❑ Housing Counseling and Short Term Assistance Fl Fair Housing Activities Homelessness n Coordinated Access to service & Shelter LHousing Stabilization n Emergency Shelter Operation U Addition of Permanent Supportive Housing Units n Shelter Renovation/Creation Neighborhood Revitalization ❑ Acquisition of Real Property n Clearance and Demolition Clean-up of Contaminated Site Economic Development n Employment Training n Economic Development Assistance n Rehabilitation of Commercial/Industrial Buildings n Micro -Enterprise Assistance n Relocation Planning and Administration ❑ Planning ❑ Administration 1 Describe the activity schedule: Is this a continuation of a previously funded activity? Is this a time -specific project? X Yes No X Yes No If this is a time -specific project, please note the start and end dates below: Proposed Activity Start Date: 07-01-2017 Proposed Activity Completion Date: 06-30-2018 III. CDBG National Objective CDBG funded projects/activities must meet one of the program objectives. Check the objective for which the CDBG funds will be used. ❑ Low/Mod Area Benefit ® Low/Mod Housing Benefit n Slum/Blight Area Benefit ❑ Urgent Need (extremely rare; used only for emergencies): Low/Mod Limited Clientele Benefit Low/Mod Jobs Benefit Slum/Blight Spot Benefit If you checked the Low/Mod Area Benefit box, please answer the following: In what Census Tract/Block Group(s) do beneficiaries of your Activity live? (Please include map) How many residents live in this area? What is the percentage of low and moderate -income beneficiaries? How was this documented? HUD Data II Survey (Please include a copy of survey) If you checked the Low/Mod Housing Benefit box, please answer the following: How many Low/Mod Households will benefit? 1 Households (Income eligibility must be verified by written documentation) Where will this activity be occur? (Address of property, neighborhood, city-wide) City-wide 2 If you checked the Low/Mod Limited Clientele Benefit box, please answer the following: How many Low/Mod People or Households will benefit? People/Households (Please choose either people or households for each project.) How will income be verified? ❑ Income Verification Request Forms 1I 1 Eligibility Status for other Governmental Assistance program Self Certification (Must request source documentation of 20% of certifications and must inform beneficiary that all sources of income and assets must be included when calculating annual income) Presumed benefit (HUD presumes the following to be low and moderate -income: abused children, battered spouses, elderly persons, severely disabled persons, homeless persons, persons living with AIDS, migrant farm workers) If you checked the Low/Mod Jobs Benefit box, please answer the following: To meet the requirements of the "Jobs" National Objective, the business being assisted must enter into an agreement showing commitment that at least 51% of jobs created or retained will be available to low/mod income persons. The business must also be prepared to provide a list of all jobs, detailed information about the jobs being created or retained, the selection and hiring process, and demographic information about the employees. Will this activity create or retain full time equivalencies (FTEs)? Create I I Retain For jobs) that are being retained, please provide evidence that the assisted business has issued a notice to affected employees or that the business has made a public announcement to that effect, OR an analysis of relevant financial records that shows the business is likely to cut back on employment in the near future without planned intervention. Will the job(s) created or retained require a special skill? ❑ Yes No What percent of permanent FTEs will be held by or available to low/mod income persons? cyo If you checked the Slum/Blight Area or Slum/Blight Spot Benefit box, please answer the following: What are the boundaries of the slum/blight area or the address of the slum/blight spot? (Please provide letter from building inspector or other documentation noting deficiencies and include photos) If Slum/Blight Area, what percent of buildings are deteriorated? What deficiency will be corrected or the public improvement be? 3 IV. ' Proposed Objectives and Outcomes Indicate the proposed objective and outcome of the activity/project. Indicate how the activity outcome will be measured and projected number of beneficiaries. f1 People ❑ Households ® Housing Units 1 ❑ Public Facilities n Jobs ❑ Businesses l Organizations V. Project Budget Provide the total project cost and CDBG request. Total Project Cost: $17,889 Total CDBG Request: $17,889 Describe all other funding sources. CDBG Percent of Total Cost: 100% Source of Funds Outcome #1 Availability/Accessibility Outcome #2 Affordability Outcome #3 Sustainability Objective #1 Suitable Living Environment ❑ Accessibility for the purpose of creating a suitable living environment 11 Affordability for the // Sustainability for the purpose of creating a suitable living environment purpose of creating a suitable living environment Objective #2 Decent Housing _ Accessibility for the purpose of providing decent housing l Affordability for the purpose of providing decent housing Sustainability for the purpose of providing decent housing Objective #3 Economic Opportunity _ Accessibility for the purpose of creating economic opportunities ❑ Affordability for the purpose of creating economic opportunities nSustainability for the purpose of creating economic opportunities Indicate how the activity outcome will be measured and projected number of beneficiaries. f1 People ❑ Households ® Housing Units 1 ❑ Public Facilities n Jobs ❑ Businesses l Organizations V. Project Budget Provide the total project cost and CDBG request. Total Project Cost: $17,889 Total CDBG Request: $17,889 Describe all other funding sources. CDBG Percent of Total Cost: 100% Source of Funds Amount Committed Pending CDBG $17,889 ❑ >1 ❑ H Total: Please itemize project expenses, using the following guidance as applicable: • Acquisition & Improvement Costs - Include purchase price, closing costs, site improvements, clearance of toxic contaminants, and other acquisition and improvementcosts 4 • Construction/Rehabilitation Costs - Include site improvements, construction (labor, materials, supplies), installation, permits and other construction/rehabilitation costs • Professional Fees and Personnel Costs - Include architectural, engineering and code inspection fees, surveys, appraisals, legal fees, hazardous materials surveys, project management, and other professional/personnel fees • Other Development Costs - Include relocation, financing costs, environmental reviews, environmental studies, and other development costs • Eligible Costs for Planning Projects - Include professional services, project managementcosts, and other planning costs Itemized Use of Funds/Expenses Costs CDBG Funds Requested Other Funding Sources Housing Improvement Funds $17,889 $17,889 $0 Total: $17,889 $17,889 Please review each section for completeness, Each activity should have separate Sections I through V. 5 CDBG ELIGIBLE ACTIVITIES DEFINITIONS The following are summary definitions of Community Development Block Grant Eligible Activities: Please Note: Although an activity may be deemed eligible for CDBG funding, it does not guarantee funding. The Community Development Needs for the CDBG Program in the Comprehensive Plan sets forth the priority of needs and as such, dictates which types of eligible activities may be funded in a given year. CDBG funds may NOT be used for costs attributable to a building used for the general conduct of government or used for political activities. Acquisition/Disposition: The use of CDBG funds to acquire real property, in whole or in part, by purchase, long-term lease, donation, or otherwise, for any public purpose. Real property to be acquired may include: land, air rights, easements, water rights, right-of-ways, buildings and other property improvements, or other interests in real property. Demolition/Clearance: Clearance, demolition, and removal of buildings and improvements including movement of structures to other sites. Economic Development Activities: Economic development activities may include, but are not limited to: (1) Construction by the grantee or sub -recipient of a business incubator designed to provide inexpensive space and assistance to new firms to help them become viable businesses, (2) Loans to pay for the expansion of a factory or commercial business, and (3) Providing training needed by persons on welfare to enable them to qualify for jobs created by CDBG-assisted special economic development activities. The level of public benefit to be derived from the economic development activity must be appropriate given the amount of CDBG assistance. Rehabilitation: Rehabilitation related activities may include single-family rehabilitation, multi -family rehabilitation, energy efficiency improvements, public housing modernization, and rehabilitation of commercial properties. General Administration: CDBG funds may be used for the general administration costs incurred by a Subrecipient to administer their CDBG program. Administration costs directly associated with a CDBG activity should be part of the activity as project administration. Relocation: CDBG funds may be used for relocation payments and assistance to displaced persons, including individuals, families, businesses, non -profits, and farms, where required under section 570.606 of the regulations (pursuant to the Uniform Relocation Act). Public Facilities/Improvements: CDBG funds may be used by the grantee or other public or private nonprofit entities for the acquisition (including long term leases for periods of 15 years or more), construction, reconstruction, rehabilitation (including removal of architectural barriers to accessibility), or installation, of public improvements or facilities. Buildings for the general conduct of government cannot be acquired or improved with CDBG funds. This includes neighborhood facilities, firehouses, public schools, and libraries, as well as water and/or sewer treatment plants. The regulations further specify that facilities that are designed for use in providing shelter for persons having special needs are considered to be public facilities. Public Services: CDBG funds may be used to provide public services (including labor, supplies, and materials), provided that each of the following criteria is met: 1) The public service must be either a new service or a quantifiable increase in the level of service; and 2) The amount of CDBG funds obligated within a program year to support public service activities under this category may not exceed 40% of the City's allocation and the total public services of all Sub -recipients may not exceed 15% of the total grant awarded to Dakota County for that year. Planning: Includes studies, analysis, data gathering, preparation of plans, and identification of actions that will implement plans. The types of plans which may be paid for with CDBG funds include, but are not limited to: Comprehensive plans; Individual project plans; Community development plans, Capital improvement programs; Small area and neighborhood plans; Environmental and historic preservation studies; and Functional plans (such as plans for housing, land use, energy conservation, or economic development). Homeownership Assistance: Homeownership assistance activities may include financial assistance for downpayments, closing costs or other part of the purchase process and counseling for pre -purchase, post -purchase or foreclosure prevention. 6