Consider Authorization for Staff to Prepare Applications for Community Development Block Grants

The Community Development Block Grant (CDBG) is a program administered by the Anoka County Community Development Department and funded by the United States Department of Housing and Urban Development (HUD). The intent of the program is to promote community revitalization. The City has been successful in the past in acquiring CDBG funds to assist in projects for economic development to promote the growth of jobs through acquisition of blighted industrial properties and funding community programs such as the previous senior center in the former Municipal Center. According to Anoka County, the program has three (3) national objectives:

• Benefit low- and moderate-income persons,
• Aid in the prevention or elimination of slums or blight, and
• Meet the community needs that present a serious or immediate threat to the health or welfare of the community.

The program is intended to promote affordable housing, and therefore will be intended to benefit low- and moderate-income persons through the creation of quality jobs or affordable housing. For the purposes of the CDBG program, low- and moderate-income is defined as a family or individual whose income is not more than 80 percent of the median income of an area (AMI) as defined by HUD. Depending on the program-type under the CDBG program, certain funding approvals also address households at 50% and 30% AMI. The following table summarizes the 80% threshold:

Size/AMI	1 person	2 persons	3 persons	4 persons	5 persons	6 persons	7 persons	8 persons
80%	$45,500	$52,000	$58,500	$65,000	$70,200	$75,400	$80,600	$85,800

Staff recommends two (2) submittals including Scattered Site Home Revitalization and Private Septic System Maintenance Assistance.
 

Recommended projects include the following:

Scattered Site Home Revitalization ($100,000)

This program could be used for acquisition and/or rehabilitation of aging housing stock. This program would help address the City's Comprehensive Plan goal to maintain a quality housing stock and increase maintenance of existing housing stock. The program would open opportunities for investment in existing affordable housing, while still maintaining an affordable level. It would be intended to identify blighted properties to either replace or rehabilitate existing structures. This program could be used for all types of housing within the community, subject to the income limits of the CDBG program.

Private Septic System Maintenance Assistance ($25,000)

Under Minnesota Rules 7030, parcels with private septic systems must pump and/or maintain their septic system once every three (3) years. The City is responsible for administering this program and tracks the maintenance cycle of each system. As part of this administration, the City receives a handful of requests for assistance due to income restrictions. To date, the City does not have a policy to address septic maintenance assistance; although it does have a policy to assist with septic replacement, assessing the costs of the replacement back to the benefitting property.

At this time, Staff is only seeking authorization to prepare applications based on the two (2) recommended programs above. Staff will seek authorization to distribute the application once complete. In addition, over the next year, Staff recommends completing the Housing Assistance Policy previously directed by the City Council and prioritizing a number of projects that could fit this program in anticipation of the 2014 Program Year funding cycle.

Staff is requesting action by the City Council to begin preparing the required application materials for the CDBG opportunity for the projects identified above. Staff will place the fully completed applications on the January 8th Regular City Council Meeting Agenda prior to submittal.

Preparation of the CDBG Applications are being handled as part of regular Staff duties.

Motion to authorize Staff to prepare CDBG Applications for a Scattered Site Home Revitalization and Private Septic System Maintenance Program, subject to final approval of the City Council before distributing the Application.