RESOLVED, that the proper city officials are hereby authorized to enter into community development block grant (CDBG) program agreements with the service providers listed below in the amounts set forth below with regard thereto, said agreements substantially in the form of those on file in the office of the city clerk as Public Document No._________________, payable from 2000 Federal Program Fund 262, Agency 623.

Account Amount Housing development project
6304 $185,000 SVCNDA-West Duluth revitalization Phase II and HRA-Duluth
6301 $720,000 HRA-Duluth property rehabilitation program
6303 $208,000 AEOA weatherization (regular)

STATEMENT OF PURPOSE: The amounts set forth above were allocated to the agencies for the referenced projects in accordance with the 2000 action plan approved by the city council on October 25, 1999, pursuant to Resolution 99-0747. These housing agencies submitted cooperative applications to prioritize the CDBG housing funds for use in the target areas of the At Home in Duluth project. At Home in Duluth endeavors to bring focus to four neighborhoods in the city. By actively cooperating in concentrated areas, participating agencies hope to bring resources to bear in targeted neighborhoods that can transform some of Duluth's oldest housing stock.

6304 Spirit Valley Citizens Neighborhood Development Association (SVCNDA)

West Duluth Revitalization Phase II

This contract is for administrative and program activities of SVCNDA's housing revitalization and stabilization programs which serve clients with incomes at or below 80% area median income in the West Duluth neighborhoods. This CDBG grant will be used to rehabilitate approximately 10 owner-occupied homes and rental properties; and to administer these and other housing-related activities funded through Minnesota Housing Finance Agency and other funding sources. Due to the newly released HUD lead-based paint regulations, the HRA will administer that portion of the agreement involving the SVCNDA CDBG rehabilitation projects. The HRA Rehabilitation Department has been operating a federal lead-based paint abatement program for several years and is one of the leading organizations in the State. The HRA Rehabilitation Department has certified staff to conduct the required lead-based paint testing and clearances. This partnership will be user friendly for the clients and enhance the "At Home in Duluth" cooperative efforts.

6301 Duluth Housing & Redevelopment Authority (HRA) - Property Rehabilitation Program

The HRA has administered the Duluth Property Rehabilitation Program for 24 years (beginning in 1975), rehabilitating a total of 5,660 housing units. The HRA Rehab Department completed 175 housing projects last year, utilizing funding sources which include HOME, MHFA, Lead Paint Program, DEDA, foundation and private contributions. This CDBG grant will be used to rehabilitate owner-occupied homes and rental properties; and to administer these and other housing-related activities on behalf of the City of Duluth. HRA's goal for this year is to rehabilitate approximately 165 housing units.

6303 Arrowhead Economic Opportunity Agency (AEOA) - Regular Weaterization Program

The AEOA has been a major provider of services to low-income citizens throughout northeastern Minnesota for the past 35 years. In 1998, AEOA was selected by the Minnesota Department of Children, Families and Learning and the City to provide Regular Weatherization Program services in Duluth. The program is now fully operational, assisting low-income households in making their homes safe and energy efficient. AEOA weatherized 101 housing units last year. The goal for this year is approximately 95.