01-0877R

RESOLUTION AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2002 PROGRAM YEAR AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR CDBG FUNDS AND AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.

BY COUNCILOR GILBERT:

        WHEREAS, Regulation 24 CFR Part 91 issued by the U.S. department of housing and urban development (HUD) requires the city to submit and receive HUD approval of an annual action plan as part of a HUD-approved five-year consolidated plan for the city of Duluth; and

        WHEREAS, City Council Resolution No. 01-0876, adopted December 17, 2001, approved the FY 2002 action plan portion of the Duluth consolidated plan for housing and community development FY 2001-2005; and

        WHEREAS, the secretary of HUD is authorized to make grants to cities and/or counties to finance local community development programs, approved in accordance with the provisions of Title I of said act, as well as grants under the Cranston-Gonzales National Affordable Housing Act of 1990, as amended, (the HOME program) and the Stewart B. McKinney Homeless Assistance Act of 1987, as amended, (the emergency shelter grant - ESG - program); and

        WHEREAS, the city of Duluth desires to continue to carry out HUD-funded programs.

        NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels as set forth below:
 

2002 CITY OF DULUTH COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM-FUND 262
ACCOUNT AMOUNT
PROJECTS
    HOUSING PROJECTS
6501     787,000 Duluth property rehabilitation program - HRA
6502     200,000 Property rehabilitation programs - NHS
6503     100,000 West Duluth revitalization - SVCNDA
6504       60,000 Duluth weatherization - AEOA
6505     100,000 Reichert property acquisition - Center City Housing Corporation
6506     150,000 HOME land program - NCLT
6507       10,000 Homebuyers club - Salvation Army
    PUBLIC FACILITY IMPROVEMENT PROJECTS
6508     150,000 Duluth/North Shore sewer project
6509     271,160 Grant Recreation Center expansion
6510       81,000 Ramsey Street improvements
6511     130,000 Fond du Lac water project
6512     115,840 City-wide street improvements
6513       16,000 Sidewalk safety - Morgan Park
6514 Zero Funded Hillside Streetscape Phase V
        ECONOMIC DEVELOPMENT PROJECTS
6515     200,000 North Star Community Development Corporation (NSCDC)
6516     113,476 Career development and self-employment training-SOAR
6517       40,000 Opportunities Cooking - Damiano Center
6518       69,500 CHUM Works supportive services - CHUM works
6519       59,024 Women in Construction training - WTHC
6520 Zero Funded Acquisition/demolition
    PUBLIC SERVICE PROJECTS
6521       79,667 Hunger project - CHUM
6522       61,667 Primary health care for low-income people - Lake Superior Health Clinic
6523       50,667 Housing Access Center
6524       38,666 YWCA girls and youth programs
6525       38,641 Lincoln Park youth enrichment program - Boys & Girls Club
6526       31,667 Family transitional housing - Salvation Army
6527       30,667 Washington Activity Center - Neighborhood Youth Services
6528       30,667 YMCA community services
6529       30,666 Transitional housing - WTHC
6530       29,667 Youth center - Life House
6531       28,667 Women's Coalition Advocacy
6532       24,666 Harbor View Youth Edu. Eco. Dev. & Rec. - Copeland CC
6533       19,941 Collaborative youth program - Patch
6534       14,667 Family loan fund - Lutheran Social Services
6535       10,867 Veteran's Outreach North - MACVP-VON
6536       10,000 Oshki Odaadiziwini Waaka'igan - AICHO
    ADMINISTRATION/PLANNING/CONTINGENCY
6537     342,000 Program administration
6538     185,000 Neighborhood planning
6539       95,000 Project development assistance - Harrison Community Center
6540       26,943 Contingency
Total $3,832,943

        BE IT FURTHER RESOLVED, that the following are hereby designated as the financial resources for the above program:
 

SOURCE OF FUNDING
Year (2002) CDBG grant - city $3,543,000
Year (2001) CDBG grant - city 157,149
Year (2000) CDBG grant - city 87,049
Year (1999) CDBG grant - city 9,810
Year (1998) CDBG grant - city 35,935
Total $3,832,943

        BE IT FURTHER RESOLVED, that the proper city officials are authorized to make the following transfers in prior year community development accounts:
 

Account Project Orig. Mod. Revised
Year 24(2001) CDBG Program - 262 Fund
6406 Memorial parking lot 14,855 949 13,906
6419 Seaman - economic int. 30,000 30,000 0
6420 Project SOAR 416,200 126,200 290,000
Year 21 (1998) CDBG Program - 262 Fund
6106 Blackman field improvement 86,000 35,935 50,065
Year 22 (1999) CDBG Program - 262 Fund
6202 SVCNDA housing rehabilitation 202,250 625 201,625
6205 AEOA weatherization 200,000 409 199,591
6211 Goat Hill street improvement 152,361 4,900 147,461
6213 West Duluth park improvement 87,674 140 87,534
6245 West Duluth streetscape plan 24,000 3,736 20,264
Year 23 (2000) CDBG Program - 262 Fund
6304 West Duluth housing -SVCNDA 185,000 15,573 169,427
6305 Cody Street improvements 192,600 12,522 180,078
6306 City-wide street improvements 100,000 17,199 82,801
6313 NSCDC 200,787 41,755 159,032
Year 24 (2001) CDBG Program - 262 Fund
6406 Memorial parking lot 14,855 949 13,906
6419 Seaman - Economic Int. 30,000 30,000 0
6420 Project SOAR 416,200 126,200 290,000
Total amount reprogrammed $289,943

        BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.

        BE IT FURTHER RESOLVED, that the appropriate city officials are hereby authorized to execute the appropriate agreements with these agencies upon receipt of approval of HUD funds and authorizes appropriate city officials to recommend use of contingency funds to city council in an amount not to exceed 10 percent of an individual project account.



STATEMENT OF PURPOSE:  This resolution reflects comments from organizations and citizens as related to funding for the community development block grant (CDBG) program. In addition to citizens and subcommittees, five neighborhood planning districts, the Duluth housing commission (DHC) and the community development committee (CD committee) each played a role in the recommendations contained in the resolution. There was also a 30-day public comment period from November 2, 2001, to December 2, 2001, on the draft 2002 annual action plan, which includes recommended funding for the 2002 CDBG, HOME and ESG programs. The CD committee held a public hearing on December 4, 2001, to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 4, 2001.
 

Sources of funds: $ in new 2002 HUD CDBG funds and $ reprogrammed CDBG funds ( and CDBG program);
 

$3,543,000 estimated 2002 CDBG funds
     289,943 reprogrammed CDBG funds
$3,832,943 2002 CDBG program total

The resolution, in addition to authorizing application for grant funds and administration of same when received, also allocates funds to projects as listed for the 2002 CDBG program and authorizes appropriate city officials to execute contracts when funds are received.

Contracts for housing programs and construction activities will include addendums that require affordability restrictions and lien agreements, in accordance with HUD regulations. Also, public facility improvement contracts will proceed through the public bidding process after completion of environmental review.

The following are the CDBG project descriptions and goals:

Rental and owner-occupied housing needs are high priorities in the City's Consolidated Plan. The above chart identifies this year's goals to meet the City's affordable housing needs and remove barriers to affordable housing. The annual average goal, by activity, is also identified. While some of this year's activity goals are less than the annual goal, other activity goals exceed the annual goal. The overall total for FY 2002 is 453 units, which exceeds the overall annual goal. A fluctuation by activity is expected each year as the City takes advantage of various affordable housing opportunities as they arise. For example, the acquisition/rehabilitation of a 129 rental unit portfolio by Center City Housing Corporation has been recommended for funding. This is approximately twice the annual goal of rehabilitating 62 rental units per year (not including the other rental rehabilitation activities) and it offers a timely opportunity for the City to preserve 129 affordable rental units that might otherwise go market rate.

Another activity that supports removing barriers to affordability is home ownership education. Homebuyer education will be offered to approximately 30 households participating in HOME program affordable housing projects. In addition, approximately 20 to 30 more households at or below 80% of area median income will receive homebuyer education. This number will meet and possibly exceed the Consolidated Plan goal of offering homebuyer education to a minimum of 50 households per year.

FY 2002 CDBG HOUSING RECOMMENDATIONS

Project Name: HRA Housing Rehabilitation - Multi-unit / Rental
Project Summary: Duluth Housing and Redevelopment Authority (HRA) will provide housing rehabilitation assistance to owners of eligible multi-unit housing located in At Home, CDBG, and other Duluth neighborhoods.
Location: Community wide
Goal: 75 housing units
Funding Amount: $ 370,000 Rehabilitation activities of multi-housing units.

Project Name: HRA Duluth Property Rehabilitation Program - Single-unit / Homeowner Rehab
Project Summary: Duluth Housing and Redevelopment Authority (HRA) will provide housing rehabilitation assistance to homeowners of eligible single-unit, duplex, triplex housing located in At Home, CDBG, and other Duluth neighborhoods.
Location: Community wide
Goal: 75 housing units
Funding Amount: $ 67,000 Rehabilitation activities of single-family housing units.

Project Name: HRA Housing Rehabilitation - Operational Costs
Project Summary: Duluth Housing and Redevelopment Authority continuation of operational costs to support homeowner and multi-unit residential activities and other housing programs that meet HUD low/moderate incomeI criteria.
Location: Community wide
Goal: 150 total housing units
Funding Amount: $350,000 Operational costs related to rehabilitation activities.

Project Name: Neighborhood Housing Services - Operational Costs
Project Summary: Duluth Neighborhood Housing Services continuation of operational costs to support purchase/rehabilitation, property rehabilitation services, revolving loan fund, and other housing program activities that meet HUD low/moderate income criteria.
Location: Lincoln Park, Central and East Hillsides
Goal: 40 total housing units
Funding Amount: $ 200,000 Operational Costs

Project Name: Center City Housing Corporation - Reichert Properties
Project Summary: CCHC (Center City Housing Corporation) will acquire a rental housing portfolio in the East and Central Hillside neighborhoods. CCHC will upgrade the properties and maintain 75% of the 129 units at affordable rent levels for low- and moderate-income tenants.
Location: Central and East Hillsides
Goal: 129 Rental Units
Funding Amount: $100,000 Acquisition of Property

Project Name: AEOA Weatherization Program
Project Summary: AEOA (Arrowhead Economic Opportunity Agency) will provide weatherization assistance for low-income households within Duluth. Crews located in Duluth will rehabilitate approximately 38 housing units to increase energy efficiency (i.e., insulation, window replacement) at an average cost of $2,000 per unit.
Location: Community wide
Goal: 38 Housing units with CDBG Funds (130 housing units total in City)
Funding Amount: $60,000 Operational and weatherization costs.

Project Name: West Duluth Revitalization Program - Operational Costs
Project Summary: Spirit Valley Citizens Neighborhood Development Association (SVCNDA) will administer housing development, rehabilitation, and stabilization programs in Duluth, west of Carlton Street. The programs serve clients with incomes at or below 80% of the area median income including community outreach to low/moderate income residents of SVCNDA service area.
Location: CT's: 32, 33, 34, 37 (West Duluth and Morgan Park)
Goal: 20 housing units (includes HOME unit count)
Funding Amount: $ 100,000 Operational costs related to housing activities.

Project Name: NCLT HOMELAND Program
Project Summary: NCLT will assist 15 low/moderate income households in purchasing and rehabilitating existing homes in the City of Duluth.
Location: Community wide
Goal: 15 housing units
Funding Amount: $150,000 Rehabilitation Activities and Operational Costs

Project Name: Salvation Army Home Buyers Club
Project Summary: The Home Buyers Club will assist low/moderate income people who do not qualify for home ownership opportunities because of financial barriers. Referrals are from local agencies that provide purchase, rehab and new construction programs for qualified households.
Location: Community Wide
Goal: 30 households
Funding Amount: $10,000 Operational Costs for Home Buyer Assistance