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. 04-0825, adopted December 20, 2004, approved the FY 2005 action plan portion of the Duluth consolidated plan for housing and community development FY 2005-2009; 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:















Affordable homeownership services - NHS



$ 25,000

Permanent rental housing rehabilitation - WTHC



$ 15,000

HOPE VI individual development account - Community Action Duluth





Duluth property rehabilitation program - HRA/NCLT




Duluth weatherization program - AEOA




Deconstruction/reconstruction - NCLT





$ 70,100

Career development - Project SOAR




Job incentive program



$ 49,000

Opportunities cCooking - Damiano Center



$ 46,000

Women in Construction - WTHC



$ 47,900







West Duluth police station



$ 39,750

Harrison basketball court



$ 75,000

CD target area street assistance program



$ 75,000

Hillside Sport Court renovation



$ 16,725

Building exterior improvement-Union Gospel Miss.



zero fd

Dining commons accessibility project - Damiano Center




West Third Street lighting project




Harbor View homeownership Phase I & II



$ 88,000

Morgan Park street improvements -Phase II





$ 58,660

Duluth hunger project - CHUM



$ 64,340

Primary health care for low-income people - LSCHC



$ 14,200

Clothes That Work - Damiano Center



$ 6,630

Money management program - Salvation Army



$ 41,640

Tenant/landlord counseling - HAC



$ 6,630

Food self-sufficiency program - Community Garden Program



$ 20,810

Youth Center - Life House



$ 14,200

Renaissance transitional living program - LSS



$ 26,500

Shelter program - Safe Haven Shelter for Battered Women



$ 4,740

Oshki Odaadiziwini Waaka’Igan Transitional Housing - AICHO



$ 29,350

Family transitional housing - Salvation Army



$ 9,470

Veterans Outreach North



$ 29,800

Transitional housing - WTHC



$ 39,260

Lincoln Park education & enrichment program -Boys & Girls Club



$ 14,200

Youth enrichment program- Grant Collaborative



$ 30,300

Washington Center - Neighborhood Youth Svcs.



$ 22,700

Youth program expansion - Valley Youth Cen.



$ 32,160

Mentor Duluth - YMCA



$ 14,200

Girls and Youth Program - YWCA






Program administration



$ 50,000

Neighborhood planning



$ 9,000

Neighborhood revitalization planning - NHS






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


Year 2005

CDBG grant - city


Year 2001

CDBG grant - city

$ 200

Year 2002

CDBG grant - city

$ 10,417

Year 2003

CDBG grant - city

$ 75,293

Program income

CDBG - city

$ 54,000



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








Damiano Center renovation

$ 65,000

-$ 200

$ 64,800











Citywide streets



$ 97,445


Damiano Center renovation

$ 98,700

-$ 35

$ 98,665


Ramsey streets



$ 94,900


Lincoln Park sidewalk safety

$ 44,200

-$ 605

$ 43,595





$ 71,378

$85,910 - Total amount reprogrammed



     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 authorized to execute the appropriate agreements with these agencies upon receipt of HUD funds.

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, the neighborhood forums 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 1, 2004 to December 1, 2004, on the 2005-2009 draft Consolidated Plan and the 2005 annual action plan, which includes recommended funding for the 2005 CDBG, HOME, and ESG programs. The CD committee held a public hearing on December 7 to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 7, 2004, with the concurrence of the community development manager.

Sources of funds: $3,198,600 in new 2005 HUD CDBG funds and $85,910 reprogrammed CDBG funds (2001, 2002 and 2003 CDBG program); $54,000 in program income.

     $3,198,600 Estimated CDBG funds

        139,910  Reprogrammed CDBG funds and Program Income

     $3,338,510 2005 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 2005 CDBG program and authorizes appropriate city officials to execute contracts when funds are received. This resolution also precommits FY 2006 funds for the following projects:

     05-PF-01   West Duluth Police Station   $286,725

     05-PF-10   West Third Street Lighting   $ 25,350

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:


Project Name: Neighborhood Housing Services - CDBG Homeownership Rehab Loan Services

Project Summary: Neighborhood Housing Services (NHS) will administer housing rehab and purchase/rehab projects in Lincoln Park, Central and East Hillside neighborhoods and manage the CDBG Revolving Loan Fund (RLF).

Location: Cts 12, 13, 14, 16, 17, 18, 19, 20, 24, 25, 27 and 28

Goal: 18 Housing Units

Funding Amount: $115,124

Project Name: Women’s Transitional Housing Coalition (WTHC) - Permanent Housing Rental Rehab Project

Project Summary: Rehab of 5 units of WTHC’s permanent housing. Building is a mix of 2- and 3-bedroom units, and was constructed in 1994. Contractor for the rehab will be Women in Construction.

Location: 220-228 N. 14th Ave. E.

Goal: Rehab 5 units of rental housing.

Funding Amount: $25,000

Project Name: Community Action Duluth - HOPE VI Individual Development Account (IDA) Project

Project Summary: Second year of funding for a program that provides matching funds for Harbor View tenants saving for the purchase of a home. Financial literacy, homeownership and home purchase training, and ongoing counseling are part of the program.

Location: Communitywide

Goal: 20 Harbor View tenants displaced by the HOPE VI Project

Funding Amount: $15,000

Project Name: Duluth Property Rehabilitation Program - Duluth Housing & Redevelopment Authority (HRA) and Northern Communities Land Trust (NCLT)

Project Summary: Housing rehab loans and assistance to homeowners and rental property owners. A joint application, the NCLT works with homebuyers in their Homeland program, and the HRA manages the rehab portion of that program. Included in this request are administrative funds for the HOME-funded owner-occupied rehabs, State grants, lead-based paint remediation, monitoring of past rental rehab projects, disbursement of funds and oversight of other housing agency’s major projects.

Location: Communitywide

Goal: 58 single-family owner-occupied rehabs, 25 rental units

Funding Amount: $750,000

Project Name: AEOA Duluth Weatherization Program

Project Summary: AEOA (Arrowhead Economic Opportunity Agency ) will provide weatherization assistance for low-income households within Duluth. The project will increase energy efficiency through specific rehabilitation activities (i.e., insulation, window replacement).

Location: Communitywide

Goal: 52 Housing Units

Funding Recommended:   $170,000

Project Name: Northern Communities Land Trust (NCLT) Deconstruction-Reconstruction

Project Summary: NCLT will systematically deconstruct 4 homes that are condemned for demolition in Duluth neighborhoods, by the City Building Safety Department, followed by the construction of 4 affordable new homes on the same sites.

Location: Communitywide

Goal: Demolish 4 blighted Housing Units, Construct 4 new, affordable Housing Units

Funding Amount: $146,510


Project Name: Project SOAR of NE Minnesota - Career Development

Project Summary: Project SOAR will provide Career Development services to low-moderate income people in Duluth. SOAR provides the in-depth, long-term services needed by those who face multiple employment barriers to their achievement of economic self-sufficiency and break the cycle of poverty.

Goal: 22 Jobs

Funding Amount: $70,100

Project Name: City of Duluth - Community Development Division - Job Incentive Program

Project Summary: Provides an incentive based deferred loan program for creating jobs for low-moderate income residents of Duluth. The deferred loans would go to for-profit businesses in and amount up to $10,000.00 for each job created. In order for the loan to be forgiven, the LMI person hired must be referred by the City’s Work force Development Division, the job must pay the City’s "living wage" and last for at least two years.

Goal: 16 Jobs

Funding Amount: $106,860

Project Name: Damiano of Duluth, Inc. - Opportunities Cooking

Project Summary: Provides a 12-week culinary training, career development and job placement program for low-income, hard-to-employ food service workers. Students train while providing meals to diners at the Damiano Center Soup Kitchen. Graduates are placed and provided follow-up services for at least one year.

Goal: 15 Jobs

Funding Amount: $49,000

Project Name: Women in Construction Program

Project Summary: Provides a comprehensive training program for low-income individuals who are interested in gaining skills and employment in the construction trades. The project provides the participants with the opportunity to learn marketable skills that will lead to living-wage jobs in construction.

Goal: 5 Jobs

Funding Amount: $46,000

Project Name: CHUMWorks, Inc. - Employment, Training & Support Services

Project Summary: Provides employment, on-the-job training and education and stabilization services to low-income Duluth residents who have significant multiple barriers to employment at the Lifecyclers Electronic Recycling Services business.

Goal: 5 Jobs

Funding Amount: $47,900


Project Name: West Duluth Police Station, Police Department

Project Summary: Construct an addition to the existing City Center West facility to provide a new Police Station. This multi-use community center will serve residents in Districts 1 and 2 of West Duluth, thus benefiting the low and moderate income people that live in these CD Target Areas. The facility will benefit 9,568 residents, of which 5,339 (55.8%) are low and moderate income. Crime has increased by over 10% in West over the past year, including the 24,743 incidents that were handled by downtown police officers. The project anticipates that the new facility will reduce crime by 5% in Districts 1 and 2. This project proposes to provide more direct public safety services to the Western portion of the City, reduce response time, provide more interactions with residents and stakeholders, reduce crime and create a safe, quality neighborhood.

Location: West Duluth

Goal: 1 Public Facility

Funding Amount: $213,275

Project Name: Harrison Basketball Court, Parks & Recreation Department

Project Summary: To construct a new basketball court at Harrison Community Center, located in District 5, a CD Target Area. The funds will benefit low and moderate income persons, as users of the facility are almost entirely residents of District 5. The existing Amini-court@ facility is too small and poorly located and the new facility will allow more residents, especially youths, to participate in recreation in a safer location. There are currently no other outdoor basketball courts located within 2-3 miles of the Community Center.

Location: Lincoln Park

Goal: 1 Public Facility

Funding Amount: $39,750

Project Name: CD Area Street Assistance Program, Community Development Division

Project Summary: To pay for 4,275 feet of street improvement assessments for low-to-moderate income homestead property owners citywide. The project=s goal is to assist 139 household, of which 100% will be low and moderate income households. The project will assist an estimated 139 LMI homeowners with all or some of the special street assessment fees in the CD Target Areas of Duluth Heights, Lincoln Park and Morgan Park. This project will assist property owners who do not have the money to make these payments, improve the neighborhoods, increase the sense of community and create an incentive for other private property improvements. The project anticipates that the properties will increase in value by 5% or more.

Location: Communitywide

Goal: 70 Households

Funding Amount: $75,000

Project Name: Hillside Sport Court Renovation, Parks & Recreation Department

Project Summary: Construction of one regulation size full basketball court and two smaller courts at the Hillside Sport Court. The funds will benefit low and moderate income people since users of the new facility will be almost entirely residents of District 5, a CD Target Area. The existing facility is deemed unusable and many residents lack transportation to other facilities. New courts would allow for additional programming, including youth and adult basketball leagues, youth programs, rollerblading and tennis. The project anticipates that a new facility will reduce juvenile and young adult crime.

Location: Central Hillside

Goal: 1 Public Facility

Funding Amount: $75,000

Project Name: Building Exterior Improvements, Union Gospel Mission

Project Summary: The Union Gospel Mission is requesting $16,725 to improve the building façade, lobby and office areas by updating for energy efficiency, accessibility and appearance to better serve their clients. The agency provides food programs, a hygiene kit program and an emergency and low-income Single Room Occupancy housing program. The agency expects to save an estimated $12,000 to $16,000 of labor costs and $8,130 of general contracting fees by using volunteers.

Location: 219-1/2 East First Street

Goal: 1 Public Facility

Funding Allocated: $16,725

Project Name: Dining Commons Accessibility Project, Damiano Center

Project Summary: To improve basic needs accessibility by deconstructing and renovating the Soup Kitchen Dining Commons, making the space accessible for persons with disabilities. This project is part of a master plan that intended to minimize disruptions while providing uninterrupted service. The Damiano Center provides critical programs to numerous low and moderate income persons and removing accessibility barriers benefits everyone who uses the center.

Location: 206 West Fourth Street

Goal: 1 Public Facility

Funding Amount: Zero Funded

Project Name: West Third Street Lighting Project, Engineering Division

Project Summary: To provide enhanced lighting to West 3rd Street (between 20th Avenue West to Carlton Avenue) for both a safety and aesthetic perspective. According to a recent study, increased vehicle and pedestrian traffic along this corridor would benefit greatly from enhanced lighting, which would improve public safety. The project will benefit persons from Census Tracts 26, 27 and 28, of which 59.4% are low and moderate income. The project would assist in addressing the increasing crime rates experienced by the Lincoln Park area in recent years. The aesthetic benefits generated from the project will also contribute to improving the overall social and economic condition of the area. The project anticipates the enhanced lighting will stimulate neighborhood revitalization by increasing 60% of the area's property values by 5%.

Location: Census Tracts 26, 27 and 28

Goal: 4,377 People

Funding Amount: $176,000

Project Name: Harbor View Homeownership Phase I & II

Project Summary: TCG Harbor Homes, LLC is requesting $275,000 to underwrite the installation of the streets and utilities for 25 homeownership units of the HOPE VI revitalization of Harbor View Homes public housing complex. The program goal is to serve 25 units of infrastructure for approximately 2770 linear feet and storm water management and construct 25 new units of affordable housing. One-hundred percent (100%) of the persons served by this project will be Low and Moderate income. This project will ultimately result in 25 building sites with new water/sewer lines, electrical and gas service, telecommunication service, streets, alleys and walkways and storm water management. The public housing replacement units will be sold to residents who qualify at or below 80% of area median income.

Location: Central Hillside

Goal: 25 units of infrastructure

Funding Amount: $142,000

Project Name: Morgan Park Streets, Phase II

Project Summary: Morgan Park street improvement project Concord Street from 84th Avenue West to 87th Avenue West; 84th Avenue West from Concord Street to Edward Street; 87th Avenue West cul de sac north of Beverly Street - 2,000 feet of public utilities.

Location: Morgan Park

Goal: 1960 People

Funding Amount: $88,000


Project Name: Duluth Hunger Project - Churches United in Ministry (CHUM)

Project Summary: The Duluth Hunger Project is a coalition of four organizations that provide daily meals and emergency food packages to low-income, homeless people in Duluth. Congregate meal sites are located at the CHUM Center, Damiano Center and Union Gospel Mission, all located in the Central Hillside CDBG target neighborhood, and the Salvation Army, located in the Lincoln Park CDBG target neighborhood. Emergency food shelves are operated by Salvation Army and CHUM. Goal: 7,500

Funding Amount: $58,660

Project Name: Lake Superior Community Health Center

Project Summary: The Health Center provides primary health care to low-income, uninsured and under-insured persons who are generally the working poor. Medical services are provided by the Center=s clinical staff and volunteer physicians. The Health Center is located in the Central Hillside, CDBG target neighborhood. Goal: 2,500

Funding Amount: $64,340

Project Name: Clothes that Work

Project Summary: Located in the Damiano Center in the Central Hillside CDBG target neighborhood, Clothes that Work provides slightly used, job appropriate, free clothing to low and moderate-income people who are entering the job market or beginning a new job.

Goal: 600

Funding Amount: $14,200

Project Name: Salvation Army Money Management Program

Project Summary: The money management program offers 12 six-week sessions of credit and budgeting education, personal budgeting seminars, homebuyer education and one-on-one credit counseling to low and moderate-income persons. Program services are offered primarily at the Salvation Army, which is in the Lincoln Park CDBG target neighborhood.

Goal: 200

Funding Amount: $6,630

Project Name: Housing Access Center - Tenant/Landlord Counseling

Project Summary: Housing Access Center provides tenant/landlord counseling, education and mediation assistance and housing support services to tenants and landlords in Duluth. Offices are located in the Central Hillside CDBG target neighborhood.

Goal: 2,500

Funding Amount: $41,640

Project Name: Community Garden Program

Project Summary: The garden program serves low and moderate-income persons in Duluth by providing garden plots, assistance with preparing plots, education and assistance with canning and other methods of preserving fresh produce. Garden plots are located in different areas of Duluth and kitchen facilities are in the Damiano Center, located in the Central Hillside CDBG target neighborhood.

Goal: 150

Funding Amount: $6,630

Project Name: Life House Youth Center

Project Summary: Life House Youth Center provides low-income, high-risk, and homeless teens with assistance in accessing education, employment and housing and referrals to existing community services to resolve crisis situations. Life House is located in the Central Hillside CDBG target neighborhood.

Goal: 650

Funding Amount: $20,810

Project Name: Lutheran Social Services (LSS) Renaissance Transitional Living

Project Summary: The Renaissance program provides transitional housing and on-site support services to homeless teens. The 6-bed housing program is located above the Life House Youth Center, located in the Central Hillside, CDBG target neighborhood.

Goal: 25

Funding Amount: $14,200

Project Name: Safe Haven Shelter for Battered Women

Project Summary: Safe Haven Shelter provides emergency shelter, advocacy, and support services to women and children who are homeless as a result of fleeing situations of domestic violence.

Goal: 450

Funding Amount: $26,500

Project Name: American Indian Community Housing Organization (AICHO) Transitional Housing Program

Project Summary: AICHO provides five units of transitional housing with support services and culturally relevant activities for homeless Native American women and their children. Transitional housing units are located in the Central Hillside CDBG target neighborhood.

Goal: 25

Funding Amount: $4,740

Project Name: Salvation Army Family Transitional Housing

Project Summary: The Salvation Army provides 16 units of transitional housing with support services to homeless one- and two-parent families with children under 18 and to chemically dependent women in treatment programs. Transitional housing units are located in the Central Hillside and Lincoln

Park CDBG target neighborhoods.

Goal: 96

Funding Amount: $29,350

Project Name: Veterans Outreach North (VON)

Project Summary: VON provides transitional housing support services and assistance in obtaining permanent housing to veterans who are homeless or at risk of becoming homeless. Services are provided through the Veterans Outreach North office located in the Central Hillside CDBG target neighborhood.

Goal: 75

Funding Amount: $9,470

Project Name: Women’s Transitional Housing Coalition (WTHC)

Project Summary: WTHC provides 20 units of transitional housing with on-site support services for homeless women and their children. Transitional housing units are located in the East Hillside/Endion CDBG target neighborhood.

Goal: 110

Funding Amount: $29,800

Project Name: Boys & Girls Club of Duluth

Project Summary: Located in the Lincoln Park Elementary School, Boys and Girls Club provides after-school and summer sports and recreational opportunities for youth (primarily 6-12 years old) from low to moderate-income families in the Lincoln Park CDBG target neighborhood.

Goal: 400

Funding Amount: $39,260

Project Name: Grant Community School Collaborative

Project Summary: Grant Collaborative provides a variety of after-school and summer programming for youth (ages 6 B 15) from low and moderate-income families in the East Hillside/Endion CDBG target neighborhoods. The various programs available are the Mind 2 Mind after-school and summer programs at St. Paul=s Church, Summer Theatre Program at Grant School and Cultural Programs at Grant School.

Goal: 200

Funding Amount: $14,200

Project Name: Neighborhood Youth Services (NYS)

Project Summary: Located in the Washington Center, NYS provides after-school and summer sports and recreational programming to youth (ages 6 B 18) from low-to-moderate-income families from the Central Hillside CDBG target neighborhood.

Goal: 550

Funding Amount: $30,300

Project Name: Valley Youth Center

Project Summary: Located in MacArthur Elementary School, Valley Youth Center provides after-school and summer recreational programming to youth (ages 6 B 18) from low and moderate-income families living in the West Duluth CDBG target neighborhood.

Goal: 600

Funding Amount: $22,700

Project Name: YMCA Mentor Duluth Program

Project Summary: The YMCA serves as the lead agency in a six-agency collaboration that coordinates mentoring services for low- and moderate-income youth throughout Duluth. The Mentor Duluth program matches area youth with adult mentors and provides training and support to mentors, youth and their families as well as recreational activities throughout the year.

Goal: 650

Funding Amount: $32,160

Project Name: YWCA Girls and Youth Programs

Project Summary: The YWCA provides after-school and summer educational and recreational opportunities for youth from low-to-moderate-income families. Youth programming provided at Grant School and serves youth (primarily ages 6 B 12) from the East Hillside CDBG target neighborhood. Programming through the YWCA Girl Power! Program serves girls from Nettleton and Grant Elementary Schools at the YWCA building, located in the Central Hillside neighborhood.

Goal: 200

Funding Amount: $14,200

From the above noted list of grant contracts, most will have an impact on the property tax base. The housing rehabilitation contracts will have a positive impact on the property tax base.