DISCLAIMER

 

07-0774R                                                          REPLACEMENT


RESOLUTION AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2008 PROGRAM YEAR AS WELL AS APPROVING THE REALLOCATION OF CERTAIN PRIOR CDBG FUNDS AND AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.

BY COUNCILOR STAUBER:

     WHEREAS, city council Resolution No. 07-0773, adopted December 17, 2007, approved the FY 2008 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

     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:

2008 CITY OF DULUTH COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM-FUND 262 PROJECT CD08CD

SUB

PROJECT    ACTIVITY AMOUNT            PROJECTS

                      HOUSING PROJECTS

HOUS       1734  $1,065,000  Duluth Property Rehab Program - HRA and/or NCLT

HOUS       1291  $ 47,800  Downpayment Assistance for IDAs - Community Action Duluth

HOUS       1091  $ 242,000  Duluth Weatherization Program - AEOA

HOUS       HS04  $ 65,000  Section 108 Loan Guarantee payment - Duluth Rental Housing Prog. - Village Place

                      ECONOMIC DEVELOPMENT PROJECTS

ECDV       2412  $ 150,000  SOAR Economic Opportunities Initiative - SOAR Career Solutions

ECDV       1244  $ 112,500  CHUM Support Services for Employment - Churches United in Ministry

ECDV       2805  $ 40,500  Neighborhood Youth Ventures - Neighborhood Youth Services

ECDV       2264  $ 80,000  Growing Neighborhood Businesses - Northeast Entrepreneur Fund, Inc.

                      PUBLIC FACILITY IMPROVEMENT PROJECTS

PFAC       PF01  $ 180,000  Curb Ramp Accessibility & Sidewalk Improvements

PFAC       PF02  $ 50,000  CD Street Assistance Program

                      PUBLIC SERVICE PROJECTS

PSVC       1244  $ 76,000  Duluth Hunger Project - CHUM

PSVC       1929  $ 70,000  Primary Health Care Services - Lake Superior Community Health Center

PSVC       1348  $ 20,000  Clothes That Work and Social Services - Damiano Center

PSVC       2511  $ 40,000  Emergency Heating Assistance - Salvation Army

PSVC       1974  $ 22,000  Youth Center - Life House

PSVC       134A  $ 20,000  Housing Access Center Program - Damiano Center

PSVC       2509  $ 35,000  Battered Women’s Shelter Program - Safe Haven Shelter and/or AICHO

PSVC       251A  $ 57,000  Transitional Housing Program - Salvation Army and/or WCDO

PSVC       1168  $ 95,000  Youth Development Collaborative: Valley Youth Center, Grant Community School Collaborative, Boys & Girls Club, YMCA Mentor Duluth Collaborative, YWCA Girls & Youth Programs

                      $ 25,000   Construction Contingency

                      PLANNING/PROGRAM ADMINISTRATION

ADMC       AD01  $ 457,675  Program Administration

ADMC       AD02  $ 50,000  Neighborhood Planning

ADMC       AD03  $ 40,000  Facility Needs Assessment & Long Range Plan

ADMC       1913  $ 50,389  SNAP Plan Implementation - LISC

                      $3,090,864   Total

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

SOURCE OF FUNDING

     Year 2008        CDBG Grant - city            $2,901,000

     Year 2003        CDBG Grant - city            $ 15,672

     Year 2004        CDBG Grant - city            $ 3,718

     Year 2005        CDBG Grant - city            $ 6,011

     Year 2006        CDBG Grant - city            $ 164,463

     __________________________________________________________________________

     Total                                          $3,090,864

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

                                         Original   Amount     Revised

                                         Budget     of Change  Budget

2003 CD03CD

ECDV-ED01  NSCDC RLF                    $ 71,378   -$ 15,672  $ 55,706

2004 CD04CD

PFAC-PF06  City Homes Infrastructure    $270,000   -$ 3,718  $266,282

2005

HOUS-2239  NHS Affordable Housing Svcs  $137,124   -$ 1,966  $135,158

PFAC-PF03  CD Street Assistance         $ 87,700   -$ 823  $ 86,877

PFAC-PF08  Morgan Park Streets-Ph. II   $ 85,820   -$ 3,222  $ 82,598

2006

PFAC-PF06  Morgan Park Streets-Ph. III  $ 80,000   -$ 26,332  $ 53,668

PFAC-PF03  CD Street Assistance         $ 64,000   -$ 38,678  $ 25,322

PSVC-2811  YWCA Youth & Girls Prog.     $ 14,900   -$ 10  $ 14,890

HOUS-1291  Community Action IDAs        $ 21,600   -$ 343  $ 21,257

HOUS-1091  AEOA-Weatherization          $242,000   -$ 214  $241,786

Bal.Sh.2220Lien Repayments              $ 98,886   -$ 98,886   -0-

           $189,864 - 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 2, 2007, to December 3, 2007, on 2008 annual action plan, which includes recommended funding for the 2008 CDBG, HOME, and ESG programs. The CD committee held a public hearing on December 11 to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 11, 2007, with the concurrence of the community development manager.


Sources of funds: $2,901,000 in new 2008 HUD CDBG funds and $189,864 reprogrammed CDBG funds (2003-2006 CDBG programs).


     $2,901,000 Estimated CDBG funds

        189,864  Reprogrammed CDBG funds and program income

     $3,090,864 2008 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 2008 CDBG program and authorizes appropriate city officials to execute contracts when funds are received.


Contracts for housing programs and construction activities typically 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:


AFFORDABLE HOUSING


08-HS-01

Project Name: Duluth Property Rehabilitation Program - Duluth Housing & Redevelopment Authority (HRA)

Project Summary:

  Homeowner housing rehabilitation

HRA will provide low interest and deferred loans for the rehabilitation of single-family owner occupied homes in the City of Duluth. Homeowners can apply for up to $20,000 in deferred loans, which are forgiven if the owner stays in the house 10 years from the completion of the rehab. Applications are accepted at the HRA offices at 222 East 2nd Street, Duluth, MN 55806.

Location: Citywide - Preference for housing in 1) SNAP areas, 2) CDBG eligible areas, and 3) the balance of the City of Duluth

Goal: 75 Housing Units

Amount Recommended: $300,000

 

  Rental property rehab

HRA will provide low interest and deferred loans for rehabilitation of assistance to rental property owners within the City of Duluth. Rental owners can apply for a very low interest loan to renovate their properties, which then must serve low- to moderate-income tenants. Applications are accepted at the HRA offices at 222 East 2nd Street, Duluth, MN 55806.

Location: Citywide - Preference for housing in 1) SNAP areas, 2) CDBG eligible areas, and 3) the balance of the City of Duluth

Goal: 50 Units

Amount Recommended: $327,000

 

  Rehabilitation of existing housing units

HRA will provide low interest and deferred loans for rehabilitation assistance to rental property owners and eligible homeowners of properties within the City of Duluth. Homeowners can apply for up to $20,000 in deferred loans, which require the owner to stay in their house for 10 years from the completion of the rehab. Rental owners can apply for a very low interest loan to renovate their properties, which then must serve low- to moderate-income tenants. Applications are accepted at the HRA offices at 222 East 2nd Street, Duluth, MN, 55805.

Location: Citywide - Preference for housing in 1) SNAP areas, 2) CDBG eligible areas, and 3) the balance of the City of Duluth

Goal: 1 Organization

Amount Recommended: $438,000


08-HS-02

Project Name: Housing Counseling and Down Payment Assistance for IDA Participants - Community Action Duluth

Project Summary: Program participants are assisted through housing counseling and help in the set-up and maintenance of Individual Development Accounts to save money for a down payment toward the goal of achieving home ownership. Targeted participants are 15 HOPE VI project participants and 45 FAIM program participants.

Location: 19 North 21st Avenue West

Goal: 15 Households

Amount Recommended: $47,800


08-HS-03

Project Name: Duluth Weatherization - AEOA

Project Description: Arrowhead Economic Opportunity Agency (AEOA) provides energy conservation measures in homes of income eligible energy assistance clients within the city of Duluth. Energy conservation is achieved through mechanical repairs/replacements, air sealing and insulating.

Location: Citywide

Goal: 71 Household Units

Amount Recommended: $242,000


ECONOMIC DEVELOPMENT


08-ED-01

Project Name: SOAR Economic Opportunities Initiative (SOAR EOI)- SOAR Career Solutions

Project Description: SOAR Career Solutions will provide training, support, case management, job placement, and job retention assistance for 20 Duluth residents at/below 50% of Area Median Income to identify, obtain and keep jobs that increase their income by 25% over 3 years.

Location: 205 West Second Street

Goal: 20 Persons

Amount Recommended: $150,000


08-ED-02

Project Name: CHUM Supportive Services for Employment - Churches United in Ministry (CHUM)

Project Description: The project will provide supportive services, including case management, to the target population. Participants will be employed in entry level positions and both employees and employers will receive support through the project to ensure their mutual success.

Location: 102 West Second Street

Goal: 15 Persons

Amount Recommended: $112,500


08-ED-04

Project Name: Neighborhood Youth Ventures - Neighborhood Youth Services/Woodland Hills

Project Description: The Neighborhood Youth Services (NYS) Neighborhood Youth Ventures program will assist young people in overcoming poverty and becoming economically self-sufficient through job readiness, leadership development and job placement. Local employers are providing apprenticeship and job opportunities through a partnership agreement.

Location: 310 North First Avenue West

Goal: 5 Jobs

Amount Recommended: $40,500


08-ED-05

Project Name: Growing Neighborhood Businesses - Northeast Entrepreneur Fund, Inc.

Project Description: This project will provide one-on-one business-development and expansion technical assistance for at least 25 existing small-business owners in Duluth=s five Target Areas and work closely with the At Home in Duluth Core Group, Spirit Valley Citizens Neighborhood Development Association (SVCNDA), Lincoln Park Business Group, and the Hillside Business Association to help grow strong, vital neighborhood businesses that create at least 8 new jobs for LMI persons.

Location: 400 Ordean Building, 424 West Superior Street

Goal: 8 Persons

Amount Recommended: $80,000


PUBLIC FACILITY IMPROVEMENTS

08-PF-01

Project Name: Curb Ramp Accessibility and Sidewalk Improvement - City of Duluth Engineering Division

Project Description: To construct additional pedestrian curb ramps at alleys and street intersections, and improving the sidewalks between these ramps, thus improving Duluth=s access routes for all citizens and visitors by removing barriers (curbs). This improvement will assist people using wheelchairs, utilizing walkers and parents with strollers.

Location: Census Tracts 16, 17 and 19

Goal: 54 access points

Amount Recommended: $180,000


08-PF-02

Project Name: Community Development Street Assistance - Community Development B City of Duluth

Project Description: The Community Development Street Assistance program provides financial assistance to LMI households by using CDBG funds for the payment of street improvement assessments to homeowners in CDBG Target Neighborhoods and City-wide. This project will directly assist 49 LMI households who are property owners (homestead) based exclusively on their household income.

Location: Fairmont North, Morley Heights, and Lakeside/Rockview Court

Goal: 49 Households

Amount Recommended: $50,000


PUBLIC SERVICES


08-PS-01

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

Project Description: The Duluth Hunger Project is a coalition of four agencies working together to prevent and alleviate chronic hunger and malnutrition among the lowest income of Duluth=s residents, through congregate meal sites and emergency food shelf programs. CHUM is fiscal agent for the project.

Location: 102 North First Avenue West

Goal: 7,500 Persons

Amount Recommended: $76,000


08-PS-02

Project Name: Primary Health Care Services - Lake Superior Community Health Center

Project Description: The project is a city-wide program which provides access to free and sliding fee clinical health care, health education, medical social work, mental health counseling, dental care, assisted referrals, and advocacy for low-income, uninsured and underinsured community members.

Location: 4325 Grand Avenue

Goal: 2,500 People

Amount Recommended: $70,000


08-PS-03

Project Name: Clothes that Work and Social Services - Damiano Center

Project Description: The Damiano Center provides people with access to free, work appropriate clothing and transportation assistance to low-and-moderate-income individuals who are beginning new employment or seeking other employment opportunities.

Location: 206 West Fourth Street

Goal: 1,100 People

Amount Recommended: $20,000



08-PS-04

Project Name: Emergency Heating Assistance - Salvation Army

Project Description: The Salvation Army Emergency Heating Assistance program provides financial assistance to low income households receiving utility shut-off notices during the winter months. Cash grants will be provided to eligible households to prevent utility service shut offs, with payments made directly to area water, electrical, and heating utility providers.

Location: 215 South 27th Avenue West

Goal: 300 Persons

Amount Recommended: $40,000


08-PS-05

Project Name: Youth Center - Life House

Project Description: Through the Life House Youth Center, homeless and at-risk teens receive support services, access and referral to essential services such as food and clothing, medical and mental health services, assistance with obtaining housing, job training and employment, access to educational opportunities to complete high school and other skills necessary to stabilize their lives.

Location: 102 West First Street

Goal: 600 People

Amount Recommended: $22,000


08-PS-06

Project Name: Housing Access Program - Damiano Center

Project Description: Housing Access Program provides information, education and counseling services to Duluth tenants and landlords to help parties mediate problems and resolve issues that often lead to eviction or other court actions. The program also provides assistance and referral, in matters of discrimination under the Fair Housing Act, to the Duluth Human Rights Office, and incorporates education about fair housing rights and responsibilities into their tenant/landlord education.

Location:206 West Fourth Street

Goal: 600 People

Amount Recommended: $20,000


08-PS-07

Project Name: Battered Women=s Shelter Programs - Safe Haven Shelter for Battered Women

Project Description: Safe Haven Shelter and the American Indian Community Housing Organization=s Dabinoo=lgan Shelter programs provide temporary emergency shelter for homeless battered women and their children. Along with advocacy and support, shelter residents receive assistance is obtaining transitional or permanent housing, assistance in applying for financial and medical assistance, child care services, transportation, mental health counseling and funds for rent deposits and other needs. Programming activities are supported through CDBG funds and operation of the shelters is supported through ESG funds.

Location: P. O. Box 3558, Duluth

Goal: 500 People

Amount Recommended: $35,000


08-PS-08

Project Name: Transitional Housing Programs - Salvation Army

Project Description: The Salvation Army operates 16 units of transitional housing for homeless men and women with children and homeless women with children who are chemically dependent and in treatment programs. Women’s Community Development Organization operates 21 units of transitional housing for homeless women with children and homeless single women. Transitional housing residents receive case management and other supportive services that focus on education, job training, children=s programming and follow-up services. ESG funds support the operation of the facility, whereas CDBG funds support programming activities.

Location: 215 South 27th Avenue West

Goal: 180 Persons

Amount Recommended: $57,000


08-PS-09

Project Name: Youth Development Cooperative - YMCA

Project Description: The youth agencies in Duluth will collaboratively provide after-school and summer recreational and academic enrichment and mentoring activities for youth, primarily ages 6-12, from low- and moderate-income families. The youth agencies include: Valley Youth Center, Grant Community School Collaborative, Boys & Girls Club, YMCA Mentor Duluth Collaborative, and YWCA Girls & Youth Programs.

Location: 727 North Central Avenue; 2623 West Second Street; 302 West First Street; 202 West Second Street; and 1027 - 8th Avenue East

Goal: 1,400 Persons

Amount Recommended: $95,000