Title
RESOLUTION AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2024 PROGRAM YEAR, AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.
Body
CITY PROPOSAL:
WHEREAS, City Council Resolution No. ___________, adopted January 22, 2024, approved the 2024 Action Plan
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 Solutions Grant - ESG - program);
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:
2024 CITY OF DULUTH COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) PROGRAM-FUND 262, AGENCY 020, OBJECT 5434 PROJECT CD2CD
SUB
PROJECT ACTIVITY AMOUNT PROJECTS
HOUSING PROJECTS
HOUS 1734 $ 315,000 Duluth Property Rehab Prog. - HRA
HOUS 6915A $ 250,000 Community Land Trust: Acquisition-
Rehab-Resale - One Roof Comm Housing
HOUS 6787 $ 19,000 Ecolibrium3- Energy Efficiency, Electrication,
And Renewable Navigators
HOUS 6915 $ 30,000 One Roof Community Duluth Rehab
HOUS 1226 $ 200,000 Center City-New San Marco Redevelopment
HOUS 10389 $10,000 Divine Konnections- Annie’s House of
Refuge & Restoration
ECONOMIC DEVELOPMENT PROJECTS
ECDV 1974 $ 82,000 Futures Program - Life House, Inc.
ECDV 2412 $ 112,000 High-demand, Living-wage, Job Training
Project - SOAR Career Solutions
ECDV 2264 $ 48,000 Growing Neighborhood
Businesses - Entrepreneur Fund
ECDV 9378 $ 50,000 Connect Many (CM) Solutions
- Family Rise Together
ECDV 9746 $ 60,000 Skilled Trades, Arts, Robotics & Tech-
Family Rise Together
PUBLIC FACILITY IMPROVEMENT PROJECTS
PFAC 1929 $ 15,000 Equipment Upgrades to Improve Dental Care
Lake Superior Health Center
PFAC 1974 $ 40,000 Downtown Campus Reboot
-Life House Inc.
PFAC 2511 $25,000 Spirit Valley Facility Repairs-
YWCA
PFAC TBD $87,000 Safer 6th Ave Enhancing Safety and
Multimodal- Zeitgeist
PFAC TBD $5,000 Multi-Modal Transportation Access
-City of Duluth
PFAC TBD $30,000 Hillside Sport Court Park Revitalization-
City of Duluth
PFAC TBD $150,000 Stepping on Up Homeless Triage Shelter-CHUM
PUBLIC SERVICE PROJECTS
PSVC 1291 $ 20,000 Tax Free Site - Community Action Duluth
PSVC 1244A $ 20,000 Steve O’Neal Apt- CHUM
PSVC 1244B $ 104,000 Duluth Hunger Project- CHUM
PSVC 6915 $ 15,000 Tenant Landlord Connection- One Roof
PSVC 1974 $ 39,000 Basic Needs Drop-in Youth Center- LifeHouse
PSVC 2511 $ 20,000 Young Mothers Program - YWCA
PSVC 2109 $ 30,000 Comprehensive Services for Homeless
Veterans - Minnesota Assistance
Council for Veterans
PSVC 2509 $ 20,000 Safe Haven Shelter Program - Safe
Haven Shelter for Battered Women
PSVC 1244C $ 35,000 CHUM Emergency Shelter - CHUM
PSVC 1226 $ 30,000 Family Supportive Housing - Center
City Housing Corporation
PSVC 2511 $ 7,000 Family Transitional Housing - The
Salvation Army
PSVC 1734 $ 12,000 Coordinated Entry - Housing &
Redevelopment Authority of Duluth,
MN
PLANNING/PROGRAM ADMINISTRATION
ADMC AD01 $ 470,000 CDBG Program Administration
BE IT FURTHER RESOLVED, that the following are hereby designated as the financial resources for the above program:
SOURCE OF FUNDING
Year 2024 CDBG Grant - city $ 2,350,000
Total $ 2,350,000
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.
BE IT FURTHER RESOLED, that the Community Development Committee approved a contingency plan on January 9, 2024 stating that if there should there be a higher level of CDBG funding allocated to the city for FY 2024 than estimated, such funding shall be distributed proportionally to previously recommended projects that were not recommended to receive full funding, up to 3% of the final allocation, and if less funding is allocated, all projects shall be reduced proportionally up to 3% of the final allocation. If the final allocated amount varies by more than 3% of the estimated amount then the community development committee shall reconvene and revise the funding recommendation and submit it to the City Council.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution reflects the recommendations of the Community Development Committee (CD committee) with concurrence of the Planning and Development manager. The CD committee solicited comments from organizations and citizens as related to the proposed FY 2024 funding for the Community Development Block Grant (CDBG). The recommendations contained in this resolution were developed based on consideration of citizen comments, the public hearing held on December 5, 2023 and the deliberations of the CD committee on January 9, 2024. There was a 30-day public comment period from November 25, 2023, to January 9, 2024 on the 2024 annual action plan, which also includes recommended funding for the 2024 CDBG, HOME and ESG programs. The CD committee held a public hearing on December 5, 2023, to hear comments on the funding recommendations and approved a contingency plan if the allocated funding was altered by more than 3%. The CD committee’s recommendations were adopted on December 5, 2023, with the concurrence of the Planning and Development Manager.
Source of Funds:
$2,350,000 in new 2024 HUD CDBG Funds
The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:
(a) Allocates funds by project for 2024 CDBG Program.
(b) Authorizes contracts for the activities upon receipt of the funding contract and completion of the environmental review process. Housing contracts will include addendums that require affordability restrictions in accordance with HUD regulations.
HOUSING
24-HS-01
Project Name: Duluth Property Rehab Program - HRA
Project Summary: The HRA’s Property Rehab Program will provide low interest and deferred loans for rehabilitation assistance to rental property owners within the city of Duluth.
Goal: 50 units of rental housing. 100% LMI.
Amount Recommended: $315,000
24-HS-02
Project Name: Energy Efficiency, Electrication, and Renewable Navigators-Ecolibrium3
Project Summary: Ecolibrium3 will use the grant funds to provide third-party project management to 100 low income households receiving home energy and healthy homes evaluation to completed energy retrofits.
Goal: 100 units
Amount Recommended: $19,000
24-HS-03
Project Name: Community Land Trust: Acquisition-Rehab-Resale - One Roof Community Housing
Project Summary: One Roof Community Housing will acquire eight blight residential structures, rehab the unit and then sale them to LMI households.
Goal: 12 units of owner-occupied housing.
Amount Recommended: $250,000
24-HS-05
Project Name: Duluth Rehab- One Roof Community Housing
Project Summary: One Roof to provide low interest loans, forgivable loans, and deferred loans for housing rehab to 15 LMI households in owner occupied single-family homes.
Goal: 15 Households
Amount Recommended: $30,000
24-HS-07
Project Name: New San Marco Redevelopment-Center City
Project Summary: Rehabilitation of the New San Marco Apartments, which provide 70 units of supportive housing serving extremely low-income homeless single adults with chemical dependency and significant barriers to housing success.
Goal: 70 units
Amount Recommended: $200,000
24-HS-08
Project Name: Annie’s House of Refuge & Restoration-Divine Konnections, Inc
Project Summary: Divine Konnections will use the funds towards purchasing a building to provide rental units to LMI households.
Goal: 4 housing units
Amount Recommended: $10,000
ECONOMIC DEVELOPMENT
24-ED-01
Project Name: Futures Program - Life House, Inc.
Project Summary: The Futures Program will provide alternative education and career pathways to homeless and at-risk youth who are disconnected from school or work for them to become employed.
Goal: 100 LMI Youth
Amount Recommended: $82,000
24-ED-02
Project Name: High-Demand, Living-wage, Job Training Project -SOAR Career Solutions
Project Summary: SOAR Career Solutions, a community-based development organization, will provide job training and skill development to assist LMI people to help them achieve living wage jobs.
Goal: 90 LMI Individuals
Amount Recommended: $112,000
24-ED-03
Project Name: Growing Neighborhood Businesses - Entrepreneur Fund
Project Summary: The Northeast Entrepreneur Fund’s Growing Neighborhood Businesses program will provide technical assistance and peer support for 7 existing small businesses in CDBG target neighborhoods to help grow their business revenue to help their revenue increase by 25%.
Goal: 7 LMI neighborhood small business owners grow their business revenue.
Amount Recommended: $48,000
24-ED-04
Project Name: Connect Many (CM) Solutions -Family Rise Together
Project Summary: The program will offer business development workshops and services to 23 LMI individuals interested in starting and running a business. The program will focus on people of color, women, and low-income individuals, providing the opportunity for financial dignity and entrepreneurial growth.
Goal: 23 LMI Individuals
Amount Recommended: $50,000
24-ED-05
Project Name: Start-Skilled Trades, Arts, Robotics and Technology- Family Rise Together
Project Summary: The START program, located in the Central Hillside neighborhood, empowers low-income youth and young adults with culturally responsive education and training.
Goal: 200 LMI Individuals
Amount Recommended: $60,000
PUBLIC FACILITY IMPROVEMENTS
24-PF-01
Project Name: Equipment Upgrades to Improve Dental Care- Lake Superior Community Health Center
Project Summary: Lake Superior Community Health Center is requesting funds to replace three outdated dental chairs and components, to maintain and expand services to meet the high demand for dental care from LMI individuals and families.
Goal: 3 Units
Amount Recommended: $15,000
24-PF-02
Project Name: Downtown Campus Program- Life House
Project Summary: The project is to complete renovation, deferred maintenance, and weatherization projects on the Annex and Imaginarium buildings located in Life House’s downtown campus.
Goal: 1 facility
Amount Recommended: $40,000
24-PF-04
Project Name: Spirit Valley Facility Repairs-YWCA
Project Summary: YWCA will use funds to re-grade the eroded grounds around the Spirit Valley facility, which houses Young Mothers Program and Early Childhood Education Center, and lay new sidewalk where the current sidewalk is broken and hazardous.
Goal: 1 facility
Amount Recommended: $25,000
24-PF-05
Project Name: Safer 6th Ave Enhancing Safety and Multimodal-Zeitgeist
Project Summary: The project is to improve the safety and usability of 6th Ave E., specifically for infrastructure enhancements for safe crossing, which includes the pedestrian islands and additional infrastructure improvements.
Goal: 1 facility
Amount Recommended: $87,000
24-PF-06
Project Name: Multi-Modal Transportation Access-City of Duluth
Project Summary: The project is to increase multi-modal transportation access to the downtown area employment opportunities and bus stops/transit center. The project will include pedestrian improvements on upper Mesaba Ave.
Goal: 1 facility
Amount Recommended: $5,000
24-PF-07
Project Name: Hillside Sport Court Park Revitalization-City of Duluth
Project Summary: The City of Duluth Parks and Recreation department has identified the Hillside Sport Court Park as a priority for City investment, funds will be used to assist in the park improvements.
Goal: 1 facility
Amount Recommended: $30,000
24-PF-08
Project Name: Stepping on Up Homeless Triage Shelter-CHUM
Project Summary: CHUM, in partnership with other agencies, will provide a Triage Homeless Shelter to provide 100 beds, access to sanitation and hygiene facilities and connection to medical, social and housing navigation services.
Goal: 1 facility
Amount Recommended: $150,000
PUBLIC SERVICES
24-PS-01
Project Name: Free Tax Site - Community Action Duluth
Project Summary: Community Action Duluth (CAD) will use the funding to support the Volunteer Income Tax Assistance program ("Free Tax Site"). Staff and volunteers assist over 1200 households a year in filing returns to recoup more than $2.3 million in tax refunds.
Goal: 1,200 LMI Individuals
Amount Recommended: $20,000
24-PS-02
Project Name: Program for Children Living at the Steve O’Neal Apts - CHUM
Project Summary: CHUM will provide services for children at the Steve O’Neil Apartments including a licensed 4-Star Parent Aware childcare program, two-generational parenting programs, youth programs, and community programs focused on healthy habits, food security, literacy and inclusion.
Goal: 85 LMI Individuals
Amount Recommended: $20,000
24-PS-03
Project Name: Duluth Hunger Project - CHUM
Project Summary: The Duluth Hunger Project is a coalition of three agencies (CHUM, The Salvation Army, and The Damiano Center) 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.
Goal: 17,300 Individuals
Amount Recommended: $104,000
24-PS-04
Project Name: Tenant Landlord Connection - One Roof Community Housing
Project Summary: The TLC will help ensure stable rental housing exists by educating existing and potential landlords and tenants regarding rights and responsibilities as well as mediating disputes between landlords and tenants to reduce the number of evictions in our community.
Goal: 575 Individuals
Amount Recommended: $15,000
24-PS-05
Project Name: Life House Basic Needs/Drop-in for Homeless Youth - Life House, Inc.
Project Summary: Life House’s Basic Needs Center for Homeless Youth provides basic human necessities, referrals to internal and external services, site-based outreach, assistance obtaining and maintaining stable housing, and independent living skills classes for homeless, at-risk and street youth ages 14-24.
Goal: 625 Individuals
Amount Recommended: $39,000
23-PS-06
Project Name: Young Mothers Program-YWCA
Project Summary: Young Mothers Program provides transitional housing to pregnant and parenting young women ages 16-21 and their children. In addition to providing housing, we also offer case management, parenting classes, early childhood development programming, and more.
Goal: 25 Individuals
Amount Recommended: $20,000
24-PH-01
Project Name: Comprehensive Services for Veterans - Minnesota Assistance Council for Veterans
Project Summary: MACV will work to provide shelter, outreach, intake, assessment, and direct services to veterans living on the streets and other places not meant for human habitation.
Goal: 95 LMI Individuals
Amount Recommended: $30,000
24-PH-02
Project Name: Safe Haven Shelter Program - Safe Haven Shelter for Battered Women
Project Summary: Safe Haven Shelter is an emergency shelter for women and their children who are fleeing domestic violence. Safe Haven provides shelter stabilization services, advocacy, and support to those in the shelter.
Goal: 500 Individuals
Amount Recommended: $20,000
24-PH-03
Project Name: CHUM Emergency Shelter - CHUM
Project Summary: CHUM will work to provide shelter, outreach, referral, prevention and rapid rehousing services to homeless living on the streets and other places not meant for human habitation.
Goal: 1,100 Individuals
Amount Recommended: $35,000
24-PH-04
Project Name: Family Supportive Housing - Center City Housing Corporation
Project Summary: CCHC will operate and provide supportive services for transitional and permanent housing units.
Goal: 124 Individuals
Amount Recommended: $30,000
24-PH-05
Project Name: Family Transitional Housing - The Salvation Army
Project Summary: Salvation Army will provide transitional housing and support services to assist homeless families move toward greater housing stability.
Goal: 100 Individuals
Amount Recommended: $7,000
24-PH-06
Project Name: Coordinated Entry- Housing and Redevelopment Authority of Duluth (HRA)
Project Summary: The Duluth HRA will work with homeless providers to implement the coordinated entry system to ensure homeless persons have access to services.
Amount Recommended: $12,000