Skip to main content
File #: 24-0036R    Name:
Type: Resolution Status: Passed
File created: 1/10/2024 In control: Planning and Economic Development
On agenda: 1/22/2024 Final action: 1/22/2024
Enactment date: Enactment #:
Title: RESOLUTION AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2024 PROGRAM YEAR, AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.

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