Title
RESOLUTION AUTHORIZING A REQUEST FOR HUD HOME INVESTMENT PARTNERSHIP FUNDS FOR THE 2025 PROGRAM YEAR, AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.
Body
CITY PROPOSAL:
WHEREAS, City Council Resolution No. 25-0065R, adopted January 27, 2025, approved FY 2025 annual Action Plan; 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 Solutions Grants program [ESG]);
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:
2025 HOME PROGRAM - FUND 260, AGENCY 020, OBJECT 5434, PROJECT CD25HM
SUB
PROJECT ACTIVITY PROJECTS AMOUNT
GN25 1734 TBRA - HRA $ 100,000
GN25 6915A Community Land Trust - New Construction $ 350,000
GN25 AD01 HOME TBRA Admin - HRA $ 10,000
GN25 AD01 HOME Investment Partnership Admin $ 40,000
Total $ 500,000
BE IT FURTHER RESOLVED, the following are hereby designated as the financial sources for the above program:
Year 2025 HOME Grant $ 500,000
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 approval of HUD funds.
BE IT FURTHER RESOLED, that the Community Development Committee approved a contingency plan on December 3, 2024 stating that if there should there be a higher level of HOME funding allocated to the city for FY 2025 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 2025 funding for the HOME Investment Partnerships Program (HOME). The recommendations contained in this resolution were developed based on consideration of citizen comments, the public hearing held on November 19, 2024 and the deliberations of the CD committee on December 3, 2024. There was a 30-day public comment period from November 2, 2024, to December 3, 2024 on the 2025-2029 Consolidated Plan, 2025 annual action plan, which also includes recommended funding for the 2025 CDBG, HOME and ESG programs. The CD committee held a public hearing on November 19, 2024, 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 3, 2024, with the concurrence of the Planning and Development Manager
Source of Funds:
$500,000 in new 2025 HUD HOME 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 2025 HOME Program.
(b) Authorizes contracts for the activities upon receipt of the funding contract and completion of the environmental review process.
25-HM-01
Project Name: Homeless Rental Assistance Program (TBRA) - Duluth HRA
Project Summary: The program will provide rental assistance for households who would otherwise be homeless or are homeless by HUD’s definition. The City and the HRA have established this program to provide rental assistance as a significant component in the continuum of services to prevent homelessness.
Goal: 14 Households
Amount Recommended: $100,000
25-HS-02
Project Name: New Construction Community Land Trust - One Roof
Project Summary: The properties will be enrolled into their Community Land Trust (CLT) program to maintain long-term affordability, which is achieved through long term land least covenants. The proposal focuses on serving solely LMI participants.
Goal: 15 Housing Units
Amount Recommended: $350,000