Title
RESOLUTION AUTHORIZING FUNDING ALLOCATION CHANGES AND FINALIZING THE 2025 ANNUAL ACTION PLAN AND AUTHORIZING A REQUEST FOR THE UNITED STATES DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT COMMUNITY DEVELOPMENT BLOCK GRANT , HOME INVESTMENT PARTNERSHIP PROGRAM, AND EMERGENCY SOLUTIONS GRANT PROGRAM FUNDS.
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CITY PROPOSAL:
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, Title 1 of the Housing and Community Development Act of 1974, as amended, establishes a Community Development Block Grant (“CDBG”) program for the purpose of developing viable urban communities by providing decent housing and suitable living environment and expanding economic opportunities and preventing and/or eliminating conditions of slum and blight, principally for persons of low and moderate income; and
WHEREAS, the city of Duluth desires to continue to carry out HUD-funded programs;
NOW, THEREFORE, BE IT RESOLVED, that the FY 2025 action plan portion of FY 2025-2029 city of Duluth consolidated plan for housing and community development required by HUD federal legislation are hereby adopted and approved.
BE IT FURTHER RESOLVED, that the city of Duluth hereby makes a finding that expenditures as set forth in Resolution No. 25-0065R and further revised in Resolution No. 25-0491R are necessary and appropriate and, further, that said expenditures for the CDBG program will serve to assist low- and moderate-income individuals/families (no less than 70 percent of area mean income as described in federal regulations) and/or serve to prevent or eliminate conditions of slum or blight in the community.
BE IT FURTHER RESOLVED, that the city of Duluth hereby makes a finding that expenditures as set forth in Resolution No. 25-0065 and further revised in Resolution No. 25-0488R are necessary and appropriate and, further, that said expenditures for the Home Investment Partnership (“HOME”) Program that will serve to assist low- and moderate-income people.
BE IT FURTHER RESOLVED, that the city of Duluth hereby makes a finding that expenditures as set forth in Resolution No. 25-0065 and further revised in Resolution No. 25-0490R are necessary and appropriate and, further, that said expenditures for the Emergency Solutions Grant (“ESG”) Program that will serve to assist low- and moderate-income people.
BE IT FURTHER RESOLVED, that the city of Duluth and its proper city 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 and authorizing the proper city officials to execute any documents with HUD to implement the program; such authorization shall also apply to existing programs with the city and HUD under the CDBG, HOME and ESG programs.
Statement of Purpose
STATEMENT OF PURPOSE: This resolution approves the 2025 Annual Action Plan portion of the 2025-2029 consolidated plan for the city. The action plan sets forth FY 2025 funding and allows opportunity for comments from organizations and citizens as related to said funding for three HUD-funded programs: CDBG, HOME, and ESG. 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 community development committee (CD committee). There was a 30-day public comment period from November 2, 2024 to December 3, 2024, on the draft 2025-2029 Consolidated Plan, and the 2025 Annual Action Plan, which included funding recommendations for the 2025 CDBG, HOME, and ESG programs. The CD committee’s recommendations were adopted on December 3, 2024 with the concurrence of the planning and development manager. Duluth City Council approved the recommended funding amounts on January 27, 2025.
The original funding amounts were based on funding estimates. HUD officially notified the city of the FY 2025 funding amounts on May 14, 2025 which included a decrease in the CDBG and ESG programs and an increase in the HOME program. The committee’s recommendation and initial council resolution included a funding contingency plan that stated if the amount received varied more than 3% of the estimated amount, then the Community Development Committee would reconvene and revised the funding recommendations and submit it to City Council. The CDBG, HOME and ESG amounts were within the 3% estimated amount so funding was allocated appropriately and no public hearing was required. The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:
(a) Approves the 2025-2029 Consolidated Plan which contains the 2025 annual action plan as required by HUD;
(b) Allocates funds to the projects as listed for the 2025 CDBG program;
(c) Allocates funds for the projects as listed for the 2025 HOME program;
(d) Allocates funds for the projects listed for the 2025 ESG Programs; and
(e) Authorizes execution of documents with HUD.
Source of funds:
$2,341,913 in new 2025 CDBG funds;
$520,106.07 in new 2025 HOME funds; and
$206,755 in new 2025 ESG funds.
$3,068,744.07 for the 2025 Community Development Program total