Title
RESOLUTION AUTHORIZING A REQUEST FOR HUD FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS FOR THE 2021 PROGRAM YEAR, AUTHORIZING AGREEMENTS WITH APPROPRIATE AGENCIES.
Body
CITY PROPOSAL:
WHEREAS, City Council Resolution No. 21-0077R, adopted February 8, 2021,
approved the 2021 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:
2021 CITY OF DULUTH COMMUNITY DEVELOPMENT BLOCK
GRANT (CDBG) PROGRAM-FUND 262, AGENCY 020, OBJECT 5434 PROJECT CD21CD
SUB
PROJECT ACTIVITY AMOUNT PROJECTS
HOUSING PROJECTS
HOUS 1734 $ 446,000 Duluth Property Rehab Prog. - HRA
HOUS 6787 $ 120,000 Eco3Energy - Ecolibrium
HOUS 6915A $ 240,000 Community Land Trust: Acquisition-
Rehab-Resale - One Roof Comm Housing
HOUS 6915 $ 75,000 One Roof Duluth Rehabilitation - One
Roof Community Housing
ECONOMIC DEVELOPMENT PROJECTS
ECDV TBD $ 50,000 Futures Program - Life House, Inc.
ECDV 2412 $ 190,000 High-demand, Living-wage, Job Training
Project - SOAR Career Solutions
ECDV 2264 $ 64,000 Starting & Growing Neighborhood
Businesses - Entrepreneur Fund
ECDV TBD $ 75,000 Cultural Specific Entrepreneurship
Workshop - Family Rise Together
PUBLIC FACILITY IMPROVEMENT PROJECTS
PFAC TBD $ 50,000 Spirit Valley Updates & Efficiencies -
Duluth YWCA
PFAC TBD $ 88,900 Acquisition Demolition Program - City
of Duluth, Planning & Development
Division
PFAC TBD $ 43,000 Equipment Upgrades to Improve Care -
Lake Superior Community Health Ctr
PFAC TBD $ 135,000 Niiwin Indigenous Foods Market
Construction - American Indian
Community Housing Organization
PUBLIC SERVICE PROJECTS
PSVC 1291 $ 22,000 Free Tax Site - Community Action
Duluth
PSVC 1244A $ 23,000 Early Childhood Education - CHUM
PSVC 1244 $ 81,250 Duluth Hunger Project - CHUM
PSVC 6915 $ 25,000 Tenant Landlord Connection - One
Roof Community Housing
PSVC 2511 $ 20,000 The Landlord Incentives Program -
The Salvation Army
PSVC 2805 $ 39,000 JET/COVID Response Programming-
Neighborhood Youth Services
PSVC 1974 $ 31,000 Life House Basic Needs/Drop-in for
Homeless Youth - Life House, Inc.
PSVC 2109 $ 9,150 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 1244B $ 42,000 CHUM Emergency Shelter - CHUM
PSVC 1226 $ 31,000 Family Supportive Housing - Center
City Housing Corporation
PSVC 2511 $ 8,500 Family Transitional Housing - The
Salvation Army
PSVC 1734 $ 12,000 Coordinated Entry - Housing &
Redevelopment Authority of Duluth,
MN
PLANNING/PROGRAM ADMINISTRATION
ADMC AD01 $ 485,200 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 2021 CDBG Grant - city $ 2,426,000
Total $ 2,426,000
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 26, 2021 stating that if there should there be a higher level of CDBG funding allocated to the city for FY 2021 than estimated, such funding shall be distributed proportionally to previously recommended projects that were not recommended to receive full funding, up to 1% of the final allocation, and if less funding is allocated, all projects shall be reduced proportionally up to 1% of the final allocation. If the final allocated amount varies by more than 1% 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 2021 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 January 5, 2021 and the deliberations of the CD committee on January 26. There was a 30-day public comment period from December 19, 2020, to January 18, 2021 on the 2021 annual action plan, which also includes recommended funding for the 2021 CDBG, HOME and ESG programs. The CD committee held a public hearing on January 26, 2021, to hear comments on the funding recommendations and approved a contingency plan if the allocated funding was altered by more than 1%.The CD committee’s recommendations were adopted on January 26, 2021, with the concurrence of the Planning and Development Manager.
Source of Funds:
$2,426,000in new 2021 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 2021 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
21-HS-01
Project Name: Duluth Property Rehab Prog - 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. Homeowners can apply for up to $25,000 in loans to address code deficiencies and lead paint hazards. Rental owners can apply for a 2% interest loan to renovate their properties, which then must serve low to moderate income tenants.
Goal: 50 units of rental housing. 100% LMI.
Amount Recommended: $446,000
21-HS-02
Project Name: Eco3Energy - Ecolibrium3
Project Summary: Ecolibrium3’s Duluth Energy Efficiency Program reduces energy poverty of residents and improves the health of Duluth's housing stock by assisting LMI families with energy efficiency improvements, developing effective coordination between multiple programs, directing contractors, and training volunteers and do-it-yourselfers.
Goal: 40 Households
Amount Recommended: $120,000
21-HS-03
Project Name: Community Land Trust: Acquisition-Rehab-Resale - One Roof Community Housing
Project Summary: One Roof Community Housing will acquire three blight residential structures, rehab the unit and then sale them to LMI households.
Goal: 12 units of owner-occupied housing.
Amount Recommended: $240,000
21-HS-04
Project Name: One Roof Duluth Rehabilitation - One Roof Community Housing
Project Summary: One Roof will provide low interest loans, forgivable loans, and deferred loans for rehabilitation of single-family owner occupied and multi-family rental units within Duluth to low to moderate income individuals, focusing on healthy homes and energy conservation.
Goal: 25 housing units
Amount Recommended: $75,000
ECONOMIC DEVELOPMENT
21-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: 16 LMI Youth
Amount Recommended: $50,000
21-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: $190,000
21-ED-03
Project Name: Starting & Growing Neighborhood Businesses - Entrepreneur Fund
Project Summary: The Northeast Entrepreneur Fund’s Growing Neighborhood Businesses program will provide technical assistance and peer support for 8 existing small businesses in CDBG target neighborhoods to help grow their business revenue to help their revenue increase by 25%. In addition, the Northeast Entrepreneur Fund will assist 8 LMI and Minority individuals in starting a business.
Goal: 16 LMI neighborhood small business owners grow their business revenue.
Amount Recommended: $64,000
21-ED-04
Project Name: Cultural Specific Entrepreneurship
Project Summary: Family Rise Together will provide training and support to LMI owners and operators of culturally specific businesses including people of color and women.
Goal: 32 LMI Individuals
Amount Recommended: $75,000
PUBLIC FACILITY IMPROVEMENTS
21-PF-01
Project Name: Spirit Valley Updates & Efficiencies - Duluth YWCA
Project Summary: Funds will be used for building improvements, including replacement of a waterline.
Goal: 1 Facility
Amount Recommended: $50,000
21-PF-02
Project Name: Acquisition Demolition Program - City of Duluth, Planning & Development Division
Project Summary: The City of Duluth will acquire property to eliminate blight and physical decay on specific sites.
Goal: 4 blighted properties
Amount Recommended: $88,900
21-PF-03
Project Name: Equipment Upgrades to Improve Care - Lake Superior Community Health Ctr
Project Summary: Funding will be used to upgrade health care equipment, including Spinal Decompression Table, Automatic Blood Pressure Cuffs, and Dental X-Ray Sensors.
Goal: 1 Facility
Amount Recommended: $43,000
21-PF-04
Project Name: Niiwin Indigenous Foods Market Construction - American Indian Community Housing Organization
Project Summary: AICHO will use the funds for construction costs to renovate the interior space of the Niiwin Market.
Goal: 1 Facility
Amount Recommended: $135,000
PUBLIC SERVICES
21-PS-01
Project Name: Free Tax Site - Community Action Duluth
Project Summary: Community Action Duluth (CAD) requests $40,000 in CDBG 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: 1,225 LMI Individuals
Amount Recommended: $22,000
21-PS-02
Project Name: Early Childhood Education - 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: 70 LMI Individuals
Amount Recommended: $23,000
21-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: 15,000 Individuals
Amount Recommended: $81,250
21-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: 550 Individuals
Amount Recommended: $25,000
21-PS-05
Project Name: The Landlord Incentives Program - The Salvation Army
Project Summary: Salvation Army will engage landlords to provide housing opportunities for singles, families, and youth who may otherwise be prevented from renting due to criminal history.
Goal: 75 LMI Individuals
Amount Recommended: $20,000
21-PS-06
Project Name: JET/COVID Response Programming - Neighborhood Youth Services
Project Summary: NYS will provide childcare, food, and mental health services, and academic support to youth of essential workers. Should youth be able to return to school, then NYS will resume normal programming of provide food and academic support to LMI families.
Goal: 50 Individuals
Amount Recommended: $39,000
21-PS-07
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: $31,000
21-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 LIM Individuals
Amount Recommended: $9,150
21-PH-02
Project Name: Safe Haven Shelter Program - Safe Haven Shelter for Battered Women
Project Summary: Safe Haven Shelter is a 39-bed 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
21-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: 1,200 Individuals
Amount Recommended: $42,000
21-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: 131 Individuals
Amount Recommended: $31,000
21-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 (100 persons) move toward greater housing stability.
Goal: 100 Individuals
Amount Recommended: $8,500
21-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