Item Description:
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Submission of general amendment to the 2021 HUD Annual Action Plan and HOME-ARP Allocation Plan; Neg Agmt A2512985 with City of Minnetonka for CDBG Program, 07/01/25-06/30/30, recv $79,324; Termination of four CDBG Agreements
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Resolution:
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BE IT RESOLVED, that the general amendment to the 2021 U.S. Department of Housing and Urban Development (HUD) Annual Action Plan and HOME-ARP Allocation Plan to reallocate up to $107,127 of Community Development Block Grant (CDBG) funds, and to increase Community Development Block Grant revenue by $79,324, be approved; and that the County Administrator be designated as the authorized official to act on behalf of Hennepin County in matter related thereto; and
BE IT FURTHER RESOLVED, that the 2021 CDBG Agreements with Lao Assistance Center (Agreement PR00003284), Somali Community Resettlement Services (Agreement PR00003281), and Volunteers of America (Agreement PR00003289) to provide emergency rent assistance and senior services in Hennepin County, and with Brooklyn Park (PR00003271) for public facility improvements, be terminated, and the remaining $107,127 be reallocated to the CDBG Consolidated Pool Housing Rehabilitation Program; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreement A2512985 with the City of Minnetonka for the CDBG Consolidated Pool Housing Rehabilitation Program, during the period July 1, 2025 through June 30, 2030, with a total estimated receivable amount of $79,324; that the following review and approval by the County Attorney’s Office, the County Administrator and Chair of the Board be authorized to execute the agreements and other necessary documents; and that the Controller be authorized to disburse funds as directed.
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Background:
The U.S. Department of Housing and Urban Development (HUD) requires Hennepin County to adopt a Five-Year Consolidated Plan and an Annual Action Plan to receive HUD entitlement funds, including the Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME). To allocate or reallocate CDBG or HOME funds, the county is required to create an amendment to the impacted Action Plan.
The 2021 Action Plan (Resolution 21-0162) allocated a combined total of $403,847 from CDBG to Lao Assistance Center (PR00003284), Somali Community Resettlement Services (PR00003281), Volunteers of America (PR00003289), and Brooklyn Park (PR00003271); these projects subsequently closed out, leaving a balance of $107,127. In addition, HUD has requested that Hennepin County accept $79,324 of CDBG Program Income from the City of Minnetonka. This general amendment to the 2021 Action Plan will reallocate these CDBG funds to the CDBG Consolidated Pool Housing Rehabilitation Program, as recommended by the 2025 CDBG RFP.
The general amendment was made available to the public for the HUD required 30-day public comment period between June 24, 2025, and July 25, 2025. Public comments will be incorporated into the final document submitted to HUD.
Current Request: This request is for approval of the general amendment to the HUD 2021 Annual Action Plan, authorization of Agreement A2512985 with the City of Minnetonka, from July 1, 2025 through June 30, 2030, with an estimated receivable of $79,324, termination of four CDBG Agreements, and allocation of these funds to the county’s CDBG Consolidated Pool Housing Rehabilitation Program.
Impact/Outcomes: Consolidated Pool Rehabilitation program will provide approximately 60 low-income homeowners with rehabilitation assistance.
recommendation
Recommendation from County Administrator: Recommend Approval