Item Description:
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Submission of HUD 2025-2029 Consolidated Plan and the HUD 2025 Action Plan; neg Agmts A2512857, A2512858, A2512859 with HUD for 2025 CDBG, HOME, ESG Pgrms, 07/01/25-06/30/30, recv $4,673,805; neg 16 CDBG agmts, 07/01/25-06/30/30, NTE $2,515,731; neg 5 HOME agmts, 07/01/25-06/30/70, NTE $1,775,074
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Resolution:
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BE IT RESOLVED, that the U.S. Department of Housing and Urban Development 2025-2029 Consolidated Plan and 2025 Action Plan be approved and submitted to the U. S. Department of Housing and Urban Development; and that the County Administrator be designated as the authorized official to act on behalf of Hennepin County in matters related thereto; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate Agreements A2512857, A2512858, A2512859 with the U.S. Department of Housing and Urban Development for the 2025 Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program, during the period July 1, 2025 through June 30, 2030, with a total combined estimated receivable amount of $4,673,805; that following review and approval by the County Attorney's Office, the County Administrator be authorized to sign the agreements, certifications, and other documents as necessary, on behalf of the county; and that the Controller be authorized to accept and disburse funds as directed; and
BE IT FURTHER RESOLVED, that sponsorship and acceptance of grant funding for the programs by the Hennepin County Board of Commissioners does not imply a continued funding commitment by Hennepin County for these programs when grant funds are no longer available; and
BE IT FURTHER RESOLVED, that the 2024 Community Development Block Grant award (Resolution 24-0186) to the Metropolitan Assistance Council for Veterans for a rental rehabilitation project (Agreement PR00006203), with a not to exceed amount of $400,000, be rescinded and reallocated for distribution under the programs described herein; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate 16 CDBG implementation funding agreements, during the period July 1, 2025 through June 30, 2030, with a total combined not to exceed amount of $2,515,731; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other related documents as necessary, on behalf of the county; and that the Controller be authorized to disburse funds as directed; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate 5 HOME implementation funding agreements, during the period July 1, 2025 through June 30, 2070, with a total combined not to exceed amount of $1,775,074; that following review and approval by the County Attorney's Office, the Chair of the Board be authorized to sign the agreements, and other related documents as necessary, on behalf of the county; 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 in order to receive HUD entitlement funds for the following programs: Community Development Block Grant Program (CDBG), HOME Investment Partnerships Program (HOME), and the Emergency Solutions Grant Program (ESG). Hennepin County is the lead HUD entitlement agency for suburban Hennepin County (recognizing that the cities of Bloomington, Eden Prairie, and Plymouth directly receive/implement CDBG funds in their communities).
The 2025-2029 Consolidated Plan identifies housing and community development priorities and goals. The goals are established based on demographic and economic data, input from community engagement, consideration of the priorities already established by HUD, Hennepin County, and participating cities, and an assessment of the funding resources anticipated to be available during the Consolidated Plan period. The 2025 Action Plan is Hennepin County's application to HUD for the 2025 CDBG, HOME, and ESG allocations and follows the priorities and goals outlined in the 2025-2029 Consolidated Plan.
Resources anticipated to be available under the 2025 Action Plan include:
CDBG entitlement funding $2,918,805
CDBG Program income and/reprogrammed funds $700,150
HOME entitlement funding $1,500,000
HOME Program income and recaptured/reprogrammed funds $386,749
Emergency Solutions Grant (ESG) entitlement funding $255,000
Total available under 2025 Action Plan $5,760,704
A summary of proposed funding by goals of the 2025 Action Plan follows
• Increase and preserve affordable housing opportunities - 3,996,041
• Prevent homelessness and increase housing stability - $400,000
• Improve community infrastructure - $638,018
• Fair housing, Administration, and Community Housing Development Organization operating - $726,645
To meet the above goals, the county will contract with external partners for $4,290,805 (Attachment 1), and directly implement CDBG Administration ($437,821), CDBG Homeowner Rehabilitation Program ($665,405), and HOME Administration ($111,675). ESG funds ($255,000) will be administered by the county’s Human Services and Public Health Department. Hennepin County HOME funding agreements are typically in the form of a 30-40-year loan and must be expended within five years. Any future program income may be allocated to the Homeowner Rehabilitation Program or administration, or elsewhere as needed.
A public hearing for the 2025-2029 Consolidated Plan and 2025 Action Plan took place on April 29, 2025, before the Administration, Operations and Budget Committee. In addition, the 2025 Action Plan was made available to the public for the HUD required 30-day public comment period between April 4, 2025, and May 4, 2025. The public comment period and public hearing are submission requirements of the Consolidated Plan and the Action Plan; public comments and the county's written response will be incorporated into the final document submitted to HUD.
The county has participated in the CDBG Program since 1974, the ESG Program since 1988, and the HOME Program since 1992.
Current Request: Approve submission of the 2025-2029 Consolidated Plan and 2025 Action Plan; authorization to negotiate federal entitlement awards for the CDBG, HOME and ESG programs, estimated combined total receivable amount of $4,673,805, during the period July 1, 2025 through June 30, 2030; authorization to negotiate 16 CDBG implementation funding agreements during the period July 1, 2025 through June 30, 2030 with a total combined not to exceed amount of $2,515,731, and authorization to negotiate 5 HOME implementation funding agreements, during the period July 1, 2025 through June 30, 2070 with a total combined not to exceed amount of $1,775,074.
Impact/Outcomes: Over the next five years, the funding will assist in the creation of 151 affordable rental units, including the Penn Station project in Ridgefield and the South Shore Park and Westonka Estates project in Excelsior and Mound; rehabilitate and preserve 199 affordable rental units; create 21 homeownership opportunities, and repair 33 homes; and provide rapid rehousing for 55 homeless households, tenant based rental assistance for 35 households, and public services assistance to 3,002 low-income people.
CON000000001188 (HOME); CON000000001187 (CDBG)
recommendation
Recommendation from County Administrator: Recommend Approval