Item Description:
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Submission of a substantial amendments to the 2022 and 2023 HUD Annual Action Plans; neg Amd 1 to Agmt PR00004357, no change to dates, incr NTE to $425,850; neg Amd 1 to Agmt PR00005242, no change to dates, incr NTE to $75,000
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Resolution:
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BE IT RESOLVED, that the Hennepin County Consortium substantial amendments to the 2022 and the 2023 Annual Action Plans to reallocate up to $500,850 of loan repayments be approved; that the plan be 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 Amendments 1 to Agreements PR00004357 with City of Crystal to increase the not to exceed amount by $265,000 for a new total not to exceed amount of $425,850 and PR00005242 with Twin Cities Habitat for Humanity to increase the not to exceed amount by $25,000 for a new total not to exceed amount of $75,000 with no change in the contract periods; that following review and approval by the County Attorney’s Office, the Chair of the Board be authorized to sign the amendments, and other documents as necessary, on behalf of the county; and that the Controller be authorized to disburse such funds directed.
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Background:
The U.S. Department of Housing and Urban Development (HUD) requires Hennepin County, as the lead agency of the Hennepin County Consortium, to adopt a Five-Year Consolidated Plan and Annual Action Plans to receive HUD entitlement funds, including Community Development Block Grant Program (CDBG). Hennepin County has received repayments of loans funded from the CDBG program. Current Action Plans limit use of loan repayments to the home repair program, which is already fully funded for the program year. In order to reallocate these repayments to other activities, the Consortium is required to create a substantial amendment to impacted Action Plans.
The 2022 Action Plan (Resolution 22-0171) awarded $160,850 to the City of Crystal for the revitalization of Broadway Park Playground, a public facility. The increase in funding will allow the city to fully rehab the park creating upgraded recreational opportunities for the residents in the surrounding low-income neighborhoods and free up city funds to rehab additional parks.
The 2023 Action Plan (Resolution 23-0171) award to Twin Cities Habitat for Humanity will fund the acquisition and rehabilitation of one home for affordable homeownership. The increase in funding will cover increased construction and interest costs, and secure perpetual affordability under the community land trust model.
The substantial amendments were made available to the public for the HUD required 30-day public comment period between October 4, 2023 and November 3, 2023. Public comments will be incorporated into the final document submitted to HUD.
Current Request:
This request is for approval of substantial amendments to the Hennepin County Consortium 2022 and 2023 Annual Action Plans, and approval to negotiate amendments to two agreements to increase funding for the two projects that total $500,850.
Impact/Outcomes:
This funding will assist in the renovation of Broadway Park Playground in Crystal and the creation of one homeownership opportunity affordable to households at or below 80% of AMI.
recommendation
Recommendation from County Administrator: Recommend Approval