Item Description:
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Submission of HUD 2026 Action Plan; neg Agmts A2613442, A2613443, A2613444 with HUD for 2026 CDBG, HOME, ESG Pgrms, 07/01/26-06/30/31, recv $4,777,285; neg ten CDBG agmts, 07/01/26-06/30/31, NTE $2,943,872; neg five HOME agmts, 07/01/26-06/30/81, NTE $1,826,460
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Resolution:
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BE IT RESOLVED, that the U.S. Department of Housing and Urban Development 2026 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 A2613442, A2613443, A2613444 with the U.S. Department of Housing and Urban Development for the 2026 Community Development Block Grant (CDBG) Program, HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program, during the period July 1, 2026 through June 30, 2031, with a total combined estimated receivable amount of $4,777,285; 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 acceptance of this award in no way reflects acceptance of terms or conditions that are legally unenforceable against Hennepin County; and
BE IT FURTHER RESOLVED, that the County Administrator be authorized to negotiate ten CDBG implementation funding agreements, during the period July 1, 2026, through June 30, 2031, with a total combined not to exceed amount of $2,943,872; 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 five HOME implementation funding agreements, during the period July 1, 2026, through June 30, 2081, with a total combined not to exceed amount of $1,826,460; 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 and an Annual Action Plan to receive HUD entitlement funds for the Community Development Block Grant (CDBG) Program, the HOME Investment Partnerships (HOME) Program, and the Emergency Solutions Grant (ESG) Program. Hennepin County’s current Five-Year Consolidated Plan, adopted May 20, 2025 (Resolution 25-0192), covers funding years 2025-2029.
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 2026 Action Plan is Hennepin County's application to HUD for the 2026 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 2026 Action Plan include:
CDBG Entitlement funding $2,976,713
CDBG Program income and/reprogrammed funds $413,666
HOME Entitlement funding $1,537,441
HOME Program income and recaptured/reprogrammed funds $432,728
Emergency Solutions Grant (ESG) entitlement funding $263,131
Total available under 2026 Action Plan $5,623,679
A summary of proposed funding by goals of the 2026 Action Plan follows
• Increase and preserve affordable housing opportunities - $4,365,213
• Prevent homelessness and increase housing stability - $418,250
• Improve community infrastructure - $200,000
• Administration, and Community Housing Development Organization operating -
$640,216
To meet the above goals, the county will contract with external partners for $3,349,815 (Attachment 1), and directly implement CDBG Administration ($446,507), CDBG Homeowner Rehabilitation Program ($1,420,517), and HOME Administration ($143,710). ESG funds ($263,131) 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 2026 Action Plan took place on April 21, 2026, before the Administration, Operations and Budget Committee. In addition, the 2026 Action Plan was made available to the public for the HUD required 30-day public comment period between March 23, 2026, and April 22,2026. The public comment period and public hearing are submission requirements of 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 2026 Action Plan; authorization to negotiate federal entitlement awards for the CDBG, HOME and ESG programs, estimated combined total receivable amount of $4,777,285, during the period July 1, 2026 through June 30, 2031; authorization to negotiate ten CDBG implementation funding agreements during the period July 1, 2026 through June 30, 2031 with a total combined not to exceed amount of $2,943,872, and authorization to negotiate five HOME implementation funding agreements, during the period July 1, 2026 through June 30, 2081 with a total combined not to exceed amount of $1,826,460.
Impact/Outcomes: Over the next five years, the funding will assist in the creation of 277 affordable rental units; rehabilitate and preserve 128 affordable rental units; create 28 homeownership opportunities, and repair 60 homes; and provide rapid rehousing for 30 homeless households, and public services assistance to 3,260 low-income people.
recommendation
Recommendation from County Administrator: Recommend Approval