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Notice of Public Hearing & Comment Period: 2019 Action Plan, Budget, and Amendment of Existing Activity Budget

Community Development Block Grant (CDBG) Program

Post Date:12/27/2018 9:00 am

The City of Moorhead has prepared a draft version of the 2019 Annual Action Plan for Housing and Community Development for the Community Development Block Grant (CDBG) Program.  The priorities established within the draft plan result from citizen participation in the development of the 2015-2019 5-Year Plan and November 14, 2018 community meeting.  Tools included a community survey, consultations with area agencies identifying assets and needs, and analysis of Census and other statistical data.  Activities identified in the proposed plan include, home rehabilitation including energy efficiency improvements, transportation opportunities to address homelessness prevention, housing education for homebuyers, affordable rental rehabilitation, affordable accessible rental construction and opportunities for children and youth.  The City’s 5-Year priorities include affordable housing, activities to end homelessness, assist special needs populations, and address non-housing community development needs.

2019 Action Plan Summary

During the 2019 program year, the City of Moorhead estimates the following resources to be available:

  • $238,889.00 –2019 Community Development Block Grant (CDBG) allocation from HUD (estimated)

  • $225,000.00 –2019 Program Income (estimated)

  • $50,000.00 –2019 Unobligated Funds at 2018 Year-End (estimated)


Total = $513,889.00

Other leverage resources are anticipated during 2019 to address needs identified within the Consolidated Plan from Minnesota Housing Finance Agency, Greater Minnesota Housing Fund, West Central Initiative, United Way, and others. 

Activity

Description

Budget

Program Administration

Staff support for planning, implementation, reporting, and monitoring of CDBG resources and support for the Moorhead Human Rights Commission. CFR Part 570.206

$92,777

Capital Improvements – public rental housing

 

Assist in the rehabilitation of an affordable rental housing development. Elevator upgrades are needed at Moorhead Public Housing Agency’s Sharp View Apartments, located at 920 5 Ave S. These upgrades are critical for its users (i.e., people who are elderly/disabled, emergency responders, staff and guests). Improvements will preserve building/property and enhance livability for residents, staff, and visitors. CDBG funds are contingent on additional grant funding from other sources since overall project costs are estimated to be $150,000. If not awarded, CDBG funds will be used to do an additional home rehabilitation loan. CDBG funds will be offered as a grant to partially fund the project (approximately 27%). Moorhead Investment may be used as a match to leverage additional public and private funding to complete the project. ($40,000 Contract Amount/up to $3000 Program Administration). Eligible activities in accordance with CFR Part 570.201(c), 570.202(a)(2). National Objective: Activity benefiting low and moderate income persons.

$43,000

Home Rehabilitation Loan Program

(9-10 loans + emergency loans)

 

 

City-wide rehabilitation loan program assisting owner-occupants of single family homes whose income falls below 80% of area median income. Funds are provided on a loan basis up to $20,000 provided sufficient home equity exists. No interest accrues on the loan and the entire principal balance must be repaid upon sale, title transfer or owner vacancy of the property. Applications from interested individuals are accepted by the City on a first come, first served basis with priority for life safety emergency loans. The program is administered by the City of Moorhead. Eligible activity in accordance with CFR Part 570.202(a)(1). National Objective: Activity benefiting low and moderate income persons. Program administration included.

$284,500

 

 

Acquisition
Affordable Rental Housing

An affordable rental unit will be constructed through a partnership with Creative Care for Reaching Independence (CCRI). CDBG resources will be used to acquire a lot in a new housing subdivision to be used by CCRI to construct an affordable rental unit assisting disabled persons whose income falls below 80% of median income. Funds are provided on a deferred loan basis to CCRI. No interest accrues on the loan and the entire principal balance must be repaid upon sale, title transfer, or owner vacancy of the property. The program will be administered by CCRI. Eligible activity in accordance with CFR Part 570.201 (a). National Objective Activity benefiting low and moderate income persons. Includes $500 Program Administration.

$40,500

Acquisition

Affordable Housing

An affordable housing unit will be constructed through a partnership with Habitat for Humanity. CDBG resources will be used for acquisition and/or site preparation of a lot in a new housing subdivision through paying down the special assessments for preparation for affordable housing unit for homebuyers. Eligible activity in accordance with CFR Part 570.201 (a). National Objective: Activity benefiting low and moderate income persons. Includes $500 Program Administration.

$25,500

Accessibility Improvements

Rehabilitate affordable homes specifically through the construction of accessibility ramps or addition of assistive devices for households with a member who is disabled. CDBG resources will be used for construction materials and assistive devices (e.g.,door handles,grab bars) and/or labor; eligibility applications are managed by Freedom Resource Center and ramps are constructed either by Freedom Resource Center, volunteers of the Remodeler's Council of the Home Builders Association of Fargo-Moorhead, or paid contractors. Applications from interested individuals are accepted by Freedom Resource Center on a first come, first served basis. The program is administered by the Freedom Resource Center and the City of Moorhead.CDBG funds will be offered as a grant. ($2,000 Contract Amount/$200 Program Administration). Eligible activity in accordance with CFR Part 570.208(a)(3), 570.201(k), 570.202 (a)(1).

$2,200

Public Services

 

Eligible activities in accordance with CFR Part 570.201(e). National Objective: Activity benefiting low and moderate income persons.

Recreation Program –Romkey: Recreation activity programming, meal program and/or activities for youth in low income neighborhoods conducted by Moorhead Parks & Recreation at 900 19th St. S. Participating youth range in age from 3-17 years; the predominant age of participants is under 12 years. 2019 Budget $6,200 ($6,000 program/$200 Program Administration)

Mobile Recreation for Youth: Recreation opportunities in Moorhead’s Queens (3201 20 St S), Belsly (3500 12 St S), and Stonemill (1210 45 Ave S) Parks by means of the Boys & Girls Club of the Red River Valley’s P.O.D. “Play Outside Daily” truck, which is staffed by recreation leaders and filled with play equipment. The truck travels to metro area parks that do not have regular youth programming. The P.O.D. program focuses on physical activity, relationship building, and character development. CDBG funding will be used to offset Boys & Girls Club costs in Moorhead neighborhoods where at least 51% of the participants are from low to moderate income households. 2019 Budget: $5,200 ($5,000 program/$200 Program Administration).
Opportunities Under Transit [“OUT”] Transportation Initiative: Discounted bus pass voucher program for persons who are homeless or extremely low income (less than 30% median income) to provide transportation to and from employment or job training. The program can be accessed for monthly bus passes up to two times per year per participant. The program will be administered by Metro Area Transit, 701.476.6782. 2019 Budget $4,200 ($4,000 program/$200 Program Administration)
Homebuyer Education: Educational program to inform consumers on what they can afford in a home, how to qualify for a mortgage, and how to be a responsible homeowner. This is a metropolitan area wide program offered by Lakes & Prairies Community Action Partnership. At least 51% of clients served by the City’s resources must be low to moderate income persons. The program is approved by Minnesota Housing Finance Agency to qualify for first-time homebuyer assistance programs. 2019 Budget $0 ($10,200 from 2018 CDBG allocation $9,600 Contract/$600 Program Administration)

 

$15,600

Contingency Funds

Funds held in contingency for issues which may arise during the program year.

$9,812

 

 

Potential Adjustments to Activities & Budget

  • Reductions to estimated program income or a grant award less than forecasted will first reduce the contingency account established within the plan. If the reduction exceeds the contingency account, home rehabilitation activities will be reduced, or the City may conduct a plan amendment after public notification.
  • Program income received that exceeds the revenue forecast or a grant award more than estimated will be used to conduct blight removal activities and/or home rehabilitation loans, or the City may conduct a plan amendment after public notification.
  • Funds allocated to home rehabilitation projects not underNoway by June 30, 2019 may be redirected to blight removal activities.
  • Fluctuations greater than 25% of activity budgets will require a plan amendment with a 30-day public comment period.

Comments & Suggestions

The 2019 draft plan and activity amendment is available online at www.cityofmoorhead.com (type “CDBG plan” in search bar) or by contacting the Administration Department at the address below.

Comments and suggestions from the public are encouraged through a public comment period and/or at the public hearing (schedule below).  In advance of the public hearing, alternative formats of this information or accommodation for persons with disabilities or limited English proficiency will be made upon request (10 hours notice is required).  To make arrangements for services, call 218-299-5434; for TDD/Relay service dial 711.

30-Day Public Comment period:            December 27, 2018 through January 26, 2019

Send written comments or phone:          City of Moorhead

                                                                Administration

                                                                Attn. CD Program Administrator

                                                                PO Box 779, Moorhead MN 56561

                                                                218.299.5375 

Public Hearing:                                       Monday, January 14, 2019 - 5:45 pm

                                                                 First Floor City Council Chambers

                                                                 500 Center Avenue, Moorhead MN 56560

Final Council Consideration:                   Monday, January 28, 2019 – 5:30 pm

                                                                  First Floor City Council Chambers

                                                                  500 Center Avenue, Moorhead MN 56560

 

 

 

 

 

 

 

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