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CDBG Comment Period (Extended/Revised) for 2021 Annual Action Plan Draft

Plan for Housing and Community Development Needs

Post Date:12/24/2020

Note: Due to an advertising error, the Public Comment Period for the 2021 Action Plan is being extended to January 23. A second public hearing regarding the plan will be held January 11 as noted below. 

The City of Moorhead has prepared a draft version of the 2021 Annual Action Plan for the Community Development Block Grant (CDBG) Program. The priorities established within the draft plan result from citizen participation in the development of the 2020-2024 5-Year Plan and an October 5, 2020 community meeting. Communication 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 affordable homeownership opportunities, home rehabilitation including energy efficiency improvements and accessibility, transportation opportunities to address homelessness prevention, affordable rental rehabilitation, 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.

2021 Action Plan Summary
During the 2021 program year, the City of Moorhead estimates the following resources to be available:

$266,803 – 2021 Community Development Block Grant (CDBG) allocation from HUD
$151,392 – 2021 Program Income
•   $34,405 – 2021 Unobligated Funds at 2020 Year-End                                                                                    

Other leverage resources are anticipated during 2021 to address needs identified within the Consolidated Plan from Minnesota Housing Finance Agency, Greater Minnesota Housing Fund, West Central Initiative, United Way, and others.

 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  $83,360
 Home Rehabilitation Loan Program
(6 loans + emergency loans)
 Citywide 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 $25,000 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.  $220,000
 Capital Improvement
- Public Rental Housing
 Assist in the rehabilitation of an affordable rental housing development, including sidewalk repair and replacement at Clay County Housing and Redevelopment Authority’s Fieldcrest Townhomes, located at 1828 34 Ave S. These repairs are critical for tenants, emergency responders, staff and guests. Improvements will preserve building/property and enhance livability for residents, staff, and visitors. CDBG funds will be offered as a grant. The City’s CDBG investment may be used as a match to leverage additional public and private funding to complete the rehabilitation of Fieldcrest Townhomes. ($68,500 contract/up to $3,000 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.  $71,500
Affordable Housing
 An affordable housing unit will be constructed through a partnership with Habitat for Humanity and Cass Clay Community Land Trust. 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. Location to be determined. Eligible activity in accordance with CFR Part 570.201 (a). National Objective: Activity benefiting low and moderate income persons.  $25,000
 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. ($7,000 Contract Amount/$400 Program Administration). Eligible activity in accordance with CFR Part 570.208(a)(3), 570.201(k), 570.202 (a)(1).  $7,400
 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 19 St. S. Participating youth range in age from 3-17 years; the predominant age of participants is under 12 years. 2021 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. 2021 Budget: $7,200 ($7,000 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. 2021 Budget $10,200 ($10,000 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. 2021 Budget $5,200 ($5,000 contract/$200 Program Administration)
Afro-American Development Association Youth Program: Youth programming for individuals age 14-24. Programming helps to shape a positive future through discovering unique talents and abilities through career exploration, mentoring, sports, supportive services, and post-secondary admission application assistance. The program is administered by the Afro-American Development Association at multiple locations throughout Moorhead. 2021 Budget $6,200 ($6,000 program/$200 program administration).
Contingency Funds  Funds held in contingency for issues which may arise during the program year. Contingency funds will be used as necessary for any of the above listed activities except program administration.  $10,340

Potential Adjustments to Activities & Budget
• Reductions to estimated program income or grant award will first reduce the contingency account established within the plan. If the reduction exceeds the contingency account, the Acquisition activity will be reduced. If the reduction exceeds the contingency account and the acquisition activity, the Capital Improvements/Fieldcrest Townhomes activity will be reduced, or the City may conduct a plan amendment after public notification.
• Revenue received that exceeds estimated program income or a grant award more than estimated will be applied to home rehabilitation loans, or the City may conduct a plan amendment after public notification.
• Funds allocated to home rehabilitation projects not underway by June 30 of the program year 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 draft plan is available online or by contacting the Administration Department at the address below.

Comments and suggestions from the public are encouraged through a public comment period. 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 25, 2020 through January 23, 2021

Send written comments or phone:


City of Moorhead
Attn: CD Program Administrator
PO Box 779, Moorhead MN 56561

Public Hearing: Monday, January 11, 2021 - 5:45 pm
First Floor City Council Chambers
500 Center Avenue, Moorhead MN 56560

Final Council Consideration: Monday, January 25, 2021

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