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Notice of Public Hearing & Comment Period: Proposed 2017 Action Plan, Budget, and Amendment to Existing Activity Budget

Community Development Block Grant (CDBG) Program

Post Date:10/20/2016 8:39 am

The priorities established within the draft plan result from citizen participation in the development of the 2015-2019 5-Year Plan and an August 24, 2016 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 tenants and homebuyers, 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.

2017 Action Plan Summary
During the 2017 program year, the City of Moorhead estimates the following resources to be available:

• $208,577.00 – 2017 Community Development Block Grant (CDBG) allocation from HUD (estimated)
• $150,000.00 – 2017 Program Income (estimated)
• $40,038.00 – 2016 Unobligated Funds at 2016 Year-End (estimated)

Total = $398,615.00

Other leverage resources are anticipated during 2017 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.
$71,715

Capital Improvements – emergency homeless shelters

Capital repairs and improvements at emergency shelter(s). Capital project include general repairs, upgrades, and rehabilitation to building and property. Improvements will preserve building/property and enhance livability for shelter residents, staff, and visitors. Moorhead investment may be used as a match to leverage additional public and private funding to complete project. CDBG funds would be offered as a grant. ($25,000 Contract Amount/up to $5,000 Program Administration) CFR Part 570.201(c)

$30,000

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.

$238,500

 

 

Public Services

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

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. Budget $10,200 ($9,600 Contract/$600 Program Administration)

Tenant Education: Educational program to inform tenants of their rights and responsibilities, helping them to develop a positive rental history. At least 51% of clients served by the City’s resources must be low to moderate income persons. This is a metropolitan area wide program offered by Southeastern North Dakota Community Action Agency. Budget $9,800 ($9,600 Contract/$200 Program Administration)

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. Budget $21,200 ($21,000 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. Budget $2,200 ($2,000 program/$200 Program Administration)

$43,400

Contingency Funds

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

$15,000

Potential Adjustments to Activities & Budget
• Program income less than estimated will reduce the amount of funds available for activities and may require a plan amendment with public notification
• Program income more than estimated will be directed to blight removal activities
• Funds allocated to home rehabilitation projects not underway by June 30, 2017 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

Summary of Proposed Amendment to Existing Activity Budget

Blighted/Hazardous Property Clearance (IDIS Activity #332). In order to clear additional blighted property, it is proposed to increase the budget from $214,289 to $330,889.00 ($156,65.56 already committed). May include any of the following clearance and remediation activities: acquisition, environmental remediation, clearance, demolition, and relocation benefits to qualified tenants or owners as required by the state or federal law. HUD National Objective: Slum & Blight Removal Spot Basis [24 CFR Part 570.208 (b)(2)]

Priorities – Hazardous structures and nonconforming use residential properties in deteriorated condition along the Main Avenue corridor and/or in residential neighborhoods under the City’s abatement authority when owner has not complied.

Comments & Suggestions

Review the 2017 draft plan online or by contacting the Planning and Neighborhood Services 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:
October 20 through November 18, 2016

Send written comments or phone:
City of Moorhead
Planning and Neighborhood Services
Attn. CD Program Administrator
PO Box 779, Moorhead MN 56561
218.299.5434

Public Hearing:

Monday, November 14, 2016 - 5:45 pm
First Floor City Council Chambers
500 Center Avenue, Moorhead MN 56560

Final Council Consideration:
Monday, December 12, 2016 – 5:30 pm


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