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    11.    
City Council Regular
Meeting Date: 04/16/2019  
Subject:    Consider Resolution 19-44 CDBG/HOME Program Urban Requalification Process
Submitted For: Kristin DeGrande From: Kristin DeGrande, Housing Programs Coordinator

INTRODUCTION
Every three years, cities and counties receiving Community Development Block Grant (CDBG) and HOME Investment Partnerships Program (HOME) funds must complete an Urban Requalification process to continue receiving and administering these funds from the Department of Housing and Urban Development (HUD).  The current requalification process includes fiscal years 2020 - 2022.
DISCUSSION
Due to its population, the City of Coon Rapids qualifies as a "Metropolitan City", and in the past, opted to receive CDBG entitlement funds from Anoka County's annual allocation. The City has used its allocation to fund a home improvement program for lower income households who needed to make basic improvements to their home's structural or mechanical systems, energy efficiency or overall livability.  In 2017, the City lost its program administrator for its CDBG funds and chose to return the unused allocation to Anoka County who administers the same program on a county-wide level.  In 2018, the City asked Anoka County to assume the administration of its current and future CDBG entitlement funds, including servicing all past loans originated through this program which they have been doing for the past year.

The HOME program is a separate pot of money awarded to a consortium of communities Metro-wide and it is administered by the Dakota County Community Development Agency (CDA).  Coon Rapids has historically participated in the HOME program through this consortium rather than seek an separate entitlement.

At this time, Anoka County and Dakota County CDA are asking the City to make a determination as to how they would like to proceed with fiscal year 2020 - 2022 allocations.  Anoka County is asking the City to either "opt-in" and become a participant with Anoka County for their CDBG funds or accept entitlement status once again and "opt-out" of the Anoka County program.  The deadline to decide this is May 1, 2019.  Similarly, Dakota County CDA is asking the City whether they would like to "opt-out" and not participate in the Dakota County Consortium or remain in the consortium.  The deadline to decide this is May 10, 2019.
 
RECOMMENDATION
Staff recommends the City Council approve to "opt-in", continuing the current arrangements with Anoka County and Dakota County CDA to administer the CDBG and HOME funds in Coon Rapids for the next 3 year funding cycle.

Attachments
Anoka County Letter
Dakota County CDA Letter
Resolution

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