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• » <br />HENNEPIN <br />OFFICE OF PLANNING & DEVELOPMEN <br />Development Planning Unit <br />822 South Third Street, Suite 310 <br />Minneapolis, MN 55415 <br />(612) 348-6418 FAX (612) 348-6057 J'JL 2 0 1993 <br />July 19, 1993 <br />John R. Gerhardson <br />Public Works Director <br />City of Orono <br />Post Office Box 66 <br />Crystal Bay, Minnesota <br />Dea*. Mr. Gerhardson: <br />55323-0066 <br />This is in follow-up to our telephone conversation of July 8 and your <br />earlier letter regarding the City of Orono's seeking the assistance of Che <br />Hennepin County Office of Planning and Development (OPD) to administer Che <br />sanitary sewer connection project in Stubbs Bay. <br />As we discussed, this project Involves connecting residential property in <br />the Stubbs Bay sewer area to the sanitary sewer. For those households meeting <br />the definition of low and moder.ite income (LMI) households; Community Develop­ <br />ment Block Grant (CDBG) funds will be used to pay the connection charges. The <br />City of Orono wishes to have this Office make the determination of household <br />eligibility in a manner similar to chat we have used to administer the housing <br />rehabilitation program that has been ongoing for several years. <br />In this respect, the Development Planning Unit will be responsible for <br />determining if the subject single family, owner-occupied residences are <br />occupied by qualified LMI households and conduct a title search to verify <br />eligibility for CDBG financial assistance. We will provide you with the <br />results of our determination. Overall, project design, engineering, and <br />construction management will remain the responsibility of the City of Orono. <br />In exchange for our technical assistance, the City of Orono agrees Co pay an <br />administrative fee of $1,000. <br />Two items, however, remain Co be determined by the City: <br />1) Currently, the CDBG assisted housing rehabilitation program in <br />the City of Orono is administered by Hennepin County. Income eligibility for <br />the program is based upon the household's income being at or below 50% of <br />median income for the metro area. Federal regulations, however, allow the use <br />of CDBG funds based on a household Income ip to 80% of median. The city must <br />determine which criterion will apply in the case of the sanitary sewer <br />project. <br />1) Also, it has been past practice to file a llen/repayraent <br />agreement against the property title such that if the property is sold, title <br />HENNEPIN COUNTY <br />an equal oppoftunity employer