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t -'Cf ’ <br />^o: May^r Peterson and Orono City Council <br />Prom: Ron Moorse, City Administr.'tor <br />Date: March 20, 1992 <br />ouncxx <br />Subject; Community Development Block Grant - Funding Allocations <br />Attachments: <br />A. Memo from Larry Blackstad, Hennepin County's CDBG <br />Coordinator concerning Orono's CDBG program funding <br />history <br />B. Letter from Interfax n Outreach and Community Partners <br />requesting funding .or a project <br />The Council continued the CDBG hearing from the March 10th <br />meeting to enable staff to research the issue of the 15% cap on <br />public service funding and to contact the lOCP regarding a <br />funding request. <br />The 15% cap on funding for public services is a requirement <br />of the CDBG program. This cap is applied to the total of $2.7 <br />million in CDBG funds received by the County. Because the amount <br />allocated by Orono toward public services is a very small <br />percentage of the total cap, Orono does have some flexibility in <br />exceeding the 15% cap. However, both the City and the public <br />service agencies should be careful about creating an ongoing <br />rsliance on a funding source that^ although it has been stable <br />for quite a few years, is not guaranteed into the future. This <br />is why many of the projects funded by CDBG are one time projects. <br />The lOCP has requested a grf.iit of $2,000 to match a grant <br />from the Minnesota Housing Finance Agency to hire a project <br />manager for a low income home buyership program. <br />Several possible allocations of the $25,7C0 CDBG funding <br />amount are as follows: <br />Agency/Project <br />’rtlCAN <br />Westonka Intervention <br />lOCP <br />Housing Rehabilitation <br />Park Planning <br />yA B C <br />$ 1,000 $ 1,000 $ 1,^00 <br />1,000 1,000 1,900 <br />1,000 2,000 1,900 <br />20,000 20,000 20,000 <br />2,700 1,700 — <br />$25,700 $25,700 $25,700 <br />The Housing Rehabilitation Grant cap is $10,000 per home. <br />Most requests are very close to the cap. Larry Blackstad has <br />recommended that allocations for Housing Rehabilitation be made <br />in increments of $10,000, otherwise odd amounts will not be <br />sufficient to fund a project and will be held until the ne.t <br />funding allocation is made. If the Council deteLinines that the <br />Housing Rehabilitation amount should be $10,000 vs. $20,000, <br />there wouir. be an additional $10,000 available to allocate to <br />other projects. Projects approved in the past have included <br />neighborhood park improvements and community planning. <br />Isv