03-09-1998 Council Packet - Laserfiche WebLink

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r REQUEST FOR COUNCIL ACTION DATE: 3/9/9.' ITEM NO.: (7 Department Approval: Name Brad Brassier Title Planning Assistant Administrator Reviewed:Agenda Section: City Administrator’s Report Item Description: Application for Community Development Block Grant (CDBG) funding As identified in the Navarre Housing Study, there is a substantial need for housing rehabilitation in Navarre. One funding source available for housing rehabilitation is the CDBG program. This is federal grant money that will be applied to the identified properties in the defined Navarre area and administered by Hennepin County. Orono must compete with other cities in western Hennepin County for $213,300 of available funding. The amount being requested is $107,500. The amount allocated to Orono depends on the number of applications received from other competing communities. A copy of the grant application is attached (Exhibit A). The total proposed budget for rehabilitating the properties identified as showing the greatest need is $390,(XX). Of this amount, $215,000 is needed to rehabilitate the properties identified as being in poor or dilapidated condition according to the housing snidy. These are the properties that will be targeted for rehabilitation assistance in 1998. The $107,500 in CDBG funding will cover half of the needed amount, while Minnesota Housing Finance Agency (MHFA) assistance will likely be acquired by Hennepin County as a match to the grant funding. The MHFA funding is assistance in the form of low interest loans. The remaining $175,(XX) is needed to rehabilitate those properties exhibiting one or more deficient characteristics as identified in the housing study. In 1999, $87,500 in CDBG funding will be requested with a similar match in MHFA funding being sought. While properties exhibiting the greatest need have been identified, the order of allocating assistance will be contingent on income guidelines. If this two year effort is successful, the properties in greatest need of repair in the Navarre area will be rehabilitated. The grant application is due March 13, 1998. Its acceptance is contingent on the approval of the enclosed resolution. COUNCIL ACTION REQUESTED: To approve or amend the enclosed resolution 1