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CONSIDER ALLOCATION 017 <br />COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS <br />By: Community Development Director Sylvia Frolik <br /> <br />Background: <br /> <br />The Cour?.y receives CLBG funds from the Department of Housing and Urban Development <br />(HUD). Since 1981, the. County has retained about 28% of the funds for County-wide housing <br />rehabilitai, ton and economic development planning. Anoka Comnty has opted to distribute the <br />remaining 72% of these 5'ands to cities and townships based on a formula using population, age <br />,-*' housing, and percentage of poverty. <br /> <br />dasically~ CDBG funds are limited to being used for projects that benefit low and moderate <br />i~.come pc:rsons (handic' ~)ped persons and senic: citizens are presumed to be low to moderate <br />~r. come l'lersons), pla~cfing projects; economic development activities; and historical <br />r,:eservat~on. Under H'~ rD guidelines, there is a 15% cap on the total amount of thc County's <br />allocation that can be used for public service tgencies and a 20% c~.p on planning projects. <br />Ti~erefore, a general ru'~e of thumb for cities ,.ad townships to use when considering public <br />s ~zvice or planning projects, is 15% and 20% rez?ect'ively. However, teem is some flexibility in <br />d.,e 15%/20% generali'7 because not all cc,nmunities in the County may be proposing <br />contributions to public service agencies or planL~g projects. <br /> <br />Observations: <br /> <br />The City of Ramsey's total unallocated fund ba!ance for 1999 and 2000 is $57,134. From that <br />total we must deduct $1,000.00 for County administration fees; therefore, Ramsey's current year <br />allocation amount is $56,134.00. In addition, Ramsey must reallocate $63,988.00 in 1998 <br />CDBG funds that were diverted from the senior apartment building project. Ramsey should be <br />pursuing projects totaling $120,122.00. <br /> <br />The fiscal year for CDBG funds is from July 1 to June 30. Approved projects for current year <br />funds may not be initiated until July 1. When there is a reallocation of funds (i.e. $63,988 from <br />senior housing project), the City must publish a 30 day comment period identifying the new use <br />of the funds before the 'project can be submitted to the County for approval. Upon County and <br />HUD approval, the funds are available for spending. A chart of Ramsey's past CDBG projects is <br />enclosed for your information. <br /> <br />The following requests for CDBG funds were received from public service agencies. <br /> <br /> <br />