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CASE <br /> <br /> CONSIDER ALLOCATION OF <br />COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS <br />By: Zoning Administrator Sylvia Frolik <br /> <br />Background: <br /> <br />The County receives CDBG 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 />rehabilitation and economic development planning. Anoka County has opted to distribute the <br />remaining 72% of these funds to cities and townships based on a formula using population, age <br />of housing, and percentage of poverty. <br /> <br />Basically, CDBG funds are limited to being used for projects that benefit low and moderate <br />income persons (handicapped persons and senior citizens are presumed to be low to moderate <br />income persons), planning projects; economic development activities; and historical <br />preservation. Under HUD guidelines, thd~e is a 15% cap on the total amount .of the County's <br />allocation that can be used for public service agencies and a 20% cap on planning projects. <br />Therefore, a general rule of thumb for cities and townships to use when considering public <br />service or planning projects, is 15% and 20% respectively. However, there is some flexibility in <br />the 15%/20% generality because not all communities in the County may be proposing <br />contributions to public service agencies or planing projects.. <br /> <br />Observations: <br /> <br />The City of Ramsey's total unallocated fund balance 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 />