Agenda - Council - 09/28/1999 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I CASE CONSIDER REALLOCATION OF COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS By: Zoning Administrator Sylvia Frolik Background: Basically, CDBG funds are limited to being used for projects that benefit the handicapped, senior citizens and low to moderate income persons; planning projects; economic development; and historical preservation. Ramsey previously allocated $63,988.00 in CDBG funds towards land acquisition for the senior apartment building. However, the funds had to be pulled from that project when it became known that CDBG involvement would significantly restrict income eligibility for residents of the facility. Consequently, the funds were reallocated to preservation of the Old Town Hall in hopes that it could be renovated in time for the City's 25~' Anniversary celebration. However, that project did not meet Federal guidelines because historic preservation projects must be pristine and some renovation work had already occurred. Observations: The City has received a request from the Anoka County Community Action Program (ACCAP) that the funds be reallocated to their organization for acquisition of land in the City for development of affordable townhouse rental units. Federal regulations require a ,30 day comment period following the public hearing for reallocation of CDBG funds. :Council may adopt a resolution now to reallocate the funds pending the outcome of the 30 day comment period, or adopt a resolution to reallocate the funds at the termination of the 30 day com?ent period. Recommendation: City Staff recommends no action at this time and considering action to reallocate the funds at the end of the 30 day comment period. Council Action: No formal action necessary at this time. Review Checklist: City Administrator CC: 09/28/99