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CASE # q <br /> <br /> CONSIDER REALLOCATION OF <br /> COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS <br /> By: Zoning Administrator Sylvia Frolik <br />Background: <br /> <br />Basically, CDBG funds are limited to being used for projects that benefit the handicapped, senior <br />citizens and low to moderate income persons; planning projects; economic development; and <br />historical preservation. <br /> <br />Ramsey previously allocated $63,988.00 in CDBO funds towards land acquisition for the senior <br />apartment building. However, the funds had to be pulled from that project when it became <br />known that CDBG involvement would significantly restrict income eligibility for residents of the <br />facility. Consequently, the funds were reallocated to preservation of the Old Town Hall in hopes <br />that it could be renovated in time for the City's 25t~ Anniversary celebration. However, that <br />project did not meet Federal guidelines because historic preservation projects must be pristine <br />and some renovation work had akeady occurred. <br /> <br />Observations: <br /> <br />The City has received a request from the Anoka County Community Action Program (ACCAP) <br />that the funds be reallocated to their organization for acquisition of land in the City for <br />development of affordable townhouse rental units. Since the hearing was called to order on <br />September 28, we also received a letter from Lord of Life Church inquiring about the possibility <br />of CDBG funds qualifying for options the are considering. <br /> <br />Federal regulations require a 30 day comment period following the public hearing for <br />reallocation of CDBG funds. Council may adopt a resolution now to reallocate the funds <br />pending the outcome of the 30 day comment period, or adopt a resolution to reallocate the tim..ds <br />at the termination of the 30 day comment period. <br /> <br />For Council's information, an exhibit is attached that identifies past CDBG projects in Ramsey. <br /> <br />Recommendation: <br /> <br />City Staff recommends no action at this time and considering action to reallocate the funds at the <br />end of the 30 day comment period. <br /> <br />Council Action: <br /> <br />No formal action necessary at this time. <br /> <br />Review Checklist: <br />City Administrator <br /> <br />CC: 10/12/99 <br /> <br /> <br />