Agenda - Council - 10/26/1999 - Laserfiche WebLink

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CASE # 5 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 levels 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~h 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 un/ts. Since the hearing was called to order on September 28, we also received a letter from Lord of Life Church inquiring about the possibility of CDBG funds qualifying for options the are considering. For Council's information, an exhibit is attached that identifies past CDBG projects in Ramsey. Per Council's discussion on October 12, Staff did contact the County regarding the eligibility of the following: a) reimbursement of City expenses incurred to date in acquisition of property for an affordable housing development; b) Community Park #5; c) development of handicap accessible trails in the vicinity of the senior apartment building, Savannah Oaks; d) planrfing projects. A copy of the draft City Council meeting minutes from October 12 and September 28 is enclosed for your information. There is a county-wide cap (established by HUD) of 20% of CDBG funds being used for planning projects and 15% for public service agencies. The funds we are looking to reallocate are from 1997 and 1998 and the planning and public service percentage caps for the County are at maximum for those years. However, in January the City Council will be conducting their annual CDBG public hearing to consider allocation of unallocated 1999 funds and 2000 funds. The amount of those funds will be in the neighborhood of $50,000 and allocations towards planning projects can be made at that time. At the date of this writing, I have not received a response from Anoka County regarding the other potential projects mentioned by City Council on October 12. Staffwill try to have more definite information available at the meeting.