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Sean & Sylvia- <br /> <br />Thanks again for taking the time to meet with me this morning. I enjoyed meeting everyone and discussing project <br />ideas for the City of Ramsey. <br /> <br />In follow-up to your questions regarding job creation related to acquisition and demolition using CDBG funds, I <br />reviewed the Code of Federal Regulations and have a couple of alternatives for you. <br /> <br />First, you can submit an application requesting CDBG funds to acquire or acquire and clear a property (or <br />properties) under the slum/blight national objective category, either on a spot basis or on an area basis. As we <br />discussed, Sean, I would recommend that the City Council designate the slum/blight area(s) in the city, setting <br />specific boundaries. This will facilitate the designation of slum/blight for any future projects in the delineated <br />area(s). Keep in mind, the area designated must exhibit the following physical signs of blight or decay to qualify: <br />there must be a substantiaI number of deteriorated or deteriorating buildings throughout the area. HUD will <br />consider this test to have been met if either a) the proportion of buildings in the area that are in such condition is at <br />least equal to that specified in the applicable State law for this purpose; or b) if the applicable State law does not <br />specify a percentage, then at least one quarter of all the buildings in the area must be deteriorated or deteriorating; or <br />c) the public in~provements throughout the area must be in a general state of deterioration (only one type of public <br />improvement, such as a sewer system, need be in a state of deterioration, which I believe you, Sean, indicated was <br />being replaced while we were in the area today). <br /> <br />Secondly, to avoid dealing with the job creation/retention issue, once you've acquired and demolished the property <br />and are ready to sell it to be redeveloped, you would need to follow a procedure for a "change of use" of the <br />property. The change of use procedure basically entails publishing a public notice to allow for a 30-day comment <br />period on the proposed sale of the property. Then the City's Board must approve the change in use (AFTER the 30- <br />day comment period has expired). The property can then be sold at fair-market value. Any proceeds from the sale, <br />minus any non-federal funds in the project, must be returned to the County as Program Income. However, the City <br />may then re-use those program income funds for another CDBG eligible project (of any kind). If the funds are to be <br />used for something other than another acquisition/demolition project, then you will need to go through a re- <br />allocation process, but it's quite easy. This is a nice alternative because you essentially are creating a "revolving" <br />fund to keep reinvesting. <br /> <br />A third alternative would be to use CDBG funds strictly for the clearance of the property (not for acquisition), under <br />the slum/blight national objective as well. This could also be on a spot basis or on an area basis. Based on my <br />understanding of the Codes, once the property has been cleared, you can sell it for redevelopment with no "strings" <br />attached. <br /> <br />In response to your question, Sylvia, regarding CDBG funds to build senior housing, CDBG funds cannot be used <br />for the actual construction. However, they can be used for acquisition and/or demolition/clearance and/or site prep <br />for the construction of housing..And if it is housing for seniors, low- or mod-income persons/families, or special <br />needs, the acquisition will qualify under the Iow/mod national objective. <br /> <br />As I mentioned, HOME funds can be used for housing construction. I would recommend speaking with Kate <br />Thunstrom in my office (the HOME Coordinator) to get more information about this program. Kate can be reached <br />at 763-323-5708 or kate.thunstrom~co.anoka.mn.us <br /> <br />Lastly, I did review the 2000 census data by tract and block group for the City of Ramsey. Unfortunately, you were <br />right Sylvia, there are no tracts or block groups that would qualify as low/mod as a whole. <br /> <br />If you have any additional questions, or would like additional information, please feel free to contact me. <br /> <br />Thanks again! <br /> <br />Karen Barton <br />CDBG Coordinator <br /> <br />8 <br /> <br /> <br />