Agenda - Council - 12/17/1991 - Laserfiche WebLink

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! i CASE # 6 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM By: Zoning Administrator Sylvia Frolik Background: Anoka County is responsible for allocating to communities the CDBG funds from the U.S. Department of Housing and Urban Development. Basically, CDBG funds are limited to being used for projects that benefit the handicapped, senior citizens, low income persons, certain economic development activities and restoration of historical sites. The City of Ramsey's estimated allocation for 1992 CDBG is in the amount of $28,090. For your information, enclosed a summary of Ramsey's CDBG efforts over the past 10 years. I would like to take this opportunity to summarize the status of our 1991 CDBG projects. With regard to the $37,000 allocated to the County Housing Rehabilitation Program, 12% of that amount goes to the Anoka County Community Action Program (ACCAP) for administration of those funds for Ramsey. That left $32,560 to be distributed to qualifying Ramsey residents for housing rehabilitation. To date, one Ramsey resident was approved for $9,000 and work on the home has begun. Two more applications from Ramsey residents for $9,000 each are in process and are likely to be approved. There are two more residents on the housing rehabilitation waiting list and there is $5,560 remaining in Ramsey's County Housing Rehabilitation project fund. Agreements have been entered into with each of the four public service agencies approved for CDBG funds (CEAP, Rise, Alexandra House, Senior Outreach). Payments will be made to the public service agencies based upon a schedule established by the City's Finance Officer and submittal of required documentation. With regard to recarpeting the Ramsey Senior Center, staff will initiate that project early in 1992. We have until Jul3, 1, 1992 to encumber the funds. Observations: CDBG funds are processed in 3 year cycles. 1992 is the 3rd year of a 3 3,ear cycle and we must do a project in 1992; the funds cannot be carried over into the next 3 year spending cycle. In order to meet CDBG time frames, Ramsey must conduct a public hearing and adopt a resolution regarding the use of CDBG funds by the end of February. Staff is proposing that City Council conduct the CDBG public hearing at their meeting on February 11, 1992 and allocate the funds at their meeting on February 25. Once a project is approved, the funds must be spent or contractually encumbered within 18 months. In the interim, Staff is requesting direction from City Council on possible projects to be researched for CDBG eligibility. That information could then be available at the public hearing. I have researched some preliminary suggestions and found that D.A.R.E. and Anoka County Mediation Services do not qualify for CDBG funds. Hardsurfacing trails so they are handicap accessible probably would not qualify for CDBG funds if Ramsey's capital improvement plan already reflects that hardsurfaced trails are planned for anyway at some point in the future. Some projects that would qualify are park development for a low and moderate income neighborhood; installing handicap accessible play equipment at parks; external repairs to a blighted commercial building; renovating a historical building; preparation of comprehensive plans, zoning ordinances, community development plans, flood plain ordinances, etc.