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HomeMy WebLinkAbout[09a] Housing Grant \[09a\] Council Agenda Item MEETING DATE: August 21, 2017 AGENDA ITEM: Administrator Reports – Housing Grant SUBMITTED BY: Administration BOARD/COMMISSION/COMMITTEE RECOMMENDATION: PREVIOUS COUNCIL ACTION: In 2013 the City in collaboration with the Central MN Housing Partnership secured a $ 600,000 housing rehab grant program. The target area includes owner-occupied stth homes south of County Road 75 between 1 Avenue and 5 Avenue, to but not including Baker Street. 37 projects were completed utilizing $ 530,000 of the funding. The project was very successful. BACKGROUND INFORMATION: Staff reached out to the Central MN Housing Partnership to inquire if the CMHP would partner with the City and try to secure funding for a second section of the City, particularly the Cloverdale Addition. This housing stock was constructed beginning in the late 1980’s. Staff from CMHP did look at the area and agreed to put together an application. Attached is the cost and the structure of the application. The City has some dedicated funds that have been returned when a property has sold (approximately $ 11,200). Since these are competitive grants, adding seed money strengthens the application. We are requesting dedicating a total of $ 25,000 for the application plus the administration fees of $ 3,500. The funds over the $ 11,200 will be expended from the Building Permit Revenue that is in excess. The application is due in November; however, before that can be submitted the City will have to send a survey to the target area to make sure we have interest and the home owners qualify. The City would be responsible for sending the survey out but the CMHP will be the contact and answer questions. ATTACHMENTS: CMHP Small Cities Development Program Services Information CMHP Grant Application Contract Map of proposed target area REQUESTED COUNCIL ACTION: Authorize the City to work with the CMHP to submit a housing rehab grant application to DEED targeting the specified area, and authorizing matching funds in the amount of $ 25,000 and authorizing execution of a grant contract between the City of St. Joseph and CMHP. Central Minnesota Housing Partnership, Inc. Small Cities Development Program Services: Preliminary Proposal Full Application Writing General Program Administration Central Minnesota Housing Partnership provides the following grant writing services to cities or counties wishing to apply for funding through the Department of Employment& Economic Development Small Cities Development Program. Preliminary Proposal Prep & Submission • Work with city to define the proposed activities of the program • Conduct windshield surveys to determine condition of housing stock/commercial properties and estimate per unit rehabilitation cost • Conduct community meetings and provide additional outreach to generate interest lists • Work with city and/or other local groups to design program financing and determine matching resources • Research and compile demographic data pertaining to residents and properties • Determine initial program budget based on average costs, matching resources and number of units proposed • Write narrative section of preliminary proposal and organize demographic information • Submit completed preliminary proposal to DEED by November 9, 2017 deadline Preliminary Proposal preparation fee: $1,750 -project located within 30 miles of CMHP office $2,000 -project located 31-60 miles of CMHP office $2,250 - project located over 60 miles of CMHP office Full Application Prep & Submission • Collection of all housing and household data requested in the full application • Attending city council meeting(s)to provide program and application updates, and to request the required city resolution approving participation in the program • Work with city to finalize program policies and procedures • Conduct a public hearing(s) as required • Conduct additional initial outreach and marketing as needed to create interest in the program • Compile all data to complete all narrative sections of the application • Organize all required addendums to full application • Submit completed application to DEED by February 22,2018 deadline Full Application preparation fee: $1,750 -project located within 30 miles of CMHP office $2,000 -project located 31-60 miles of CMHP office $2,250 - project located over 60 miles of CMHP office Central Minnesota Housing Partnership may provide the following general administrative services to cities or counties receiving funding through the Department of Employment& Economic Development Small Cities Development Program. Implementation/General Administrative Services (information applies only if application is funded by DEED) CMHP will provide implementation services for the SCDP grant award, as well as general and field administration services for all applicable rehabilitation activities. Costs associated with administration of the grant are covered as part of the SCDP grant award. A request for general administration funds is included with the program budget submitted with the application. A per unit administrative cost is multiplied by the total number of proposed units to determine full administration request,typically $2,800-$3,000 per project/unit. General Administration: this includes the initial implementation activities and overall project management throughout the grant period. Services provided by CMHP staff include: • Environmental clearance • Fair Housing Equal Opportunity requirements • Development of specific policies and procedures for rehab activities • Marketing of program • Labor standards requirements (if applicable) • Financial requirements • Reporting General administration will include all field administration activities. Services provided by CMHP staff include: • Applicant application processing and approval/denial • Property inspections • Scope of work creation • Bid package preparation • Contractor selection with owner • Loan origination/match funds • Construction management • Final project close-out Additional information pertaining to field administration activities: Application: Interested property owners are required to complete a program application. Third party verifications are performed to document eligibility. Property Inspection: Each property will be inspected by CMHP staff to identify required repairs and determine other repairs deemed necessary through communication with the owner. . Scope of Work: CMHP will develop specifications outlining in detail the work to be done and how the work will be done. CMHP will get final scope of work approval from owners and bid packets will be sent to local contractors selected by owners. Bid Awards: It is the owner's responsibility to accept or reject bids. Construction Contract: The construction contract is between the owner and the selected contractor. CMHP will facilitate the execution of the contract. Repayment Agreement: The owner will enter into a repayment agreement with the city. Loan terms are determined by what has been established by the city and CMHP during the grant application process. Notice to Proceed: Once a contract is signed, loan documents are executed and all project funding is secured, CMHP will provide a letter to the contractor stating they may start construction on the project. Payments: Payments can be made by progress draws or when all work has been completed. In order to receive payment contractors must submit an invoice for payment, provide signed lien waivers and participate in a draw inspection. Owners sign off on release of funds for work done. Project Completion: Upon completion, the repayment agreement is filed at the County Recorder's Office and all final paperwork is completed and filed. CONTRACT FOR SERVICES PREPARATION AND SUBMISSION OF SMALL CITIES DEVELOPMENT PROGRAM PRELIMINARY PROPOSAL & FULL APPLICATION TO THE MN DEPARTMENT OF EMPLOYMENT & ECONOMIC DEVELOPMENT THIS CONTRACT for Small Cities Development Program Grant Application Writing Services is entered into on by and between the City of St. Josheph, a municipal corporation under the laws of the State of Minnesota, hereinafter referred to as "Applicant", and Central Minnesota Housing Partnership, Inc., a non-profit corporation under the laws of the State of Minnesota, hereinafter referred to as "CMHP". WHEREAS, The Applicant has requested that CMHP prepare and submit a Preliminary Proposal to the Minnesota Department of Employment and Economic Development Small Cities Development Program for owner -occupied and commercial rehabilitation activities. WHEREAS, The Applicant, upon correspondence from the Minnesota Department of Employment and Economic Development of a marginally competitive or competitive application determination based on the Preliminary Proposal, has requested that CMHP write and submit a Full Application to the Minnesota Department of Employment and Economic Development Small Cities Development Program for owner -occupied rehabilitation activities. WITNESSED: In consideration of the mutual covenants and agreements containing herein, the Applicant and CMHP agrees as follows: CMHP Preliminary Proposal Responsibilities: 1. CMHP will work with Applicant to create initial program parameters pertaining to proposed rehabilitation activities, target area(s) and funding parameters. 2. CMHP will conduct windshield surveys in proposed and designated target area(s) to determine the condition of properties within target area(s). 3. CMHP will perform research to collect demographic data required in the Preliminary Proposal. 4. CMHP will work with Applicant to conduct community outreach to generate interest in the proposed program, collect owner surveys and letters of interest and document the need for the proposed rehabilitation activities. 5. CMHP will incorporate all information and data into the designated Preliminary Proposal format and provide a draft to Applicant for final review before submission. 6. Upon Applicant's final review, CMHP will submit the Preliminary Proposal to the Minnesota Department of Employment and Economic Development the proposal deadline of Thursday, November 9'h, 2017 at 4:30 PM. Applicant Preliminary Proposal Responsibilities: 1. Applicant will submit to CMHP a payment of $ 1,750.00 for the preparation and submission of the Preliminary Proposal to the Minnesota Department of Employment and Economic Development upon execution of this contract. 2. Applicant will provide to CMHP all relevant available data and/or information to assist with the preparation of the Preliminary Proposal. 3. Applicant will review the Preliminary Proposal and provide signature of approval before submission to the Minnesota Department of Employment and Economic Development. UPON receipt of correspondence from the MN Department of Employment and Economic Development confirming marginal or full competitive status of the proposal, CMHP will write and submit a Full Application to the Minnesota Department of Employment and Economic Development, based on the following responsibilities of each party; CMHP Full Application Responsibilities: 1. CMHP will work with applicant to finalize program parameters pertaining to proposed rehabilitation activities, target area(s) and funding parameters. 2. CMHP will update windshield surveys within revised target area(s), if applicable, to support impact data. 3. CMHP will perform research to collect demographic and enviromnental data required in the Full Application. 4. CMHP will provide outreach to generate and record interest in the program to support documentation showing the need for the proposed rehabilitation activities. 5. CMHP will participate in the required Applicant public hearing and will be present at a City Council Meeting(s) to confer information resulting in an Application Resolution. 4. CMHP will incorporate all information and data into the designated Full Application format and provide a draft to Applicant for final review before submission. 6. Upon Applicant's final review, CMHP will submit Full Application to the Minnesota Department of Employment and Economic Development by the proposal deadline of February 22nd, 2018 at 4:30 p.m. Applicant Full Application Responsibilities: 1. Applicant will submit to CMHP a payment of $1,750.00 for the preparation and submission of the Full Application to the Minnesota Department of Employment and Economic Development upon correspondence from the MN Department of Employment 2 and Economic Development confirming marginal or full competitive status of the proposal. 2. Applicant will provide to CMHP all relevant available data and/or information to assist with the preparation of the Full Application. 3. Applicant will review the Full Application and provide signature of approval before CMHP's submission to the Minnesota Department of Employment and Economic. CITY OF ST. JOSEPH, APPLICANT Authorized Official Signature Printed Name & Title Date CENTRAL MINNESOTA HOUSING PARTNERSHIP, INC., CMHP Authorized Official Signature Deanna Hemmesch Executive Director Printed Name & Title Date W 2017 Proposed Target Area 1:3,000 August 17, 2017 000.025.050.1mi 000.04.080.16km SEH SEH SmartConnect User SEH