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2013.02.05 Work Session Packet (2nd)CRYSTAL CITY COUNCIL SECOND WORK SESSION AGENDA Tuesday, February 5, 2013 To immediately follow the Regular City Council Meeting Conference Room A Pursuant to due call and notice given in the manner prescribed by Section 3.01 of the City Charter, the work session of the Crystal City Council was held at p.m. on Tuesday, February 5, 2013 in Conference Room A located at 4141 Douglas Drive, Crystal, Minnesota. I. Attendance Council members Staff Deshler Norris Hoffmann Therres Libby Norton Peak Revering Selton Mathisen Adams Serres Budziszewski II. Agenda The purpose of the work session is to discuss the following agenda items: ■ Overview of Community Development Block Grant (CDGB) funding process and requests ■ Update on Crystal representation on WMFD Board* * Denotes no supporting information included in the packet. III. Adjournment The work session adjourned at p.m. Memorandum CITY Faf CRYSTAL t DATE: January 31, 2013 TO: Mayor and City Council FROM: Anne Norris, City Manager SUBJECT: Overview of Community Development Block Grant Funds Process and Requests The federal government through the Department of Housing and Urban Development (HUD) allocates Community Development Block Grant (CDBG) funds to eligible cities, through urban counties. Crystal receives approximately $93,000 annually and at least 85% of the funds mucy be used for qualifying housing and redevelopment projects benefitting low income households. No more than 15% of the allocation may be used for social services. Over the last years, the City Council authorized using close to the maximum 15% to fund Crystal's share of the Five Cities Senior Transportation program. The balance of the funds have been used to fund Crystal's Deferred Home Improvement Loan program. Each year, the City Council holds a public hearing on how the CDBG funds will be allocated. The 2013 CDBG hearing is scheduled for the February 19 City Council meeting. During its 2012 CDBG hearing, a representative of HOME Line spoke requesting funds for HOME Line's services to Crystal residents. Rather than reallocating CDBG funds, the Council discussed funding HOME Line at later work sessions. HOME Line provides free legal, organizing, educational and advocacy services to tenants to try to resolve tenant/landlord issues. According to its website, HOME Line also works "to improve public and private policies relating to rental housing by involving affected tenants in the process." HOME Line has requested funds from Crystal in the past and staff's response has been that the Attorney General's office provides information regarding tenant rights and responsibilities, Legal Aid provides legal assistance to Hennepin County residents and the Minnesota Tenants Union is available to assist with advocacy in rental housing matters. HOME Line is supported by a variety of organizations, including several Hennepin County cities and several Hennepin County departments. At its September 4, 2012, meeting, the Council approved a payment of $2,000 to fund HOME Line tenant hotline services. These funds came from the Council's contingency. The Council should discuss if intends to make this contribution an annual contribution. I anticipate a representative of HOME Line will be at the February 19 CDBG hearing to once again request funds for its tenant hotline services.