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Serving Northern St. Louis County, Minnesota

Block grant funding in jeopardy?

County official warns of program elimination by Trump’s budget

Keith Vandervort
Posted 3/15/17

ELY – The St. Louis County Board approved a resolution this week authorizing $2.25 million in various Community Development Block Grant projects throughout the county. The program is funded through …

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Block grant funding in jeopardy?

County official warns of program elimination by Trump’s budget

Posted

ELY – The St. Louis County Board approved a resolution this week authorizing $2.25 million in various Community Development Block Grant projects throughout the county. The program is funded through the U.S. Department of Housing and Urban Development and could face total elimination next year under President Donald Trump.

“Preliminary budget proposals coming from the Trump administration point to the possible total elimination of the entire CDBG program across the country,” said Barbara Hayden, St. Louis County Director of Planning and Economic Development. She spoke during a public hearing before the county board at their regular monthly meeting held this Tuesday in the Ely City Hall.

The public hearing was held to receive comments on the established priorities and funding recommendations included in the 2017 Action Plan for the Community Planning and Development (CPD) programs.

Community Block Grants assist communities in achieving housing, economic development and community development objectives, and secure and administer federal, state and other funding to implement county policies and maximize local resources, according to Hayden.

The U.S. Department of Housing and Urban Development requires a consolidated application process for entitlement funds under Community Planning and Development (CPD) programs: Community Development Block Grant (CDBG), HOME Investment Partnerships Program (HOME), and Emergency Solutions Grant (ESG).

“The five-year strategic plan, the 2015-2019 Consolidated Plan, provides a vision for housing and community development and sets forth program goals, objectives, and benchmarks for measuring progress,” she said.

Within the five-year strategy, St. Louis County submits to HUD annual action plans outlining the use of HUD entitlement funds for each program year. Citizen participation requirements for the action plan include use of advisory committees for each CPD program to prioritize housing, community development, and homeless activities.

“This plan submitted today is much like the same plans I’ve seen for the better part of 15 years,” said Commissioner Keith Nelson. “Given the proposals that are occurring in Washington, is there a need to hold anything back just knowing that it could get a haircut and in fact funding is reduced?”

“This program is run on an annual basis,” Hayden responded. “If it ends, then it ends.” She said there were over $4 million in requests for the $2 million in funds available. “There are a lot of projects that need to go forward and are waiting for those funds, along with funds from other sources. Those projects are ready to go and we’ll have to handle what next comes before us.”

The St. Louis County CDBG Citizen Advisory Committee reviewed all eligible requests for 2017 CDBG funding. The committee met over the course of four days to review applications and to interview applicants. The advisory committee conducted a public meeting in January, to receive comments on its funding recommendations.

A number of 2017 CDBG program funding proposals are earmarked for many northern St. Louis County communities:

‰Cook Housing Redevelopment Authority, $25,000;

‰ Vermilion Housing in Tower/Soudan, $50,000;

‰Embarrass Fair Accessibility, $18,000;

‰Winton Community Center Improvements, $16,000;

‰Babbitt Infrastructure, $200,000;

‰ Ely Infrastructure, $155,000.

The Northeast Minnesota HOME Consortium Advisory Committee met this week to recommend funding awards. HOME funding is allocated for the development of affordable rental and homeowner housing and for home buyer assistance.

The use of Emergency Solutions Grant program funds will be coordinated with the St. Louis County Public Health and Human Services Department (PHHS) and Duluth Community Planning and Development staff.

PHHS staff facilitates the St. Louis County Continuum of Care and has established the Heading Home St. Louis County Governance Board. The Governance Board guides, evaluates, and recommends homeless policy and funding award. ESG funds are allocated to activities that provide shelter, homeless prevention and re-housing assistance to homeless families.

Commissioner Nelson noted that any message to Washington concerning possible cuts to CDBG funding should focus on the fact that any investments made are for infrastructure improvements. “A lot of these dollars are being leveraged by local communities,” he said. “CDBG is a jobs program and sometimes that gets lost in the portrayal of this program,” he said.

Following the hearing, the County Board unanimously adopted the resolution that directs Hayden to prepare and submit all documents associated with the Consolidated Plan and Action Plan.

Upon HUD approval of the St. Louis County 2017 Action Plan, the grant agreements between St. Louis County and HUD for the CDBG, HOME, and ESG programs will be presented to the County Board for approval.

Hayden pointed out that the full allocation of the CDBG funds from the U.S. Department of Housing and Urban Development would likely not be authorized until May or June. “Once we receive our final allocation, we will come back to the board for final approval on all of our projects,” Hayden said. “That delay significantly impacts our infrastructure projects by not being able to go out and bid those projects.”