Richfield council adopts resolution to use 2025 Hennepin County CDBG allocation, authorizes subrecipient agreement

The Richfield City Council voted Feb. 25 to adopt a resolution specifying the use of the city’s 2025 allocation of Community Development Block Grant funding from Hennepin County and authorized execution of a subrecipient agreement with the county.

The resolution sets proposed allocations the staff presented for the city’s direct 2025 allotment of CDBG funds: $79,365 to the deferred loan rehabilitation program; $80,000 to a single-family acquisition and rehabilitation program; and $12,500 to a first-time homebuyer down payment assistance program. Assistant Community Development Director Julie Urban told the council that Hennepin County will change how it administers CDBG funds going forward and likely pool more funds centrally and distribute them via request for proposals.

The CDBG program, funded by the U.S. Department of Housing and Urban Development (HUD) and allocated to Hennepin County on a formula basis, supports affordable housing and community development activities. The deferred loan program provides no-interest, 30-year loans (up to $30,000) to low-income homeowners to address health, safety and property-maintenance needs; the program is administered for the city by Hennepin County. The single-family acquisition and rehabilitation funds would support purchase and rehab of an existing home by a nonprofit developer, with the property to be sold to households at or below 80% of area median income.

Julie Urban summarized the county’s administrative change: “They feel they can be more efficient by having all the money themselves and then offering it out in a request for proposals,” she said, noting the county’s action follows HUD expenditure and compliance requirements. Urban also said the Richfield HRA is evaluating housing programs and options for accessing funds under the county’s new approach.

Council members closed the public hearing with no speakers from the public and then moved, seconded and approved the resolution and subrecipient agreement. The motion recorded on the minutes authorized the city manager and mayor to execute required documents.

Clarifying details in the council discussion show an inconsistency between the single “allocation” figure reported in staff materials and the sum of the line-item amounts: staff cited a reported allocation number of $71,865 in the packet while the three line items presented total $171,865. The discrepancy was recorded in the meeting summary and attributed to Assistant Community Development Director Julie Urban.

The council’s action authorizes staff to sign the subrecipient agreement with Hennepin County and implement the listed programs subject to final documentation and standard administrative conditions.