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Council allocates 2025 CDBG funds to low‑income home‑rehab deferred‑loan program

2361717 · February 19, 2025
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Summary

St. Louis Park approved the proposed allocation of its 2025 Community Development Block Grant (CDBG) funds to Hennepin County’s low‑income home rehabilitation deferred‑loan program, using the prior year allocation amount while the county finalizes 2025 allocations.

St. Louis Park Mayor and City Council approved a resolution to allocate the city’s 2025 Community Development Block Grant (CDBG) funds to the Hennepin County‑administered low‑income home rehabilitation deferred‑loan program.

Staff summary: Marnie Olson, the city’s housing supervisor, told the council that Hennepin County had not finalized the 2025 direct allocations and that staff used the 2024 allocation figure of $169,216.21 for the city’s proposed 2025 allocation. The CDBG program year runs July 1 through June 30; Hennepin County reserves 15% of its overall CDBG budget for public‑service projects that will be distributed through a consolidated RFP and local organizations may apply to that pool.

Why it matters: Olson said the city’s proposed allocation would use the full CDBG amount to fund the county‑administered low‑income home rehab deferred‑loan program, which assists low‑ and moderate‑income homeowners with necessary maintenance and repairs. Olson told council that the program’s waiting list exceeds 100 households, demonstrating continuing demand.

Council action: After opening the public hearing and receiving no public testimony, councilmembers voted to approve the allocation. One councilmember noted the decision was appropriate given possible future changes to Hennepin County’s formula. The meeting record indicates the resolution was approved by the council.

Ending: The council directed staff to forward the approved allocation to Hennepin County and to notify local stakeholders that the city’s full CDBG allocation is committed to the low‑income deferred‑loan program for 2025.