Anoka County HRA approves five CDBG‑CV amendments totaling up to $566,500 to spend remaining COVID funds

The Anoka County Housing and Redevelopment Authority Board on Jan. 28 approved five substantial amendments to the county’s portion of the Dakota County consortium 2019 action plan to allocate up to $566,500 in Community Development Block Grant – COVID (CDBG‑CV) funds. The board opened a public hearing, heard staff explanations, took no public testimony and voted on each project separately.

Renee Sandy, community development manager, told the board the amendments would commit the remaining CDBG‑CV funds to five projects and that the funds must be expended and drawn down from the U.S. Department of Housing and Urban Development (HUD) by May 2026. “There are five separate projects that are we should use up our remaining CDBG‑CV funds,” Sandy said at the hearing. The public hearing record showed no written or oral comments.

The projects approved are: up to $26,500 to Alexander House, Inc., for hoteling costs to house shelter clients during room overflows; up to $70,000 to the city of Blaine (about $60,000 for the activity plus $10,000 estimated Davis‑Bacon consultant costs) for installation of heat tape on water lines in manufactured‑home communities; up to $165,000 to the city of Columbia Heights (about $155,000 for the activity plus $10,000 estimated Davis‑Bacon consultant costs) to construct an outdoor public fitness court in a low‑ to moderate‑income area; up to $260,000 to Touchstone Mental Health for renovations at its Lyric Lane Treatment Center in Fridley (about $250,000 for activity plus $10,000 estimated Davis‑Bacon consultant costs) to add bedrooms and expand bathrooms; and up to $45,000 to Youth Way Ministries for food‑shelf equipment and delivery capacity (freezers, coolers, carts and delivery support).

Votes at a glance

- Alexander House, Inc., up to $26,500 — moved by Trustee Meissner, seconded by Trustee Jepsen; roll call vote, unanimous approval. - City of Blaine (heat tape), up to $70,000 — moved by Trustee Jepsen, seconded by Trustee Meissner; roll call vote, passed 5–2. - City of Columbia Heights (fitness court), up to $165,000 — moved by Trustee Meissner, seconded by Trustee Scholte; roll call vote, unanimous approval. - Touchstone Mental Health (Lyric Lane renovations), up to $260,000 — moved by Trustee Meissner, seconded by Trustee Heinrich; roll call vote, unanimous approval. - Youth Way Ministries (food‑shelf equipment), up to $45,000 — moved by Trustee Scholte, seconded by Trustee Braxton; roll call vote, unanimous approval.

Staff explained conditions that apply before funds are spent. Sandy and other staff said the activities are federal projects for purposes of compliance because they use HUD funds; construction activities that use federal funds and exceed federal thresholds will require Davis‑Bacon prevailing wages, time‑sheet documentation and consulting support. Sandy also said each activity must undergo an environmental review and federal procurement procedures where applicable, and the HRA executes a funding contract with each recipient before reimbursements begin.

Trustee Jepsen asked whether the city of Blaine would administer the heat‑tape program and whether the program covered manufactured‑home community residents who could not apply individually. Sandy confirmed that the city would administer the program and handle eligibility and income qualification for participating residents. Trustee Braxton questioned whether heat tape and other items tied to “social distancing” were an appropriate use of COVID funds, saying the request “sounded very questionable” and that some residents see the projects as stretching the original purpose of pandemic relief. Trustee Meissner said the HRA must balance creativity with federal rules and said unused funds would revert unless allocated.

Sandy said the HRA has an estimated $10,000 per activity allowance for Davis‑Bacon consulting where needed, but that consultant bills may come in lower; unspent amounts can be reallocated if there is time to do so before the HUD drawdown deadline. Sandy told trustees HUD requires the HRA to have disbursement requests processed in time to draw funds by May 2026 and that the HRA has asked recipients to submit disbursement requests by April 1 to ensure processing and drawdown.

After the votes, Sandy told trustees staff will notify them in the coming month about the 2025 program‑year CDBG funding request and expect another public hearing in March that will include the HRA’s five‑year plan for CDBG funding.

Chairman Gamache opened and closed the public hearing; no members of the public addressed the board during the hearing.