Crookston City Council on Tuesday approved policy documents to implement a Small Cities Development Grant the city has been awarded, moving the program from planning into implementation. The grant will fund housing and commercial rehabilitation and mixed‑use units under terms that staff said total about $1.3 million.

City staff and program presenters asked the council to adopt a fair‑housing plan, a deferred‑loan income/repayment schedule, a drug‑free workplace policy required by HUD, a residential relocation/relocation assistance plan and a Section 3 plan encouraging contractors to hire low‑income local residents. Staff also recommended an administrative contract with Northwest Community Action to manage applications, inspections and disbursements.

The presenters said the environmental review required by the funding agency has been completed and that program loans will generally be deferred loans secured by repayment agreements. Staff described standard affordability periods: five years for commercial and rental rehabilitation and seven years for owner‑occupied rehabilitation; loans sold before the affordability period expires would generate program income to be reused for eligible community development activities.

Council members asked for clarification on displacement risk and local hiring. Presenters said the project is not expected to acquire and demolish properties that would displace residents, and that Section 3 is an encouragement and reporting requirement rather than a guaranteed hiring subsidy. The administrative contract, staff said, will carry out application intake, inspections and monitoring and will report outcomes to the city and the funding agency.

The council later approved a companion resolution updating the Small Cities Development Grant policies to reflect the presentation and the documents in the packet. The motion to adopt the policies passed on roll call.

The next steps are administrative: finalize the contract with the administering agency, publish the program application and begin processing eligible requests for rehabilitation funds.