2020-2024 Five-Year Consolidated Plan and 2020 Annual Action Plan

City of Rochester, Minnesota

DRAFT: April 23, 2020

Contents

• Executive Summary — 4
  • ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) — 4
• The Process — 9
  • PR-05 Lead & Responsible Agencies 24 CFR 91.200(b) — 9
  • PR-10 Consultation – 91.100, 91.110, 91.200(b), 91.300(b), 91.215(l) and 91.315(l) — 10
  • PR-15 Citizen Participation – 91.105, 91.115, 91.200(c) and 91.300(c) — 24
• Needs Assessment — 26
  • NA-05 Overview — 26
  • NA-10 Housing Needs Assessment - 24 CFR 91.205 (a,b,c) — 27
  • NA-15 Disproportionately Greater Need: Housing Problems – 91.205 (b)(2) — 36
  • NA-20 Disproportionately Greater Need: Severe Housing Problems – 91.205 (b)(2) — 39
  • NA-25 Disproportionately Greater Need: Housing Cost Burdens – 91.205 (b)(2) — 42
  • NA-30 Disproportionately Greater Need: Discussion – 91.205(b)(2) — 43
  • NA-35 Public Housing – 91.205(b) — 44
  • NA-40 Homeless Needs Assessment – 91.205(c) — 49
  • NA-45 Non-Homeless Special Needs Assessment - 91.205 (b,d) — 56
  • NA-50 Non-Housing Community Development Needs – 91.215 (f) — 58
• Housing Market Analysis — 60
  • MA-05 Overview — 60
  • MA-10 Number of Housing Units – 91.210(a)&(b)(2) — 61
  • MA-15 Housing Market Analysis: Cost of Housing - 91.210(a) — 64
  • MA-20 Housing Market Analysis: Condition of Housing – 91.210(a) — 66
  • MA-25 Public and Assisted Housing – 91.210(b) — 69
  • MA-30 Homeless Facilities and Services – 91.210(c) — 72
  • MA-35 Special Needs Facilities and Services – 91.210(d) — 77

Executive Summary

ES-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)

1. Introduction

The Consolidated Plan for the City of Rochester, Minnesota has been completed in response to requirements set forth by the Department of Housing and Urban Development (HUD). The plan consolidates into a single document the previously separate planning application requirements for the Community Development Block Grant (CDBG), Emergency Shelter Grants (ESG), the HOME Investment Partnerships program and Housing Opportunities for People with AIDS (HOPWA) funding, and the Comprehensive Housing and Affordability Strategy (CHAS). The City of Rochester only receives funding from the CDBG program and that is what this Consolidated Plan, which is required to be prepared every five years, addresses for the City of Rochester.

The purpose of the Consolidated Plan is:

• To identify the city's housing and community development needs, priorities, goals and strategies; and
• To stipulate how funds will be allocated to area housing and community development nonprofit organizations and governmental units.

This plan covers the time period of years 2020 through 2024. The 2020-2024 Consolidated Plan updates the city's previous five-year plan issued in 2015. The document, developed in accordance with Sections 91.200 through 91.230 of HUD's Consolidated Plan regulations, lays out how the City intends to spend it HUD entitlement funds in the areas of housing and community development.

The Consolidated Plan consists of many sections covering housing and community needs and needs of the homeless and special needs populations. The Plan also includes a strategic plan, which outlines how the City of Rochester acknowledges the needs identified. The Action Plan submitted under separate cover, will be one of five annual plans that outline how federal Community Development Block Grant dollars will be allocated each year during the course of this five-year Consolidated Plan period.

2. Summary of the objectives and outcomes identified in the Plan Needs Assessment

Overview

Estimated Housing Needs: Five Year Goals

The objective of performance is to provide safe, decent and affordable housing by preserving the existing housing stock and developing opportunities for the addition of new affordable rental and homeownership units. This will assist in revitalizing residential neighborhoods of desirable quality and stability, by representing Rochester’s citizens in terms of race, income group and household type.

3. Evaluation of past performance

During the past four years, the City of Rochester has met their goals by utilizing CDBG funds for 93 projects addressing housing needs (rental, homeless, owner occupied, and special needs), 13 projects improving public facilities and assisting 309 persons with public service grants and an additional 1,400 in projects not yet completed

Objectives and Outcomes identified in the Plan include:

• Affordable Housing, 93 housing units
  • Owner Occupied Rehabilitation - 89 owner housing units (City Home Rehab, First Homes(1), & SEMCIL (3))
  • Rehabilitation of Rental Units - 15 rental units (Accessible Space, New Hope)
  • Emergency Shelter for Homeless - 1 units emergency shelter (Women's Shelter)
  • Special Needs Housing - 2 units special needs housing (Hiawatha Homes and Bear Creek Services)
  • Affordable Housing
• Public Services - 309
  • Youth Programs - 296, youth (Boys & Girls Club, Camp Olson YMCA, Rochester Area Family Y), United Way Gang Prevention, & Sports Mentorship)
  • Child Care Programs 13 youth (Aldrich Nursery School)
• Public Facilities - 9

4. Summary of citizen participation process and consultation process

Citizen input is important to solicit throughout the development of the Consolidated Plan. As such, the City of Rochester adopted a Citizen's Participation Plan in 1990 and was updated in April 2006. The adopted Citizen Participation Plan includes information on the CDBG program, offers technical assistance, allows for the public to assess all aspects of the performance of the CDBG program, process for grievances/complaints, application for funding process, and public hearing processes, including utilizing bi-lingual staff if needed.

5. Summary of public comments

Public meeting held on November 4, 2019. No public comments received.

September 16, 2019. Representatives from agencies requesting 2020 CDBG funding presented their program and requests to City Council.

The following presented:

October 7, 2019 Public Hearing: Jean DeWitz of DeWitz Homebuilders came forward to thank the Council for recognizing the need for affordable housing and funding the DeWitz activity of down payment assistance.

Notice for 30-day comment public review published in the Rochester Post Bulletin on October 15, 2019. Comments: None.

6. Summary of comments or views not accepted and the reasons for not accepting them

All comments accepted.

7. Summary

The City of Rochester 2020-2024 Consolidated Plan summarizes the objectives and outcomes identified by citizens, public service providers, city council and city staff. Notice for 30-day comment public review published in the Rochester Post Bulletin on October 15, 2019.

The Process

PR-05 Lead & Responsible Agencies 24 CFR 91.200(b)

Describe agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source

The following are the agencies/entities responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.

Narrative

Consolidated Plan Public Contact Information

PR-10 Consultation – 91.100, 91.110, 91.200(b), 91.300(b), 91.215(I) and 91.315(I)

1. Introduction

The City of Rochester conducted a public meeting on November 4, 2019. A notice was placed in the local newspaper inviting interested parties the opportunity to voice their opinions regarding the City’s housing and development needs. No one attended this public meeting. The draft copy of the 2020-2024 Consolidated Plan was available to the public for comment for a 30-day period beginning October 15, 2019 until November 14, 2019.

The location and timing of this meeting is accessible and flexible to reach the broadest audience. The issue is the need for more of public interested in participating and extending communication of the event. To resolve this in the future, we will consider broadening our areas of communication of this meeting. Some examples include posting the event on the City’s website, or a radio broadcast.

Provide a concise summary of the jurisdiction’s activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(I)).

The study provides results of the Shelter Survey completed by the MN Department of Children, Families and Learning, conducted two times a year.

The Olmsted County Housing and Redevelopment Authority has collaborated with local organizations to bring services directly to public housing tenants.

• Collaborated with Rochester Public Schools to engage public housing parents with school personnel.
• Collaborated with the Boys and Girls Club to bring after-school programming to children in public housing.
• Collaborated with Public Health to provide public housing tenants with community gardens for food, budget savings, community connections, and family engagement.
• Collaborated with Workforce Development, Hawthorne Education Center, Community Health Services, Children’s Dental to provide resources at the 2018 HUD Strong Family Initiative event for public housing tenants.

The Olmsted County Housing and Redevelopment Authority (OCHRA) partnered with Olmsted County Public Health Services to conduct a Housing Environmental Scan in 2018 to articulate current housing issues, clarify roles and efforts, identify resources and gaps, as well as develop priorities and goals; this data was used in response the Olmsted County Public Health Service’s Community Health Assessment.

Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness

The City of Rochester does not directly provide programs that address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans and unaccompanied youth) and persons at risk of homeless. The Continuum of Care for Rochester is provided through Three Rivers These programs are delivered by private non-profit agencies such as: Rochester Area Family Y, Olmsted County HRA, SE MN Center for Independent Living, Bear Creek Services, Hiawatha Homes, Women's Shelter, Salvation Army, Zumbro Valley Mental Health Center, Community Housing Partnership, Catholic Charities and Lutheran Social Services.

Identify any Agency Types not consulted and provide rationale for not consulting

The MN State Health Department.

The State Health Department was not contacted for information because the City has access to the local Olmsted County Health Department regarding lead paint issues. All rehabilitation projects using Community Development Block Grant funding are tested through a private firm for evidence of lead base paint and removed according to the required lead paint removal practices.

Through the review process of the City’s Consolidated Plan the local CoC was contacted. The CoC provided information for the homelessness needs assessment. Information/data provided by the local CoC was also provided in the Comprehensive Housing Needs Assessment for Olmsted County, MN completed by Maxfield Research, Inc.

Other local/regional/state/federal planning efforts considered when preparing the Plan

Describe cooperation and coordination with other public entities, including the State and any adjacent units of general local government, in the implementation of the Consolidated Plan (91.215(l))

In addition the surveys conducted by the City of Rochester for it’s 2015-2019 Consolidated Plan, information/data that was included from the November, 2014 release of the Comprehensive Housing Needs Assessment for Olmsted County, Minnesota completed by the Maxfield Research, Inc. was accessed and used in City’s 2015-2019 Consolidated Plan. The Maxfield Research, Inc.engaged with Olmsted County Community Services (in coordination with the Mayo Clinic, Rochester Area Foundation and City of Rochester) to conduct a Comprehensive Housing Needs Assessment for Olmsted County. The primary research included interviews with rental property managers and owners, developers, business leaders, City staff and others involved in the housing market in Olmsted County.

Olmsted Planning Department, Channel One, ARC SE Minnesota, Family Action Collaborative, United Way of Olmsted County, Samaritan Bethany, IMAA, City Public Works, Park & Recreation, Camp Olson, Catholic Charities, SE MN Regional Legal Services, LINK Program, RCTC Choices SE MN, Legal Assistance of Olmsted County, MN Adult Team Challenge, RNeighbors and Lutheran Social Services. All these agencies work with a number of public and private agencies that address the needs of low-moderate income persons, including but not limited to, affordable housing issues, services for homeless persons, senior programs, social service programs and diversity programs.

PR-15 Citizen Participation – 91.105, 91.115, 91.200(c) and 91.300(c)

Summary of citizen participation process/Efforts made to broaden citizen participation

Summarize citizen participation process and how it impacted goal-setting

Consolidated Plan

ROCHESTER

OMB Control No: 2506-0117 (exp. 06/30/2018)

Needs Assessment

NA-05 Overview

Needs Assessment Overview

City Staff with consultation from the agency providers and the public identified the following:

• Housing
  • homeless shelters
  • rehabilitation of single family dwellings
  • rehabilitation of rental units
  • affordable housing (ownership)
  • affordable rental housing
  • special needs housing
  • energy efficiency
  • lead based paint hazards
  • section 8 vouchers
  • housing tax credits
  • awareness of housing resources
• Public Services
  • youth services
  • senior services
  • childcare services
  • services for persons with disabilities
  • substance abuse services
  • employment training
• Public Facilities
  • structure / facilities that provide services to low and low-moderate income persons
  • park and recreation facilities in low / moderate income block groups
  • child care center

NA-10 Housing Needs Assessment - 24 CFR 91.205 (a,b,c)

Summary of Housing Needs

There are 19,165 low to moderate-income households in Rochester, MN, representing nearly 44% of the total households. Data in this section has been provided by the US Department of Housing and Urban Development (HUD), and American Community Survey data where noted.

The City of Rochester is committed to providing safe, decent and affordable housing by preserving the existing housing stock and developing opportunities for the addition of new affordable rental and homeownership units. This will assist in revitalizing residential neighborhoods of desirable quality and stability, by representing Rochester’s citizens in terms of race, income group and household type.

Number of Households Table

Data Source: 2011-2015 CHAS

Housing Needs Summary Tables

1. Housing Problems (Households with one of the listed needs)

2. Housing Problems 2 (Households with one or more Severe Housing Problems: Lacks kitchen or complete plumbing, severe overcrowding, severe cost burden)

Data Source: 2011-2015 CHAS

3. Cost Burden > 30%

Data
Source: 2011-2015 CHAS

4. Cost Burden > 50%

Data
Source: 2011-2015 CHAS

5. Crowding (More than one person per room)

Describe the number and type of single person households in need of housing assistance.

There were 1,642 male non-family households, and 2,456 female non-family households below the poverty level, according to the 2013-2017 ACS. This data does include persons living together who are unrelated in addition to single persons; we estimate single persons make up about 50% of these households that need assistance, due to our aging population. Thus 821 male single person households and 1,228 single female households.

Estimate the number and type of families in need of housing assistance who are disabled or victims of domestic violence, dating violence, sexual assault and stalking.

When comparing disabilities by age, 4.2% of the County’s ages under 18 years populations had a disability as did about 8.4% of the age 18 to 64 years population and 329.7% of the age 65 years and over population.

Olmsted County has numerous housing facilities dedicated to servicing specialized populations. Specialized populations include ex-offenders, homeless individuals, chemical dependency members, mental illness individuals. Specialized housing in Olmsted County is provided by (several with multiple programs): Next Chapter Ministries, Damascus Way, Transitional Living Center, Olmsted County HRA,

What are the most common housing problems?

Most common housing problems are demand and affordability.

Projected grown in Rochester is estimated to add 55,000 new residents through the year 2040. With that, employment is expected to grow by 50,000 new jobs, and 24,000 new housing units will be needed to balance this growth. Baseline growth assumptions predict by year 2040, we will need 8,800 single-family housing units, 17,300 multifamily units, and 1,980 senior housing units.

Research by the Greater Minnesota Housing Fund (GMHF) has determined a need for 2,000 units of affordable housing by the year 2020. Since 2015, approximately 1,300 affordable rental units have been added to the market. Supply is still limited. Rental vacancy reports are listed at 1.4% for affordable units and 0% for subsidized units.

Source: Planning 2 Succeed; Rochester Comprehensive Plan 2040, Rochester-Olmsted Planning Department (formerly)

Are any populations/household types more affected than others by these problems?

In the City of Rochester, small related and elderly 0-30% AMI AMI renters are more affected by housing problems. More than 16% of the small related and 52% of the elderly have income cost burden greater than 30%.

The Destination Medical Center has the potential to transform Rochester and Olmsted County should the projected jobs (35,000 to 45,000) in Minnesota and 25,000 to 30,000 in Southern Minnesota result over the next few decades.

Rochester renter-occupied households tend to be more housing cost burdened than owner-occupied households. About 12% of owner households and 42% of renter households are estimated to be paying more than 30% of their income for housing costs. About 73% of renters with incomes below $35,000 are cost burdened and 43% of owners with incomes below $55,000 are cost burdened.

22% of all rental households in Rochester are extremely low income. There is a total of 3,820 of which 16% (620) are elderly, 26% (995) are small related, 6% (225) are large related, and 52% (1,980) are other. 64% of the extremely low-income rental households have some housing problem. 91% of the

Describe the characteristics and needs of Low-income individuals and families with children (especially extremely low-income) who are currently housed but are at imminent risk of either residing in shelters or becoming unsheltered 91.205(c)/91.305(c)). Also discuss the needs of formerly homeless families and individuals who are receiving rapid re-housing assistance and are nearing the termination of that assistance

The characteristics and needs of low-income individuals and families with children who are currently housed but are at imminent risk of either residing in shelters or becoming unsheltered may include the long waiting list for Section 8 / public housing, rental housing is not affordable, few rental units available for families, limited shelters, limited transitional housing and shortage of funds.

About half of the 497 people counted in 2018’s Point in Time Count were in transitional housing programs. Furthermore, 27% (79) families with adults and children experienced homelessness in 2018. About 79 families with 120 children

Source:2018 Regional Homelessness Needs Assessment, by River Valleys Continuum of Care with regional grantees of the Family Homelessness Prevention and Assistance Program (FHPAP)

If a jurisdiction provides estimates of the at-risk population(s), it should also include a description of the operational definition of the at-risk group and the methodology used to generate the estimates:

• Salvation Army RHASP. 28 homeless families received first month’s rent or deposition to help them secure rental housing.
• LINK. 16 families with parents under 25, received assistance to prevent or end their homelessness with case management, rent payment assistance, transportation expenses assistance, or help with rent deposits.

Specify particular housing characteristics that have been linked with instability and an increased risk of homelessness

The CoC, Three Rivers, uses a common assessment process to prioritize and customize assistance to households at greatest risk of becoming homeless. As of July 2019, this common assessment is the Minnesota Prevention Assessment Tool (MPAT), developed by Minnesota Housing and a TA provider. Risk factors assessed include current housing status (being doubled-up, not on a lease), criminal history, adverse childhood experiences (homelessness, foster care placement, frequent moves, etc.), domestic violence or other major household trauma or event (death of family member, separation/divorce, major injury or illness, etc.), recent discharge from an institution, low income, and previous evictions. Discrimination based on race/ethnicity, sexual orientation or gender identity, and familial status are also contributing factors, but are hard to break out from other risk factors. Based on initial analysis, the most significant risk factors across all households are previous history of homelessness and current housing status, while specific barriers to housing such as history of institutionalization affect certain portions of the population. Low income by itself is not a strong predictor of homelessness. (Comparing the number of households who are homeless with the total population of households with very low income, fewer than 1 in 10 households with very low income become homeless.) Instead, when the other risk factors are present, limited income compounds the situation by limiting the household choices available to prevent homelessness.

Discussion

NA-15 Disproportionately Greater Need: Housing Problems – 91.205 (b)(2)

Assess the need of any racial or ethnic group that has disproportionately greater need in comparison to the needs of that category of need as a whole.

Introduction

The four housing problems in the jurisdiction are:

• Lacks complete kitchen facilities
• Lacks complete plumbing facilities
• More than one person per room (overcrowding)
• Cost burden greater than 30%

0%-30% of Area Median Income

Data Source: 2011-2015 CHAS

*The four housing problems are:
1. Lacks complete kitchen facilities, 2. Lacks complete plumbing facilities, 3. More than one person per room, 4. Cost Burden greater than 30%

30%-50% of Area Median Income

50%-80% of Area Median Income

Data Source: 2011-2015 CHAS

*The four housing problems are:

1. Lacks complete kitchen facilities
2. Lacks complete plumbing facilities
3. More than one person per room
4. Cost Burden greater than 30%

80%-100% of Area Median Income

Data Source: 2011-2015 CHAS

*The four housing problems are:

1. Lacks complete kitchen facilities
2. Lacks complete plumbing facilities
3. More than one person per room
4. Cost Burden greater than 30%

Discussion

It can be viewed that the largest groups experiencing housing problem are the White and Black / African American households that are 0-30%, >30%-50% of the area median income. White households that are >50%-80% and >80%-100% of median income.

NA-20 Disproportionately Greater Need: Severe Housing Problems – 91.205(b)(2)

Assess the need of any racial or ethnic group that has disproportionately greater need in comparison to the needs of that category of need as a whole.

Introduction

The four severe housing problems are:

• Lacks complete kitchen facilities
• Lacks complete plumbing facilities
• More than 1.5 persons per room
• Cost burden over 50%

0%-30% of Area Median Income

Data Source: 2011-2015 CHAS

30%-50% of Area Median Income

Data Source: 2011-2015 CHAS

*The four severe housing problems are:

1. Lacks complete kitchen facilities,
2. Lacks complete plumbing facilities,
3. More than 1.5 persons per room,
4. Cost Burden over 50%

50%-80% of Area Median Income

Data Source: 2011-2015 CHAS

*The four severe housing problems are:

1. Lacks complete kitchen facilities,
2. Lacks complete plumbing facilities,
3. More than 1.5 persons per room,
4. Cost Burden over 50%

80%-100% of Area Median Income

Data Source: 2011-2015 CHAS

Footnote

Discussion

It can be viewed that the largest groups experiencing a severe housing problem are the White and Black / African American households that are 0-30%, and White Households that are>and >50%-80% of median income.

NA-25 Disproportionately Greater Need: Housing Cost Burdens – 91.205 (b)(2)

Assess the need of any racial or ethnic group that has disproportionately greater need in comparison to the needs of that category of need as a whole.

Introduction:

There are two factors when measuring affordability: income and housing prices. Cost burden is considered a problem when housing cost exceeds 30% of income, and a severe problem when the cost burden exceeds 50%. According to the HUD data, 10,350 households experience housing cost burden.

Housing Cost Burden

Data Source: 2011-2015 CHAS

Discussion:

According to the data, whites make up 79% of the 10,350 households experiencing housing cost burden problem, followed by 10% Black/African American and 4% Asian households.

NA-30 Disproportionately Greater Need: Discussion – 91.205(b)(2)

Are there any Income categories in which a racial or ethnic group has disproportionately greater need than the needs of that income category as a whole?

It can be viewed that the largest groups experiencing greater needs are the White and Black / African American households that are 0-30%, >30%-50% of the area median income and White households that >50%-80% of median income.

If they have needs not identified above, what are those needs?

NA

Are any of those racial or ethnic groups located in specific areas or neighborhoods in your community?

The City of Rochester does not have any specific neighborhoods or areas where racial or ethnic groups are concentrated.

NA-35 Public Housing – 91.205(b)

Introduction

The City of Rochester does not own or manage any public housing units. The Department of Housing and Urban Development Public Housing program is owned and managed by the Olmsted County HRA. All information provided in the Consolidated Plan was obtained from the Olmsted County HRA.

Totals in Use

*includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition

Data Source: PIC (PIH Information Center)

Characteristics of Residents

Consolidated Plan

ROCHESTER

OMB Control No: 2506-0117 (exp. 06/30/2018)

Race of Residents

Ethnicity of Residents

Data Source: PIC (PIH Information Center)

Section 504 Needs Assessment: Describe the needs of public housing tenants and applicants on the waiting list for accessible units:

There are nine accessible units in the Olmsted County HRA's public housing program and 28 persons on the waiting list with a request for an accessible unit.

Most immediate needs of residents of Public Housing and Housing Choice voucher holders

The waiting list for the Olmsted County HRA public housing is 450 applicants. This waiting list is closed due to the number on the waiting list.

The waiting list for the Housing Choice Voucher program is 1,000 applicants.

The City of Rochester does not own or manage any public housing units. The Olmsted County HRA delivers public housing programs. The City will continue to provide assistance either supportive or financially upon request by the Olmsted County HRA.

The Olmsted County HRA (OCHRA) administers programs through Olmsted County, including the City of Rochester. The OCHRA will continue to issue vouchers for tenant based assistance in an efficient and effective manner in order to maximize use of all Federal resources and is responsible for the following programs:

Rental Assistance, two types of programs, Tenant based (LIPH) owns and manages 110 public housing units within the City of Rochester. Homestead Green - 30 units, Homestead Terrace - 30 units, Westwood - 30 units and 20 single family, scattered sites. In addition, the Olmsted County HRA receives Capital Funds from the US Department of Housing and Urban Development on an annual basis.

The Olmsted County HRA provides additional affordable housing through the following projects:

Housing Options Program (HOP), local tenant-based program for tenants with special needs.

Transitional Housing Assistance Program (T-RAP), tenant-based state program for single mothers and households of color.

Rehabilitation programs for single-family dwellings, Community Fix Up, Fix Up Fund, MN Housing Rehabilitation.

Rehabilitation programs for multi-family dwellings, 6 percent Rental Rehabilitation Loan, and Home Rental Rehabilitation Loan program

The OCHRA works with Olmsted County Community Services - Adult Services and Zumbro Valley Mental Health Center administering the Shelter Plus Care program.

How do these needs compare to the housing needs of the population at large

Applicants on the waiting list have a greater need than the population at large due to housing options limited by income. In addition, the Olmsted County HRA reports an overall vacancy rate of 4.7%, though it estimates 5.9% for market rate units, and 1.7% for affordable units—all of which presents an even greater barrier to the needs of applicants on the waiting list.

Discussion

None

NA-40 Homeless Needs Assessment – 91.205(c)

Introduction:

It is a challenge to identify the total number of homeless members in the community. The number can vary greatly as homeless members move from location to location.

Information available and provided in the table below is for the Southeast MN region, which includes the City of Rochester.

Homeless Needs Assessment

Data Source Comments: Point-in-Time Count MN-502 Rochester/Southeast Minnesota CoC and Wilder Research

Consolidated Plan

ROCHESTER

OMB Control No: 2506-0117 (exp. 06/30/2018)

Rural Homeless Needs Assessment

Data Source Comments: Point-in-Time Count MN-502 Rochester/Southeast Minnesota CoC and Wilder Research

NA-40 Homeless Needs Assessment – 91.205(c)

Introduction

It is a challenge to identify the total number of homeless members in the community. The number can vary greatly as homeless members move from location to location.

Information available and provided in the table below is for the Southeast MN region, which includes the City of Rochester.

Homeless Needs Assessment

Data Source Comments:

Point-in-Time Count MN-502 Rochester/Southeast Minnesota CoC and Wilder Research

Consolidated Plan ROCHESTER 50

OMB Control No: 2506-0117 (exp. 06/30/2018)

Indicate if the homeless population is: Partially Rural Homeless

Rural Homeless Needs Assessment

Data Source Comments:

Point-in-Time Count MN-502 Rochester/Southeast Minnesota CoC and Wilder Research

Consolidated Plan ROCHESTER 51

OMB Control No: 2506-0117 (exp. 06/30/2018)

Homelessness in Rural Areas

For persons in rural areas who are homeless or at risk of homelessness, describe the nature and extent of unsheltered and sheltered homelessness with the jurisdiction:

If data is not available for the categories “number of persons becoming and exiting homelessness each year,” and “number of days that persons experience homelessness,” describe these categories for each homeless population type (including chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth):

It is a challenge to identify the total number of homeless members in the community. The number can vary greatly as homeless members move from location to location.

Upon consultation from the local CoC provider (Three Rivers), the data they provided includes:

Number of persons in CoC region who experienced homelessness for the first time in FFY 2018 (last report period) = 972. The number of people who had no entries into the region’s Homeless Management Information System (HMIS) in the previous 24 months and then were entered into Emergency Shelter, Transitional Housing, Rapid Rehousing, or Permanent Supportive Housing during FY 2018 measures this. The Institute for Community Alliances manages the MN HMIS South.

It is It is a challenge to identify the total number of homeless members in the community. The number can vary greatly as homeless members move from location to location.

As reported in the January 2018 Count of Homeless persons in Shelter in Southeastern Minnesota, there were a total of 53 persons reported unsheltered: all reported staying in a place that is not a regular/permanent place to stay like outdoors, in a car or vacant building, etc.

There are four emergency shelters located in Rochester: Dorothy Day House, Interfaith Hospitality Network, Lutheran Social Services, and Women’s Shelter of which 116 households were served. 95 were adults, 30 were youth (18-24), 0 unaccompanied minor youth, and 68 children.

The Salvation Army provided motel//hotel vouchers to 52 households, 12 of these households were families with children, totaling 60 adults and 14 children in all—most households were adult-only households. The Salvation Army, DOC and Women’s Shelter provided Transitional Housing to 121 households consisting of 63 adults, 75 youth (18-24) and 100 children.

Consolidated Plan ROCHESTER 52

OMB Control No: 2506-0117 (exp. 06/30/2018)

It is difficult to measure how many people exit homelessness each year because not all persons exit homelessness using programs like Rapid Rehousing or Permanent Supportive Housing. (Emergency Shelter and Transitional Housing settings are still considered homeless in the measurements.) However, here is what we know:

• 336 persons entered homeless-designated housing (usually through Coordinated Entry referral)
• 110 self-resolved (found other housing)
• 29 were no longer eligible for referral (moved to other region or in institutional setting)
• Fifty-three (53) were unable to locate housing where they could use their rental assistance vouchers.
• One hundred eighty four (184) were unreachable after multiple attempts when a referral was made
• 35 refused service.
• Median length of time homeless reported for persons moving into Emergency Shelter, Transitional Housing, Rapid Rehousing, or Permanent Supportive Housing during FY2018 was 112 nights. If Transitional Housing is removed from the equation (because time in transitional housing as homeless), the median is 66 nights. (Actual nights in ES or TH: median is 61 days. Actual nights in ES: median is 31 days. This indicates that people are staying in formal shelters only about half of the time that they are experiencing homelessness.)

Consolidated Plan ROCHESTER 53

OMB Control No: 2506-0117 (exp. 06/30/2018)

Nature and Extent of Homelessness (Optional)

Data Source Comments:

Families in Need of Housing Assistance

Estimate the number and type of families in need of housing assistance for families with children and the families of veterans.

The Olmsted County HRA has 450 applicants for their public housing units and 1,000 applications for HUD’s Choice Voucher Program or Section 8.

The MN Department of Children, Families and Learning Shelter Survey does not count the number of people sleeping on the street, in cars, in abandoned buildings, or those who are inappropriately double up. For this reason, the survey is not a count of all homeless people, only those provided with shelter for the night.

Source: Olmsted County HRA

There are typically 13 homeless families/year in the Salvation Army’s rapid re-housing housing program. In 2018, these households were made up of two single persons, and 11 families with children, totaling 30 people.

In the past year, about 86 families with 181 children who were homeless or at risk of homelessness received assistance from programs that prevent homelessness or rapidly re- house those who have become homeless

The Minnesota Department of Education reported that there were 104 unaccompanied youth counted as homeless in the Olmsted County Public Schools in the 2018-2019 school year. The 2018-2019 school year, 47 unaccompanied homeless youth have been identified in the Rochester Public Schools.

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Each year, about 58 unaccompanied youth (ages 17-25) without children receive homeless prevention assistance through the LINK FHPAP program previously operated by the Rochester YMCA but now run by Lutheran Social Services.

Over the past 6 months, the Homeless Service Team has worked with 12 individuals ages 18-25 who are homeless. At any given time, there are typically eight homeless youth receiving housing assistance and supportive services through Lutheran Social Service’s LINK transitional housing program for youth.

As reported in the January 2018 Point in Time Counting of Homeless Persons without Shelter in Southeast Minnesota there were 66 homeless persons without shelter. Regarding veterans, three persons reported as being veterans.

Nature and Extent of Homelessness by Racial and Ethnic Group

As reported in the January 2018 Point in Time Counting of Homeless Persons without Shelter in Southeast Minnesota there were 66 homeless persons without shelter. Regarding racial and ethnic reporting, 54 were white, six were black or African-American, one Asian, one American Indian or Alaska Native, and four identified as multiple races.

Nature and Extent of Unsheltered and Sheltered Homelessness

Affordable rental housing was identified most often as being really needed. Additional priorities identified for 2019 include rapid re-housing/transitional housing for identified target populations as well as expansion of permanent supportive housing. For families that participate in transitional housing, most came from emergency shelter.

Due to a lack of shelters for youth population, youth who are homeless or at risk of homelessness are typically doubled up. Sixty percent of youth households receiving FHPA assistance were staying with a family member or friend prior to seeking FHPAP assistance.

For youth that seek help from existing programs or identify a need for housing, their current housing situation is often short term. Two-thirds of youth households receiving FHPAP assistance had been in their living situation for three months or less.

In 2018, there were 200 families with 132 children who were sheltered in Rochester due to domestic violence or homelessness or both.

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For the 2010-2011 school year, 314 children met the definition of homeless in Olmsted County schools. In addition to the 109 who were sheltered, there were 182 who were doubled up with other friends/family and 23 staying in a hotel/motel.

In recent months, approximately 7 homeless families are turned away each month from Women’s Shelter, Salvation Army Transitional Housing, and Zumbro Valley Mental Health Center’ Homeless Outreach Program.

There are typically 13 homeless families/year in the Salvation Army’s rapid re-housing housing program. In 2018, these households were made up of two single persons, and 11 families with children, totaling 30 people.

In the past year, about 86 families with 181 children who were homeless or at risk of homelessness received assistance from programs that prevent homelessness or rapidly re- house those who have become homeless.

The number of homeless families staying at the Dorothy Day Shelter has increased over t past three years, from 25 families with 61 children in 2011 to 25 families with 49 children in 2018.

Dorothy Day is not designed to shelter families, and often have to turn families away due to configuration and capacity. Families typically stay here as a last resort when they don’t meet the entry requirements for Interfaith House of Hospitality other options are full.

Discussion

NA

NA-45 Non-Homeless Special Needs Assessment — 91.205 (b,d)

Introduction

The Non-Homeless Needs Assessment describes:

• The characteristics of special needs population
• The housing and supportive needs of these population
• The characteristics of persons living with HIV/AIDS

Describe the characteristics of special needs populations in your community

Data on the number of people in Olmsted County with disabilities was obtained from the 2018 and 2017 Census American Community Survey. The Census Bureau defines a disability as a long-lasting physical, mental, or emotional condition lasting six months or longer.

Overall, 10% of the County’s non-institutionalized population has some form of disability. This percentage is comparable to the State’s (10%).

When comparing disabilities by age, 4% of the County’s under 18 years population had a disability, as did 7% of the age 18 to 64 population and 29% of the age 65 and over population.

Cognitive disability is the most prevalent type of disability among children (8%) and ages 18 to 64 (4%). Among seniors, the most common disability is ambulatory disabilities (19%).

What are the housing and supportive service needs of these populations and how are these needs determined?

Housing needs of these populations include affordable housing, including accessible housing. Supportive services of these populations include senior services, transportation, and other public service programs.

Olmsted County has 233 facilities that serve persons with disabilities licensed with the Minnesota Department of Human Services. Adult foster care provides the greatest amount of housing for persons with disabilities in Olmsted County. There are 215 adult foster care facilities in Olmsted County. These homes serve individuals with a variety of needs/disabilities, including developmental disabilities, mental health issues, various medical and other issues (which would include brain injury), or our aging population. There are 148 Community Residential Services (corporate group homes), 101 Adult Family Foster Care homes, totaling 259 foster homes in Olmsted County.

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Households/people with limitation or disabilities data information was not available through the 2010 US Census. For completion of the Comprehensive Housing Needs Assessment for Olmsted County, Maxfield Research, Inc., information was obtained from HUD Consolidated Planning division for specific tabulation of households with various types of disabilities. The information was developed using information provided to HUD by the Census Bureau, and has not been updated since 2013: A large number of renter households (2,065 households), or 45.2% of all renter households with incomes of 30% or less of AMI, indicated some type of limitation, either vision/hearing, ambulatory, cognitive, or self-care. As incomes increase, the number of households also increased. Approximately 32,675 owner households (which includes the “none of the above” limitations category) with disabilities have incomes of 80% or higher of the AMI. Comparatively, 47,025 owner households indicated some type of limitation versus 15,575 renter households. Owner households with limitations are more likely to have higher incomes than are renter households with limitations. However, this data does not identify the severity of the limitation other than the disability or limitation must last six months or more.

The City of Rochester does not provide any of these programs directly, but they are provided by other public service agencies and affordable housing providers.

Discuss the size and characteristics of the population with HIV/AIDS and their families within the Eligible Metropolitan Statistical Area

The number of persons living with AIDS is 83 and HIV (non-AIDS) is 93 in 2018 in Olmsted Countyⁱ. This data is from the Minnesota Department of Health.

Discussion

There is a need for affordable housing and support services. The City does not provide affordable housing and supportive housing for the Non-Homeless Special Needs, but has collaborated with agencies to address these needs.

NA-50 Non-Housing Community Development Needs — 91.215 (f)

Describe the jurisdiction’s need for Public Facilities

The City emphasizes activities and programs that first benefit LMI persons. That emphasis will be on activities that serve larger numbers of LMI persons. On a requested basis, the City will address the elimination of slum and blight, conditions that are detrimental to health, safety and public welfare, expansion and improvement of the quantity and the restoration and preservation of properties of special value, alleviation of physical and economic distress and conservation of the nation’s energy resources.

Public facilities include improvements to buildings, parks and recreational facilities, senior centers, handicapped centers, homeless facilities, youth centers, childcare centers, neighborhood facilities, and facilities used for special needs populations. CDBG funds may be used for such facilities if used for eligible populations and requested by the facility.

The needs were determined through past requests for the use of CDBG funds and consultation with city staff, resulting in a priority for all public facilities listed.

As indicated in the Citizen Participation Plan, the city requests applications for the use of CDBG funds on an annual basis. CDBG funds may be used for requests that provide assistance to activities that meet a National Objective (benefitting low/moderate income clientele, urgent needs, preventing/eliminating slum or blight areas, acquisition of real property).

How were these needs determined?

The needs were determined through past requests for the use of CDBG funds and consultation with city staff, resulting in a priority for the public services listed.

As indicated in the Citizen Participation Plan, the city requests applications for the use of CDBG funds on an annual basis. CDBG funds may be used for requests that provide assistance to activities that meet a National Objective (benefitting low/moderate income clientele, urgent needs, preventing/eliminating slum or blight areas, acquisition of real property).

Describe the jurisdiction’s need for Public Improvements

• Water improvements
• Street improvements
• Sidewalks

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• Sewer improvements
• Flood drain improvements

How were these needs determined?

Consultation with City staff, City Council members, agency representatives, and public survey. The requests are submitted to the City Council. All requests are reviewed and allocated by the City Council and public hearings.

Describe the jurisdiction’s need for Public Services

Public Service needs include youth services, child care service, transportation services, services for persons with disabilities, senior services, employment training, substance abuse services, services for battered and abused spouses, services for neglected and abused children, crime awareness, and gang prevention. CDBG funds may be used for such public services if used for eligible population and requested by the public service agency.

How were these needs determined?

The needs were determined through past requests for the use of CDBG funds, consultation with city staff, and surveying service agencies as well as the public—resulting in a priority for the public services listed.

As indicated in the Citizen Participation Plan, the city requests applications for the use of CDBG funds on an annual basis. CDBG funds may be used for requests that provide assistance to activities that meet a National Objective (benefitting low/moderate income clientele, urgent needs, preventing/eliminating slum or blight areas, acquisition of real property).

Housing Market Analysis

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Describe the need for specific types of housing

As reported in the Comprehensive Housing Needs Assessment for Olmsted County (which includes the City of Rochester), completed in 2014, the general occupancy demand for housing is projected to be an estimated 11,363 owned housing units and 7,074 rental units for the entire Olmsted County area between 2013-2030. The City of Rochester is projected to account for 77% (8,750) of the for sale units and 90% (6,367) of the rental unit demand.

Addressing the City of Rochester’s general occupancy demand for the last five years (through the year 2020) from the Comprehensive Housing Needs Assessment for Olmsted County report, approximately 3,075 units of the general occupancy demand is projected for owned housing and 2,602 for rental housing. Of the 2,602 rental units, 41% will for market rate units, 29% affordable units and 30% subsidized units. As mentioned, 3,743 rental units have been built since 2014, with about 1,700 planned—exceeding the five-year demand. However, about 15% of the units planned or developed are considered affordable. This equates to about 825 units currently considered affordable, which does meet the projected need for 29% of 2,602 rental units (about 750), but does not meet the need for additional subsidized units.

According to the latest HUD Policy Development and Research report, the estimated vacancy rate for all rental units (including single-family homes, mobile homes, and multifamily rentals) in the Rochester metropolitan area is 7% as of October 1, 2017. An increase in the vacancy rate is largely due to an increase in apartment construction since 2015, returning the rental housing market to soft conditions. It is estimated this vacancy rate is skewed by income level. Local agencies report rental vacancy rates are lowest among affordable rental housing, and we are working with Maxfield Housing to conduct a report to measure this.

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Discussion

MA-15 Housing Market Analysis: Cost of Housing - 91.210(a)

Introduction

Cost of Housing

Data Source: 2005-2009 ACS (Base Year), 2011-2015 ACS (Most Recent Year)

Data Source: 2011-2015 ACS

Data Source: 2011-2015 CHAS

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Data Source Comments:

Is there sufficient housing for households at all income levels?

The Olmsted County HRA reports a waiting list of 450 applicants for public housing and 1,000 applicants for the Choice Voucher program or Section 8.

How is affordability of housing likely to change considering changes to home values and/or rents?

According to the Census ACS, median monthly gross residential rent in Rochester is $920. The 2018 Fair Market Rent for Rochester is $860. There should be no impact to changes to home values and / or rents.

How do HOME rents / Fair Market Rent compare to Area Median Rent? How might this impact your strategy to produce or preserve affordable housing?

According to the Census ACS, median monthly gross residential rent in Rochester is $920. The 2018 Fair Market Rent for Rochester is $860. There should be no impact to produce or preserve affordable housing.

Discussion

There is a variety of factors that could enhance growth projections and exceed forecast. Most notably, the Destination Medical Center has the potential to transform projected jobs and need for affordable housing. As reported in the 2014 DMC report, the DMC district (an area defined to show where DMC funds will affect the City most), estimates a need for 2,200-3,100 units of both for-sale and rental housing through year 2035.

MA-20 Housing Market Analysis: Condition of Housing – 91.210(a)

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MA-20 Housing Market Analysis: Condition of Housing – 91.210(a)

Introduction

Definitions

Dwelling units which have a combination of major deficiencies that create a serious hazard to the health and safety of the occupants or the public and units that do not meet the US Department of Housing and Urban Development Section 8 Housing Quality Standards.

Standard condition is described as meeting the requirements of the Housing Code Chapter 32.01, Rochester Code of Ordinances, adopted by the City of Rochester, State and Local Health requirements, Section 8 Housing Quality Standards and all rehabilitation specifications that are part of the bid.

Condition of Units

Data Source: 2011-2015 ACS

Year Unit Built

Data Source: 2011-2015 CHAS

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Risk of Lead-Based Paint Hazard

Data Source: 2011-2015 ACS (Total Units) 2011-2015 CHAS (Units with Children present)

Vacant Units

Data Source: 2005-2009 CHAS

HUD generated table. There is only on vacant blighted commercial building listed in the Building Safety reports.

Need for Owner and Rental Rehabilitation

Rochester is a growing community with aging residential units. The aging units prompts the demand for remodeling services that will continue providing affordable housing stock for owners and rentals. The City provides a home rehabilitation program for single-family units. The City of Rochester has an adopted Housing Code, which enforced through the City of Rochester Building Safety Department. Rental units are inspected every two years and the condition of the units are maintained on a two-year cycle.

The need for owner and rental rehabilitation is to maintain the condition of the units meeting the standard condition is described as meeting the requirements of the Housing Code Chapter 32.01, Rochester Code of Ordinances, adopted by the City of Rochester, State and Local Health requirements. Section 8 Housing Quality Standards and all rehabilitation specifications that are part of the bid. Maintaining a standard condition will prevent slum and blighted neighborhoods.

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Substandard condition could be defined as housing that does not meet local building, fire, health and safety codes. Substandard condition but suitable for rehabilitation could be defined as housing that does not meet local building, fire, health and safety codes but is both financially and structurally feasible for rehabilitation. It may be financially unfeasible to rehabilitate a structure when costs exceed 30-50% of the assessed value of the property.

The need is mainly owner occupied housing needs rehabilitation to improve the condition of substandard housing units. The City’s 2% Home Rehabilitation Loan Program currently has a continuing waiting list of about 32 eligible applicants.

Estimated Number of Housing Units Occupied by Low or Moderate Income Families with LBP Hazards

The estimated of housing units with lead-based paint is 15,155 or 36% of total housing units in Rochester.

Discussion

MA-25 Public and Assisted Housing – 91.210(b)

Introduction

The City of Rochester does not own or manage any public housing units. The Olmsted County HRA owns and manages all public housing units within the City of Rochester.

^* Includes Non-Elderly Disabled, Mainstream One-Year, Mainstream Five-year, and Nursing Home Transition.

Data Source: PIC (PIH Information Center)

9 accessible public housing units reported.

Supply of public housing developments

Describe the number and physical condition of public housing units in the jurisdiction, including those that are participating in an approved Public Housing Agency Plan:

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110 public housing units in the City of Rochester. As reported in the OCHRA annual report, the condition of the units rated as 91% in good condition using the uniform physical condition standards conducted by a HUD contractor in April 2014.

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Public Housing Condition

Restoration and revitalization needs

Describe the restoration and revitalization needs of public housing units in the jurisdiction:

Ongoing maintenance, no major or structural restoration needed.

Strategy for improving the living environment

Describe the public housing agency's strategy for improving the living environment of low- and moderate-income families residing in public housing:

Strategy for improving the living environment: additional Section 8 Housing Choice Vouchers made available by Congress and HUD, develop marketing strategies that promote landlord participation in the Section 8 programs, promote affordable housing unit development, and make available project-based assistance vouchers as a tool in the development of affordable housing when appropriate.

Discussion

MA-30 Homeless Facilities and Services – 91.210(c)

Introduction

List Homeless Facilities or Services:

• Interfaith Hospitality Network of Rochester – Emergency Shelter
• Lutheran Social Services of MN – Emergency Shelter
• Salvation Army – Emergency Shelter and Motel/Hotel Voucher
• Women’s Shelter – Emergency Housing and funding to create new Transitional Housing and Rapid Rehousing
• Dorothy Day House – Emergency Shelter
• Center City Housing – Permanent Supportive Housing
• Family Promise Rochester – Emergency Shelter and Transitional Housing
• Hearth Connection – Permanent Supportive Housing
• Jeremiah Project – Permanent Supportive Housing
• Three Rivers Community Action – Rapid re-housing (expanded support for Rapid Rehousing rental assistance and services) and Permanent Supportive Housing, Continuum of Care Planning, Coordinated Entry System (and expansion)
• Zumbro Valley Health Center – Permanent Supportive Housing

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Facilities and Housing Targeted to Homeless Households

Data Source Comments:

Regional Homeless Needs Assessment – River Valley Continuum of Care, December 2018

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Mainstream services that complement services targeted to homeless persons

Describe mainstream services, such as health, mental health, and employment services to the extent those services are used to complement services targeted to homeless persons.

The availability of mainstream services targeted to homeless persons include:

• Counseling/advocacy
• Legal assistance
• Mortgage assistance
• Rental assistance
• Utility assistance

The availability of mainstream outreach services include:

• Law enforcement
• Mobile clinics
• Gang prevention

The availability of mainstream support services include:

• Alcohol and drug abuse
• Child care
• Education
• Health care
• HIV/AIDS
• Life skills
• Mental health counseling
• Transportation

Next Chapter Ministries – transitional housing for 9 months for persons who are exiting the prison system.

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Damascus Way – One house with 16 beds, licensed by State of MN, providing supervised release and work release contracts. Olmsted County recently received grant dollars from the MN Department of Corrections to develop transitional housing services for clients on probation or supervised release. In 2017, the County began working with Damascus Way to operate this programming out of their space at the Juvenile Detention Center; Damascus Way has offered transitional housing in Rochester since July 2006.

Transitional Living Center – 10-bed unit for ex-offenders. DFO Correction and ATTIC collaborative subsidies, providing housing for ex-offenders coming out of local detention or prison.

Olmsted County HRA – Permanent Housing – 17 efficiency apartments for adults with mental illness, chemical dependency, or HIV who are homeless; Bridges Program – 7 beds with 5 total units; Transitional Rental Assistance Program (T-RAP), funded by MN Housing, serving single female heads of household and serving 17 households.

Zumbro Valley Mental Health Center – Shelter Plus Care Site – 12 apartments; Northgate Apartments – permanent supportive 12 one-bedroom units; Scattered Site Apartments – permanent supportive housing for adults, 30 units; Homeless Services – case management. Provides rehabilitation and support programs for individuals for basic activities of daily living, referrals to medical and educational services, referrals, and assistance applying for insurance or financial entitlements. In addition, it finds community resources for people with mental health and substance abuse disorders through the following programs: Chemical Health Services Connection and Referral Unit, Recovery Program, Youth Behavior Health, primary care clinic, dental, pharmacy, psychiatric and psychological services, and community-based support.

Olmsted County Veterans Services – Assists veterans in applying for temporary financial assistance from the State Soldiers Assistance program.

Salvation Army – Castleview Apartment – 32 units for single adults; Rapid Re-Housing and Emergency Solutions Grant for homeless individuals and families with case management up to 24 months. Salvation Army provides the following services: Supplemental Food Shelf, a satellite of Channel One food bank; emergency assistance, including rental assistance to prevent homelessness; utility assistance to prevent disconnections; transportation for employment purposes; emergency lodging assistance; and a noon meal Monday through Friday. In addition, services offer basic needs, including showers, toiletries, and bread distribution—baked goods collected from local grocers and bakeries.

Silver Creek Corners – Permanent supportive housing for 40 single adults who are chronic inebriates.

Services and facilities that meet the needs of homeless persons

List and describe services and facilities that meet the needs of homeless persons, particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth. If the services and facilities are listed on screen SP-40 Institutional Delivery Structure or screen MA-35 Special Needs Facilities and Services, describe how these facilities and services specifically address the needs of these populations.

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All agencies listed provide shelter facilities or social services for homeless persons:

Interfaith Hospitality Network of Rochester – Emergency Shelter, 15 sites and 35 additional faith community locations assist with the mission, providing nightly housing, meals and support for families.

Lutheran Social Services of MN – Emergency Shelter, providing a wide range of human support services related to the basic necessities of life, food and shelter, physical health and safety, and emotional and spiritual wellbeing. Services include an energy assistance program assisting income-eligible households to manage their utility bills, housing support advocacy and independent living skills training for young people, and residential services for people with disabilities.

MN Department of Corrections – Transitional Housing, providing housing for offenders exiting the prison system, a re-entry program, and offenders coming out of local detention or prison.

Salvation Army – Emergency Shelter and Motel/Hotel Voucher, providing permanent supportive housing for single adults, chronically homeless or disabled persons; rapid re-housing and emergency solutions for homeless individuals, including assistance and case management up to 24 months; and a rural housing assistance program that provides homeless families and individuals with the first month’s rent and/or deposit.

Women’s Shelter – Emergency Housing, providing short-term, temporary housing for women and children seeking safety from domestic abuse.

Dorothy Day House – Emergency Shelter provides temporary shelter for persons who are in crisis and in need of the basic requirements of food, clothing and shelter.

Olmsted County HRA Silver Creek Corners – Permanent supportive housing for 40 homeless single adults who are chronic inebriates.

MA-35 Special Needs Facilities and Services – 91.210(d)

Introduction

The City of Rochester does not own or manage any programs or housing that addressed the needs described in the following paragraph.

Supportive housing needs

Including the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addictions, persons with HIV/AIDS and their families, public housing residents and any other categories the jurisdiction may specify, describe their supportive housing needs.

The City of Rochester does not own or manage any supportive housing for the elderly, frail elderly, persons with disabilities (mental, physical, developmental), persons with alcohol or other drug addictions, persons with HIV/AIDS and their families, public housing residents and any other categories. These supportive housing needs are delivered by the following agencies. The City of Rochester supports requests from agencies when requested.

• Olmsted County Community Action Program
• Rochester Area Family Y
• Olmsted County HRA
• SE MN Center for Independent Living, Inc. (SEMCIL)
• Bear Creek Services
• Hiawatha Homes Foundation
• Women's Shelter
• Salvation Army
• Zumbro Valley Mental Health Center
• Community Housing Partnership

The following agencies provide immediate housing needs for homeless persons:

• Salvation Army
• Women's Shelter
• Dorothy Day House
• American Red Cross
• Interfaith Hospitality Network

Supportive housing after release from institutions

Describe programs for ensuring that persons returning from mental and physical health institutions receive appropriate supportive housing.

The following agencies provide programs for persons returning from mental health and physical health institutions receiving appropriate supportive housing:

• Salvation Army
• Olmsted County Community Services
• Zumbro Valley Mental Health Center

Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. 91.315(e)

As previously stated, the City does not own or manage any programs addressing housing and supportive services. These programs are delivered by agencies within the community. The City supports requests from the agencies, when requested.

For entitlement/consortia grantees: Specify the activities that the jurisdiction plans to undertake during the next year to address the housing and supportive services needs identified in accordance with 91.215(e) with respect to persons who are not homeless but have other special needs. Link to one-year goals. (91.220(2))

As previously stated, the City does not own or manage any programs addressing housing and supportive services. These programs are delivered by agencies within the community. The City supports requests from the agencies, when requested.

MA-40 Barriers to Affordable Housing – 91.210(e)

Negative Effects of Public Policies on Affordable Housing and Residential Investment

There are no negative effects of public policies on affordable housing and residential investment.

The City of Rochester is committed to building an inclusive community. To this end, the City of Rochester is committed to:

• Supporting the Olmsted County Human Rights Ordinance and the work of the Olmsted County Human Rights Commission in implementing the Ordinance;
• Supporting low income tax credit housing and other subsidized housing of high quality, in locations that are accessible to employment, neighborhood amenities, and commercial services.
• Supporting well designed private development proposals that include townhouses, condominiums, apartments, and appropriate commercial uses as part of neighborhood development areas.
• Enforcing minimum standards for housing and enforce such ordinances as the Disorderly Use Ordinance in order to address neighborhood concerns about crime and potential impacts on property values.
• Increasing the supply of land zoned for lower cost housing, especially providing for mixtures of housing by style and cost.
• Providing for neighborhoods that are integrated by income class, race, age, and ability, and that are accessible to all modes of travel by all age and ability levels.
• Providing incentives to developers to accommodate affordable housing up front as part of well-planned communities.

MA-45 Non-Housing Community Development Assets – 91.215(f)

Introduction

Economic Development Market Analysis

Business Activity

Data Source: 2011-2015 ACS (Workers), 2015 Longitudinal Employer-Household Dynamics (Jobs)

Labor Force

Data Source: 2011-2015 ACS

Occupations by Sector

Data Source: 2011-2015 ACS

Travel Time

Data Source: 2011-2015 ACS

Education

Educational Attainment by Employment Status (Population 16 and Older), continued

Data Source: 2011-2015 ACS

Educational Attainment by Age

Data Source: 2011-2015 ACS

Educational Attainment – Median Earnings in the Past 12 Months

Data Source: 2011-2015 ACS

Based on the Business Activity table above, what are the major employment sectors within your jurisdiction?

• Education and Health Care Services
• Manufacturing

• Retail Trade

Describe the workforce and infrastructure needs of the business community:

The establishment of the Designation Medical Center (DMC) enhancement may affect jobs and business growth opportunities. It is projected more than 35,000 new jobs (skilled and unskilled) in the Rochester area in the next fifteen years. Some of the employment opportunities may be minimum wage, but also persons making wages as much as $20-$22 an hour.

There will also be a need to update the City’s infrastructure, specifically its roadways and transportation needs.

Describe any major changes that may have an economic impact, such as planned local or regional public or private sector investments or initiatives that have affected or may affect job and business growth opportunities during the planning period. Describe any needs for workforce development, business support or infrastructure these changes may create.

The establishment of the Designation Medical Center (DMC) enhancement may affect jobs and business growth opportunities. It is projected more than 35,000 new jobs (skilled and unskilled) in the Rochester area in the next fifteen years. Some of the employment opportunities may be minimum wage, but also persons making wages as much as $20-$22 an hour.

The Mayo Clinic is by far the largest employer in the Rochester area employing 35,000, and employs about 43,000 in the State of Minnesota. According to the MN Department of Employment and Economic Development, the Mayo Clinic is the largest employer in Minnesota, second is the State of Minnesota and third is the United States Federal Government. The Designation Medial Center (DMC) initiative goal is to secure Rochester’s and Minnesota Status as a global medication destination.

DMC main objectives are as follows:

• Leverage the public investment to attract private investment of more than $5 to Rochester and the region.
• Create 35,000-45,000 new jobs, supporting growth through workforce development strategies.
• Generate approximately $7.5 - $8.0 billion in new tax revenue during the 35 years of DMC initiative.
• Achieve the highest quality patient, companion, employee, visitor, and resident experience.

The Olmsted County Board of Commissioners have approved a property tax levy of more than $3.5 million in 2019 to support HRA housing program, leveraging additional government and nonprofit investment with the development of new affordable housing and other programs in Olmsted County,

including the City of Rochester. The tax levy assistance with development of housing was launched in March of 2017. In 2018, 25 HRA loans were granted for single-family dwelling rehabilitation (9 rehab projects in Rochester, 6 rehab project outside city limits within the county, and 16 emergency loans). The structure of these rehab loans the county offers is very similar to the City’s Rehab program. Similar rehab work is eligible and ineligible, the loan is deferred while requiring 2% interest upon repayment, but it is deferred until the home is sold or refinanced under certain conditions. The county program’s goal is to provide 15-20 loans each year.

How do the skills and education of the current workforce correspond to employment opportunities in the jurisdiction?

As provided by the Department of Employment and Economic Development indications show long-term growth, high paying jobs located in Southeast Minnesota Planning Area.

The largest number of job openings in Southeast Minnesota are:

• Food preparation and serving, which will be experiencing an estimated 1,610 openings.
• Community and social services will experience a significant number of estimated job openings with 1,370
• Chemical Merchant Wholesalers will experience a 92% change (+162 jobs).
• Loan brokers, finance, and other jobs related to credit remediation are projected to grow by 70.7%.

The Southeast Minnesota Planning Area is projected to gain 12,500 estimated job openings, which will be a 4.6% change from the previous from 2016-2026.

The Rochester Workforce Center (RWC) understands with meeting the needs of employers and industries. Their Regional Labor Market Analysts and workforce economists are the state’s experts on the latest labor market intelligences, economic conditions and trends. They provide accessible expertise, analysis service and training.

RWC have the tools to publicize job opportunities, business development representative assist businesses finding and train the appropriate workers. Business representatives assist companies with workforce problems, offering solutions meeting specific business needs.

The Rochester Area Economic Development, Inc. (RAEDI) is another agency assisting businesses and entrepreneurs in securing the private and/or public resources needed to execute business plans.

Services include Financial Packaging, Business Planning, Site/Location Support, and Business/Community Advocacy.

Current Workforce Training Initiatives

Describe any current workforce training initiatives, including those supported by Workforce Investment Boards, community colleges and other organizations. Describe how these efforts will support the jurisdiction's Consolidated Plan.

The local Workforce Center provides training and support. In addition, the University of Minnesota has established a four-year college, addressing medical and business needs.

The Rochester Workforce Center (RWC) understands with meeting the needs of employers and industries. Their Regional Labor Market Analysts and workforce economists are the state’s experts on the latest labor market intelligences, economic conditions and trends. They provide accessible expertise, analysis service and training.

RWC have the tools to publicize job opportunities, business development representative assist businesses finding and train the appropriate workers. Business representatives assist companies with workforce problems, offering solutions meeting specific business needs.

The Rochester Area Economic Development, Inc. (RAEDI) is another agency assisting businesses and entrepreneurs in securing the private and/or public resources needed to execute business plans.

Services include Financial Packaging, Business Planning, Site/Location Support, and Business/Community Advocacy.

RAEDI has completed the Rochester Area Journey to Growth Plan, a comprehensive five-year strategy plan coordinated by RAEDI and the Rochester Area Chamber of Commerce to effectively grow and diversity the economy of the Rochester area. While Health care will always be critical to the Rochester area’s economy, the eight-month planning effort focused on creating a competitive environment for business growth across the wide range of Rochester area employment sectors.

The Designation Medical Center (DMC) proposes transform Rochester into a worldwide destination medical center. The DMC is projected to bring 35,000 to 45,000 new jobs to the State of Minnesota over the next few decades, which may will affect Olmsted County, including the City of Rochester. DMC has been working with the City and EDA as well as local and regional organizations to implement training, workforce development and training programs long term. Some strategies include:

• Developing programs/strategies to grow the number of WMBE business throughout all DMC-related projects.

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• Coordinate with Workforce Development, Inc., Rochester Community and Technical College (RCTC), C-Tech facility, University of Minnesota Rochester (UMR), the Chamber of Commerce, Mayo Clinic, and others to find ways to educate/training existing and/or underserved populations in Rochester.

Comprehensive Economic Development Strategy

Does your jurisdiction participate in a Comprehensive Economic Development Strategy (CEDS)?

If so, what economic development initiatives are you undertaking that may be coordinated with the Consolidated Plan? If not, describe other local/regional plans or initiatives that impact economic growth.

No

Discussion

MA-50 Needs and Market Analysis Discussion

Areas Where Households With Multiple Housing Problems Are Concentrated

Are there areas where households with multiple housing problems are concentrated? (include a definition of “concentration”)

The City of Rochester distributes CDBG dollars through projects that were citywide for their CDBG Housing Rehabilitation 2% Loan Program. In years past, this program was only available in a target area approved by the City Council. On May 16, 2016 the City Council, through a public hearing, expanded the target area for their 2% Rehab Loan Program to the corporate city limits of Rochester, MN.

The City of Rochester has no concentrated areas where households with multiple housing problems. Units are scattered throughout the city in various locations.

Concentration of Racial or Ethnic Minorities or Low-Income Families

Are there any areas in the jurisdiction where racial or ethnic minorities or low-income families are concentrated? (include a definition of “concentration”)

The City of Rochester does not have any concentrated area of racial, ethnic minorities or low-income families.

Market Characteristics

What are the characteristics of the market in these areas/neighborhoods?

NA

Community Assets

Are there any community assets in these areas/neighborhoods?

Community assets are distributed through areas/neighborhoods in the City.

Other Strategic Opportunities

Are there other strategic opportunities in any of these areas?

Strategic opportunities not needed.

MA-60 Broadband Needs of Housing Occupied by Low- and Moderate-Income Households — 91.210(a)(4), 91.310(a)(2)

Broadband Wiring and Connections

Describe the need for broadband wiring and connections for households, including low- and moderate-income households and neighborhoods.

Broadband Internet Service Provider Competition

Describe the need for increased competition by having more than one broadband Internet service provider serve the jurisdiction.

MA-65 Hazard Mitigation — 91.210(a)(5), 91.310(a)(3)

Natural Hazard Risks Associated With Climate Change

Describe the jurisdiction’s increased natural hazard risks associated with climate change.

Vulnerability of Low- and Moderate-Income Housing

Describe the vulnerability to these risks of housing occupied by low- and moderate-income households based on an analysis of data, findings, and methods.

Strategic Plan

SP-05 Overview

Strategic Plan Overview

The general priorities for allocating CDBG funding within the jurisdiction are geographically citywide. The general priorities and needs are:

• affordable housing
• public services
• public facilities
• planning

The rationale for establishing the allocation priorities given to each category of priority needs is extremely low income, low-income and moderate-income households, consultation with City Council members, subrecipients requesting CDBG funding, and a survey to the public

Proposed accomplishments and outcomes are availability/preservation of affordable housing, provision of public services, and rehabilitation of public facilities.

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SP-10 Geographic Priorities — 91.215(a)(1)

Geographic Area

General Allocation Priorities

Describe the basis for allocating investments geographically within the jurisdiction (or within the EMSA for HOPWA).

The City of Rochester does not use geographic priorities when determining the allocation of CDBG funding.

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SP-25 Priority Needs — 91.215(a)(2)

Priority Needs

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Priority Need 5: Services for Persons with Disabilities

Priority Level

High

Population

• Extremely Low
• Low
• Moderate
• Persons with Mental Disabilities
• Persons with Physical Disabilities
• Persons with Developmental Disabilities
• Persons with Alcohol or Other Addictions
• Persons with HIV/AIDS and their Families
• Non-housing Community Development

Geographic Areas Affected

Associated Goals

Public Service

Description

Affordable, accessible services for persons with disabilities in accessible locations within the City of Rochester.

Basis for Relative Priority

Support needs for accessible services for low and moderate income persons.

Priority Need 6: Planning

Priority Level

Low

Population

• Extremely Low
• Low
• Moderate
• Non-housing Community Development

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Geographic Areas Affected

Associated Goals

Planning

Description

Study needs of low-moderate income populations throughout the city.

Basis for Relative Priority

Support requests from agencies with planning activities for programs that serve low- and moderate-income persons.

Priority Need 7: Public Facilities

Priority Level

Low

Population

• Extremely Low
• Low
• Moderate
• Persons with Mental Disabilities
• Persons with Physical Disabilities
• Persons with Developmental Disabilities
• Non-housing Community Development

Geographic Areas Affected

Associated Goals

Public Facilities

Description

Development or improvement of open space area or facilities intended primarily for recreational use.

Support these efforts for low-moderate income areas, slum/blighted areas, or to remove barriers to accessibility.

Basis for Relative Priority

Address public facility improvements that provide services for low- and moderate-income persons or to remove barriers to accessibility.

SP-30 Influence of Market Conditions – 91.215(b)

Influence of Market Conditions

SP-35 Anticipated Resources - 91.215(a)(4), 91.220(c)(1,2)

Introduction

Anticipated Resources

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied

The City of Rochester expects Community Development Block Grant (CDBG) funding to be available from the Department of Housing and Urban Development during the five-year period of this Consolidated Plan.

CDBG funds are used to leverage additional private, state and local resources from agencies that are allocated CDBG funds. The City does not obtain the leverage or matching funds from the subgrantees. Private, state and local funds from the agencies are distributed through the agencies. These funds are distributed prior to spending the CDBG funding.

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The City of Rochester anticipate additional resources from Minnesota Housing Finance Agency provided to the local HRA, developers (TIF funding) and non-profits serving low-moderate income persons.

The Olmsted County Board of Commissioners have approved a property tax levy of more than $3.5 million in 2019 to support HRA housing program, leveraging additional government and nonprofit investment with the development of new affordable housing and other programs in Olmsted County, including the City of Rochester. The tax levy assistance with development of housing was launched in March of 2017. In 2018, 20 HRA loans were granted for single-family dwelling rehabilitation (19 in Rochester and one outside city limits within the county). The structure of these rehab loans the county offers is very similar to the City’s Rehab program. Similar rehab work is eligible and ineligible, the loan is deferred while requiring 2% interest upon repayment, but it is deferred until the home is sold or refinanced under certain conditions. The county program’s goal is to provide 15-20 loans each year.

If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan

NA

Discussion

NA

SP-40 Institutional Delivery Structure – 91.215(k)

Explain the institutional structure through which the jurisdiction will carry out its consolidated plan including private industry, non-profit organizations, and public institutions.

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Assessment of Strengths and Gaps in the Institutional Delivery System

The City of Rochester’s strength is that it has a history of coordinating with agencies requesting the use of CDBG funding providing services to the low and moderate income persons.

The City’s greatest need is increased capacity in housing services, particularly permanent housing, a single site emergency shelter and rental assistance. This gap can be addressed through additional funding sources whether federal, state or local. Services are available to all persons experiencing homelessness.

The institutional structure for carrying out the programs for people who are homeless is Olmsted County Community Services (through the Olmsted County Homeless Community Network (HCN)) one of the CoC’s 20 county teams that has a long standing collaboration of a variety of agencies. The HCN committee addresses housing and supportive services for the homeless. The HCN meet every month under the leadership of Three Rivers.

Strength in the delivery through the following programs

• Next Chapter Ministries – transitional housing for 9 months
• Damascus Way – One house with 16 beds, licensed by State of MN.
• Transitional Living Center – 10-bed unit for ex-offenders. DFO Correction and ATTIC collaborative nine subsidies
• Olmsted County HRA – Permanent Housing – 17 efficiency apartments for adults with mental illness, chemical dependency, or HIV homeless, Bridges Program- 7 beds with 5 total units, Transitional Rental Assistance Program (T-RAP), funded by MN Housing serving single female head of household, serves 17 households.
• Zumbro Valley Mental Health Center – Shelter Plus Care Site – 12 apartments, Thomas House – permanent residential group home, Shared Housing – Congregate supported housing for adults, Northgate Apartments – permanent supportive 12-1 bedroom units, Scattered Site Apartments – permanent supportive for adults, 30 units, Homeless Services – case management.[ET1]

Availability of services targeted to homeless persons and persons with HIV and mainstream services

Homelessness Prevention Services

Describe how the service delivery system, including but not limited to the services listed above, meets the needs of homeless persons

Particularly chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth.

The City of Rochester does not provide these services directly, but coordinates with providers to meet the needs of the homeless within the community. Services targeting homeless persons are provided by the following agencies:

The Women’s Shelter provides short-term, temporary, emergency housing for women and children seeking safety from domestic abuse at their Regional Shelter, International Shelter, and Transition House. During 2018, 200 families, of which 132 were children, were assisted in the Women’s Shelter facilities. The average length of stay was about 28 days. 44 women were not housed due to lack of space.

Silver Creek Corners is a 40-bed supportive housing facility, which houses homeless individuals who are chronic inebriates. This project is a collaboration between the Olmsted County HRA, Center City Housing Corporation and Olmsted County Adult and Family Services. Olmsted County Adult Services provides housing support and case management to the individuals residing there.

The Francis provides permanent supportive housing to 17 homeless individuals. Olmsted County Community Services provide support services.

Olmsted County provides the following programs: Emergency Assistance Program and Emergency General Assistance Program, both short-term assistance for a current shelter/utility crisis (one issuance in a 12-month period) that eligible households cannot meet with their own resources. Funded through the MFIP consolidated fund, allocated through the State of Minnesota and are limited. Transitional Living Center serves to prevent homelessness and improve the chance that offenders can integrate back into the community successfully by providing short-term housing for ex-offenders being released from prison or the local detention center. Maximum stay is limited to 90 days.

Inter Faith Hospitality Network (IHN). Has 15 sites and 40 additional faith community assist with the mission providing nightly housing, meals and support. IHN of Greater Rochester has served more than 284 families since it opened in March 2001. More than half of these families found permanent housing and employment and remain in the Rochester Area. About 40 percent of the families are from Olmsted County. Guests must be referred to IHN from a social service agency. [ET1]

Salvation Army provides the following programs for homeless persons: Supplemental Food Shelf – satellite food bank, Emergency Assistance offering basic needs including showers, toiletries, utility assistance and transportation needs. Free Lunch program and Bread Distribution baked goods collected from local grocers and bakeries. Transitional Housing providing affordable housing to at-risk families

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needing assistance with basic living skills, Permanent Housing at their Castleview Apartments, a permanent, supportive housing complex for adults and families, chronically homeless or disabled.

Zumbro Valley Mental Health Center provides Housing Options, Housing Options Subsidy Program, Transitional Housing Program and Northgate Community Housing. These programs offer housing or housing assistance to persons that are homeless or at risk of homeless.

Describe the strengths and gaps of the service delivery system for special needs population and persons experiencing homelessness

Including, but not limited to, the services listed above.

The City’s greatest need is increased capacity in housing services, particularly permanent housing, a single site emergency shelter and rental assistance. This gap can be addressed through additional funding sources whether it be federal, state or local. Services are available to all persons experiencing homelessness.

The institutional structure for carrying out the programs for people who are homeless is Olmsted County Community Services (through the Olmsted County Homeless Community Network (HCN)), one of the CoC’s 20 county teams that has a long-standing collaboration of a variety of agencies. The HCN committee addresses housing and supportive services for the homeless. The HCN meet every month under the leadership of Three Rivers.

The Olmsted County HRA is responsible for managing HUD Voucher Choice Program (previous Section 8 program).

Provide a summary of the strategy for overcoming gaps in the institutional structure and service delivery system for carrying out a strategy to address priority needs

The City of Rochester will continue to collaborate with agencies work towards overcoming the gaps in the institutional structure and service delivery system to address priority needs.

SP-45 Goals Summary – 91.215(a)(4)

Goals Summary Information

Goal Descriptions

Estimate of families to whom the jurisdiction will provide affordable housing

Estimate the number of extremely low-income, low-income, and moderate-income families to whom the jurisdiction will provide affordable housing as defined by HOME 91.315(b)(2).

An estimated 140 extremely low-income and moderate-income families will be provided affordable housing during five-year period 2020-2024 of the City’s Consolidated Plan.

SP-50 Public Housing Accessibility and Involvement – 91.215(c)

Need to Increase the Number of Accessible Units (if Required by a Section 504 Voluntary Compliance Agreement)

The City of Rochester does not own or manage any public housing units. The Olmsted County HRA delivers public housing programs. The City will continue to provide assistance either supportive or financially upon request by the Olmsted County HRA.

Activities to Increase Resident Involvements

The City of Rochester does not own or manage any public housing units. The Olmsted County HRA delivers public housing programs. The City will continue to provide assistance either supportive or financially upon request by the Olmsted County HRA.

The Olmsted County HRA (OCHRA) administers programs through Olmsted County, including the City of Rochester. The OCHRA is responsible for the following programs:

Rental Assistance, two types of programs, Tenant based (Low Income Public Housing - LIPH) owns and manages 110 public housing units within the City of Rochester. Homestead Green - 30 units, Homestead Terrace - 30 units, Westwood - 30 units and 20 single family, scattered sites. In addition, the Olmsted County HRA receives Capital Funds from the US Department of Housing and Urban Development on an annual basis.

The Olmsted County HRA provides additional affordable housing through the following projects:

• Housing Options Program (HOP), local tenant-based program for tenants with special needs.
• Transitional Housing Assistance Program (T-RAP), tenant-based state program for single mothers and households of color.
• Rehabilitation programs for single-family dwellings, Community Fix Up, Fix Up Fund, MN Housing Rehabilitation.
• Rehabilitation programs for multi-family dwellings, 6 percent Rental Rehabilitation Loan, Home Rental Rehabilition Loan program.

The OCHRA works with Olmsted County Community Services - Adult Services and Zumbro Valley Mental Health Center administering the Shelter Plus Care program.

The OCHRA own a number of rental properties described as:

SP-55 Barriers to Affordable Housing – 91.215(h)

Barriers to Affordable Housing

There are no negative effects of public policies on affordable housing and residential investment.

The City of Rochester is committed to building an inclusive community. To this end, the City of Rochester is committed to:

• Supporting the Olmsted County Human Rights Ordinance and the work of the Olmsted County Human Rights Commission in implementing the Ordinance;
• Supporting low income tax credit housing and other subsidized housing of high quality, in locations that are accessible to employment, neighborhood amenities, and commercial services.
• Supporting well designed private development proposals that include townhouses, condominiums, apartments, and appropriate commercial uses as part of neighborhood development areas.
• Enforcing minimum standards for housing and enforce such ordinances as the Disorderly Use Ordinance in order to address neighborhood concerns about crime and potential impacts on property values.
• Increasing the supply of land zoned for lower cost housing, especially providing for mixtures of housing by style and cost.
• Providing for neighborhoods that are integrated by income class, race, age, and ability, and that are accessible to all modes of travel by all age and ability levels.
• Providing incentives to developers to accommodate affordable housing up front as part of well-planned communities.

Strategy to Remove or Ameliorate the Barriers to Affordable Housing

The City of Rochester will continue to offer and consider requests for CDBG funding from agencies that work with housing and public services activities.

The Olmsted County Board of Commissioners have approved a property tax levy of more than $3.5 million in 2019 to support HRA housing program, leveraging additional government and nonprofit investment with the development of new affordable housing and other programs in Olmsted County, including the City of Rochester. The tax levy assistance with development of housing was launched in March of 2017. In 2018, 20 HRA loans were granted for single-family dwelling rehabilitation (19 in Rochester and one outside city limits within the county). The structure of these rehab loans the county offers is very similar to the City’s Rehab program. Similar rehab work is eligible and ineligible, the loan is deferred while requiring 2% interest upon repayment, but it is deferred until the home is sold or refinanced under certain conditions. The county program’s goal is to provide 15-20 loans each year.

SP-60 Homelessness Strategy – 91.215(d)

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs

The City of Rochester will continue to offer and consider requests for the CDBG funding to agencies that work with homeless programs including housing and supportive service activities.

Addressing the emergency and transitional housing needs of homeless persons

The City of Rochester will continue to offer and consider requests for the CDBG funding to agencies that work with emergency shelter and transitional housing needs of homeless persons.

Helping homeless persons make the transition to permanent housing and independent living

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.

The City of Rochester will continue to offer and consider requests for CDBG funding to agencies that work with homeless persons (especially chronically homeless individuals and families, families with children, veteran and their families and unaccompanied youth).

Help low-income individuals and families avoid becoming homeless

Help low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families who are likely to become homeless after being discharged from a publicly funded institution or system of care, or who are receiving assistance from public and private agencies that address housing, health, social services, employment, education or youth needs.

The City of Rochester will continue to offer and consider requests for CDBG funding to agencies that work with low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or who are receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

SP-65 Lead Based Paint Hazards – 91.215(i)

Actions to address LBP hazards and increase access to housing without LBP hazards

It is estimated that there are 47,656 housing units located within the City of Rochester. Our Land Use Permit records shows that 49% (23,329) of the housing stock was built prior to 1979. A Study “Comprehensive and Workable Plan for the Abatement of Lead-Based Paint in Privately owned Housing, Report to Congress, HUD December 7, 1990” states that 90% of homes built before 1940 contain lead-based paint and 62% of those built between 1960 and 1978.

All project contracts require compliance with the Lead Based Paint Poisoning Prevention Act.

All participants of the City’s Home Rehabilitation Program are provided the brochure on the hazards of lead-based paint and are required to complete and sign a lead-based paint certification. They are also required to sign acknowledgement of receiving a copy of the US Department of Housing and Urban Development Lead-Based Paint Notification form.

A lead-based paint risk assessment test and clearance is conducted on all projects receiving CDBG funding.

How are the actions listed above related to the extent of lead poisoning and hazards?

It is estimated that there are 47,656 housing units located within the City of Rochester. Our Land Use Permit records shows that 49% (23,329) of the housing stock was built prior to 1979. A Study “Comprehensive and Workable Plan for the Abatement of Lead-Based Paint in Privately owned Housing, Report to Congress, HUD December 7, 1990” states that 90% of homes built before 1940 contain lead-based paint and 62% of those built between 1960 and 1978.

The actions listed above help to ensure that low and moderate-income persons have a greater number of options for living in safe, affordable housing.

How are the actions listed above integrated into housing policies and procedures?

These actions are aligned with the goals of this Consolidated Plan and are an integral part of the delivery of decent and safe housing for low and moderate-income individuals and families.

SP-70 Anti-Poverty Strategy – 91.215(j)

Jurisdiction Goals, Programs and Policies for reducing the number of Poverty-Level Families

The estimated 2018 population of Rochester presently provided by the US Census Bureau is 116,961. There are 30 census tracts within the City limits with a portion of 18 tracts considered as low-mod areas. Some of the actual block groups within these census tracts have low-to-moderate income residents ranging from 50% to 100%.

According to the US Bureau of Census Quick Facts information regarding the income and poverty status in Rochester is as follows:

• Median Income in 2018
• Households: $68,547
• Per Capita Income: $36,659
• Total Population: 116,961
• Poverty Status: Families below poverty level 6.0%
• Individuals below poverty level 10.4%

The City of Rochester does not provide any programs that directly address the reduction of poverty level for persons (including worst-case and underserved needs, and persons with disabilities) residing within the City of Rochester. Most programs working with poverty level persons (including worse case and underserved needs, and persons with disabilities) are addressed through the Community Services Department of Olmsted County (including the City of Rochester) and private non-profit agencies.

The City of Rochester acknowledges that the major obstacle to meeting underserved needs is the lack of funding and recognizes the need for such programs by supporting agencies that work with state and federal sources on obtaining financing for their programs. In addition, the City of Rochester ensures compliance with program and comprehensive planning requirements.

How are the Jurisdiction poverty reducing goals, programs, and policies coordinated with this affordable housing plan

The estimated 2018 population of Rochester presently provided by the US Census Bureau is 116,961. There are 30 census tracts within the City limits with a portion of 18 tracts considered as low-mod areas. Some of the actual block groups within these census tracts have low-to-moderate income residents ranging from 50% to 100%.

According to the US Bureau of Census Quick Facts information regarding the income and poverty status in Rochester is as follows:

SP-80 Monitoring – 91.230

Standards and Procedures

Describe the standards and procedures that the jurisdiction will use to monitor activities carried out in furtherance of the plan and will use to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements.

All recipients of CDBG Program funds are required to complete an agreement with the City of Rochester. This agreement specifies the amount of CDBG funding received and what regulations the recipient must meet to spend the funding. The agreement also includes a description of their CDBG funding activity, national objective that is being met and performance measurement objective/outcome/statement.

The CDBG Administrator addresses the required environmental issues for each activity that receives CDBG funding.

The CDBG Administrator, for the City of Rochester, monitors all recipients of CDBG funding either at the time of spending or during completion of the CAPER reporting. The monitoring may consists of reviewing the year-end independent audit, required to be completed by each recipient receiving over $25,000 of CDBG funding, record keeping requirements, including any program income. For program eligibility, the City’s Five Year Consolidated Plan requirements and performance measurement objective/outcome/statement activities are reviewed at the time of application for CDBG funding.

The City of Rochester does not release CDBG funding to a recipient, prior to use. The CDBG Administrator and the City Administrator's Office review each payment request individually and approve payments as the recipient submits a request for payment. When submitting a payment request, the recipient must include supporting documentation or provide staff access to files that present evidence that the activity meets a National Objective and the record keeping requirements.

All activities are required to report information required for IDIS reporting, allowing the City of Rochester to complete its Consolidated Annual Performance and Evaluation Report (CAPER) to the US Department of Housing and Urban Development.

The City of Rochester, as required by HUD, has an annual independent audit completed. To date, there have been no findings regarding the use of CDBG funding or the City's procedure in monitoring the activities of CDBG funding.

The CDBG Administrator provides technical assistance to citizen and/or groups as requested.

Expected Resources

AP-15 Expected Resources – 91.220(c)(1,2)

Introduction

Anticipated Resources

Leveraging Additional Resources

Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.

The City of Rochester expects Community Development Block Grant (CDBG) funding to be available from the Department of Housing and Urban Development during the five-year period of this Consolidated Plan.

CDBG funds are used to leverage additional private, state and local resources from agencies that are allocated CDBG funds. The City does not

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obtain the leverage or matching funds from the subgrantees. Private, state and local funds from the agencies are distributed through the agencies. These funds are distributed prior to spending the CDBG funding.

The City of Rochester anticipate additional resources from Minnesota Housing Finance Agency provided to the local HRA, developers (TIF funding) and non-profits serving low-moderate income persons.

The Olmsted County Board of Commissioners have approved a property tax levy of more than $3.5 million in 2019 to support HRA housing program, leveraging additional government and nonprofit investment with the development of new affordable housing and other programs in Olmsted County, including the City of Rochester. The tax levy assistance with development of housing was launched in March of 2017. In 2018, 20 HRA loans were granted for single-family dwelling rehabilitation (19 in Rochester and one outside city limits within the county). The structure of these rehab loans the county offers is very similar to the City’s Rehab program. Similar rehab work is eligible and ineligible, the loan is deferred while requiring 2% interest upon repayment, but it is deferred until the home is sold or refinanced under certain conditions. The county program’s goal is to provide 15-20 loans each year.

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Publicly Owned Land or Property

If appropriate, describe publically owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.

NA

Discussion

NA

Annual Goals and Objectives

AP-20 Annual Goals and Objectives

Goals Summary Information

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Goal Descriptions

Projects

AP-35 Projects – 91.220(d)

Introduction

Through the public hearing process and it's adopted Citizen Participation Plan, the City of Rochester allocated an estimated $740,375 to serving low and moderate income persons and an additional $414,361 from CDBG-COVID to COVID relief within the City of Rochester.

Projects

Allocation Priorities and Obstacles

Describe the reasons for allocation priorities and any obstacles to addressing underserved needs.

The activities address the priorities established in the 2020-2024 Consolidated Plan.

The Rochester City Council accepted applications for the 2020 CDBG funding cycle. Requests receiving 4 or more votes from the City Council were allocated funding.

Obstacles to addressing underserved needs are funding sources.

AP-38 Project Summary

Project Summary Information

1. Ability Building Center

2. DeWitz Home Builders, Inc.

Project 3: City's 2% Home Rehab Loan Program

Project 4: CDBG Administration

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Project 5: Rochester Area Family Y

Project 6: Family Service Rochester

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Project 7: Rochester Area Foundation - First Homes Properties

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Project 8: MN Children's Museum Rochester

Project 9: YMCA Camp Olson

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Project 10: Warming Center

Project 11: Lead Grant Administration

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Project 12: Neighbors Helping Neighbors

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Project 13: Economic Stability

AP-50 Geographic Distribution – 91.220(f)

Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed

The City of Rochester does not have any areas of low-income and/or minority concentration.

All activities for the 2015 Action Plan are allocated geographically citywide, including multiple housing areas citywide. The City has no concentrated problem areas.

Activities for the 2020 Action Plan are distributed as follows:

• City's Single Family 2% Rehab Loan Program: Citywide
• DeWitz Home Builders, Inc.: 4.22
• Ability Building Center (public facility serving handicapped individuals), located in Census Tract 14.01
• Rochester Area Family Y: 2.04
• Family Service Rochester: 5.02
• Rochester Area Foundation: First Homes: locations not yet determined. Clients served citywide.
• MN Children’s Museum Rochester: 3.16
• YMCA Camp Olson: Serving families in Rochester citywide.
• Warming Center: 3.01
• Neighbors Helping Neighbors: Citywide
• Economic Stability: Citywide

Geographic Distribution

Rationale for the priorities for allocating investments geographically

Target area for the City's Home Rehab Program was expanded to citywide. The target area was expanded due to age of housing and possibility of lead-based paint in the structures.

Discussion

Affordable Housing is among the City of Rochester’s top priority. In general, Rochester is predicting a shortage in supply of housing as the population grows (noted in the Maxfield Housing Study and Plan to Succeed Comprehensive Plan). Currently, we are seeing a trend for more development of rental

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properties (new or otherwise), and foresee this making up more of the future supply of housing.

AP-55 Affordable Housing – 91.220(g)

Introduction

Discussion

Affordable Housing is among the City of Rochester’s top priority. The City has done much to encourage affordable housing and is continuing to review how they can do more.

In general, Rochester is predicting a shortage in supply of housing as the population grows (noted in the Maxfield Housing Study and Plan to Succeed Comprehensive Plan). Currently, we are seeing a trend for more development of rental properties (new or otherwise), and foresee this making up more of the future supply of housing. The single-family housing market in Rochester has been in short supply, resulting in available for-sale units remaining available on the market for a short time.

AP-60 Public Housing – 91.220(h)

Introduction

The Olmsted County HRA operates 110 units of Public Housing throughout Rochester. Ninety units are townhome-style units split between three complexes, and 20 units are single-family homes scattered throughout Rochester.

Actions planned during the next year to address the needs of public housing

Housing Finance Agency for replacing roofs, windows, siding and installing AC sleeves on the second floor of 60 townhome units. Preliminary work on this project has begun, with construction starting spring 2019 and ending summer 2019. An engineering firm has been hired to complete a Property Needs Assessment of the public housing townhomes. The HRA has also coordinated services with Rochester Public Utilities and MN Energy to improve the energy efficiency of all public housing units by replacing bulbs with LED bulbs, installing low-flow aerators on the faucets and showers, and replacing appliances with Energy Star models. Work is also beginning on other energy-efficiency measures, including sealing the building envelopes and replacing old boilers with new, energy-efficient models. This work is all being done in conjunction with the local utility companies and their public relations departments.

Actions to encourage public housing residents to become more involved in management and participate in homeownership

The HRA continues to hold weekly office hours at two of the public housing complexes and will be increasing time spent onsite at these and other properties in the upcoming year. This has allowed staff to form closer relationships with the tenants and create a venue in which to voice property safety and household concerns. It also allows staff to respond in a thoughtful and timely manner, as well as be proactive rather than reactive when property concerns arise. Community rooms have been established at two different properties to allow for space for events, meetings, etc. Partnerships are underway with Public Health, the local food shelf, mobile medical units and the public schools to provide services on-site on a rotating basis.

Staff is also working to create resident commissions at each site, with select members then also sitting on a RAB. This provides the residents with a formal avenue to address their concerns about their property and bring concerns forward to the larger RAB. The RAB is also the formal input to the PHA Plan. This committee structure is intended to begin in 2020.

If the PHA is designated as troubled, describe the manner in which financial assistance will be provided or other assistance

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NA

Discussion

AP-65 Homeless and Other Special Needs Activities – 91.220(i)

Introduction

The City of Rochester does not administer homeless and other special needs activities directly.

Describe the jurisdiction’s one-year goals and actions for reducing and ending homelessness, including:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs

The City of Rochester will continue to offer and consider requests to agencies that work with homeless persons (especially unsheltered persons) that assess their individual needs.

Agencies that work with homeless persons were provided information that the City of Rochester is considering requests for the 2020 CDBG program.

Addressing the emergency shelter and transitional housing needs of homeless persons

The City of Rochester will continue to offer and consider requests to agencies that work with emergency shelter and transitional needs of homeless persons.

A newly established Warming Center was awarded CDBG funding to run the operations through Catholic Charities, in turn providing 30 beds for seasonal emergency shelter.

Helping homeless persons make the transition to permanent housing and independent living

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.

The City of Rochester does not administer homeless programs directly, but will continue to offer and consider requests from agencies that work with helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) making the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.

The Olmsted County HRA is an active member of the River Valleys CoC, which utilizes and prioritizes the use of coordinated entry for entry into programs funded by CoC/McKinney-

Helping low-income individuals and families avoid becoming homeless

Especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.

The City of Rochester does not administer homeless programs directly, but will continue to offer our considerations in funding requests from agencies that work with helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) making the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless form becoming homeless again.

The Olmsted County HRA is an active member of the River Valleys Continuum of Care, which utilizes and prioritizes the use of coordinated entry for entry into programs funding by CoC/McKinney-Vento dollars, as well as several programs funded by MN Housing. Coordinated Entry is utilized to assess the needs of homeless families and individuals and better match them with appropriate services. Olmsted County has several sites where individuals/families take the VI-SPDAT assessment, which then puts their name on the coordinated entry list. Providers throughout the region share the same message and resources with individuals and families experiencing homelessness, so that everyone is receiving the same message and access to services.

Discussion

During the 2020 CDBG application process, the City of Rochester received two requests to assist addressing housing/supportive service needs of non-homeless persons with special needs. Ability Building Center was awarded 2020 CDBG funding to replace three failing main entry and two largest fresh air handler devices, which all serve approximately 600 individuals with special needs.

The City will continue to offer our considerations in funding requests from agencies that assist with housing/supportive service needs of non-homeless persons with special needs.

AP-75 Barriers to affordable housing – 91.220(j)

Introduction

The Rochester Comprehensive Plan has been adopted by the City Council on April 16, 2018. The plan outlines barriers to affordable housing as well as considerations for the future, which could affect affordable housing. Some findings include a significant growth in population by 2040 to be approximately 55,000 new residents, 50,000 new jobs, and approximately 24,000 new housing units to add to the city’s housing stock. In addition to an overall increase in people, the demographic makeup and size of future households will have an impact on the need for affordable housing. The plan notes demographic changes such as an increase in married couples without children, single-person households, and a notable increase in individuals ages 65 and older. Rochester will also see an increase in low-income households as a result in lower wage jobs being added to support other new jobs.

Other barriers the Comprehensive Plan notes include:

• The City of Rochester had almost 3 million visitors in 2015, due to the Mayo Clinic being our biggest economic driver; that number is expected to rise to 4 million visitors by 2022. This additional increase in visitors adds to our housing needs for short and long-term stays.
• Rochester’s physical structure is different in that it can be considered a suburb as well as a strong city with a central downtown—thus we will need to consider new infrastructure as well as rebuilding aging infrastructure throughout the city.
• As we look towards improving transportation modes, we must be strategic in placing mixed-use residential development to have a greater impact in costs associated with affordable housing.
• Residents also face limited land and increasing property values, both of which act as a barrier to affordable, new housing.

The Olmsted County Housing and Redevelopment Authority (OCHRA) organized a Housing Environmental Scan in 2018 to articulate current housing issues, clarify roles and efforts, identify resources and gaps, as well as develop priorities and goals. OCHRA included many community stakeholders during various sessions to accomplish this purpose. Ultimately, they found barriers to affordable housing to include a low living wage, scarcity of supportive housing, community attitudes towards supportive housing and uncommon housing stock (like manufactured homes), lack of large rental units, lack of supply of affordable rental units and accessible housing, stringent rental criteria, short term rentals, financial education of home ownership, lack of collaboration, home owner expectations, zoning, transportation, reimbursement rates of accessible housing, licensing requirements for accessible housing, and staff scarcity in accessible housing.

Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing

Such policies include land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment.

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Rochester is a growing community and that growth is anticipated to continue. Growth and change presents both opportunities and challenges. Long-range planning is needed to position the City to address its long-term needs; to be resilient; to support changing demographics; and to address housing demand, multi-modal transportation needs, growth in jobs and visitors, and more; while working with finite resources. Rochester’s long-range planning effort, referred to as “Planning to Succeed” or P2S, has updated the City’s Comprehensive Plan.

The City of Rochester is updating its zoning ordinance in accordance with current planning practices and the new Comprehensive Plan. Updating the City’s Land Development Manual is a critical step toward implementing P2S. P2S presents a vision to reduce the amount of vehicular traffic entering downtown through a change in choice of transportation and an increase of housing options around downtown.

As part of that update, changes will be made to the City’s land development manual to encourage infill/redevelopment and densification near downtown. For example, Planning staff is proposing the creation of two new zoning districts; the “TOD Transit Oriented” district and the “R2x” district. The target completion date for all zoning ordinance changes is July of 2019.

The Olmsted County Board has authorized a levy of special benefit tax by the Olmsted County Housing and Redevelopment Authority (OCHRA) up to 0.0185 percent. This levy will support the OCHRA's housing programs, which include new construction of affordable housing and rehabilitation of existing housing units.

Discussion

NA

AP-85 Other Actions – 91.220(k)

Introduction

The City of Rochester does not provide any programs that directly address the reduction of poverty level for persons (including worst-case & underserved needs, and persons with disabilities) residing within the City of Rochester. Most programs working with poverty level persons (including worse case & underserved needs, and persons with disabilities) are addressed through the Community Services Department of Olmsted County (including the City of Rochester) and private non-profit agencies.

The City of Rochester acknowledges that the major obstacle to meeting underserved needs is the lack of funding and recognizes the need for such programs by supporting agencies that work with state and federal sources on obtaining financing for their programs. In addition, the City of Rochester ensures compliance with program and comprehensive planning requirements.

Agencies providing housing assistance continue to investigate funding sources to meet the needs of housing, and provide some incentives for builders, developers and property management / owners.

The City’s primary focus to meeting undeserved needs is to provide affordable housing for poverty level persons. Here are our actions for resolution:

• Continue providing Tax Increment Financing Assistance to developers as warranted based upon existing housing market conditions.
• Support the Olmsted County Housing and Redevelopment Authority in their efforts to administer the Section 8 Homeownership Program. The program will provide homeownership assistance by sending a portion of the mortgage payment to the assisted family to send in with their share of the mortgage payment. Homeownership assistance eligibility will be for up to 15 years.
• Continue to offer financial assistance through the Community Development Block Grant program to the Southeastern Minnesota Center for Independent Living, Inc. (SEMCIL) for their Home Accessibility Modification Program.
• Document the number of additional affordable units that become available through the Low Income Housing Tax Credit, Tax Increment Financing, First Homes Program and local non-profit

Actions planned to address obstacles to meeting underserved needs

The City of Rochester recognizes the need for such programs that assists in the elimination of barriers to affordable housing by supporting agencies that work with state and federal sources on obtaining financing for their programs.

The City of Rochester will continue to work with the Olmsted County HRA in establishing a rehabilitation program for existing housing with funding provided by the approved Olmsted County HRA tax levy.

Approved projects in the Rochester area include:

• Three Rivers Community Action, Inc. – Affordable Gap Financing Single Family – $222,000 (funding source MN Housing, Greater MN Housing Fund).
• Rochester – IAF Development, LLC – 68-unit multifamily – $13,687,130 (funding source MN Housing).

As mentioned earlier, providing affordable housing is a priority. Here are other actions we are taking:

• Continue to offer financial assistance through the Community Development Block Grant program to the First Homes Program established by the Rochester Area Foundation.
• Offer financial assistance through the Community Development Block Grant program and land donation to the Olmsted County Housing and Redevelopment Authority with the construction of a 39-unit (one- and two-bedroom units) multifamily project.
• Continue providing Tax Increment Financing Assistance to developers as warranted based upon

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existing housing market conditions.

• Support the Olmsted County Housing and Redevelopment Authority in their efforts to administer the Section 8 Homeownership Program. The program will provide homeownership assistance by sending a portion of the mortgage payment to the assisted family to send in with their share of the mortgage payment. Homeownership assistance eligibility will be for up to 15 years.
• Continue to offer financial assistance through the Community Development Block Grant program to the Southeastern Minnesota Center for Independent Living, Inc. (SEMCIL) for their Home Accessibility Modification Program.
• Document the number of additional affordable units that become available through the Low Income Housing Tax Credit, Tax Increment Financing, First Homes Program and local non-profit housing providers.
• Encourage landlords to apply for a variance to the City of Rochester's Housing Code, requesting approval for additional persons in a rental unit for lease to families needing 3+ bedrooms. The procedure for applying for a variance is provided by the Olmsted County HRA when a client of the Section 8 Program is over-occupying a unit.

Actions planned to foster and maintain affordable housing

The City of Rochester recognizes the need for such programs that assists in the elimination of barriers to affordable housing by supporting agencies that work with state and federal sources on obtaining financing for their programs.

The City of Rochester will continue to work with the Olmsted County HRA in establishing a rehabilitation program for existing housing with funding provided by the approved Olmsted County HRA tax levy.

Approved projects in the Rochester area include:

• Three Rivers Community Action, Inc. – Affordable Gap Financing Single Family – $222,000 (funding

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source MN Housing, Greater MN Housing Fund).

• Rochester – IAF Development, LLC – 68-unit multifamily – $13,687,130 (funding source MN Housing).

As mentioned earlier, providing affordable housing is a priority. Here are other actions we are taking:

• Continue to offer financial assistance through the Community Development Block Grant program to the First Homes Program established by the Rochester Area Foundation.
• Offer financial assistance through the Community Development Block Grant program and land donation to the Olmsted County Housing and Redevelopment Authority with the construction of a 39-unit (one- and two-bedroom units) multifamily project.
• Continue providing Tax Increment Financing Assistance to developers as warranted based upon existing housing market conditions.
• Support the Olmsted County Housing and Redevelopment Authority in their efforts to administer the Section 8 Homeownership Program. The program will provide homeownership assistance by sending a portion of the mortgage payment to the assisted family to send in with their share of the mortgage payment. Homeownership assistance eligibility will be for up to 15 years.
• Continue to offer financial assistance through the Community Development Block Grant program to the Southeastern Minnesota Center for Independent Living, Inc. (SEMCIL) for their Home Accessibility Modification Program.
• Document the number of additional affordable units that become available through the Low Income Housing Tax Credit, Tax Increment Financing, First Homes Program and local non-profit

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housing providers.

• Encourage landlords to apply for a variance to the City of Rochester's Housing Code, requesting approval for additional persons in a rental unit for lease to families needing 3+ bedrooms. The procedure for applying for a variance is provided by the Olmsted County HRA when a client of the Section 8 Program is over-occupying a unit.

Actions planned to reduce lead-based paint hazards

The City of Rochester will continue to provide funding to their Home Rehab program. The City of Rochester has integrated the Final Rule – Lead Safe Housing Regulation, effective September 15, 2000, into the City’s Single Family Home Rehabilitation 2% Loan Program. Currently there are 32 applicants on the waiting list for the City's Home Rehabilitation program. Since some of the properties were built prior to 1978. It is unclear, at this time, as to how many properties may be completed.

All participants of the City’s Home Rehabilitation Program receive brochures on the hazards of lead base paint, and are requested to complete and sign a lead base paint certification and sign that they have received a copy of the US Department of Housing and Urban Development, Lead Base Paint Notification form. A lead-based paint risk assessment test and clearance is conducted on all properties receiving CDBG funding.

In 2019/2020 the City received a $440,000 grant as part of a partnership with the State of Minnesota Department of Public Health to conduct lead abatement and Healthy Homes outreach in Rochester. This program will be carried out in partnership with the City’s Single Family Home Rehabilitation 2% Loan Program, and additional administration funding from CDBG will be used to operate this program.

Actions planned to reduce the number of poverty-level families

The City of Rochester does not provide any programs that directly address the reduction of poverty level for persons (including worst-case and underserved needs, and persons with disabilities) residing within the City of Rochester. Most programs working with poverty level persons (including worse case and underserved needs, and persons with disabilities) are addressed through the Community Services Department of Olmsted County (including the City of Rochester) and private non-profit agencies.

The City of Rochester acknowledges that the major obstacle to meeting underserved needs is the lack of funding and recognizes the need for such programs by supporting agencies that work with state and federal sources on obtaining financing for their programs. In addition, the City of Rochester ensures compliance with program and comprehensive planning requirements.

Agencies providing housing assistance continue to investigate funding sources to meet the needs of

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housing, and provide some incentives for builders, developers and property management / owners.

Actions planned to develop institutional structure

The City of Rochester will continue to work in partnership with agencies that address affordable housing, youth services, senior services, and other public services to low and low-moderate income persons.

Actions planned to enhance coordination between public and private housing and social service agencies

The City of Rochester works with a number of public and private agencies addressing the needs of low-moderate income persons, including but not limited to, affordable housing issues. The City supports numerous agencies by providing funding from the City’s contingency budget. Such agencies include Rochester Senior Center, RNeighbors, Diversity Council, Youth Commission, SE MN Initiative Fund and Human Rights Commission. The City also supports local agencies by providing CDBG funding opportunities, if requested by the agency.

Through a cooperation agreement with the City of Rochester, Olmsted County Housing and Redevelopment Authority provides staffing for administration of the city’s 2% Home Rehabilitation Loan Program (CDBG funded).

Discussion

Program Specific Requirements

Appendixx - Alternate/Local Data Sources

1. Data Source Name

   CDBG Needs Survey

   List the name of the organization or individual who originated the data set.

   City of Rochester

   Taryn Edens, CDBG Administrator

   Provide a brief summary of the data set.

   Agency version sent to 37 agencies. Only 15 returned completed.

   Public version made available via Facebook posting on the City's page, Press Release, and Post Bulletin publication. 97 responses received.

   What was the purpose for developing this data set?

   Learn of needs in the community.

   Provide the year (and optionally month, or month and day) for when the data was collected.

   June 2019-July 2019

   Briefly describe the methodology for the data collection.

   Survey

   Describe the total population from which the sample was taken.

   37 agencies that work with low-moderate income persons.

   General citizens of Rochester, MN.

   Describe the demographics of the respondents or characteristics of the unit of measure, and the number of respondents or units surveyed.

   Not applicable

2. Data Source Name

   Public Housing Needs Assessment

   List the name of the organization or individual who originated the data set.

   Olmsted County, City of Rochester, Mayo Clinic and Rochester Area Foundation

   Provide a brief summary of the data set.

   Describes needs of public housing for area.

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   What was the purpose for developing this data set?

   Learn of public housing needs for area.

   How comprehensive is the coverage of this administrative data? Is data collection concentrated in one geographic area or among a certain population?

   Geographic area for Olmsted County, including the City of Rochester, MN.

   What time period (provide the year, and optionally month, or month and day) is covered by this data set?

   What is the status of the data set (complete, in progress, or planned)?

   Complete

3. Data Source Name

   Rochester's Comprehensive Plan 2040

   List the name of the organization or individual who originated the data set.

   Rochester Planning and Zoning Commission

   Hoisington Koegler Group, Inc. (HKGi)

   Provide a brief summary of the data set.

   The purpose of the comprehensive plan is to develop a vision, guiding principles, policies and actions to chart Rochester’s course for the future. By identifying issues, staying ahead of trends, and providing an opportunity to consider the future implications of today’s decisions, the comprehensive plan can help ensure that growth makes our community better.

   The plan measures economic, transportation, housing needs and supply, land use, and infrastructure data.

   What was the purpose for developing this data set?

   Rochester is a growing community and that growth is anticipated to continue. Growth and change presents both opportunities and challenges. Long-range planning is needed to position the City to address its long-term needs; to be resilient; to support changing demographics; and to address housing demand, multi-modal transportation needs, growth in jobs and visitors, and more; while working with finite resources. Thus, the City updated their Comprehensive Plan to plan for the future.

   How comprehensive is the coverage of this administrative data? Is data collection concentrated in one geographic area or among a certain population?

   City of Rochester

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   What time period (provide the year, and optionally month, or month and day) is covered by this data set?

   Studied data from 2017 with projects to 2040

   What is the status of the data set (complete, in progress, or planned)?

   Complete

4. Data Source Name

   Long Range Transportation Plan 2045

   List the name of the organization or individual who originated the data set.

   Rochester-Olmsted Council of Governments

   Provide a brief summary of the data set.

   Under federal guidelines, the Long Range Transportation Plan needs to be updated every five years, normally with a new horizon year which for this update will be year 2045.

   We choose to maintain a 25 hear horizon throughout the life of the plan to better fit in with other long-range planning in the area and the fact that major projects can have a useful life of 20 to 75 years.

   The Plan will be multi-modal and will show projects that are Major in nature. Projects will be shown for improving the street-highway network in Olmsted County. On the transit mode, a compilation will be developed of well-known local planning work on major new ways of providing transit services to address people-moving, especially the AM-PM work trip to downtown Rochester. Regarding bike/ped, a network will be shown of major bike/ped paths and trails. The Plan is developed with primary input from the transportation authorities in the area including MnDOT, City of Rochester and Olmsted County. Surrounding small cities and townships also have input and the ROCOG Board itself is multi-jurisdictional.

   What was the purpose for developing this data set?

   Developing and affirming policy statements, goals, standards, maps, and action programs for guiding the future development of our transportation system.

   How comprehensive is the coverage of this administrative data? Is data collection concentrated in one geographic area or among a certain population?

   It is a regional report, largely for Olmsted County.

   What time period (provide the year, and optionally month, or month and day) is covered by this data set?

   This report is a plan for years 2020-2045.

   What is the status of the data set (complete, in progress, or planned)?

   In progress.