Community Development Block Grant (CDBG) Program and Section 3

Community Development Block Grant (CDBG)

Each year, the City of Bloomington receives a Community Development Block Grant (CDBG) from the U.S. Department of Housing and Urban Development (HUD). The City administers this grant through its HRA.The annual CDBG Action Plan details the activities and budget that the City/HRA will undertake in the next program year.  The program operates on a fiscal year that begins on July 1 and ends on June 30.

The City Council at their June 22, 2020 meeting will consider an amendment to the 2019 CDBG Action Plan. The public is welcomed to comment, please see the attached notice for more information. 

CDBG Program Description, Action Plan 

Each year, the City of Bloomington receives a Community Development Block Grant (CDBG) from the U.S. Department of Housing and Urban Development (HUD). The City administers this grant through its HRA. The grant is used for a variety of activities each year. The activities are selected by the HRA Board and City Council through an annual budget process for the program. Typically each year the activities will include:  single-family home rehabilitation, maintenance and chore service for seniors, lead-based paint abatement, affordable homeownership and fair housing initiatives.

The annual CDBG Action Plan details the activities and budget that the City/HRA will undertake in the next program year.  The program operates on a fiscal year that begins on July 1 and ends on June 30. The Action Plan for the most current fiscal year is linked below.

The City has developed a CDBG Action Plan for the year 2020 and a five-year plan for 2020-2024 as required by HUD.

CDBG Program's 2019 Consolidated Annual Performance Report (CAPER) open for public comment

The CAPER provides details on the accomplishments that the City of Bloomington achieved through the CDBG program during the program year that started July 1, 2019 and ended on June 30, 2020.  The CAPER is now open for public comment through September 22, 2020.  The City of Bloomington is a member of the Hennepin County consortium for the CDBG program and the CAPER is available on the County website for review and comment.  A public hearing on the 2019 CAPER will be held before the County Board of Commissioners on September 15th at 1:30 pm.  Please use the link below to view the CAPER and for more information:

https://www.hennepin.us/your-government/research-data/housing-plans-accomplishments#CAPERs

Analysis of Impediments to Fair Housing Choice - Draft August 2020

The Draft 2020 Regional Analysis of Impediments to Fair Housing specifically addresses the housing discrimination, gentrification and displacement, barriers to housing choice, and the conditions of segregation and integration in the seven-county area that includes Anoka, Carver, Dakota, Hennepin, Ramsey, Scott and Washington Counties in Minnesota.  This fair housing planning is required of communities that receive certain funds from the U.S. Department of Housing and Urban Development.

The analysis was undertaken by the Fair Housing Implementation Council (FHIC).  The members of the FHIC, including the City of Bloomington, administer the federal Community Development Block Grant (CDBG) and/or HOME Investment Partnerships (HOME) programs, as well as other Fair Housing programs which require them to certify to HUD that they will affirmatively further fair housing through the operation of their housing and community development programs as well as fair housing activities to overcome impediments. 

The 2020 Draft Analysis of Impendiments is available for public comment. Written comments can be submitted until 4:30 p.m., September 18, 2020 and addressed to Julia Welle Ayres, Manager, Hennepin County Housing and Economic Development, 701 Fourth Ave S, Suite 400, Minneapolis, MN 55415 or sent by email to Julia.WelleAyres@hennepin.us.

What is Section 3?

Section 3 of the Housing and Urban Development Act of 1968, as amended requires that all programs receiving direct financial assistance administered by HUD provide, to the greatest extent feasible, opportunities for jobs, training and economic opportunities to low and very low income residents and contracting opportunities to businesses owned by or employing low and very low income residents. This requires that Public Housing Authorities must make a good faith effort in hiring or training Section 3 residents or section businesses.

Who is a Section 3 resident?

A Section 3 resident must fall under one of the two categories:

  • A public housing resident.
  • A low or very-low income person.

What is a Section 3 business concern?

Section 3 business concerns are businesses that can provide evidence that they meet one of the following:

  • 51 percent or more owned by Section 3 residents; or
  • At least 30 percent of its full time employees include persons that are currently Section 3 residents, or within three years of the date of first employment with the business concern were Section 3 residents; or
  • Provides evidence, as required, of a commitment to subcontract in excess of 25 percent of the dollar award of all subcontracts to be awarded to business concerns that meet the qualifications in the above two paragraphs.

How is “low-income” determined?

The term “low-income” is used in the Section 3 regulation to include both low- and very low-income individuals. Local income levels can be obtained online at:

Have more questions?

Want to become a certified section 3 resident or business?

Becoming certified can help you learn about employment opportunities or contracting projects in the metro area. If you think you fulfill the Section 3 resident or business requirements please contact Bryan Hartman using the contact information below.