Springfield awarded $463,050 Small Cities Development Grant
Springfield’s application for a 2016 Minnesota Small Cities Development Program grant has been approved for funding in the amount of $463,050. The good news was communicated to Springfield on Tuesday, May 3.
The grant funded through the Minnesota Department of Employment and Econ-omic Development (DEED) and the U.S. Department of Housing and Urban Development (HUD) will help enhance local community development efforts.
Housing grants provide funds to local units of government, which, in turn, lend funds for the purpose of rehabilitating local housing stock. Loans may be used for owner-occupied, rental, single-family or multiple-family housing rehabilitation. Loan agreements may allow for deferred payments or immediate monthly payments. Interest rates may vary, and loan repayments are retained by grantees for the purpose of making additional rehabilitation loans. In all cases, housing funds must benefit low- and moderate-income persons.
The proposed target area for the project is a section of Springfield in the northwest part of town within the perimeter of West Central Street on the south end; to North Paffrath Avenue at the west side; to West Van Dusen Street on the north side; to O’Connell Avenue on the east side.
Now, the first step will begin with the Environmental Review process — a formality that the state requires, according to Teresa Schreurs, Director of Community Development, Development Services Inc. (DSI) of Ivanhoe, who was authorized by the Springfield City Council to write the grant and is responsible for carrying out the goals of the grant. DSI will soon begin sending out applications and letters to the community.
Projects must meet one of three federal objectives: Benefit people of low and moderate incomes; Eliminate slum and blight conditions; Eliminate an urgent threat to public health or safety. In addition, need, impact and cost effectiveness must be documented and the general public must be involved in the application process.