CC 2020-06-09_08i CDBG Cooperative Agreement
MEMORANDUM
TO: CITY COUNCIL
FROM: WHITNEY McDONALD, ACTING DEPUTY CITY MANAGER /
COMMUNITY DEVELOPMENT DIRECTOR
SUBJECT: CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE
COUNTY OF SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE
FOR JOINT PARTICIPATION IN THE COMMUNITY DEVELOPMENT
BLOCK GRANT PROGRAM, THE HOME INVESTMENT
PARTNERSHIPS PROGRAM, AND THE EMERGENCY SOLUTIONS
GRANT PROGRAM FOR FISCAL YEARS 2021 THROUGH 2023
DATE: JUNE 9, 2020
SUMMARY OF ACTION:
Adoption of a Resolution approving the Cooperation Agreement between the County of
San Luis Obispo and the City of Arroyo Grande for joint participation in the Community
Development Block Grant Program, the Home Investment Partnerships Program, and the
Emergency Solutions Grant Program for Fiscal Years 2021 through 2023.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
The County has estimated that $87,042 in CDBG funds will be available to the City in the
Fall of 2020. Overall, the amount of CDBG funding the City has received over the last
fifteen (15) years has consistently decreased due to Federal budget cutbacks to the
CDBG program. The Cooperation Agreement (Agreement) includes the previous
provision under Section IV(A) specifying that thirteen percent (13%) of the City’s CDBG
allocation for administrative costs be retained by the County to offset its overall costs to
administer the program. The City would retain seven percent (7%) of the total CDBG
allocation for administration. The Agreement adds provisions requiring the City to invoice
its administration costs to the County by certain deadlines, which, if missed, would entitle
the County to use those unspent administration funds itself.
RECOMMENDATION:
It is recommended that the City Council adopt a Resolution approving the Cooperation
Agreement between the County of San Luis Obispo and the City of Arroyo Grande for
joint participation in the Community Development Block Grant Program, the Home
Investment Partnerships Program, and the Emergency Solutions Grant Program for
Fiscal Years 2021 through 2023.
Item 8.i. - Page 1
CITY COUNCIL
CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE COUNTY OF
SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
JUNE 9, 2020
PAGE 2
BACKGROUND:
The Agreement will allow the City to continue its participation with the County and other
participating cities in the federal Community Development Block Grant Program, the
Home Investment Partnerships Program (HOME), and the Emergency Solutions Grant
Program. The term of this Agreement is for a period of three (3) years commencing July
1, 2021 through June 30, 2023.
The City is eligible to apply for CDBG funds through the Small Cities and State CDBG
programs. These programs require competitive applications and, prior to 2000, the City
was successful in obtaining CDBG grants from the State on a competitive basis using
specialized consultants. In 2000, it was decided that the City would instead join the
County’s Urban County program to enable the County to qualify as an urban county under
the Federal Housing and Urban Development (HUD) regulations. As an urban county, the
San Luis Obispo region receives more CDBG funding overall than it would if every
jurisdiction applied individually for funds.
Cities join the urban county by signing a cooperation agreement with the County that
waives the cities’ right to apply for CDBG grant funding individually and imposes a number
of obligations on the County for administering the program on behalf of the urban county.
In addition to receiving the administrative services provided by the County, participating
cities gain “non-competitive” access to related federal funds under the HOME and ESG
programs.
The current Cooperation Agreement between the City and County was executed in June
2017 and covers fiscal years 2018 through 2021, with a term ending on June 30, 2021.
The current Cooperation Agreement also includes an automatic renewal provision stating
that the term will automatically renew for an additional three-year period unless the City
provides notice that it declines to participate in the urban county.
In April 2020, the County submitted a letter to the City inviting it to join the Urban County
Program for Fiscal Years 2021-2023 and proposing certain changes to the Cooperation
Agreement for those fiscal years. The requested changes to the Cooperation Agreement
are described below and are generally consistent across all participants in the Urban
County Program.
ANALYSIS OF ISSUES:
Notable provisions from the current Cooperation Agreement that will not change under
the proposed Agreement include the following:
The City waives its right to apply for CDBG grant funding individually in exchange
for the County’s services in administering the CDBG program;
Item 8.i. - Page 2
CITY COUNCIL
CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE COUNTY OF
SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
JUNE 9, 2020
PAGE 3
The County will provide the following administration services:
o preparing and adopting the Consolidated Plan (a 5-year plan akin to a
Housing Element, the “Annual Action Plan” chapter of which is amended
annually), a Community Participation Plan, and a Fair Housing Plan;
o conducting several public workshops a year for these programs;
o administering fund disbursements using HUD’s computer program;
o publishing NEPA (federal) environmental documents for all participating
jurisdictions;
o filing Davis-Bacon (federal labor law) compliance reports for all participating
jurisdictions; and
o several other administrative tasks.
The County retains 13% of the City’s allocation to partially offset its costs of
administering the CDBG program and otherwise performing the obligations of the
Agreement;
The City will receive a predictable, formula-based annual CDBG grant and will
retain the ability to use up to 20% of its allocated funds for its own costs incurred
in administering the program within the City; and
The City will not recommend an individual CDBG award of less than $8,000 for
public service activities due to the staff cost of processing such awards in
compliance with federal monitoring, reporting, and other administrative
requirements. Because the City does not allocate funds for this CDBG category
and instead provides funding to local non-profits through the Jim Guthrie
Community Service Grant Program, this restriction has limited impact to the City.
Proposed amendments to the Agreement would make the following notable changes to
the current Cooperative Agreement:
The City would be required to invoice its administrative expenses by specified
deadlines for each program year. If these deadlines are missed, the Agreement
would authorize the County to use the City’s unused portion of the administrative
funds.
Approval of the Agreement would authorize the City to participate in the CDBG, HOME,
and ESG programs as part of the Urban County for program years 2021 through 2023,
essentially continuing the City’s participation that began in the year 2000. If the City
Council decides to approve the Agreement, it must be executed and transmitted to the
County by June 19, 2020. The County Board of Supervisors is scheduled to consider the
Agreement on July 7, 2020.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt the Resolution approving the Agreement;
2. Modify as appropriate and adopt the Resolution;
Item 8.i. - Page 3
CITY COUNCIL
CONSIDERATION OF A COOPERATION AGREEMENT BETWEEN THE COUNTY OF
SAN LUIS OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT
PARTICIPATION IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
JUNE 9, 2020
PAGE 4
3. Do not adopt the Resolution; or
4.Provide direction to staff.
ADVANTAGES:
Continuation of the Agreement will allow the Council to consider funding programs that
provide important public services using CDBG funds. Participation in the County program
will guarantee the City will receive a specified amount of funding.
DISADVANTAGES:
Continuation of the Agreement does not allow the City to compete individually for
statewide CDBG funds that might exceed the amount received through the Urban County
program. However, staff does not believe the City would be competitive in the statewide
CDBG program given the lack of low income census tracts that are needed to qualify.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2. At the time of report publication, no comments have
been received.
Item 8.i. - Page 4
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE APPROVING A COOPERATION
AGREEMENT BETWEEN THE COUNTY OF SAN LUIS
OBISPO AND THE CITY OF ARROYO GRANDE FOR
JOINT PARTICIPATION IN THE COMMUNITY
DEVELOPMENT BLOCK GRANT PROGRAM, THE HOME
INVESTMENT PARTNERSHIPS PROGRAM, AND THE
EMERGENCY SOLUTIONS GRANT PROGRAM FOR
FISCAL YEARS 2021 THROUGH 2023
WHEREAS, the County of San Luis Obispo (“County”), a political subdivision of the State
of California, and the City of Arroyo Grande (“City”) a municipal corporation, desire to
participate in the Community Development Block Grant (CDBG) program administered
by the U.S. Department of Housing and Urban Development (HUD); and
WHEREAS, said program will promote the public health, safety, and welfare by providing
grant funds to be used by the City and County to improve housing opportunities for low
and moderate-income households, to encourage economic reinvestment, to improve
community facilities and public services, and to provide other housing-related facilities, or
services; and
WHEREAS, to qualify for CDBG funds under HUD eligibility guidelines, the County must
have a population of at least 200,000 persons; and
WHEREAS, the City desires to continue to participate jointly with the County in said
program; and
WHEREAS, HUD requires that the parties enter into a Cooperation Agreement between
the County of San Luis Obispo and the City of Arroyo Grande for joint participation in the
Community Development Block Grant Program, the Home Investment Partnerships
Program, and the Emergency Solutions Grant Program for Fiscal Years 2021 through
2023 to define their rights and obligations as a prerequisite to participation in the CDBG
program; and
WHEREAS, the proposed Cooperation Agreement is consistent with the General Plan
and with City and County policies encouraging cooperation between agencies on issues
of regional significance such as affordable housing; and
WHEREAS, the proposed Cooperation Agreement will promote the public health, safety,
and welfare by enabling the City and County to participate in the U.S. Department of
Housing and Urban Development’s CDBG program under an “urban county” entitlement;
thus making available funds for a variety of housing, economic development, and public
services programs not otherwise available; and
Item 8.i. - Page 5
RESOLUTION NO.
PAGE 2
WHEREAS, the City and County enter into yearly subrecipient agreements which
establish administrative policies and procedures, performance standards, and guidelines
for funding specific CDBG programs and projects; and
WHEREAS, the proposed Cooperation Agreement is not a “project” for purposes of
compliance with the provisions of the California Environmental Quality Act (CEQA) and
the City’s CEQA Guidelines.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Arroyo Grande,
California, as follows:
1. The City Council hereby approves and authorizes the Mayor to enter into the
Cooperation Agreement with the County to enable joint participation in HUD’s
CDBG program in the form attached hereto as Exhibit “A”.
2. The Acting City Manager is hereby authorized to act on behalf of the City in
connection with the implementation of the Cooperation Agreement, ongoing
operation of the CDBG program, and other activities necessary to carry out the
intent of the Cooperation Agreement.
On motion of Council Member , seconded by Council Member , and on the
following roll call vote, to wit:
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this 9th day of June, 2020.
Item 8.i. - Page 6
RESOLUTION NO.
PAGE 3
___________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________
KELLY WETMORE, CITY CLERK
APPROVED AS TO CONTENT:
____________________________________
BILL ROBESON, ACTING CITY MANAGER
APPROVED AS TO FORM:
___________________________________
TIMOTHY J. CARMEL, CITY ATTORNEY
Item 8.i. - Page 7
Page 1
A COOPERATION AGREEMENT BETWEEN THE COUNTY OF SAN LUIS
OBISPO AND THE CITY OF ARROYO GRANDE FOR JOINT PARTICIPATION
IN THE COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM, THE
HOME INVESTMENT PARTNERSHIPS PROGRAM, AND THE EMERGENCY
SOLUTIONS GRANT PROGRAM FOR FISCAL YEARS 2021 THROUGH 2023
THIS AGREEMENT is made and entered into this day of , 2020,
by and between the County of San Luis Obispo, a political subdivision of the State
of California, hereinafter called “County,” and the City of Arroyo Grande, a
municipal corporation of the State of California, located in the County of San Luis
Obispo, hereinafter called “City;” jointly referred to as “Parties.”
WITNESSETH
WHEREAS, in 1974, the U.S. Congress enacted and the President signed
a law entitled, The Housing and Community Development Act of 1974, herein
called the “Act.” The Act is omnibus legislation relating to federal involvement in a
wide range of housing and community development activities and contains eight
separate titles; and
WHEREAS, Title I of the Act is entitled “Community Development” and
governs programs for housing and community development within metropolitan
cities and urban counties or communities by providing financial assistance
annually for area-wide plans and for housing, public services and public works
programs; and
WHEREAS, the Community Development Block Grant Program
(hereinafter referred to as “CDBG”), the HOME Investment Partnerships Act
Program (hereinafter referred to as “HOME”), and the Emergency Solutions Grant
Program (hereinafter referred to as “ESG”) are consolidated under Title I of the
Act; and
WHEREAS, the County has requested of the federal Department of
Housing and Urban Development, hereinafter referred to as “HUD,” designate the
County as an “urban county;” and
WHEREAS, the County needs to requalify as an urban county and will be
eligible to receive CDBG funds provided that the County’s entitled cities defer their
entitlement to the County to enable both the County and the entitlement cities to
jointly participate in the program; and
WHEREAS, the City desires to participate jointly with the County in said
program; and
EXHIBIT A
Item 8.i. - Page 8
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WHEREAS, if HUD redesignates the County as an urban county, then the
County may also be eligible to receive funds from the HOME Program and the
ESG Program; and
WHEREAS, the CDBG Regulations issued pursuant to the Act provide
qualified urban counties must submit an application to the HUD for funds, and cities
and smaller communities within the metropolitan area not qualifying as
metropolitan cities may join the County in said application and thereby become a
part of a more comprehensive County effort; and
WHEREAS, as the urban county applicant, the County must take
responsibility and assume all obligations of an applicant under federal statues,
including: the analysis of needs, the setting of objectives, the development of
community development and housing assistance plans, the consolidated plan, and
the assurances of certifications; and
WHEREAS, by executing this Agreement, the Parties hereby give notice of
their intention to participate in the urban county CDBG, HOME, and ESG
Programs.
NOW THEREFORE, in consideration of the mutual promises, recitals and other
provisions hereof, the Parties agree as follows:
SECTION I. General.
A. Responsible Officers. The Director of the County of San Luis Obispo
Department of Planning and Building (hereinafter referred to as “Director”)
is hereby authorized to act as applicant for the CDBG, HOME, and ESG
Programs and to administer funding and activities under the programs. The
City Manager is hereby authorized to act as the responsible officer of the
City under the programs.
B. Full Cooperation. Parties agree to fully cooperate and to assist each other
in undertaking eligible grant programs or projects, including but not limited
to community renewal and lower income housing assistance activities,
specifically urban renewal and publicly-assisted housing; public services;
and economic development.
C. Term of Agreement – Automatic Renewal Provision. The term of this
Agreement shall be for a period of three (3) years commencing July 1, 2021
through June 30, 2023. In addition, this Agreement provides for automatic
renewal for participation in successive three-year qualification periods,
unless the City provides written notice at least 60 days prior to the end of
the term that it elects not to participate in a new qualification period. Before
the end of the first three-year term, the County will notify the City in writing
of its right not to participate in the urban county for a successive three-year
term.
Item 8.i. - Page 9
Page 3
The Parties agree to adopt amendments to this Agreement incorporating
changes necessary to meet the requirements for cooperation agreements
set forth in an Urban County Qualification Notice by HUD for a subsequent
three-year urban County qualification period, prior to the subsequent three-
year extension of the term. Any amendment to this Agreement shall be
submitted to HUD as required by the regulations and any failure to adopt
required amendments will void the automatic renewal of this Agreement for
the relevant qualification period.
This Agreement remains in effect until the CDBG, HOME, and ESG
Program funds and program income received with respect to the three-year
qualification period, and the subsequent three-year renewals are expended
and the funded activities are completed. The Parties may not terminate or
withdraw from this Agreement while this Agreement remains in effect.
D.Scope of Agreement. This Agreement covers the following formula
funding programs administered by HUD where the County is awarded and
accepts funding directly from HUD: the CDBG Program, the HOME
Program, and the ESG Program.
SECTION II. Preparation and Submittal of CDBG Funding Applications.
A.Inclusion of City as Applicant. The Parties agree the City shall be
included in the application the County shall submit to HUD for Title I
Housing and Community Development Block funds under the Act.
B.Consolidated Plan. The City shall assist the County by preparing a
community development plan, for the period of this Agreement, which
identifies community development and housing needs, projects and
programs for the City; and specifies both short and long-term City
objectives, consistent with requirements of the Act. County agrees to:
(1) include the City plan in the program application, and (2) include City’s
desired housing and community development objectives, policies,
programs, projects and plans as submitted by the City in the County’s
consolidated plan.
C.Application Submittal. The County agrees to commit sufficient
resources to completing and submitting the Consolidated Plan and
supporting documents to HUD in time for the Parties to be eligible to
receive funding beginning July 1, 2021jui, and to hold public hearings as
required to meet HUD requirements.
D.County Responsibility. Parties agree the County shall, as applicant,
be responsible for holding public hearings and preparing and submitting
the CDBG funding application and supporting materials in a timely and
thorough manner, as required by the Act and the federal regulations
Item 8.i. - Page 10
Page 4
established by HUD to secure entitlement grant funding beginning July
1, 2021.
E. Grant Eligibility. In executing this Agreement, the Parties understand
they shall not be eligible to apply for grants under the Small Cities or
State CDBG Programs for appropriations for fiscal years during the
period in which the Parties are participating in the urban county CDBG
entitlement program; and further, the City shall not be eligible to
participate in the HOME, or ESG Programs except through the urban
county.
SECTION III. Program Administration.
A. Program Authorization. The Director is hereby authorized to carry out
activities that will be funded from the annual CDBG, HOME, and ESG
Programs from fiscal years 2021, 2022, and 2023 appropriations and
from any program income generated from the expenditure of such funds.
B. Responsibilities of Parties. The Parties agree the County shall be the
governmental entity required to execute any grant agreement received
pursuant to the CDBG, HOME, and ESG applications, and subject to the
limitations set out in this Agreement, the County shall thereby become
liable and responsible thereunder for the proper performance of the plan
and CDBG, HOME, and ESG under County programs. County agrees
to perform program administrative tasks such as environmental
clearance under the National Environmental Policy Act (NEPA),
subrecipient agreements and monitoring of subrecipients. The City
agrees to act in good faith and with due diligence in performance of the
City obligations and responsibilities under this Agreement and under all
subrecipient agreements. The City further agrees that it shall fully
cooperate with the County in all things required and appropriate to
comply with the provisions of any Grant Agreement received by the
County pursuant to the Act and its Regulations.
C. City Assistance. The City agrees to undertake, conduct, perform or
assist the County in performing the essential community development
and housing assistance activities identified in the City’s community
development plan. Pursuant to the Act and pursuant to 24 CFR
570.501(b), the City is subject to the same requirements applicable to
subrecipients, including the requirement of a written agreement with the
County as set forth in 24 CFR 570.503.
SECTION IV. Use of Program Funds.
A. Allocation of CDBG funds. All funds received by the County pursuant
to this Agreement shall be identified and allocated, as described below,
to the specific projects or activities set out in the application, and such
allocated amounts shall be expended exclusively for such projects or
Item 8.i. - Page 11
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activities; provided, however, that a different distribution may be made
when required by HUD to comply with Title I of the Housing and
Community Development Act of 1974, as amended.
1) Metropolitan Cities’ Allocation. The Parties agree the County shall
make available to the City a total amount of CDBG funds equal to
that which the City would have been entitled had it applied separately
as a “metropolitan city,” using HUD allocation formulas as applied by
the County, except that an amount equal to thirteen (13) percent of
the Metropolitan Cities’ allocations of CDBG funds will be deducted
by the County to meet its obligations under the terms of this
Agreement and/or HUD requirements for administrative costs.
Further, with respect to the availability of the funds, the County
agrees to fully cooperate and assist the City in expending such funds.
2) Non-Metropolitan Cities’ Allocation. The County agrees to
allocate a portion of CDBG program funds to the non-Metropolitan,
incorporated cities participating in the program. The amount of
allocation per city shall be equal to that which the urban county
formula award from HUD increases as a result of the HUD allocation
formulas as applied by the County, except that an amount equal to
thirteen (13) percent of the Non-Metropolitan Cities’ allocations of
CDBG funds will be deducted by the County to meet its obligations
under the terms of this Agreement and/or HUD requirements for
administrative costs.
3) Urban County. Parties shall not recommend a CDBG award of less
than $8,000 for any one project or program due to the staff cost of
processing such awards in compliance with federal requirements. A
project or program recommended to receive an amount less $8,000
can still receive an award if any other Party or Parties make an
award, which is aggregated to be greater than $8,000.
4) Administrative Costs. The County hereby acknowledges that the
City is a subrecipient defined in 24 CFR 570.500(c) and is eligibile to
incur administrative costs per 24 CFR 570.206, or as otherwise
negotiated and approved in the Action Plan for related Planning and
Capacity Building costs per 24 CFR Part 570.205. The City shall
submit invoices and supporting documentation to the County for
reimbursement of eligible administrative costs in accordance with the
following schedule:
2021 Program Year: Friday, June 1, 2022
2022 Program Year: Friday, June 7, 2023
2023 Program Year: Friday, June 5, 2024
Item 8.i. - Page 12
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Administrative funds that are not drawn down following the review
and approval by county staff of administrative costs submitted by the
City by the deadlines above will be used to reimburse the County’s
administrative costs.
B. Availability of Funds. The County agrees to make CDBG funds
available to all participating incorporated cities as set out here when
HUD makes the CDBG funds available to it. The County shall
immediately notify the participating incorporated cities of the availability
of the funds.
It is understood by the Parties, hereto, the CDBG funds being used for
the purposes of this Agreement are funds furnished to the County,
through HUD, pursuant to the provisions of the Act. Notwithstanding
any other provision of this Agreement, the liability of the County shall be
limited to CDBG funds available for the Project. The City understands
that the County must wait for release of CDBG funds from HUD before
CDBG funds may be advanced or reimbursed. The County shall incur
no liability to the City, its officers, agents, employees, suppliers, or
contractors for any delay in making any such payments.
C. Public Services Costs. The County agrees that after the availability of
CDBG program funds to the City, the County shall not use its remaining
balance of funds in any way that would limit the City’s ability to use its
CDBG funds to the maximum extent allowed by HUD for public service
purposes.
D. Income Generated. The City shall notify the County of any income
generated by the expenditure of CDBG funds received by the City. Such
program income may be retained by the City subject to the provisions of
this Agreement, the Act and its Regulations. Any program income
retained must only be used for eligible activities in accordance with all
CDBG requirements as they apply.
E. Use of Program Income. The County shall monitor the use of any
program income, requiring appropriate record-keeping and reporting by
the City as may be needed for this purpose, and shall report the use of
such program income to HUD. In the event of close-out or change of
status of the City, all program income on hand or received by the City
subsequent to the close-out or change of status shall be paid to the
County. In the event that the City withdraws from the urban county to
become an entitlement grantee, as provided under 24 CFR 570.504, all
program income on hand or received by the City from urban county
activities shall be retained by the City to be used as additional CDBG
funds subject to all applicable requirements governing the use of CDBG
funds.
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F.Change in Use of Property. The City shall notify the County of any
modification or change in the use of real property acquired or improved
in whole or in part using CDBG funds that is within the control of the City,
from that use planned at the time of acquisition or improvement including
disposition. Such notification shall be made within thirty (30) calendar
days of such change of use and comply with the provisions of 24 CFR
570.505.
G.Fair Housing Implementation. The Parties agree no urban county
funding shall be allocated or expended for activities in or in support of
any cooperating unit of general local government that does not
affirmatively further fair housing within its own jurisdiction or that
impedes the County’s actions to comply with its fair housing certification.
H.Conflict Resolution. In the event of disagreement between the County
and the City as to the allocations, disbursement, use, or reimbursement
of CDBG funds, the Parties agree to accept HUD’s written determination
as to the appropriate resolution or disposition of funds to the extent HUD
is willing to resolve such disagreement.
I.Consolidated and Further Continuing Appropriations Act. The City
may not sell, trade, or otherwise transfer all of any portion of CDBG
funds to another metropolitan city, urban county, unit of general local
government, or Indian tribe, or insular area that directly or indirectly
receives CDBG funds in exchange for any other funds, credits or non-
Federal considerations, but must use such funds for activities eligible
under Title I of the Act.
J.Special Provisions for the Urban County.
(1) To affirmatively furthers fair housing and implement the Analysis of
Impediments to Fair Housing Choice or better known as the Fair
Housing Plan, the cities are encouraged to contribute CDBG funds to
affordable housing projects when there is an eligible CDBG component
in the proposal that is located within the city’s jurisdiction.
(2) The County will enforce remedies for noncompliance pursuant to 2
CFR Part 200.338 and allowed per 2 CFR Part 200.207 by pulling CDBG
funds for under preforming projects or programs not implemented during
agreed timeframe identified in the subrecipient agreement.
SECTION V. Amendment or Extension of Agreement.
A.Subrecipient Agreement. For each fiscal year during the term of this
Agreement, the County and the City shall enter into a Subrecipient
Agreement, prepared jointly by the County and the City, which identifies
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a project or program that the County will administer with the City’s CDBG
entitlement funds during that program year. The Subrecipient
Agreement will set forth the minimum requirements found at 24 CFR 570
and as otherwise required by applicable federal laws. In addition, the
agreements will provide project changes, time schedule for completion
of the project(s), deliverable checklist, and additional funding sources, if
any. If substantial compliance with the completion schedule cannot be
met by the City due to unforeseen or uncontrollable circumstances, then
the County may extend the schedule for project completion, as allowed
by federal regulations.
B. Amendments. Any amendments to this Agreement shall be in writing.
Parties agree any such fully executed amendment or amendments to
this Agreement may be entered into at any time if required or necessary
to implement the plans contemplated hereunder, or to comply with any
grant agreement or the regulations issued pursuant to the Act.
SECTION VI. Compliance with Federal Regulations.
A. General. The Parties agree to take all actions necessary to assure
compliance with the urban county’s certifications required by section
104(b) of Title I of the Housing and Community Development Act of
1974, as amended, regarding Title VI of the Civil Rights Act of 1964, the
Fair Housing Act, affirmatively furthering fair housing, Section 109 of
Title I of the Housing and Community Development Act of 1974; the
National Environmental Policy Act of 1969; the Uniform Relocation
Assistance and Real Property Acquisition Act of 1970; and other
applicable laws.
B. Citizen Participation. The Parties agree to comply with federal citizen
participation requirements of 24 CFR Part 91, and provide citizens with:
1) An estimate of the amount of CDBG funds proposed to be used for
activities that will benefit persons of low and moderate income; and
2) A plan for minimizing displacement of persons as a result of CDBG-
assisted activities and programs, and to provide assistance to such
persons.
C. Citizen Participation Plan. The Parties agree to follow a citizen
participation plan which:
1) Provide for and encourages citizen participation, particularly those of
low or moderate income who reside in slum or blighted areas where
CDBG funds are proposed to be used;
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2) Provide citizens with reasonable and timely access to local meetings,
staff reports, and other information relating to grantee’s proposed
use of funds, as required by HUD regulations related to the actual
use of funds under the Act;
3) Provides for public hearings to obtain citizen views and to respond
to proposals and questions at all stages of the community
development program, including at least: 1) formulation of needs; 2)
review of proposed grant activities; and 3) review of program
performance; for which public hearings shall be held after adequate
notice, at times and locations convenient to potential or actual
beneficiaries, and with accommodation of handicapped persons;
4) Provides for a timely written answer to written complaints and
grievances, within 15 working days where practicable;
5) Identifies how the needs of non-English speaking residents will be
met in the case of public hearings where a significant number of non-
English speaking residents can be reasonably expected to
participate.
6) Identifies the use of non-traditional methods of community outreach,
including the provision of CDBG documents in a user-friendly format,
including but not limited to Braille, large print, oral format, and
delivering copies to homebound individuals.
D.The Parties hereby certify, to the best of their knowledge and
belief, that:
1)Conflict of Interest. No federal grant monies have been paid or will
be paid, by or on behalf of the Parties, to any officer or employee or
any agency, a Member of Congress, an officer or employee of
Congress, or an employee of a Member of Congress in connection
with the awarding of any federal contract, the making of any federal
grant, the making of any federal loan, the entering into of any
cooperative agreement, and the extension, continuation, renewal,
amendment or modification of any federal contract, grant, loan, or
cooperative agreement.
2)Influence. If any funds other than federally appropriated funds have
been paid or will be paid to any person for influencing or attempting
to influence an officer or employee of any agency, a Member of
Congress, an officer or employee of Congress, or an employee of a
Member of Congress in connection with this federal contract, grant,
loan, or cooperative agreement, the undersigned shall complete and
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submit standard form LLL, “Disclosure Form to Report Lobbying,” in
accordance with its instructions.
3) Certifications Disclosure. Parties agree to include this certification
in the award documents for all subawards at all tiers (including
subcontracts, subgrants, and contracts under grants, loans, and
cooperative agreements), and that all grant subrecipients shall certify
and disclose accordingly. This certification is a material
representation of fact upon which reliance was placed when this
transaction was entered into.
E. Certification Regarding Policies Prohibiting Use of Excessive
Force and Regarding Enforcement of State and Local Laws Barring
Entrances.
In accordance with Section 519 Public Law 101-144 (the 1990 HUD
Appropriations Act), the City certifies that it has adopted and is
enforcing.
1) A policy prohibiting the use of excessive force by law enforcement
agencies within their respective jurisdictions against any individuals
engaged in non-violent civil rights demonstrations; and
2) A policy of enforcing applicable State and local laws against
physically barring entrance to or exit from a facility or location which
is the subject of such non-violent civil rights demonstrations within
their jurisdictions.
SECTION VII. Execution of Agreement and Recordkeeping.
A. HUD Certification. The Director is hereby authorized to execute and
submit to the County the HUD Certification Form with respect to the
community development activities carried out within the boundaries of
the City. It is further understood that the County will rely upon the
certification executed by the Director for purposes of executing a
certification form for submission to HUD.
B. Maintenance of Records. The City shall maintain records of activities
for any projects undertaken pursuant to the program, and said records
shall be open and available for inspection by auditors assigned by HUD
and/or the County on reasonable notice during the normal business
hours of the City.
NOW, THEREFORE, the Parties hereto have caused this Agreement to be
executed and attested by their proper officer thereunder duly authorized, and their
official seals to be hereunto affixed, all as of the day first above written.
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________________________________
Chairperson of the Board of Supervisors
ATTEST:
WADE HORTON
Ex-Officio Clerk of the Board of Supervisors
By:
Deputy Clerk
[SEAL]
APPROVED AS TO FORM AND LEGAL EFFECT:
RITA L. NEAL
County Counsel
By: _____________________________
Deputy County Counsel
Dated:___________________________
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NOW, THEREFORE, the Parties hereto have caused this Agreement to be
executed and attested by their proper officer thereunder duly authorized, and their
official seals to be hereunto affixed, all as of the day first above written.
CITY OF ARROYO GRANDE:
CAREN RAY RUSSOM, MAYOR
Date:
ATTEST:
KELLY WETMORE, CITY CLERK
Date:
APPROVED AS TO CONTENT:
BILL ROBESON, ACTING CITY MANAGER
Date:
APPROVED AS TO FORM:
TIMOTHY J. CARMEL, CITY ATTORNEY
Date:
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