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Home My WebLink AboutItem 12g - Participation in the CDBG Program DATE: June 20, 2023 TO: Honorable Mayor and City Council FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director SUBJECT: RESOLUTION NO. 7513 APPROVING CONTINUED PARTICIPATION IN THE LOS ANGELES URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (“CDBG”) AND AUTHORIZING THE CITY MANAGER TO SIGN A COOPERATION AGREEMENT WITH THE LOS ANGELES COUNTY DEVELOPMENT AUTHORITY (“LACDA”) CEQA: Not a Project Recommended Action: Adopt SUMMARY Every three years, the County of Los Angeles must re-qualify with the U.S. Department of Housing and Urban Development (“HUD”) for entitlement status as an Urban County so that they can participate in the Los Angeles Urban County Community Development Block Grant (“CDBG”) Program. The City currently has an active Participating City Cooperation Agreement signed with the Los Angeles County Development Authority (“LACDA”) to participate in the CDBG Program. The current agreement is for the period of July 1, 2021, through June 30, 2024, and calls for automatic renewals thereafter. The County is no longer allowing the automatic renewal process, and has required that all participating agencies adopt a new Resolution before July 14 this year signifying continued participation in the program for the term of July 1, 2024, through June 30, 2027. It is recommended that the City Council adopt Resolution No. 7513 to approve the continuation of the City’s participation in the Los Angeles Urban County CDBG Program and authorize the City Manager to sign a Cooperation Agreement with LACDA. BACKGROUND For over 40 years, the City of Arcadia has been a participant in the CDBG Program. CDBG funds are allocated by the U.S. Department of Housing and Urban Development (“HUD”) with Los Angeles County administering the Urban County CDBG Program. The primary objective of the CDBG program is to provide assistance to low-and-moderate- income families with community development and housing assistance activities. Each year the City receives approximately $300,000 in CDBG funding. These funds support Resolution No. 7513-CDBG Program June 20, 2023 Page 2 of 3 the City’s Home Improvement Program, Senior Meals Program, and Information Referral for Seniors Program. Every three years, the County must re-qualify with the HUD for entitlement status as an Urban County so that they can participate in the CDBG program. In order for the City to continue participating in the CDBG Program for the new qualification period, the City Council must adopt a new Resolution before July 14 of this year confirming continued participation in the program for the term of July 1, 2024, through June 30, 2027. DISCUSSION There are two ways the City can receive CDBG funding: 1) As a sub grantee participating in the Los Angeles Urban County Program where the County acts as the grantee, and 2) As an entitlement jurisdiction with a population of 50,000 people or more, the City can receive CDBG funding directly from HUD. Over the years, the City has explored the possibility of moving to receiving this funding directly from HUD, but it has never proven to be cost effective. The majority of the cities that have become entitlement jurisdictions and receive CDBG funding directly from HUD have a population well over 200,000 and receive CDBG funding of at least double that of Arcadia. Although the County does charge administration fees, the relationship with the Los Angeles County CDBG Program has worked well for the City. By participating in the Urban County CDBG Program, the monthly and annual reporting of compliance with HUD regulations is handled by LACDA. Given the relatively small amount of program funding received, it is considered more cost-effective to utilize LACDA to serve this function rather than hire additional City staff or use the City’s CDBG consultant for this purpose. The continued participation in the County Program will ensure a seamless provision of services. As such, continued participation in the Los Angeles Urban County CDBG Program through approval of an updated Cooperation Agreement with LACDA is recommended; the current Agreement is attached to the Staff Report. The Agreement includes a clause that allows for automatic renewals after June 30, 2024. However, the County no longer allows the automatic renewal process and has required that a new resolution be adopted reflecting the new dates. If the City Council approves the recommended action, the City Manager will be authorized to sign the subsequent Cooperation Agreement for 2024-2027. ENVIRONMENTAL ANALYSIS The proposed action does not constitute a project under the California Environmental Quality Act (“CEQA”), as it can be seen with certainty that it will have no impact on the environment. Thus, this matter is exempt under CEQA. Resolution No. 7513-CDBG Program June 20, 2023 Page 3 of 3 FISCAL IMPACT The total amount of funding the City programs each year in CDBG funds is approximately $300,000. There is no significant fiscal impact to the City to implement the CDBG programs as all funding comes from HUD. If the City does not submit a new Resolution and sign the Cooperative Agreement, these funds will not be submitted to Arcadia and the City would have to identify alternative funding sources to support the Home Improvement Program, Senior Meals Program, and Information Referral for Seniors Program. RECOMMENDATION It is recommended that the City Council adopt Resolution No. 7513 approving continued participation in the Los Angeles Urban County Community Development Block Grant Program (“CDBG”) and authorizing the City Manager to sign a Cooperation Agreement with the Los Angeles County Development Authority (“LACDA”). Attachments: Resolution No. 7513 LACDA Cooperation Agreement (2021-2024) 3 Revised 03/2020 HUD as required by the regulations and any failure to adopt required amendments will void the automatic renewal of the Agreement for the subsequent three-year term. 6.ThisAgreementshallbeeffectivefortheperiodoftimerequiredfortheexpenditure of all CDBG and/or applicable HOME funds allocated to the City under this Agreement and appropriations from any program income therefrom and for the completion of the funded activities. The County and City agree that they cannot terminate or withdraw from this Agreement while it remains in effect. The City and the County agree to cooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act. The City and the County in the performance of this Agreement shall take all actions necessary orappropriatetoassurecompliancewith theUrbanCounty's certification under Section 104 (b) of Title I of the Act, as amended, regarding Title VI of the Civil Rights Act of 1964; the Fair Housing Act and affirmatively furthering fair housing as cited in 24 CFR 91.225(a); Section 109 of Title I of the Act, which incorporates Section 504 of the Rehabilitation Act of 1973; the Age Discrimination Act of 1975, and all other applicable laws and regulations. Urban County funding is prohibited for activities in, or in support of, any City that does not affirmatively further fair housing within its local jurisdiction or that impedes the County’s action to comply with the Fair Housing Certification. 7.The City and County agree that CDBG and HOME funding is prohibited for any activities in or in support of any cooperating City that do not affirmatively further fair housing within its own jurisdiction or that impede the County's action to comply with its fair housing certification. 8.Pursuant to 24 CFR 570.501 (b), the City is subject to all requirements applicable to subrecipients, including the requirement of a written agreement as set forth in 24 CFR 570.503. 9.The City shall report to the County of any income generated by the use of CDBG or HOME funds received by the City. Any such program income must be remitted to the County within 30 days of receipt if applicable. Such program income may be used for eligible activities in accordance with all CDBG and HOME requirements as may then apply. 10.The County shall be responsible for monitoring and reporting to HUD on the use ofanyprogramincome;therefore,theCityshallberequiredtomaintainappropriate record keeping and reporting for this purpose. 11.The City may not sell, trade or otherwise transfer all or 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