HomeMy WebLinkAboutItem 11c - Participation in Community Development Block Grant Program
STAFF REPORT
DEVELOPMENT SERVICES DEPARTMENT
DATE: July 21, 2026
TO: Honorable Mayor and City Council
FROM: Lisa Flores, Development Services Director
By: Jeramie Brogan, Senior Management Analyst
SUBJECT: RESOLUTION NO. 7706 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
Recommendation: Adopt and Approve
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 with the Los Angeles County
Development Authority (“LACDA”) to participate in the CDBG Program for the period
of July 1, 2024, through June 30, 2027. The new agreement would enable the City to
continue to participate in the Program for the period of July 1, 2027, through June 30,
2030.
It is recommended that the City Council adopt Resolution No. 7706 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 50 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
Resolution No. 7706 – Participation in Community Development Block Grant
("CDBG") Program
July 21, 2026
Page 2 of 3
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 currently support the City’s ongoing Home Improvement
Program and Information and Referral Services for Seniors Program. Additional
carry-over funds have recently been allocated to the 2026 Americans with Disabilities
Act (“ADA”) Curb Ramp Project.
Every three years, Los Angeles County (“County”) must re-qualify with 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 31,
confirming continued participation in the program for the term of July 1, 2027,
through June 30, 2030.
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; or 2) as a jurisdiction with a population of 50,000 people or more, the City is
entitled to receive CDBG funding directly from HUD. Over the years, the City has
explored the possibility of 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. If the City Council approves the
Resolution No. 7706 – Participation in Community Development Block Grant
("CDBG") Program
July 21, 2026
Page 3 of 3
recommended action, the City Manager will be authorized to sign the subsequent
Cooperation Agreement for 2027–2030.
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.
FISCAL IMPACT
Arcadia receives approximately $300,000 in CDBG funds each year. If the City does
not submit a new resolution and sign the Cooperative Agreement, these funds will
be lost. If relinquished, the City would have to identify alternative funding sources to
support the Home Improvement Program and the Information and Referral Services
for Seniors Program or cancel them.
RECOMMENDATION
It is recommended the City Council determine that this action does not constitute a
project under the California Environmental Quality Act (“CEQA”); and adopt
Resolution No. 7706 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”).
Attachment No. 1: Resolution No. 7706
Attachment No. 2: LACDA Cooperation Agreement (2024–2027)
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RESOLUTION NO. 7706
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA
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”)
WHEREAS, the City of Arcadia desires to participate in the Los Angeles Urban
County Program for Community Development Block Grant (“CDBG”) funds, in the
County’s Consolidated Plan for Fiscal Years 2027-2029, commencing on July 1, 2027
and through June 30, 2030; and
WHEREAS, on June 20, 2023, the City Council adopted Resolution No. 7513,
approving a Cooperation Agreement between the City of Arcadia and the County of
Los Angeles, confirming the City’s continued participation in the CDBG program for
the period of July 1, 2024 through June 30, 2027;
WHEREAS, the City authorizes the execution of a new Cooperation Agreement
with the County of Los Angeles in order to receive CDBG funds for the period of July
1, 2027 and through June 30, 2030;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA,
HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The City Council adopts and approves its participation in the Los
Angeles County Urban County Program and receiving CDBG funds, and execution of
Attachment No. 1
2
the Cooperation Agreement between the City of Arcadia and the County of Los
Angeles, for the time period of July 1, 2027, through June 30, 2030.
SECTION 2. The City Council authorizes the City Manager, or his/her
designee, to execute the Cooperation Agreement, any and all related documents
necessary, for participation in the Los Angeles Urban County Program on behalf of
the City of Arcadia.
Passed, approved and adopted this 21st day of July, 2026.
_______________________________
Mayor of the City of Arcadia
ATTEST:
___________________________
City Clerk
APPROVED AS TO FORM:
____________________________
Michael J. Maurer
City Attorney
COUNTY OF LOS ANGELES
COMMUNITY DEVELOPMENT BLOCK GRANT ENTITLEMENT PROGRAM
HOME INVESTMENT PARTNERSIDPS PROGRAM
EMERGENCY SOLUTIONS GRANT PROGRAM
PARTICIPATING CITY
COOPERATION AGREEMENT
This COOPERATION AGREEMENT ("Agreement") is being entered into on this
14th day of JULY 2023, to be effective on the l 61 day of July 2024, by and between the CITY
OF ARCADIA, hereinafter referred to as "City," and the County of Los Angeles, by and
through the Executive Director of the Los Angeles County Development Authority, hereinafter
referred to as "County," and shall remain in effect for the County's Consolidated Plan for Fiscal
Years 2024-2026. The County and the City are collectively referred to as the "Parties" or
individually "Party."
WITNESSETH THAT:
WHEREAS, in 1974, the U.S. Congress enacted and the President signed a law entitled,
the Housing and Community Development Act of 1974, as amended, herein called the "Act";
WHEREAS, the Parties desire to cooperate to undertake, or assist in undertaking,
community development, community renewal of 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 Cranston-Gonzalez National
Affordable Housing Act ("NARA"), and the U.S. Housing Act of 1937, as amended;
WHEREAS, the Community Development Block Grant ("CDBG") Entitlement
Program, the HOME Investment Partnerships ("HOME") Program, and the Emergency Solutions
Grant ("ESG") Program are required to have an approved comprehensive housing strategy as
authorized under NAHA;
WHEREAS, the County has requested of the U.S. Department of Housing and Urban
Development, hereinafter referred to as "HUD", that the County be designated as an urban
county, the program hereinafter referred as to the "Los Angeles Urban County Program";
WHEREAS, the City has participated with the County in the Los Angeles Urban County
Program and desires to renew its participation with the County in said Los Angeles Urban
County Program for the County's Consolidated Plan for Fiscal Years 2024-2026;
WHEREAS, as the Los Angeles Urban County designee, the County will take
responsibility and assume all obligations of an applicant under federal statutes, including: the
analysis of needs, the setting of objectives, the preparation of community development and
housing assistance plans, the consolidated plan, and the assurances of certifications;
WHEREAS, the terms and provisions of this Agreement are fully authorized under state June 2023 Attachment No. 2
and local law, and this Agreement provides full legal authority for the County to undertake, or assist in undertaking, essential community development and housing assistance activities, specifically urban renewal and public1y assisted housing; and WHEREAS, by executing this Agreement, the Parties hereby give notice of the intention to participate in the Los Angeles Urban County Program. NOW, THEREFORE, the Parties agree as follows: 1.The City hereby authorizes the County to perform, or cause to be performed,those acts necessary or appropriate to implement the community development andhousing assistance activities. Specifically urban renewal and publicly assistedhousing, including, but not limited to, improvement or development of housingfor persons of low-to moderate-income, and other community or urban renewalactivities authorized under the Act for the City in the County's Consolidated Planfor Fiscal Years 2024-2026, which will be funded from the CDBG EntitlementProgram, and, where applicable HOME and ESG Programs, from federal annualappropriations and from any program income generated from the expenditure ofsuch funds.In the event this Agreement extends into succeeding fiscal years and funds havenot been appropriated, this Agreement will automatically terminate as of June 30of the then-current fiscal year. The County will notify the City in writing withinten (10) days of receipt of non-appropriation notice.2.This Agreement covers the following formula funding programs administered byHUD where the County is awarded and accepts funding directly from HUD: TheCDBG Entitlement Program, the HOME Program, and the ESG Program.3.In executing this Agreement, the City understands the following:June 2023 a. The County has the final responsibility for selecting CDBG, and, whereapplicable, HOME and ESG, activities and submitting the Consolidated Planto HUD.b.The City is not eligible for grants under the State CDBG ("Small CitiesCDBG") Program per Section V(D)(l of CPD Notice 2023-03 ("the Notice")during the period in which it participates in the Los Angeles Urban CountyProgram.c.The City may participate in the HOME Program only through the Los AngelesUrban County Program. Thus, even if the County does not receive a HOMEformula allocation, the City cannot form a HOME consortium with other localgovernments.d.The City may participate in the ESG Program only through the Los AngelesUrban County Program.2
4.The term of this Agreement shall be for the County's Consolidated Plan for Fiscal
Years 2024-2026 and commence on July 1, 2024 through June 30, 2027 ("Urban
County Term11). The Parties agree that they cannot terminate or withdraw from
this Agreement while it remains in effect. Towards the end of the second year of
the Urban County Term, the County will notify the City in writing of its right not
to participate in the County's successive Consolidated Plan for the next three-year
period
The Parties agree to adopt amendments to this Agreement incorporating changes
necessary to meet the requirements for cooperation agreements set forth in HUD's
Urban County Qualification for Participation Notice, prior to the subsequent
three-year extension of the term.
5.This Agreement shall be effective for the Urban County Term and for such period
of time for the expenditure of all CDBG funds, or where applicable, HOME and
ESG funds, allocated to the City under this Agreement and appropriations from
any program income therefrom and for the completion of the funded activities.
The Parties agree that they cannot terminate or withdraw from this Agreement
while it remains in effect.
6.The Parties 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.
June 2023
The Parties in the performance of this Agreement shall take all actions necessary
or appropriate to assure compliance with the Los Angeles Urban County
Program's certification under Section 104(b) of Title I of the Act, as amended,
that the grant will be conducted and administered in conformity with Title VI of
the Civil Rights Act of 1964; and the implementing regulations at 24 CFR Part 1,
and the Fair Housing Act, and the implementing regulations at 24 CFR Part 100,
and will affirmatively further fair housing. See 24 CFR § 91.225(a) and
Affirmatively Furthering Fair Housing Definitions and Certifications (86 FR
30779, June 10, 2021), to be codified at 24 CFR 5.151 and 5.152, available at
ht tps://www .federa lre ci ster . rrov/documents/2021/06/10/2021-121 14/restoring
affinnativel y-furthering-fair-housing-defini tions-and-certificati ons.
Fu rthermore, the Parties in the performance of this Agreement shall take all
actions necessary or appropriate to assure compliance with Section 109 of Title I
of the Act, and the implementing regulations at 24 CFR Part 6, which
incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing
regulations at 24 CFR Part 8, Title II of the Americans with Disabilities Act, and
the implementing regulations at 28 CFR Part 35, the Age Discrimination Act of
1975, and the implementing regulation at 24 CFR Part 146, and Section 3 of the
Housing and Urban Development Act of 1968, and all other applicable laws and
regulations.3
The Parties agree that CDBG and, where applicable, HOME and ESG funding is
prohibited for any activities in, or in support of, any cooperating City that does
not affirmatively further fair housing within its own jurisdiction or that impedes
the County's action to comply with its fair housing certification. The City
acknowledges and agrees to HUD's 424-B Form, Assurances and Certifications.
7.Pursuant to 24 CFR § 570.50l(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.
8.The City shall report to the County of any income generated by the use of CDBG
and, where applicable, HOME and ESG funds received by the City. Any such
program income, if applicable, must be remitted to the County within 30 days of
receipt. Such program income may be used for eligible activities in accordancewith an CDBG and, where applicable, HOME and ESG, requirements as may
then apply.
9.The County shall be responsible for monitoring and reporting to HUD on the use
of any program income; therefore, the City shall be required to maintain
appropriate record keeping and reporting for this purpose.
10.The City may not sell, trade or otherwise transfer all or any portion of CDBG,
and, where applicable, HOME and ESG funds to another metropolitan city, urban
county, unit of general local government, or Indian tribe, or insular area that
directly or indirectly receives CDBG, and, where applicable, HOME and ESG
funds in exchange for any other funds, credits or non-federal consideration, but
must use such funds for activities eligible under Title I of the Act.
11.In the event of grant close-out or termination of this Agreement, any program
income that is on hand or received subsequent to the close-out or change in status
shall be paid to the County within 60 days after grant closeout or termination of
this Agreement.
12.All program income generated from the disposition or transfer of real property
acquired or improved by the City using CDBG and, where applicable, HOME and
ESG, funds or program income, during the Urban County Term, shall be subject
to all the terms and conditions of this Agreement.
13.Any real property which is acquired or improved by the City during the term ofthis Agreement, in whole or in part, using CDBG and/or HOME and ESG funds
or program income in excess of $25,000, shall be subject to the following
standards:
a.
June 2023
The County shall be notified by the City in writing of any modification or
change in the use or disposition of such real property from that planned at
4
the time of the acquisition or improvement. Such notification shall be
made prior to the modification, change in use or disposition.
b.If such real property is sold within five (5) years or transferred for a use
which does not qualify as an eligible activity under CDBG and/or HOME
and ESG regulations, the City shall reimburse to the County an amount
equal to the pro-rata share of the current fair market value of the property
or proceeds from the sales. The pro-rata share shall be calculated by
multiplying the current market value by the percentage of the purchase
price paid with CDBG funds or program income.
14.The City shall make available for inspection and audit to County's and HUD's
representatives, upon request, at any time during the duration of this Agreement
and for a period of five ( 5) years thereafter, all of its books and records relating to
CDBG Entitlement Program and, where applicable, HOME and ESG programs'
activities and income.
15.Following the end of the three-year reimbursable contract period and after
resolving any financial or programmatic findings, if the City elects to leave the
Los Angeles Urban County Program and is not eligible to become an entitlement
city, the City will be unable to request that its allocation or any remaining balance
be transferred to the City. Any remaining balance will be transferred to the
funding pool of the Supervisorial District in which the City is located.
16.The City has adopted and is enforcing:
a.A policy prohibiting the use of excessive force by law enforcement
agencies within its jurisdiction against any individuals engaged in non
violent civil rights demonstrations; and
b.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 its jurisdiction.
17.The City shall provide a drug-free workplace by:
June 2023
a.Publishing a statement notifying employees that the unlawful
manufacture, distribution, dispensing, possession, or use of a controlled
substance is prohibited in the City's workplace and specifying the actions
that will be taken against employees for violation of such prohibition.
b.Establishing an ongoing drug-free awareness program to inform
employees about:1. 11. The dangers of drug abuse in the workplace;
The City's policy of maintaining a drug-free workplace;
5
June 2023
iii.Any available drug counseling, rehabilitation, and employee
assistance programs; and
iv.The penalties that may be imposed upon employees for drug abuse
violations occurring in the workplace.
c.Making it a requirement that each employee who will be engaged in the
performance of the grant be given a copy of the statement required by
paragraph "a" of this Section 17.
d.Notifying the employee in the statement required by paragraph "a" of this
Section 17 that, as a condition of employment funded by the CDBG, and
where applicable, HOME and ESG grant, the employee will:
1.Abide by the terms of the statement; and
ii.Notify the City in writing of his or her conviction of a violation of
a criminal drug statute occurring in the workplace no later than
five (5) calendar days after such conviction.
e.Notifying the County in writing, within ten (10) calendar days after
receiving notice under subparagraph d(ii) of this Section 17 from an
employee or otherwise receiving actual notice of any such conviction; and
the City must provide written notice, including position or title, of any
City employees convicted of any criminal drug statute to every County
officer or other designee who processed a CDBG, HOME, or ESG grant
which funded any activity on which the convicted employee was working,
unless HUD has designated an identification number(s) of each affected
grant.
f.Taking one (1) of the following actions, within 30 calendar days of
receiving notice under subparagraph d(ii) of this Section 17, with respect
to any employee who is so convicted:
g.
1.Taking appropriate personnel action against such an employee, up
to and including termination, consistent with the requirements of
the Rehabilitation Act of 1973, as amended; or
ii.Requiring such employee to participate satisfactorily in a drug
abuse assistance or rehabilitation program approved for such
purpose by a federal, state, local health, law enforcement, or other
appropriate agency.
Making a good faith effort to continue to maintain a drug-free workplace
through the implementation of paragraphs a, b, c, d, e, and f, of this
Section 17.
6
JW1e 2023 18.This Agreement may be executed in any number of counterparts, each of which
shalJ be effective only upon delivery, and therefore shall be deemed an original,
and all of which shall constitute one and the same document, for the same effect
as if all parties hereto had signed the same signature page.
The facsimile, email, or other electronically delivered signature of the Parties
shal1 be deemed to constitute original signatures, and facsimile or electronic
copies hereof shall be deemed to constitute duplicate originals. 7
IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Agreement to be subscribed by the Executive Director of the LACDA, and the City has subscribed the same through its duly authorized officers, on the day, month, and year first above written. County Counsel Certification The office of the County Counsel hereby certifies that the terms and provisions of this Agreement are fully authorized under state and local laws, and that the Agreement provides full legal authority for the County to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and public assisted housing. By: �DhP2-j,::41� Principal Deputy County Counsel COUNTY OF LOS ANGELES By: EMILIO SALAS, Executive Director Los Angeles County Development Authority APPROVED AS TO FORM: DA WYN R. HARRISON County Counsel By: a�h¥As'itifo� Principal Deputy County Counsel S-1
June 29, 2023 Date
IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has
caused this Agreement to be subscribed by the Executive Director of the LACDA, and the City
has subscribed the same through its duly authorized officers, on the day, month, and year first
above written.
CITY OF ARCADIA
Ne, Title
ATTEST: City Clerk
By: 7 flr-
APPROVED AS TO FORM:
By: -'�-r_) �-�/ __ CITY ATTORNEY
S-2K:\GMU COMMON\GPPA\GPA\Urban County Qualification Docs\2024-2026Qualification Period\Documents\Drafts\FY 2024-2026 Participating City C.ooperation Agreement 5-23-23 SignaturePg v I .doc