HomeMy WebLinkAboutE-14 Staff Report - CDBG 3 Yr Cooperation Agr _ConsentCONSENT ITEM
E-14
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
VIA: SERGIO GONZALEZ, CITY MANAGER
FROM: JOSE JIMENEZ, DIRECTOR OF ECONOMIC AND COMMUNITY
DEVELOPMENT
DATE: JULY 17, 2023
SUBJECT: A RESOLUTION APPROVING CONTINUED PARTICIPATION IN THE LOS
ANGELES URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK
GRANT PROGRAM BY ENTERING INTO A THREE-YEAR COOPERATION
AGREEMENT WITH THE COUNTY OF LOS ANGELES (2024-2027)
BACKGROUND:
Each year, Community Development Block Grant (CDBG) funds are allocated to cities by the
Federal Housing and Urban Development Department (HUD) and administered through the Los
Angeles County Development Authority (LACDA). Participating cities receive funding based
upon the total number of cities participating in the County's program, census population counts,
estimates of poverty, overcrowding and aged housing stock. The City of Azusa has participated in
the Community Development Block Grant (CDBG) Program since its inception in 1974, utilizing
federal CDBG funds for various housing and community development projects within the City.
On July 7, 2023, HUD, through LACDA, notified the City that it did not achieve the required
minimum population threshold of 50,000 persons to qualify as an entitlement city and receive
CDBG funds directly from HUD. Rather, and in order to continue receiving an annual CDBG
allocation of approximately $380,000, the City may elect to continue its participation in the Los
Angeles Urban County CDBG Program for a new three-year CDBG Urban Requalification Period
beginning July 1, 2024 through June 30, 2027.
RECOMMENDATIONS:
Staff recommends that the City Council take the following actions:
Approved
City Council
July 17, 2023
CDBG Three-Year Cooperation Agreement
July 17, 2023
Page 2
1) Adopt Resolution No. 2023-C36 approving continued participation in the Los Angeles
Urban County Community Development Block Grant (CDBG) Program by entering
into a Three-Year Cooperation Agreement effective July 1, 2024 through June 30, 2027
with the County of Los Angeles; and
2) Authorize the City Manager, or designee, to execute all contracts, in a form approved
by the City Attorney, with the Los Angeles County Development Authority (LACDA),
and to execute any and all documents necessary for participation in the Los Angeles
Urban County CDBG Program.
ANALYSIS:
On June 18, 2020, the City entered into a Cooperation Agreement with LACDA to continue
participating in the Los Angeles Urban County CDBG Program for a three-year period beginning
July 1, 2021 through June 30, 2024. As the prior three-year qualification period reaches the June
30, 2024 expiration date, LACDA is requesting that cities wishing to continue participating in the
Urban County CDBG Program renew for another three-year term.
To remain eligible, the City must adopt a resolution approving a new three-year Cooperation
Agreement. The new term will commence July 1, 2024 and end on June 30, 2027. The proposed
resolution authorizes the City Manager, or designee, to sign the Three-Year Cooperation
Agreement on behalf of the City Council. The Resolution further provides the City Manager to
designate authority to the Economic and Community Development Director to execute CDBG
Program contracts and agreements with LACDA, and if necessary, make minor adjustments to
CDBG programmatic requirements, as directed by LACDA.
Contrary to assuming a loss of CDBG funds due the City’s non-entitlement status, the City will
actually avoid significant costs that LACDA absorbs for participating cities including: preparation
of a five-year Consolidated Plan; One-Year CDBG Action Plan; Citizen Participation Plan; and,
Analysis of Impediments to Fair Housing Choice. Furthermore, LACDA annually incurs
additional CDBG administrative costs that reduce each participating city’s financial burden.
The City will continue to maintain communication with HUD and LACDA. Staff will pursue
entitlement status when HUD and/or LACDA informs the City of any changes in the City’s
population data.
FISCAL IMPACT:
Continued participation in the Urban County CDBG Program will allow the City to receive
approximately $380,000 in federal Community Development Block Grant funds annually through
Los Angeles County. CDBG programs not only allow the City to respond to community needs
with little impact to the General Fund, but decrease general fund subsidies on many programs. The
$380,000 of CDBG allocation is an estimate, and the actual CDBG award allocation amount will
not be available until spring of calendar year 2024. Once the City is notified of the exact award
amount, staff will prepare a budget amendment and update the FY2024-25 CDBG budget
consistent with the CDBG allocation award amount under 18-35-910-000-XXXX and the
respective projects.
CDBG Three-Year Cooperation Agreement
July 17, 2023
Page 3
Prepared by: Reviewed by:
Tina Gall Jose Jimenez
CDBG Consultant Director of Economic and
Community Development
Fiscal Review by: Reviewed and Approved by:
Talika M. Johnson Sergio Gonzalez
Director of Administrative Services City Manager
Attachments:
1) Resolution No. 2023-C36
2) Three Year Cooperation Agreement with Los Angeles County
ATTACHMENT 1
RESOLUTION NO. 2023-C36
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AZUSA
APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY
COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM
WHEREAS, the City of Azusa desires to participate in the Los Angeles Urban County
Community Development Block Grant (CDBG) Program; and
WHEREAS, on June 18, 2020, the City entered into a Cooperation Agreement with the County
of Los Angeles for a three-year participation period, beginning July 1, 2021 through June 30, 2024, in
order to receive said CDBG funds; and
WHEREAS, said Cooperation Agreement will expire on June 30, 2024, and the City desires to
renew its participation in the Los Angeles Urban County Community Development Block Grant
Program for the next three-year qualification period beginning July 1, 2024 through June 30, 2027; and
WHEREAS, the Los Angeles County Development Authority is the County entity responsible
for the disbursement of CDBG Funds through the Small Cities Program to the City of Azusa.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Azusa does
hereby take the following actions:
SECTION 1. The City Council hereby adopts and approves the County of Los Angeles
Participating City Cooperation Agreement between the City of Azusa and the County of Los Angeles
commencing July 1, 2024 through June 30, 2027.
SECTION 2. The City Council authorizes the City's continued participation in the Los Angeles
Urban County CDBG Program in order to receive an estimated annual CDBG allocation of $380,000
for the purposes of implementing eligible CDBG projects within the City of Azusa.
SECTION 3. The City Council authorizes the City Manager, or designee, to execute any and all
documents necessary for participation in the Los Angeles Urban County CDBG Program on behalf of
the City.
SECTION 4. The City Council further authorizes the City Manager, or designee, to timely
execute all necessary CDBG Program contracts and agreements with the Los Angeles County
Development Authority, together with any changes therein which may be approved by the City Manager
and, as necessary, the City Attorney.
SECTION 5. The City Clerk shall certify the adoption of this resolution.
PASSED, APPROVED AND ADOPTED this seventeenth day of July, 2023.
____________________________________
Robert Gonzales
Mayor
ATTEST:
____________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss.
CITY OF AZUSA )
I HEREBY CERTIFY that the foregoing Resolution No. 2023-XXX was duly adopted by the
City Council of the City of Azusa, at a regular meeting of said City Council held on the seventeenth day
of July 2023, by the following vote of the Council:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSTAIN: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
___________________________________
Jeffrey Lawrence Cornejo, Jr.
City Clerk
APPROVED AS TO FORM:
___________________________________
Best Best & Krieger, LLP
City Attorney
June 2023 1
COUNTY OF LOS ANGELES
COMMUNITY DEVELOPMENT BLOCK GRANT ENTITLEMENT PROGRAM
HOME INVESTMENT PARTNERSHIPS 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 1st day of July 2024, by and between the CITY
OF AZUSA, 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 (“NAHA”), 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
Attachment 2
June 2023 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 publicly 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 and
housing assistance activities. Specifically urban renewal and publicly assisted
housing, including, but not limited to, improvement or development of housing
for persons of low- to moderate-income, and other community or urban renewal
activities authorized under the Act for the City in the County's Consolidated Plan
for Fiscal Years 2024-2026, which will be funded from the CDBG Entitlement
Program, and, where applicable HOME and ESG Programs, from federal annual
appropriations and from any program income generated from the expenditure of
such funds.
In the event this Agreement extends into succeeding fiscal years and funds have
not been appropriated, this Agreement will automatically terminate as of June 30
of the then-current fiscal year. The County will notify the City in writing within
ten (10) days of receipt of non-appropriation notice.
2.This Agreement covers the following formula funding programs administered by
HUD where the County is awarded and accepts funding directly from HUD: The
CDBG Entitlement Program, the HOME Program, and the ESG Program.
3.In executing this Agreement, the City understands the following:
a.The County has the final responsibility for selecting CDBG, and, where
applicable, HOME and ESG, activities and submitting the Consolidated Plan
to HUD.
b.The City is not eligible for grants under the State CDBG (“Small Cities
CDBG”) Program per Section V(D)(1 of CDP Notice 2023-03 (“the Notice”)
during the period in which it participates in the Los Angeles Urban County
Program.
c.The City may participate in the HOME Program only through the Los Angeles
Urban County Program. Thus, even if the County does not receive a HOME
formula allocation, the City cannot form a HOME consortium with other local
governments.
d.The City may participate in the ESG Program only through the Los Angeles
Urban County Program.
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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 Term"). 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.
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
https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring-
affirmatively-furthering-fair-housing-definitions-and-certifications.
Furthermore, 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.
June 2023 4
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 § 570.501(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.
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 accordance
with all 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 of
this 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.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
June 2023 5
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:
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:
i.The dangers of drug abuse in the workplace;
ii.The City’s policy of maintaining a drug-free workplace;
June 2023 6
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:
i.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:
i.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.
g.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.
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18.This Agreement may be executed in any number of counterparts, each of which
shall 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
shall be deemed to constitute original signatures, and facsimile or electronic
copies hereof shall be deemed to constitute duplicate originals.
S-1
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: ______________________________________________________________
Principal Deputy County Counsel Date
COUNTY OF LOS ANGELES
By: ________________________________
EMILIO SALAS, Executive Director
Los Angeles County Development Authority
APPROVED AS TO FORM:
DAWYN R. HARRISON
County Counsel
By: ________________________________
BEHNAZ TASHAKORIAN
Principal Deputy County Counsel
S-2
K:\GMU COMMON\GPPA\GPA\Urban County Qualification Docs\2024-2026 Qualification Period\Documents\Drafts\FY 2024-2026
Participating City Cooperation Agreement 5-23-23 SignaturePg v1.doc
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 AZUSA
By: ________________________________
MAYOR OR DESIGNEE (Signature)
_______________________________
Print Name, Title
ATTEST:
City Clerk
By: ________________________________
APPROVED AS TO FORM:
By: ________________________________
CITY ATTORNEY