Item No. 3
Town of Atherton
CITY COUNCIL STAFF REPORT – CONSENT AGENDA
TO: HONORABLE MAYOR AND CITY COUNCIL
GEORGE RODERICKS, CITY MANAGER
FROM: BRITTANY BENDIX, TOWN PLANNER
DATE: JUNE 17, 2026
SUBJECT: RESOLUTION TO ADOPT AMENDMENTS TO THE URBAN COUNTY
COOPERATIVE AGREEMENT WITH NON-ENTITLEMENT CITIES
FOR PARTICIPATION IN THE COUNTY’S HOUSING AND
COMMUNITY DEVELOPMENT PROGRAMS
RECOMMENDATION:
Staff recommends that the City Council adopt amendments to the Urban County Cooperative Agreement with non-entitlement cities for participation in the county’s housing and community development programs.
BACKGROUND
In 1996, the Town entered into a cooperation agreement with San Mateo County whereby Atherton would not be eligible for Community Development Block Grant (CDBG) Funds on its own; and would therefore, cooperate and participate in the County’s Urban County Program to access CDBG Funding.
The CDBG program is managed by the United States Department of Housing and Urban Development (HUD). Grants provided through this program support state, regional and local governments with financing for development activities that build resilient communities. These activities include infrastructure projects, economic development projects, public facilities installations, community centers, housing rehabilitation, and other public services.
The Town does not currently receive enough funds through the CDBG program to conduct housing programs locally, and therefore, chooses to participate regionally. Through this approach the Town receives credit for CDBG participation, which provides opportunities to the Town to seek CDBG Agreement Amendment 2
June 17, 2026
additional public funding programs that align with its General Plan programs and goals, specifically the Housing Element.
The Town has been in a cooperation agreement with the County since 1996; with the agreement automatically renewed every three years. In 2017, the Town approved an amendment to the agreement that addressed new requirements from HUD. Since that time, the amended agreement has continued to renew automatically. The 2017 amended agreement is provided at Attachment 1.
ANALYSIS
In May 2026, the Town received a letter from the San Mateo County Department of Housing regarding the requalification and renewal of the Cooperation Agreement for the upcoming program cycle. The letter indicates the Town must further amend the agreement, should the Town desire to continue the cooperative relationship. The proposed amendment is the second amendment since 2017 and is required as part of the Urban County requalification process.
The purpose of the second amendment is to include language that acknowledges ongoing litigation involving San Mateo County and multiple federal agencies that challenges certain new and unlawful terms and conditions imposed on federal grant awards. A copy of the new Cooperation Agreement is provided at Attachment 2. The proposed amendment clarifies that any terms and conditions subject to the August 12, 2025, court-issued Preliminary Injunction prohibiting HUD are not enforceable against San Mateo County in connection with any HUD grants awarded to the County. This provision does not alter the Town's obligations under the Agreement, as the Preliminary Injunction extends to the Cooperative Agreement. The injunction order is provided at Attachment 3.
To remain in the Urban County, the amendment must be approved by the City Council with a signed copy of the amendment sent to the County by July 15, 2026. A draft resolution for the Council’s consideration is provided at Attachment 4.
STAFF RECOMMENDATION
The Town does not receive enough funds to conduct housing programs locally and must choose to participate (and get credit for participation) regionally as part of the Town’s Housing Element commitment to Affordable Housing Projects and Programs.
FISCAL IMPACT
No fiscal impact at this time.
PUBLIC NOTICE
Public notification was achieved by posting the City Council agenda, with this agenda item being listed, at least 72 hours prior to the meeting in print and electronically. Legal advertisement of this hearing was published in The Almanac newspaper, 12 days prior to the hearing date. Information about the project is also disseminated via the Town’s electronic News Flash and Atherton Online.
There are approximately 1,200 subscribers to the Town’s electronic News Flash publications.
Subscribers include residents as well as stakeholders – to include, but not limited to, media outlets, CDBG Agreement Amendment 2
June 17, 2026
school districts, Menlo Park Fire District, service providers (water, power and sewer), and regional elected officials.
ATTACHMENTS
1. Original Agreement
2. Amended Agreement
3. King County Order
4. Draft Resolution