CITY MANAGER' S REPORT ITEM 4. 5
MAY 8, 2023 REGULAR CITY COUNCIL MEETING
ITEM: CONFIRM PARTICIPATION IN THE SAN JOAQUIN
URBAN COUNTY PROGRAM FOR YEARS 2024- 2026
TO OBTAIN HOUSING AND URBAN DEVELOPMENT
FUNDS
RECOMMENDATION: Approve this item to confirm the City of Lathrop' s participation in the San Joaquin Urban County
Program for Years 2024- 2026 to obtain Housing and
Urban Development Funds
SUMMARY:
The City of Lathrop participates in the San Joaquin Urban County Program to receive Housing and Urban Development ( HUD) funds through the Community Development Block Grants ( CDBG) and the HOME Investment Partnership Act ( HOME). The City receives approximately $ 126, 000 in funds for these programs from the Urban County Program each year and the County completes the majority of the extensive reporting required by HUD.
Every three years, the County performs a requalification of the Urban County Program and renews its Cooperative Agreement with the participating cities. Staff recommends the City of Lathrop remain part of the San Joaquin Urban County Program and thereby allow the Cooperation Agreement to renew automatically for each year through 2026.
BACKGROUND:
Under HUD regulations, there are three ways in which cities may qualify for HUD funds through CDBG and the HOME Programs.
1. Cities with populations of at least 50, 000 may receive funds directly as an entitlement city;
2. Small cities may compete in a statewide Small Cities Program with other small cities for a portion of the funds; and,
3. Cities may participate in an Urban County Program to receive a portion of the funds allocated to that County.
Option 1 is not available to the City of Lathrop as its population is less than 50, 000 people.
Option 2 is not recommended. If the City were to compete with other small cities in the State for funds, a consultant would need to be hired to assist in the competitive process without guarantee the City would receive any funds. In addition, the consultant would have to be paid to complete the ongoing extensive reporting required by HUD. The City currently does not have the staff required to maintain such a program.
CITY MANAGER' S REPORT Page 2
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
CONFIRM PARTICIPATION IN THE SAN JOAQUIN URBAN COUNTY PROGRAM FOR YEARS 2024- 2026 TO OBTAIN HOUSING AND URBAN DEVELOPMENT FUNDS
Option 3 is recommended by Staff. The City of Lathrop currently participates in the San Joaquin Urban County Program. As a participant in this program, the City receives approximately $ 126, 000 per year in HUD funds through the CDBG and the HOME programs combined. Under the Urban County Program, the County handles the majority of the extensive reporting required by HUD.
Every three years the County must go through a requalification for its entitlement status. A letter was sent to each city in the County requesting official notification of the City' s Intent to be included in the Urban County Program for the 2024- 2026 qualification periods. ( Attachment A). Staff received this letter on April 17, 2023 and responded to the County with a letter dated April 20, 2023 as notification of intent to continue the City' s participation in the Urban County Program pending City Council approval. ( Attachment B).
RECOMMENDATION:
Staff recommends that City Council confirm the City of Lathrop' s Participation in the San Joaquin Urban County Program for years 2024- 2026 to obtain Housing and Urban Development Funds.
FISCAL IMPACT:
This agenda item has no fiscal impact to the City of Lathrop.
ATTACH M E NTS:
A. Requalification Letter from San Joaquin County dated 4/ 12/ 2023 B. City of Lathrop Letter of Intent to continue Participation in the San Joaquin Urban County Program for 2024- 2026 timeframe dated 4/ 20/ 2023
CITY MANAGER' S REPORT Page 3
MAY 8, 2023 CITY COUNCIL REGULAR MEETING
CONFIRM PARTICIPATION IN THE SAN JOAQUIN URBAN COUNTY PROGRAM FOR YEARS 2024- 2026 TO OBTAIN HOUSING AND URBAN DEVELOPMENT FUNDS
APPROVALS:
y-/ 9- 2023
Shelley Bur am Date
Economic Development Administrator
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Cari Ja s Date
Directo f Finance
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Salvador Navarrete Date
City Attorney
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St en J. Salvatore Date
City Manager
ATTACHMENT " A"
r iQ N Q Q N
Neighbarhood Preservation
A Division of Health Care Services
COU NTY
Greg Diederich, Agency Director
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Chris Becerra, MA III
April 12, 2023
City of Lathrop
Shelley Burcham, CEcD, EDFP
390 Towne Center Drive
Lathrop, CA 95330
SUBJECT: REQUALIFICAT( ON OF SAN JOAQUIN COUNTY AS AN URBAN COUNTY Dear Ms. Burcham:
Every three years, it is necessary for San Joaquin County to go through a requalification for entit(ement status process established by HUD, to remain eligible for Community Development Block Grant ( CDBG) funding. The key components of this requalification process from a local standpoint are:
1) Option of Inclusion or Exclusion — The County must notify all of the cities of their option for inclusion or exclusion in the Urban County. Each City must notify both the County and HUD of its decisian ta be included ar exc( uded from the Urban County for the 2024- 2026 qualification period by April 28, 2023. You should be aware that if the City chaoses to remain with the Urban County, it is ineligible to apply for grants under the State CDBG program. As a member of the Urban County, the City also becomes a participant in the Urban County HOME program.
Your written notice of intent ( if choosing exclusion from the Urban Caunty) should be sent to the HUD Field Office at:
Venus Reyes, Program Representative
Cammunity Planning and Development
U. S. Department of Housing and Urban Development
One Sansome Street, Suite 200
San Francisco, CA 94144
The County natificatian letter ( inclusion or exc( usion) should be sent to:
Chris Becerra, Management Analyst III
San Joaquin County
Neighborhood Preservation
16988 S. Harlan Road
Lathrop, CA 95330
16988 S. Harlan Road Lathrop, CA 95330 T 209 468 3175 F 209 468 9575 havioral Hea!# h Services ( Gorrectional Health Services Em rgency Mediea( Servi s IVeighborhoad Preservatic n C} fFce of the Medieal caminer Publie GuardianlConseruator Publie He lth Services Vetsran Services S A N 10 A Q U I N
Neighborhood Preservation
COU NTY
2} Cooperation Agreement - The current Coaperation Agreement allows for automatic renewal at the end of the three- year Urban County qualificatian period, if no changes to the agreement are required by HUD, which would require the executian of a new agreement.
This (etter serves as your notification that the current Cooperation Agreement for FYs 2021- 2023 will automatically renew for the three- year qualification cycle of FYs 2024- 2026, unless the City of Lathrop notifies both the County and HUD of its intent to terminate the agreement at the end of the current qualification period.
In summary, you must notify the County and HUD, in writing, by April 28, 2023 of your intent to continue of discontinue your participation in the Urban County for the 2024- 2026 period. If you decide to opt out of the Urban County, you must also include in your notification letter that it is your intent to terminate the Cooperation Agreement at the end of the current qualification period.
Far you convenience, attached is a copy of the letter the City sent during the last qualifying process.
Should you have any questions or require additional information concerning this process, please feel free to contact Chris Becerra at 209-468-3157.
Sincerely,
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Matt Garber
Assistant Director
Attachment
cc: Zachary Janes, Director - Dept. of Parks and Recreation City of Lathrop
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A
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O ce ofthe City Manager 39 Towne Centre Drive, Lathrop, CA 95330 Phone( 209) 941- 722— Fc r( 209) 941- 72 9
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May 15, 2020
Raymond K. Hoo, Deputy Director
San Joaquin Community Development Department
Neighborhood Preservation Division
1810 E. Hazelton Avenue
Stocktan, CA 95205
Re: URBAN COUNTY COOPERATION AGREEMENT
Dear Mr. Hoo:
It is the intent of the City of Lathrop to continue participation in the San Joaquin Urban County Program for the Zp21 — 2023 qualification period and to exercise the automatic renewal optian of the existing Coaperative Agreement. We will be formalizing this intent by taking the item before City Council on June 8, 2020. Once approved by City Council, we will forward a copy of the Resalution to your office ta formalize this agreement renewal.
If you have further questions, please do not hesitate to contact Shelley Burcham, Economic Development Administrator, by email at sburchamQci. lakhrap. ca. us or by telephone at ( 209) 941- 7221.
Thank you,
tephen J. Salvatore
City Manager
cc: File—EDD/ CDBG
Attachment " B"
City of
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Offrce oftlte Crty Maricrger 39t1 To4ti rre Ceittre Drive, Lathrap, CA 95330 Pltolre( 209) 941• 7220— Fa.r( 209} 94/- 7229
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Apri120, 2Q23
Chris Becerra, Management Analyst III
San Jaaquin Caunty
Neighborhaad Preservakion Division
16988 S. Harlan Road
Lathrop, CA 95330
Re: URBAN COUNTY CO PERATIQN AGREEMENT
Dear Chris:
It is the intent of the City of Lathrop to continue participatian in the San Joac uin Urban County Program for the 2024- 2026 qualification period and ko exercise the automaNc renewal opHon of the exisnng Cooperative Agreement. We will be formalizing this intent by taking the item before City Council on May 8, 2023.
If you h ve further questions, please do nat hesitate to cantact Shelley Burcham, Ecanomic Development Adminiskrator, by email at sburcham ci.lathrap. ca. us or by teIephone at ( 209) 941- 7221.
Sincerely,
Stephen J. Salvatore
City Manager
cc: Fite- EDDjCDBG