CITY MANAGER' SREPORT
MAY 11, 2026 REGULAR CITY COUNCIL MEETING
ITEM:
ITEM 4. 5
CONFIRM PARTICIPATION IN THE SAN JOAQUIN
URBAN COUNTY PROGRAM FOR YEARS 2027-029
TO OBTAIN HOUSING AND URBAN DEVELOPMENT
FUNDS
RECOMMENDATION: Approve the City of Lathrop' sParticipation in the San Joaquin Urban County Program for Years 2027-029
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 $ 123, 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 2029.
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 funding, 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' SREPORT Page 12
MAY 11, 2026 CITY COUNCIL REGULAR MEETING
CONFIRM PARTICIPATION IN THE SAN JOAQUIN URBAN COUNTY PROGRAM FOR YEARS 2027-029 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 $ 123, 000 per year in HUD funds through the CDBG and the HOME programs combined. Under the Urban County Program, the County completes the majority of the extensive reporting required by HUD.
Every three years the County must go through a requalification for its entitlement status. San Joaquin County sent a letter to each city in San Joaquin County requesting official notification by provided to County and to the U. S. Department of Housing and Urban Development ( HUD) from each City as to their intent to be included or excluded in the Urban County Program for the 2027-029 qualification periods ( Attachment A). Staff received their letter on April 21, 2026 and responded to the County and HUD with letters dated April 23, 2026 notifying both agencies of Lathrop' sintent to continue 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 2027-029 to obtain Housing and Urban Development Funds.
FISCAL IMPACT:
There is no fiscal impact to the City of Lathrop for this agenda item.
ATTACHMENTS:
A. Requalification Letter from San Joaquin County dated 4/ 20/26 B. Letters of Intent from the City of Lathrop to San Joaquin County and HUD dated 4/ 23/026 confirming continuation of Lathrop' s Participation in the San Joaquin Urban County Program for the 2027-029 period CITY MANAGER' SREPORT Page 13
MAY 11, 2026 CITY COUNCIL REGULAR MEETING
CONFIRM PARTICIPATION IN THE SAN JOAQUIN URBAN COUNTY PROGRAM FOR YEARS 2027-029 TO OBTAIN HOUSING AND URBAN DEVELOPMENT FUNDS
APPROVALS:
Barbara rb v
Date
Economic Development Administrator
Cari Ja
Director Z Finance
Thomas Hedegard
Deputy City Manager
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Date
2.6 Salvador Navarrete Date
City Attorney
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Stephen J. Salvatore Date
City Manager
40 San Joaquin
HCountysA
Human Services Agency
Attachment A
Neighborhood Preservation
A Division of Human Services Agency
Support when
it matters most Chris Woods, Director
Sam Kaisch, Assistant Director
Physical: 400 E. Main St., Stockton CA 95202 Mailing: P. O. Box 201056, Stockton CA 95201 ( 209) 468- 3175 April 20, 2026
City of Lathrop
Barbara Harb
Economic Development Administrator
390 Towne Center Drive
Lathrop, CA 95330
SUBJECT: REQUALIFICATION OF SAN JOAQUIN COUNTY AS AN URBAN COUNTY Dear Ms. Harb:
Every three years, it is necessary for San Joaquin County to go through a requalification for
entitlement 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 decision to be included or excluded from the Urban County for the 2027 - 2029 qualification period by May 4, 2026. You should be aware that if the City chooses 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 County) should be sent to the HUD Field Office at:
Venus Reyes, Program Representative
Community Planning and Development
U. S. Department of Housing and Urban Development
One Sansome Street, Suite 200
San Francisco, CA 94104
Our Mission is to lead in the creation and delivery of services that improve the quality of life for our community.
SANtJOAQUIN
COUNTY
thiA'
San Joaquin County
Support when
it matters most
Neighborhood Preservation
uman Services Agency
The County notification letter (inclusion or exclusion) should be sent to the below address or via email at jpalomares@sjgov. org.
Janette Palomares, Management Analyst III
San Joaquin County
Neighborhood Preservation
P. O. Box 201056
Stockton, CA 95201
2) Cooperation Agreement — The Cooperation Agreement will automatically renew at the end of the three- year Urban County qualification period unless HUD requires modifications, in which case a new agreement must be executed.
This letter serves as your notification that the current Cooperation Agreement for FYs 2024-026 will automatically renew for the three- year qualification cycle of FYs 2027- 2029, 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 May 4, 2026, if your intent to continue or discontinue your participation in the Urban County for the 2027-029 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.
For your 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 Janette Palomares at 209- 468- 3157.
Dawn McLeish
Deputy Director
Attachment:
City of Lathrop Letter 2023
Our Mission is to lead in the creation and delivery of services that improve the quality of life for our community.
SAN JOAOUIN
COUNTY2 of 2
ltsFORlf.
City of
Office ofthe City Manager
April 20, 2023
Chris Becerra, Management Analyst III
San Joaquin County
Neighborhood Preservation Division
16988 S. Harlan Road
Lathrop, CA 95330
Re: URBAN COUNTY COOPERATION AGREEMENT
Dear Chris:
ATTACHMENT' "
390 Towne Centre Drive, Lathrop, CA 95330
Phone ( 209) 941. 7220 — Fax ( 209) 941- 7229
www. ci. lathroh. ca. us
It is the intent of the City of Lathrop to continue participation in the San Joaquin Urban County Program for the 2024 - 2026 qualification period and to exercise the automatic renewal option of the existing Cooperative Agreement. We will be formalizing this intent by taking the item before City Council on May 8, 2023.
If you have further questions, please do not hesitate to contact Shelley Burcham, Economic Development Administrator, by email at sburchamOci. lathrop. ca. us or by telephone at (209) 941- 7221.
Sincerely,
Stephen J. Salvatore
City Manager
cc: File - EDD/ CDBG
City of
Office ofthe City Manager
April 23, 2026
Janette Palomares, Management Analyst III
San Joaquin County
Neighborhood Preservation Division
P. O. Box 201056
Stockton, CA 95201
Re: URBAN COUNTY COOPERATION AGREEMENT
Dear Janette:
390 Towne Centre Drive, Lathrop, CA 95330
Phone ( 209) 941- 7220 — Fax ( 209) 941- 7229
www. ci. lathrop. ca. us
It is the intent of the City of Lathrop to continue participation in the San Joaquin Urban County Program for the 2027 - 2029 qualification period and to exercise the automatic renewal option of the existing Cooperative Agreement. We will be formalizing this intent by taking the item before City Council on May 11, 2026.
If you have further questions, please do not hesitate to contact Barbara Harb, Economic Development Administrator, by email at bharb@ci. lathrop. ca. us or by telephone at ( 209) 941- 7221.
Sincerely,
Stephen J. Salvatore
City Manager
cc: File - EDD/ CDBG
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