Determination of Essential Powers: A legal determination made by HUD about the legal authority of a county to carry out essential community development and housing assistance activities" in its 1) unincorporated areas and 2) UGLGs (without consent by UGLG governing bodies). The "essential community development and housing assistance activities" include activities such as acquiring property for reuse as low- and moderate-income housing, directly rehabilitating or providing financial assistance for housing, supporting low-rent housing activities, disposing of land to private developers for redevelopment, and condemning property for low-income housing. To be qualified as an Urban County, the county must have Essential Powers in its unincorporated areas, per Section 102(a)(6)(A)(I) of the HDA of 1974. HUD typically makes the Determination of Essential Powers the first time an Urban County qualifies.
NOTE: Essential Powers are granted (or not granted) by state governments under state laws. Most states only grant counties Essential Powers in Unincorporated Areas, and not in their UGGs because UGGs are granted authority over their jurisdiction. Because most states don't grant their counties Essential Powers in UGLGs, Cooperation Agreements are generally required for all Participating UGLGs that wish to join an Urban County.
Joint Agreements are required between Urban Counties and Metropolitan Cities.
Essential Powers: The legal authority of counties, granted by their state, to carry out "essential community development and housing assistance activities" within an area or jurisdiction. Most counties only have Essential Powers in Unincorporated Areas, but some states grant counties Essential Powers in Incorporated Areas or UGLGs.
First-Time Qualifiers: Counties seeking qualification as an Urban County for the first time.
Grants Management Process System (GMP-R) Urban County Module: The module in the GMP-R system that is used by CPD field and headquarters offices to track and update Urban County Configurations. The module is the official system of record for tracking program participation decisions by all UGLGs and Metropolitan Cities located within Urban Counties.
HCDA of 1974: The Housing and Community Development Act (HCDA) of 1974, as amended, is the statute (or law) which created the Community Development Block Grant (CDBG) program (and Urban Counties).
HOME Consortium: A group of contiguous UGGs that are jointly participating in the HOME Investment Partnerships (HOME) Program as a participating jurisdiction (PJ. HOME Consortia provide a method for local governments, that would not otherwise qualify for HOME funding, to join with other contiguous UGGs to directly participate in the HOME program.
Incorporated Areas: Areas in a county that have been incorporated as an official entity under state law. These areas (cities, towns, townships, villages, and boroughs) have a legally defined boundary and an active, functioning government. Incorporated areas are also interchangeably called units of general local government (UGGs).
Intergovernmental Agreements (IGAs): Legally binding contracts or formal partnerships between two or more governmental entities (e.g., cities and counties) to cooperate on issues of mutual concern, share resources, or provide services. There are two types of IGAs for the 35 purposes of the CDBG program and Urban Counties: 1) Cooperation Agreements between Urban Counties and Participating UGLGs and 2) Joint Agreements between Urban Counties and Metropolitan Cities. Both types of IGAs identify conditions for how the two governments (the county and the city) will work together. HUD calls these IGAs by different names because they involve different types of governments partnering with an Urban County: Non-Entitlement UGGs for Cooperation Agreements and Metropolitan Cities (CDBG Entitlements) for Joint Agreements. Both types of agreements must provide full legal authority for an Urban County to undertake, or assist in undertaking, essential community development and housing assistance activities in its Incorporated Areas or UGGs.
Joint Agreement: Intergovernmental Agreement (IGA) between an Urban County and Metropolitan City within the county boundaries, which explains roles and responsibilities, restrictions, CDBG program requirements, and enables the county to undertake, or assist in undertaking, "essential community development and housing assistance activities" in the Metropolitan City's jurisdiction. A Joint Agreement allows an Urban County to manage and administer the Metropolitan City's CDBG grant program, in addition to administering the Urban County's CDBG grant program. In a Joint Agreement, both the Urban County and the Metropolitan City are considered Joint Recipients. The Metropolitan City's CDBG grant funding must be spent in the jurisdiction of the Metropolitan City.
Joint Recipient: An Urban County or Metropolitan City that is part of a Joint Agreement.
Under the agreement, the Urban County administers the CDBG grant program for the Metropolitan City, in addition to administering its Urban County CDBG grant program.
Joint Request: The request letter submitted by a Metropolitan City and Urban County to their CPD field office to request approval for the Urban County to administer the Metropolitan City's CDBG grant program on their behalf. Refer to 24 CFR 570.308 for regulatory guidance on Joint Requests, Joint Recipients, and Joint Agreements. Joint Requests must be approved by the CPD field office for the grantees to proceed with executing a Joint Agreement. Joint Requests will be deemed approved by HUD after 30 days unless HUD notifies the Metropolitan City and Urban County of its disapproval and the reasons for disapproval. Importantly, Joint Requests must only be considered and submitted at the time the county is qualifying as an Urban County. Joint Requests approved by HUD remain effective for the period for which the county is qualified as an Urban County (three years). An Urban County may be joined by more than one Metropolitan City; however, a Metropolitan City located in more than one Urban County (split across multiple Urban Counties), may only be included in one Urban County.
Letter: A signed letter on official city or county government letterhead. An attached signed PDF letter on official city or county government letterhead may be sent via email. Digital signatures are allowed if the digital signature a) indicates that the person completing the digital signature is the Chief Executive Officer (or designee) and b) contains a date and time stamp for the signature.
Metropolitan City: City within a metropolitan area which is the Principal City of such area, as defined by the Office of Management and Budget (OMB), or any other city, within 36 a metropolitan area, which has a population of 50,000 or more. Any city that was classified as a Metropolitan City for at least two years shall remain classified as a Metropolitan City.
Metropolitan Cities are eligible to directly receive annual CDBG formula grant funding, which is why they are considered CDBG Entitlements.
Non-Entitlement Area: An UGLG which is not a Metropolitan City or part of an Urban County and does not include Indian Tribes. Non-Entitlement Areas are UGLGs (smaller cities and lower- population counties that cannot qualify as Urban Counties). Non-Entitlement Areas are eligible to seek State CDBG Program funding and that process varies based on each state's "method of distribution."
Nonparticipating UGLGs: UGLGs in an Urban County that have chosen not to participate in the Urban County's CDBG program. Nonparticipating UGLGs can join an Urban County each year during the Urban County Qualification Process. If a Nonparticipating UGLG wishes to join an Urban County, in general they must authorize and execute a Cooperation Agreement with the Urban County (unless the county has Essential Powers in UGGs). Nonparticipating UGLGs may also be considered Non-Entitlement Areas. Nonparticipating UGLGs may seek State CDBG Program funding (process varies based on each state's "method of distribution").
OGC Field or Regional Counsel: Attorneys in HUD's field and regional offices. HUD's Office of General Counsel (OGC) provides legal opinions, advice, and services for all HUD programs and activities. During Urban County qualification, OGC Field or Regional Counsel must review Cooperation Agreements, Joint Agreements, and County Counsel Legal Opinion Letters and certify that the Cooperation and/or Joint Agreements are legally sufficient for the purposes of Urban County qualification and the CDBG program. OGC Field or Regional Counsel also complete the Determination of Essential Powers.
Participating UGLGs: UGLGs in an Urban County that have chosen to participate in the Urban County's CDBG program. An UGLG can join an Urban County any year of the Urban County's Qualification Period (during the spring and summer months when the Urban County Qualification Process occurs). But once an UGLG joins an Urban County as a Participating UGLG, they must remain part of the Urban County for the remainder of that Urban County Qualification Period.
Essentially, they are locked into that CDBG program participation decision for 1-3 years based on when they join. In general, Participating UGLGs must execute a Cooperation Agreement (unless their Urban County has Essential Powers in UGGs). Metropolitan Cities may also become Participating UGLGs by Relinquishing CDBG Entitlement Status and executing a Cooperation Agreement with the Urban County, if necessary.
Principal City: A specific type of Metropolitan City, as defined in Sec. 102(a)(4) of the HCDA of 1974. Congress originally used the term "central city" in the HCDA of 1974: "a city within a metropolitan area which is the central city of such area." In 2003, OMB replaced "central city" with "principal city." HUD changed CDBG regulations to ensure the definition of Metropolitan City for the CDBG program was consistent with OMB's use of Principal City. OMB periodically re-designates Principal Cities in bulletins updating their designations of metropolitan statistical 37 areas (MSAs), micropolitan statistical areas, and core-based statistical areas (CBSAs). The largest city in each metropolitan or micropolitan statistical area is designated a Principal City. Additional cities also qualify as Principal Cities if requirements are met concerning population size and employment. OMB last updated these designations in July 2023 (OMB Bulletin No. 23-01).
Relinquishing CDBG Entitlement Status: The action of a Metropolitan City officially giving up its status as a CDBG Entitlement Community. The Metropolitan City must submit an official letter to their CPD field office notifying HUD that it wants to relinquish its CDBG Entitlement status. Their CPD field office will then notify the CPD Entitlement Communities Division as this will affect CPD formula allocation. After a Metropolitan City relinquishes CDBG Entitlement status, they may choose to become a Participating UGLG in an Urban County, seek State CDBG Program funding, or not participate in the CDBG program altogether.
Requalifiers: Currently qualified Urban Counties that are in their requalification year (the third year of their current expiring Urban County Qualification Period).
Split Place: An UGLG whose population is in more than one county. The jurisdiction crosses county lines. The counties do not all have to be Urban Counties. The UGLG must decide which county(ies) it will attribute its population to for Urban County qualification (if any).
State CDBG Program: HUD grant program which awards CDBG funds to state governments for distribution to Non-Entitlement Areas in their state (UGGs and lower-population counties not qualified as Urban Counties) to develop and preserve decent affordable housing, provide services to the most vulnerable in local communities, and create and keep jobs. States award their CDBG funding to Non-Entitlement Areas using a "method of distribution" of their choice.
Unincorporated Areas: Areas in a county not incorporated as cities, towns, townships, villages, or boroughs. These areas may have a name and be locally recognized, but they do not have legally defined boundaries or a separate legal government. Unincorporated areas are primarily "census designated places" (CDPs) and "unorganized territories," per the U.S. Census Bureau.
Unit of General Local Government (UGLG): An Incorporated Area operated by a local governing body (for example, a city council). These are typically known as cities, towns, townships, villages, or boroughs.
Urban County: A county that has met population thresholds and qualified to directly receive CDBG funds from HUD. An Urban County is a CDBG Entitlement Community under the CDBG Entitlement Program. Refer to the official definition of Urban Counties at Section 102(a)(6)(A) of the HCDA of 1974 for more information.
Urban County Configuration: The group of Participating UGLGs in Cooperation Agreements and/or Metropolitan Cities in Joint Agreements that make up an Urban County, including the county government itself. This is a technical term primarily used internally by HUD. It is often used when referring to the Urban County "worksheets" in the GMP-R Urban County Module and Urban County reports produced by the Integrated Disbursement and Information System (IDIS). 38 Urban County Lists: The seven lists of counties HUD publishes annually on the HUD.gov Urban Counties website to be used for the Urban County Qualification Process. These lists are the authoritative data source on current and potential new Urban Counties. Most importantly, the Urban County Lists show the years currently qualified Urban Counties must requalify.
Urban County Participation Decision Letters: The letters that Urban Counties and potential new Urban Counties send to UGLGs and Metropolitan Cities to request their official decision on whether to participate (or not) in the Urban County. As part of the qualification process, the Urban County sends these letters to UGLGs and Metropolitan Cities with a request for an official response letter to be sent back to the Urban County (generally within 30 days). Urban County Participation Decision Letters also include the response letters UGLGs and Metropolitan Cities send back to the Urban County with their participation decisions.
Urban County Qualification Deadlines: The deadlines HUD publishes annually on the HUD.gov Urban Counties website for the Urban County Qualification Process. The deadlines are for a series of actions that qualifying Urban Counties, UGGs, and Metropolitan Cities must complete in the spring and summer months each year: These deadlines guide Urban Counties through the Urban County Qualification Process, ensuring that counties remain on track and meet iterative milestones to successfully qualify as an Urban County before September 30 (which is the HOME program's statutory deadline).
Urban County Qualification Period: The three-fiscal-year period that an Urban County is qualified by HUD as an Urban County. During this period, the Urban County is eligible to receive CDBG funding directly as a CDBG Entitlement Community (so long as Congress appropriates funds and the Urban County submits its Consolidated Plan/Action Plan by August 16 each year). Urban Counties requalify for their next Urban County Qualification Period in their third and final year of their current Urban County Qualification Period.
Urban County Qualification Process: The overall process of Urban County qualification, which occurs each year through the spring and summer months and ends on September 30 (HOME program statutory deadline). GO TO SECTION 2 for the Step-by-Step Process Map.
The process involves Requalifiers and First-Time Qualifiers completing the following three actions: 1) securing CDBG program participation decisions from UGLGs and Metropolitan Cities in their county via Urban County Participation Decision Letters, 2) authorizing and executing Cooperation Agreements and/or Joint Agreements between the parties and securing County Counsel Legal Opinion Letters, and 3) submitting all qualification documentation to HUD for review and approval to be qualified as an Urban County for the next three-fiscal- year Urban County Qualification Period.
39 Attachment 3: HUD Requirements and Sample Language for Cooperation Agreements List of HUD requirements (12) for Urban County Cooperation Agreements!
1. It must be authorized by governing bodies and executed (signed) by CEOs.
The governing bodies for your Urban County and the Participating UGLG must authorize the Cooperation Agreement. Both chief executive officers (CEOs) must sign the agreement.
A County Counsel Legal Opinion Letter must be submitted with the Cooperation Agreement.
The opinion must state that the terms and provisions of the agreement are fully authorized under state and local law and that the agreement provides the legal authority for the county to undertake, or assist in undertaking, essential community development and housing assistance activities within the Participating UGG's jurisdiction.
2. It must state that your county and the Participating UGLG will cooperate to carry out essential community development and housing assistance activities.
If your Urban County does not have essential powers in the Participating UGLG, the Cooperation Agreement must specifically state that the Participating UGLG will:
"undertake, or assist in undertaking, essential community development and housing assistance activities."
NOTE: As an alternative to this language, your Cooperation Agreement may reference state law authorizing the UGLG to undertake these activities. Your Urban County must submit alternative language to HUD for approval by OGC Field or Regional Counsel.
3. It must state that the Cooperation Agreement covers the CDBG program and that your Urban County and the Participating UGLG may not seek CDBG funding from the State's CDBG program while participating in the Urban County.
4. It must state that the Cooperation Agreement also covers the: 1) HOME program (if your Urban County receives HOME funding); and 2) the ESG program if your Urban County receives ESG funding). The Participating UGLG may only receive HOME and ESG formula-allocated funds from your Urban County.
It must state that the UGLG may only receive formula-allocated funds for the HOME and ESG programs from your Urban County. Even if your Urban County does not participate in the HOME program, the Participating UGLG cannot form a HOME consortium with other UGLGs. Similarly, the Participating UGLG may only receive ESG formula-allocated funds from your Urban County.
NOTE: If your state allows it, your Urban County and Participating UGLGs may still seek HOME or ESG funds from your state government.
17 The twelve requirements in this list are HUD's requirements only. Urban Counties and Participating UGLGs must also incorporate local-specific provisions into their agreements to comply with state and local requirements. 40 5. It must specify the qualification period for your Urban County (three federal fiscal years covered by the Cooperation Agreement) OR the remaining 1-2 years of your qualification period (for amendments to Cooperation Agreements). It must also state that, by the date in the Urban County Qualification Deadlines published on the HUD.gov Urban Counties website for the next qualification period, your Urban County will notify the Participating UGLG by letter of its right not to participate.
For Auto-Renewal Cooperation Agreements, it must state the three additional fiscal years that will be covered by the agreement when it auto-renews.
The qualification period for your Urban County is the next three fiscal years after your county qualifies or requalifies. If your Urban County is amending a Cooperation Agreement, the amendment must update how many years remain (one or two) in your qualification period. HUD discusses amendments more in #6 below. For Auto-Renewal Cooperation Agreements, it must state the three additional fiscal years that will be covered by the agreement when it auto-renews.
6. For regular Cooperation Agreements, it must state that your Urban County and the Participating UGLG will amend the agreement, if necessary, to meet requirements during the Urban County's three-year qualification period. For Auto-Renewal Cooperation Agreements, it must state that your Urban County and the Participating UGLG will amend the agreement, if necessary, to meet requirements at any time during the two qualification periods the agreement is in effect (including at the time of requalification).
An amendment is any change to a Cooperation Agreement which must be authorized and executed during an Urban County's qualification period (or also at the time of requalification for an Auto-Renewal Cooperation Agreement). Over time, changes to laws and regulations may require your Urban County to amend your Cooperation Agreements to add new provision(s). An amendment allows your Urban County to draft a separate amendment to your existing agreements that includes the new provision(s) rather than drafting an entire new Cooperation Agreement containing the new provisions. The amendment must be authorized by governing bodies and executed (signed) by chief executive officers, like the Cooperation Agreement itself. Auto-Renewal Cooperation Agreements may be amended at the time of requalification for the second three-year qualification period, as well as during the two qualification periods, to cover any new required provisions. If your Urban County fails to make a required amendment to a Cooperation Agreement by the deadlines published on the HUD.gov Urban Counties website, your Cooperation Agreement is voided and you must submit a new Cooperation Agreement.
7. It must state that the agreement remains in effect until all funds (CDBG, HOME, ESG, and any program income are expended and all activities are completed.
This applies to the three-year qualification period (and second three-year qualification period for Auto-Renewal Cooperation Agreements). The Urban County and Participating UGLG can't terminate or withdraw from the agreement while it remains in effect. 41 8. It must state that your Urban County and the Participating UGLG will comply with all federal laws and regulations specified in HUD's Urban County Notice.
The Cooperation Agreement must contain an explicit provision obligating your Urban County and the Participating UGLG to comply with your Urban County's certification (under section 104(b) of Title I of the Housing and Community Development Act of 1974), that your 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);
• the Fair Housing Act (Title VIII of the Civil Rights Act of 1968), and the implementing regulations at 24 CFR Part 100, and the duty to affirmatively further fair housing (AFFH); and
• Section 109 of Title I of the Housing and Community Development Act of 1974, 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;
• Section 3 of the Housing and Urban Development Act of 1968; • Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 49 CFR Part 24; • Section 104(d) of Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR Part 42; and • Other applicable laws
Required provision on affirmatively furthering fair housing (AFFH) The Cooperation Agreement must contain a provision prohibiting an Urban County from funding activities in, or in support of, any Participating UGLG that impedes your county's actions to comply with your fair housing certification. HUD requires this provision because noncompliance with the duty to affirmatively further fair housing by a Participating UGLG may constitute noncompliance by your Urban County. This can result in HUD issuing funding sanctions or other remedial actions for your county.
9. It must include a provision prohibiting excessive use of force and prohibiting physically barring entrance to or exit from a facility or location which is the subject of non-violent civil rights demonstrations within jurisdictions.
The agreement must state that the Participating UGL has adopted and is enforcing:
42 1. 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
2. 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 jurisdictions.
10. It must NOT include a veto provision that could obstruct implementation of your Urban County's Consolidated Plan.
The Cooperation Agreement must NOT include a veto provision (or other restriction) that would allow a Participating UGLG to obstruct implementation of your Urban County's approved Consolidated Plan during the qualification period. Your Urban County has final responsibility for choosing CDBG activities (and HOME and ESG activities, if applicable) and submitting the Consolidated Plan to HUD. If your Urban County is a member of a HOME consortium (but not the lead entity, the HOME consortium is responsible for submitting the Consolidated Plan for your Urban County.
11. It must state that the Participating UGLG is subject to the same requirements as subrecipients in the CDBG program.
Per 24 CFR 570.501(b), the Cooperation Agreement must state that the Participating UGLG is subject to the same requirements as subrecipients in the CDBG program.
This includes the requirement for executing a written subrecipient agreement before your county disburses CDBG funds to a Participating UGLG.
12. It must include a provision that the parties may not sell, trade, or transfer any HUD funds. Congress has prohibited this practice. HUD will not accept Cooperation Agreements or approve any Urban County's qualification without this provision.
Your agreement must include this specific provision: Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG funds to a Metropolitan City, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or non-Federal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended.
Additional provisions your Urban County may include (authorized by state/local laws) Your Cooperation Agreements may also include any provisions authorized by state and local laws. These provisions may legally require a Participating UGLG to undertake necessary actions, as determined by your county, to carry out a community development program and the approved Consolidated Plan and/or meet other requirements of the CDBG program (and, where applicable, HOME and ESG programs) and other applicable laws. 43 Sample Language for Cooperation Agreements
HUD Sample Language
HUD Cooperation Agreement Requirement [ext in italics is explanatory and not part of the sample language]
It must be authorized by governing This may best translate to a "Whereas" clause, 1 bodies and signed by CEOs. paired with the execution on the signature block.
Example:
WHEREAS, the Mayor of the Municipality is
authorized to execute this Agreement on the
Municipality's behalf; and
WHEREAS, the County Executive is authorized
to execute this Agreement on the County's behalf
It must state that your county The County and the Municipality agree to 2 and the Participating UGLG will cooperate to undertake, or assist in undertaking, cooperate to carry out essential essential community development and housing community development and assistance activities, as approved and authorized housing assistance activities. between the parties in the CDBG Agreements, including the Consolidated Plan.
It must state that the agreement The participating Municipality understands and 3 covers the CDBG program and that agrees that it may not apply for grants under the your county and the Participating State CDBG Program for the fiscal years during UGLG may not seek CDBG the period in which the Municipality participates funding from the State's CDBG in the Urban County's CDBG Program. program while participating in
the Urban County.
It must state that the agreement Example, covering CDBG, HOME, and ESG:
4 also covers: 1) the HOME program This Agreement covers the following formula if your Urban County receives funding programs administered by HUD where HOME funding); and 2) the ESG the County is awarded and accepts funding program (if your Urban County directly from HUD: the CDBG Program, the receives ESG funding). The HOME Program, and the ESG Program.
Participating UGLG may only
receive HOME and ESG formula- The participating Municipality understands and allocated funds from your Urban agrees that it may receive a formula allocation County. under the HOME and ESG Programs only
through the Urban County. This does not
preclude the Urban County or the Municipality
from applying for HOME or ESG funds from
the State, if the State allows.
44 HUD Sample Language
HUD Cooperation Agreement Requirement [Text in italics is explanatory and not part of the sample language]
5 It must specify the qualification Example, Auto-Renewal Cooperation Agreement:
period for your Urban County (three This Agreement shall remain in effect for the federal fiscal years covered by the three-year program period of Federal Fiscal Years Cooperation Agreement) OR the
XXXX, XXXX, and XXXX, and until funds
remaining 1-2 years of your granted and program income received during the qualification period (for amendments three-year program period are expended and the to Cooperation Agreements). It must funded activities completed. Neither the County also state that, by the date in the nor the Municipality may terminate, withdraw, or Urban County Qualification Deadlines be removed from the program during the three- published on the HUD.gov Urban year program period.
Counties website for the next
qualification period, your Urban This Agreement will renew automatically for County will notify the Participating participation for one successive three-year Urban UGLG by letter of its right not to County qualification period (Federal Fiscal Years participate. For Auto-Renewal XXXX, XXXX, and XXXX), unless the Cooperation Agreements, it must state Municipality or the County provide written notice the three additional fiscal years that to the other party that it elects not to participate in will be covered by the agreement a new qualification period. The terminating party when it auto-renews. shall send a copy of the notice of termination to the HUD field office by the date specified on the
HUD.gov Urban Counties website. The County
will notify the Municipality in writing of the
Municipality's right to make this election. A copy
of the County's notification must be sent to the
HUD field office by the date specified on the
HUD.gov Urban Counties website.
6 For regular Cooperation Agreements, The Parties agree to adopt amendments) to it must state that your Urban County this Agreement as may be required by HUD to and the Participating UGLG will meet any new Urban County Qualification amend the agreement, if necessary, to requirements), when applicable. Failure by meet requirements during the Urban either Party to adopt any such amendment, and County's three-year qualification to submit such amendment to HUD, will void period. For Auto-Renewal the agreement for such qualification period.
Cooperation Agreements, it must state
that your Urban County and the
Participating UGLG will amend the
agreement, if necessary, to meet
requirements at any time during the
two qualification periods the
agreement is in effect (including at
the time of requalification).
45 HUD Sample Language
HUD Cooperation Agreement Requirement [ext in italics is explanatory and not part of the sample language]
It must state that the agreement See above language in #6 7 remains in effect until all funds
(CDBG, HOME, ESG, and any
program income) are expended
and all activities are completed.
The County and the Municipality shall take all
8 It must state that your Urban actions necessary to assure compliance with the County and the Participating County's certification under Section 104(b) of Title UGLG will comply with all federal I of the Housing and Community Development Act laws and regulations specified in
HUD's Urban County Notice. of 1974, 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;
• the Fair Housing Act, and the implementing
regulations at 24 CFR Part 100, and will comply
with the obligation to affirmatively further fair
housing; and
• Section 109 of Title I of the Housing and
Community Development Act of 1974, and the
implementing regulations at 24 FR Part 6,
which incorporates: Section 504 of the
Rehabilitation Act of 1973, and the
implementing regulations at 24 CFR Part 8; Title
Il of the Americans with Disabilities Act of
1974, and the implementing regulations at 28
CFR Part 35; the Age Discrimination Act of
1975, and the implementing regulations at 24
CFR Part 146; Section 3 of the Housing and
Urban Development Act of 1968; Uniform
Relocation and Real Property Policies Act of
1970 and the implementing regulations at 49
CFR Part 24; Section 104(d) of the Housing and
Community Development Act of 1974 and the
implementing regulations at 24 CFR Part 42; and
all other applicable laws and regulations. The
Parties agree that Urban County funding in no
event will be used for activities in, or in support
of, any cooperating unit of general local
government that impedes the County's actions to
comply with the County's fair housing
certification and duty to affirmatively further fair
housing.
46 HOD Sample Language
HUD Cooperation Agreement Requirement [Text in italics is explanatory and not part of the sample language]
9 It must include a provision prohibiting The County and the Municipality each have excessive use of force and prohibiting adopted and are enforcing:
physically barring entrance to or exit 1. A policy prohibiting the use of excessive from a facility or location which is the force by law enforcement agencies within its subject of non-violent civil rights jurisdiction against any individuals engaged demonstrations within jurisdictions. in non-violent civil rights demonstrations.
2. A policy of enforcing applicable State and
local laws against physically barring
entrance to or exit from a facility or location
that is the subject of non-violent civil rights
demonstrations within its jurisdiction.
10 It must NOT include a veto No provision necessary to satisfy this requirement provision that could obstruct
implementation of your Urban
County's Consolidated Plan.
11 It must state that the Participating Pursuant to 24 CFR 570.501(b), the Municipality UGLG is subject to the same is subject to the same requirements applicable requirements as subrecipients to subrecipients, including the requirement of a in the CDBG program. written agreement as described in 24 CFR 570.503. 12 It must include a provision that the Parties to this Agreement understand and agree Participating UGLG may not sell, that they may not sell, trade, or otherwise transfer trade, or transfer any HOD funds all or any portion of CDBG funds to a provided by your Urban County. Metropolitan City, Urban County, unit of general local government, or insular area that directly or
indirectly receives CDBG funds in exchange for
any funds, credits, or non-Federal considerations,
but must use such funds for activities eligible
under Title I of the Housing and Community
Development Act of 1974, as amended.
47 Attachment 4: HUD Requirements and Sample Language for Joint Agreements List of HUD requirements (12) for Urban County Joint Agreements!8
1. It must be authorized by governing bodies and signed by CEOs.
The governing bodies for your Urban County and the Metropolitan City must authorize the Joint Agreement. Both chief executive officers (CEOs) must sign the agreement.
A County Counsel Legal Opinion Letter must also be submitted with the Joint Agreement.
The opinion must state that the terms and provisions of the agreement are fully authorized under state and local law and that the agreement provides the legal authority for the county to undertake, or assist in undertaking, essential community development and housing assistance activities within the Metropolitan City's jurisdiction.
2. It must state that your Urban County and the Metropolitan City will cooperate to carry out essential community development and housing assistance activities in the Metropolitan City, and that the Urban County will expend the Metropolitan City's CDBG grant in and for the benefit of the Metropolitan City.
If your Urban County does not have essential powers in the Metropolitan City, the agreement must specifically state that the Metropolitan City will: "undertake, or assist in undertaking, essential community development and housing assistance activities." The agreement must also state that your Urban County will expend the Metropolitan City's CDBG grant in, and for the benefit of, that Metropolitan City.
The Urban County and Metropolitan City may elect to explain in the Joint Agreement that the Urban County will allot a certain percentage of the overall combined grant for purposes of coordinating with the Metropolitan City on planning and administration of the Metropolitan City's grant funds. Because the Urban County is administering the Metropolitan City's CDBG grant, however, the Urban County is entitled to 20 percent (20%) of the Metropolitan City's grant for administering their CDBG program.
NOTE: As an alternative to this language, your agreement may reference state law authorizing the Metropolitan City to undertake these activities. Your Urban County must submit alternative language to HUD for approval by OGC Field or Regional Counsel.
3. It must state that the agreement covers the CDBG program and that your Urban County and the Metropolitan City may not seek CDBG funding from the State's CDBG program while participating in the Urban County.
4. It must state that the agreement also covers: 1) the HOME program (if your Urban County receives HOME funding); and 2) the ESG program (if your Urban County receives ESG funding).
18 The twelve requirements in this list are HUD's requirements only. Urban Counties and Metropolitan Cities must also incorporate local-specific provisions into their agreements to comply with state and local requirements. 48 It must state that if the Metropolitan City qualifies to receive a separate allocation of HOME funds, it has three options: (1) it may form a HOME consortium with the Urban County, in which case it will be included as part of the Urban County when the HOME funds for the county are calculated; (2) it may elect to continue to receive its separate HOME grant but have the Urban County administer it; or (3) the Metropolitan City may administer its HOME program on its own. Similarly, the agreement must state how the Metropolitan City will treat ESG funding.
NOTE: If your state allows it, your Urban County and Participating UGLs may still seek HOME or ESG funds from your state government.
5. It must specify the qualification period for your Urban County (three fiscal years covered by the Joint Agreement) OR the remaining 1-2 years of your qualification period (for amendments to Joint Agreements). It must also state that, by the date in the Urban County Qualification Deadlines published on the HUD.gov Urban Counties website for the next qualification period, your Urban County will notify the Metropolitan City by letter of its right not to participate. For Auto-Renewal Joint Agreements, it must state the three additional fiscal years that will be covered by the agreement when it auto-renews.
The qualification period for your Urban County is the next three fiscal years after your county qualifies or requalifies. If your Urban County is amending a Joint Agreement, the amendment must update how many years remain (one or two) in your qualification period. HUD discusses amendments more in #6 below. For Auto-Renewal Joint Agreements, it must state the three additional fiscal years that will be covered by the agreement when it auto-renews.
6. For regular Joint Agreements, it must state that your Urban County and the Metropolitan City will amend the agreement, if necessary, to meet requirements during the Urban County's three-year qualification period. For Auto-Renewal Joint Agreements, it must state that your Urban County and the Metropolitan City will amend the agreement, if necessary, to meet requirements at any point during the two qualification periods the agreement is in effect (including at the time of requalification).
An amendment is any change to a Joint Agreement which must be authorized and executed during an Urban County's qualification period (or also at the time of requalification for an Auto-Renewal Joint Agreement). Over time, changes to laws and regulations will occur that may require your Urban County to amend your Joint Agreements to add new provision(s). An amendment allows your Urban County to draft a separate amendment to your existing agreements that includes the new provision(s) rather than drafting an entire new Joint Agreement containing the new provisions. The amendment must be authorized by governing bodies and executed (signed) by chief executive officers, like the Joint Agreement itself. Auto-Renewal Joint Agreements may be amended at the time of requalification for the second three- year qualification period, as well as during the two qualification periods, to cover any 49 new required provisions. If your Urban County fails to make a required amendment to a Joint Agreement by the deadlines published on the HUD.gov Urban Counties website, your Joint Agreement is voided and you must submit a new Joint Agreement.
7. It must state the plan for the disposition of program income generated by the Metropolitan City during the time it is a participant in the Urban County.
The Urban County and Metropolitan City can't terminate or withdraw from the agreement while it remains in effect. The Urban County may transfer the program income to the Metropolitan City, upon its termination of Urban County participation, provided that the Municipality begins participating as an independent CDBG Entitlement grantee and agrees to use the program income in its own CDBG Entitlement program.
8. It must state that your Urban County and the Metropolitan City will comply with all federal laws and regulations specified in HUD's Urban County Notice.
The agreement must contain an explicit provision obligating your Urban County and the Metropolitan City to comply with your Urban County's certification (under section 104(b) of Title I of the Housing and Community Development Act of 1974), that your 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);
• the Fair Housing Act (Title VIII of the Civil Rights Act of 1968), and the implementing regulations at 24 CFR Part 100, and the duty to affirmatively further fair housing (AFFH); and
• Section 109 of Title I of the Housing and Community Development Act of 1974, 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;
Section 3 of the Housing and Urban Development Act of 1968; • Uniform Relocation and Real Property Acquisition Policies Act of 1970, and the implementing regulations at 49 CFR Part 24; • Section 104(d) of the Housing and Community Development Act of 1974, implementing regulation at 24 CFR Part 42; and
• Other applicable laws
50 Required provision on affirmatively furthering fair housing (AFFH) The Joint Agreement must contain a provision prohibiting an Urban County from funding activities in, or in support of, any Metropolitan City that impedes your county's actions to comply with your fair housing certification. HUD requires this provision because noncompliance with the duty to affirmatively further fair housing by a Metropolitan City may constitute noncompliance by your Urban County. This can result in HUD issuing funding sanctions or other remedial actions for your Urban County.
9. It must include a provision prohibiting excessive use of force and prohibiting physically barring entrance to or exit from a facility or location which is the subject of non-violent civil rights demonstrations within jurisdictions.
The agreement must state that the Metropolitan City has adopted and is enforcing:
1. 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
2. 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 jurisdictions.
10. It must NOT include a veto provision that could obstruct implementation of your Urban County's Consolidated Plan.
Your agreement must NOT include a veto provision (or other restriction) that would allow a Metropolitan City to obstruct implementation of your Urban County's approved Consolidated Plan during the qualification period. Your Urban County has final responsibility for choosing CDBG activities (and HOME and ESG activities, if applicable) and submitting the Consolidated Plan to HUD. If your Urban County is a member of a HOME consortium (but not the lead entity), the HOME consortium is responsible for submitting the Consolidated Plan for your Urban County.
11. It must state that the Metropolitan City is subject to the same requirements as subrecipients in the CDBG program.
Per 24 CFR 570.501(b), the agreement must state that the Metropolitan City is subject to the same requirements as subrecipients in the CDBG program. This includes the requirement for executing a written agreement before your Urban County disburses CDBG funds to the Metropolitan City.
12. It must include a provision that the parties may not sell, trade, or transfer any HUD funds. Congress has prohibited this practice. HUD will not accept Joint Agreements or approve any Urban County's qualification without this provision.
Your agreement must include this specific provision: Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of CDBG 51 funds to a Metropolitan City, Urban County, unit of general local government, or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits, or non-Federal considerations, but must use such funds for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended.
Additional provisions your Urban County may include (authorized by state/local laws) Your Joint Agreements may also include any provisions authorized by state and local laws.
These provisions may legally require a Metropolitan City to undertake necessary actions, as determined by your county, to carry out a community development program and the approved Consolidated Plan and/or meet other requirements of the CDBG program (and, where applicable, HOME and ESG programs) and other applicable laws. 52 Sample Language for Joint Agreements
HUD Sample Language
HOD Joint Agreement Requirement (Text in italics is explanatory and not part of the sample language]
1 It must be authorized by governing This may best translate to a "Whereas" clause, bodies and signed by CEOs. paired with the execution on the signature block.
Example:
WHEREAS, the Mayor of the Municipality is
authorized to execute this Agreement on the
Municipality's behalf; and
WHEREAS, the County Executive is authorized
to execute this Agreement on the County's behalf
2 It must state that your Urban The County and the Municipality agree to County and the Metropolitan City cooperate to undertake, or assist in undertaking, will cooperate to carry out essential community development and housing essential community development assistance activities in and for the benefit of the and housing assistance activities in Municipality, as approved and authorized the Metropolitan City, and that between the parties in the CDBG Agreements, the Urban County will expend the including the Consolidated Plan.
Metropolitan City's CDBG grant
in and for the benefit of the
Metropolitan City.
3 It must state that the agreement The participating Municipality understands and covers the CDBG program and agrees that it may not apply for grants under the that your Urban County and the State CDBG Program for the fiscal years during Metropolitan City may not seek the period in which the Municipality participates CDBG funding from the State's in the Urban County's CDBG Program. The CDBG program while participating Urban County agrees that the CDBG funds that in the Urban County. the Municipality is entitled to will be utilized to benefit the Municipality.
4 It must state that the agreement Example, covering CDBG, HOME, and ESG:
also covers: 1) the HOME program
This Agreement covers the following formula
if your Urban County receives
funding programs administered by HUD where
HOME funding); and 2) the ESG the County is awarded and accepts funding program (if your Urban County
directly from HUD: the CDBG Program, the
receives ESG funding).
HOME Program, and the ESG Program.
The participating Municipality understands and
agrees that it may receive a formula allocation
under the HOME and ES Programs only through
the Urban County. This does not preclude the
53 HUD Sample Language
HUD Joint Agreement Requirement [Text in italics is explanatory and not part of the sample language]
Urban County or the Municipality from applying
for HOME or ESG funds from the State, if the
State allows.
It must specify the qualification Example, Auto-Renewal Joint Agreement:
5 period for your Urban County This Agreement shall remain in effect for the (three fiscal years covered by the three-year program period of Federal Fiscal Years Joint Agreement) OR the remaining XXXX, XXXX, and XXXX, and until funds 1-2 years of your qualification granted and program income received during the period (for amendments to Joint three-year program period are expended and the Agreements). It must also state that, funded activities completed. Neither the County by the date in the Urban County nor the Municipality may terminate, withdraw, or Qualification Deadlines published be removed from the program during the three- on the HUD.gov Urban Counties year program period.
website for the next qualification
period, your Urban County will This Agreement will renew automatically for notify the Metropolitan City by participation in one successive three-year Urban letter of its right not to participate. County qualification period (Federal Fiscal Years For Auto-Renewal Joint Agreements, XXXX, XXXX, XXXX), unless the Municipality it must state the three additional or the County provide written notice to the other fiscal years that will be covered by party that it elects not to participate in a new the agreement when it auto-renews. qualification period. The terminating party shall send a copy of the notice of termination to the
HUD field office by the date specified on the
HUD.gov Urban Counties website. The County
will notify the Municipality in writing of the
Municipality's right to make this election. A copy
of the County's notification must be sent to the
HUD field office by the date specified on the
HUD.gov Urban Counties website.
For regular Joint Agreements, it must The Parties agree to adopt amendments) to this 6 state that your Urban County and the Agreement as may be required by HUD to meet Metropolitan City will amend the any new Urban County Qualification agreement, if necessary, to meet requirements), when applicable. Failure by requirements during the Urban either Party to adopt any such amendment, and County's three-year qualification to submit such amendment to HUD, will void period. For Auto-Renewal Joint the agreement for such qualification period.
Agreements, it must state that your
Urban County and the Metropolitan
City will amend the agreement, if
necessary, to meet requirements at
any point during the two
54 HUD Sample Language
HUD Joint Agreement Requirement ext in italics is explanatory and not part of the sample languagel
qualification periods the agreement is
in effect including at the time of
requalification).
The County and Municipality shall not terminate
7 It must state the plan for the
or withdraw from the agreement while it remains
disposition of program income in effect. The County may transfer the program generated by the Metropolitan City income to the Metropolitan City, upon its during the time it is a participant termination of Urban County participation, in the Urban County.
provided that the Municipality begins
participating as an independent CDBG
Entitlement grantee and agrees to use the program
income in its own CDBG Entitlement program.
It must state that your Urban The County and the Municipality shall take all 8 actions necessary to assure compliance with the
County and the Metropolitan City County's certification under Section 104(b) of Title will comply with all federal laws I of the Housing and Community Development Act and regulations specified in HUD's of 1974, as amended, that the grant will be Urban County Notice. conducted and administered in conformity with:
• Title VI of the Civil Rights Act of 1964, and the
implementing regulations at 24 CFR Part 1;
• the Fair Housing Act, and the implementing
regulations at 24 CFR Part 100, and will comply
with the obligation to affirmatively further fair
housing; and
• Section 109 of Title I of the Housing and
Community Development Act of 1974, 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
of 1974, and the implementing regulations at
28 CFR Part 35; the Age Discrimination Act
of 1975, and the implementing regulations at
24 CFR Part 146; Section 3 of the Housing
and Urban Development Act of 1968;
Uniform Relocation and Real Property
Policies Act of 1970 and the implementing
regulations at 49 CFR Part 24; Section 104(d)
of the Housing and Community Development
Act of 1974 and the implementing regulations
at 24 CFR Part 42; and all other applicable
55 HUD Sample Language
[Text in italics is explanatory and not part of
HUD Joint Agreement Requirement the sample language!
laws and regulations. The Parties agree that
Urban County funding in no event will be
used for activities in, or in support of, any
cooperating unit of general local government
that impedes the County's actions to comply
with the County's fair housing certification
and duty to affirmatively further fair housing.
It must include a provision prohibiting The County and the Municipality each have excessive use of force and prohibiting adopted and are enforcing:
physically barring entrance to or exit 1. A policy prohibiting the use of excessive from a facility or location which is the force by law enforcement agencies within its subject of non-violent civil rights jurisdiction against any individuals engaged demonstrations within jurisdictions. in non-violent civil rights demonstrations.
2. A policy of enforcing applicable State and
local laws against physically barring entrance
to or exit from a facility or location that is
the subject of non-violent civil rights
demonstrations within its jurisdiction.
No provision necessary to satisfy this requirement
10 It must NOT include a veto
provision that could obstruct
implementation of your Urban
County's Consolidated Plan.
Pursuant to 24 CFR 570.501(b), the Municipality
11 It must state that the Metropolitan is subject to the same requirements applicable City is subject to the same to subrecipients, including the requirement of a requirements as subrecipients written agreement as described in 24 CFR 570.503. in the CDBG program.
It must include a provision that the Parties to this Agreement understand and agree that 12 they may not sell, trade, or otherwise transfer all or Metropolitan City may not sell, any portion of CDBG funds to a Metropolitan City, trade, or transfer any HUD funds Urban County, unit of general local government, provided by your Urban County. or insular area that directly or indirectly receives CDBG funds in exchange for any funds, credits,
or non-Federal considerations, but must use such
funds for activities eligible under Title I of the
Housing and Community Development Act of
1974, as amended.
56 Attachment 5: Cooperation Agreements vs. Joint Agreements Comparison Table Cooperation Agreement Joint Agreement
Issue/Topic (Urban County and Participating UGLG) (Urban County and Metropolitan City) Definition of Agreement • Interlocal government agreement (IGA) between • Intergovernmental agreement (IGA) between an Urban County and a Participating UGLG an Urban County and a Metropolitan City (Non-Entitlement). (CDBG Entitlement).
• The Urban County must enter into Cooperation • The Urban County must enter into Joint Agreements with UGLGs when the Urban County Agreements with Metropolitan Cities when the does not have the power to carry out "essential Urban County administers the Metropolitan community development and housing assistance City's CDBG program, in addition to the Urban activities" in UGGs without consent from County's CDBG program.
UGLG governing bodies.
• Most states only grant counties "essential powers"
in unincorporated areas and not in UGGs.
Responsibilities • The Urban County is responsible for all aspects • The Urban County is responsible for all aspects of Urban County of administering their CDBG program, including of administering their CDBG program AND the planning and citizen participation, expending Metropolitan City's CDBG program, including program income and ensuring timely expenditure planning and citizen participation, expending of funds, responding to audits and monitoring program income and ensuring timely expenditure findings, fair housing and other cross-cutting of funds, responding to audit and monitoring requirements, management and oversight of findings, fair housing and other cross-cutting subrecipients (including Participating UGLGs), requirements, management and oversight of and reporting and inputting information into IDIS. subrecipients, and reporting and inputting • The Urban County needs to establish policies information into IDIS. and procedures governing its process for • The Urban County may use up to 20% of the selecting activities for funding, including when Metropolitan City's CDBG grant for planning and how a county may provide funds to and general administrative costs. The amount of Participating UGLGs. However, the CDBG planning and administration funds available to regulations give each grantee the flexibility to the Urban County should be explained in the design its program based on locally-identified Joint Agreement. 57 Cooperation Agreement Joint Agreement
Issue/Topic (Urban County and Participating UGLG) (Urban County and Metropolitan City) needs and priorities. It is common for Urban
Counties to work with their Participating
UGLGs to help design the county's program.
That process may or may not be spelled out in
the Cooperation Agreements with Participating
UGLGs.
Responsibilities of • Cooperating with the Urban County on the Not applicable because Joint Agreements are only Participating UGGs between Urban Counties and Metropolitan Cities. jurisdiction.
program year. There is no guarantee of funding.
• If they receive CDBG funding from the Urban
County, they may carry out the activities
themselves OR allow the Urban County to
carry out the activities in their jurisdiction.
Responsibilities of Not applicable because Cooperation Agreements are • Providing input to the Urban County on needs and Metropolitan City between Urban Counties and Participating UGLGs. activities to fund with CDBG in their jurisdiction. • Other responsibilities may be spelled out in the
Joint Agreement (as agreed to by Urban County).
considered a Participating UGLG (not a Metropolitan City [Entitlement]).
Where CDBG Investments The Urban County has full discretion on where and The Urban County is required to spend all the and Activities May Occur how CDBG funds are spent across the Urban County. Metropolitan City's CDBG grant funds in the Each Participating UGLG is not guaranteed to receive jurisdictional boundaries of the Metropolitan City CDBG investment in their jurisdiction in any given and for the benefit of that Metropolitan City. program year.
58 Cooperation Agreement Joint Agreement
Issue/Topic (Urban County and Participating UGLG) (Urban County and Metropolitan City) When Can They Opt In Participating UGLGs may join an Urban County Metropolitan Cities may only submit Joint Requests during any year of its qualification period. to become a Joint Recipient with an Urban County the year that the Urban County is qualifying.
When Can They Opt Out Participating UGLGs cannot opt out of an Urban Metropolitan Cities cannot opt out of an Urban County during a three-year Urban County County during a three-year Urban County qualification period. They must wait until the qualification period. They must wait until the Urban County qualifies again. Urban County qualifies again.
CDBG Allocations and HUD computes a single CDBG allocation for the HUD computes a separate CDBG allocation for CPD Formula Allocation Urban County as a whole, including the population the Metropolitan City and the Urban County each Methodology and demographic data of all Participating UGGs year, based on their respective population and and all unincorporated areas of the county from the demographic data from the U.S. Census Bureau.
U.S. Census Bureau.
HUD Grant Agreement HUD executes one grant agreement with the HUD combines the two grant allocations and executes Urban County for its single CDBG allocation. one grant agreement with the Urban County for the combined amount of its own allocation and the
allocation for the Metropolitan City. (Joint Recipients) Contractual Relationships The Urban County has a contractual relationship The Urban County has a contractual relationship with HUD. There is no contractual relationship with HUD because the Urban County is administering between HUD and Participating UGLGs. their own Urban County CDBG grant AND the Metropolitan City's CDBG grant. The Urban County
signs the combined grant agreement with HUD.
Policy on Auto-Renewal Auto-Renewal Cooperation Agreements are permitted. Auto-Renewal Joint Agreements are permitted. of Intergovernmental They allow the Cooperation Agreement to "auto- They allow the Joint Agreement to "auto-renew" Agreements (IGAs): renew" for one additional three-year Urban County for one additional three-vear Urban County Cooperation Agreements qualification period without the Urban County and qualification period without the Urban County and Joint Agreements
59 Cooperation Agreement Joint Agreement
Issue/Topic (Urban County and Participating UGLG) (Urban County and Metropolitan City) Participating UGLGs having to reauthorize and and Metropolitan City(ies) having to reauthorize re-execute their agreements. and re-execute their agreements.
NOTE: Changes to HUD guidance (Urban County Notice) or other federal, NOTE: Changes to HUD guidance (Urban County Notice) or other federal, state, or local laws may require Urban Counties and Participating UGLGs state, or local laws may require Urban Counties and Metropolitan Cities to to make amendments to their Cooperation Agreements any year of the six make amendments to their Joint Agreements any year of the six years years covered by an Auto-Renewal Cooperation Agreement. covered by an Auto-Renewal Joint Agreement.
Consolidated Planning The Urban County must only complete and submit The Urban County must only complete and submit one Consolidated Plan, Annual Action Plan, and one Consolidated Plan, Annual Action Plan, and CAPER on behalf of the entire Urban County. CAPER, covering both their Urban County and the Metropolitan City, aligning their housing and
community development needs.
CDBG Program • All program requirements (such as the 20% • All program requirements (such as the 20% Requirements planning and administration cap, the 15% public planning and administration cap, the 15% service cap, the 70% overall benefit requirement) public service cap, and the 70% overall benefit are based on the Urban County's grant and apply requirement) are based on the combined grant to the Urban County's CDBG grant (as a whole). amount and apply to the Urban County's CDBG • Expenditure caps do not apply separately to grant (as a whole). the Urban County and each individual sub- Expenditure caps do not apply separately to the award that the Urban County may make to a Metropolitan City's CDBG grant and the Urban Participating UGLG. County's grant.
• Low/moderate income summary data and the • Low/moderate income summary data and the upper quartile exception criteria apply to the upper quartile exception criteria are based on Urban County's CDBG grant (as a whole). the Urban County grant (as a whole) and do not apply separately to the Metropolitan
City's grant and the Urban County's grant.
• When UGLGs become Participating UGLGs • If the Metropolitan City qualifies to receive Impact on the HOME in an Urban County for the CDBG Program, a separate allocation of HOME funds, the and ESG Programs Metropolitan City has three options:
60 Cooperation Agreement Joint Agreement
Issue/Topic (Urban County and Participating UGLG) (Urban County and Metropolitan City) they are part of the Urban County for the 1. Form a HOME consortium with the HOME and ESG programs as well. Urban County (the Metropolitan City • Participating UGLGs may only receive HOME will be included as part of the Urban and ESG formula-allocated funds from the County when HUD calculates HOME Urban County. Even if the Urban County does allocations for the county). not receive a HOME formula allocation, 2. Continue to receive a separate allocation Participating UGLGs cannot form their own of HOME funds but have the Urban HOME consortium or join another HOME County administer their HOME funds. consortium.
• If the state allows it, both the Urban County and
Participating UGLGs can seek additional HOME
and/or ESG funding from the state.
61 Attachment 6: Urban County Qualification Scenarios Comparison Table
REQUALIFYING NEXT YEAR
REQUALIFIERS: OR YEARAFTER NEXT: FIRST-TIME QUALIFIERS:
Urban County Requirements Currently qualified Urban Counties Currently qualified Urban Counties New counties seeking to qualify as an requalifying this year requalifying next year or year after next Urban County for the first time this year Determination of Essential Powers HUD may rely on a previous Determination of HUD does not conduct a Determination of HUD OGC Field or Regional Counsel must GO TO SECTION 2.7 Essential Powers (unless there is evidence that Essential Powers for Urban Counties during certify a Determination of Essential Powers. essential powers may have changed). a qualification period.
Urban County Participation The Urban County must send letters to all its OPTIONAL: The county may choose to send The county must send letters to all its UGGs Decision Letters for Participating UGGs (regardless of past participation) to a letter to Nonparticipating UGLGs (if any) to determine their participation decisions for and Nonparticipating UGLGs upcoming qualitation peri decisions for the informing them that they may join the Urban the upcoming qualification period.
GO TO SECTION 3.3 County as a Participating UGLG for the rest • If the county has essential powers in UGGs:
• If the county has essential powers in UGGs: of the current qualification period (1-2 years). the county's letter must inform them of their the county's letter must inform them of their • If an UGLG decides to join the Urban County: right to be excluded from the Urban County, right to be excluded from the Urban County, In general, the Urban County and the new and that if they do not respond to the letter, and that if they do not respond to the letter, Participating UGL must authorize and they will be included in the Urban County they will be included in the Urban County execute a Cooperation Agreement. for the next three FYs. for the next qualification period.
• If the county has "split places": the county's
• If the county has Auto-Renewal Cooperation letter must inform any "split" UGLGs of Agreements in place: the county's letter must their participation options for the next inform Participating UGLGs of their right to qualification period. opt out of the agreement and to be excluded
from the Urban County for the upcoming
qualification period.
• If the county has "split places": the county's
letter must inform any "split" UGLGs of
their participation options for the upcoming
qualification period.
62 REQUALIFYING NEXT YEAR
REQUALIFIERS: FIRST-TIME QUALIFIERS:
OR YEAR AFTER NEXT:
Urban County Requirements Currently qualified Urban Counties New counties seeking to qualify as an Currently qualified Urban Counties
requalifying this year Urban County for the first time this year requalifying next year or year after next
Urban County Participation • The Urban County must communicate with No action is required because the Urban County In general, the potential new Urban County must Decision Letters for previously identified potential Metropolitan is in the middle of a qualification period. send official letters to any Metropolitan Cities Metropolitan Cities Cities to determine their participation notifying them of the opportunity to participate NOTE I: Metropolitan Cities that are under a Joint
GO TO SECTION 3.3 decisions for the upcoming qualification Agreement or relinquished their CDBG Entitlement in the new Urban County for the upcoming period. status to become a Participating UGLG may not qualification period either by:
• The Urban County must communicate with withdraw from the Urban County during a • relinquishing their CDBG Entitlement newly identified potential new Metropolitan qualification period. status as a Metropolitan City and executing
NOTE 2: Participating UGGs that surpass a a Cooperation Agreement with the county population of 50,000 (become eligible to be a to become a Participating UGLG in the for the upcoming qualification period. Metropolitan City) may not withdraw from the Urban County's CDBG grant program; Urban County during a qualification period.
OR
• retaining their CDBG Entitlement status
as a Metropolitan City and executing a
Joint Agreement with the Urban County to
administer their CDBG program for them.
NOTE: Metropolitan Cities have every right to keep
their CDBG Entitlement status (continue administering
prit pant in the new Urban co independenty.) and not
Cooperation Agreements • If the Urban County has regular Cooperation No action is required because the Urban County (with Participating UGLGs) Agreements in place with Participating is in the middle of a qualification period.
GO TO ATTACHMENT 3 UGGs, they must execute new Cooperation • If the Urban County adds Nonparticipating Cooperation Agreements between their county Agreements with Participating UGGs UGGs to their Urban County as new and Participating UGGs • If the Urban County has Auto-Renewal Participating UGGs for the rest of its current Capery endare men menis to they must qualification pered hey must excee 63 REQUALIFYING NEXT YEAR FIRST-TIME QUALIFIERS:
REQUALIFIERS: OR YEAR AFTER NEXT:
Currently gualified Urban Counties Currently qualified Urban Counties New counties seeking to qualify as an Urban County Requirements Urban County for the first time this year requalifying this year requalifying next year or year after next Cooperation Agreements with Participating Participating UGLGs and submit the UGGs for the next qualification period. Cooperation Agreements to HUD.
Please note that Auto-Renewal Cooperation
Agreements may only be in effect for six FYs
beginning in FY 2027.)
If a Metropolitan City within the Urban County No action is required because the Urban County is If a Metropolitan City within the county wants Joint Agreements in the middle of a qualification period; Joint the county to administer its CDBG program, (with Metropolitan Cities) Agreements can only be executed at the time an the county and the Metropolitan City must GO TO ATTACHMENT 4 City must submit a Joint Request to their CPD Urban County is qualifying. (24 CFR 570.308) submit a Joint Request to their CPD field field office and execute a Joint Agreement. office and execute a Joint Agreement.
1. All Urban County Participation Decision No action is required because the Urban County 1. All Urban County Participation Decision Submite HED in the Urban Letters exchanged between the Urban County, is in the middle of a qualification period. Letters exchanged between the potential new Urban County, UGLGs, and Metropolitan
County Qualification Package UGLGs, and Metropolitan Cities about Cities about participation in the Urban County participation in the Urban County If the Urban County is adding new Participating GO TO SECTION 3 UGLGs to the Urban County, they must submit: 2. Cooperation Agreements with Participating
2. Cooperation Agreements with Participating 1. Urban County Participation Decision Letters UGGs (if applicable) UGLGs (if applicable)
3. Joint Agreements with Metropolitan Cities sent to Nonparticipating UGGs and response 3. Joint Agreements with Metropolitan Cities letters received (if applicable)
(if applicable) 2. New Cooperation Agreements with new 4. County Counsel Legal Opinion Letter
4. Agreements fe Coleration or Joint Participating UGGs (if applicable)
5. County Counsel Legal Opinion Letter 3. Updated County Counsel Legal Opinion Letter