CES COUN Craig M. Murphy, Director
KERN 2700 "M" Street, Suite 100
Bakersfield, CA 93301-2323
* * Phone: (661) 862-8600
COUNTY TTY Relay 1-800-735-2929
Email: [email protected]
Planning & Nalural Resources Web Address: https://kernplanning.com June 05, 2026
City Administrator Eric Ziegler
City of Maricopa
PO Box 550
Maricopa, CA 93252-0550
RE: Invitation to Rejoin Kern County's HUD Urban County Entitlement Program Dear Mr. Ziegler:
The Kern County Planning and Natural Resources Department, invites the City of Maricopa to rejoin the County's Community Development Entitlement Program for the next three year qualification period (7/1/27 - 6/30/29).
Pursuant to the email to the City, dated May 28, 2026, some of the benefits to rejoining the County entitlement program are:
• The City would receive an annual allocation of CDBG funds to build new and/or rehabilitate existing public facilities and infrastructure ( estimated to be from $80,000 to $ 230,000); • Qualifying homeowners in the City would have the opportunity to rehabilitate their principal residence through our Housing Rehabilitation Deferred Loan Program; • City residents with permanent physical disabilities could apply to our Home Access Program for a grant to make handicap access modifications to their residence; • City staff and elected officials would have direct local access to County staff for technical assistance in project development, environmental review, and project implementation and administration; • County staff may implement new housing construction projects, housing rehabilitation, home access, and first-time home buyer projects where CDBG and HOME funds could be used in conjunction with funds from other resources.
Enclosed find HUD's Notice for Urban County Qualification (CPD-26-08), which specifies required actions, and the Fiscal Year 2026 deadlines. If the City elects to return to the County's Entitlement Program, a Cooperation Agreement and Resolution must be executed by the City and returned to the County by July 7, 2026, to allow time for processing, Board of Supervisors' approval and submission to HUD. Should the City decide to rejoin the County's program, all necessary forms will be emailed upon your City's response.
If the City chooses to be excluded from participation with the County, the City must notify the County and HUD of such decision, in writing, by July 8, 2026. Any election to be excluded will be effective for the entire three year period for which the County qualifies for CDBG, HOME, and ESG Program funding unless the City specifically elects to be included in a subsequent year for the remainder of the County's three year qualification period.
We would be pleased if your City decides to join our program for the next three year qualification period. If you have not already done so, please contact Patricia Gomez no later than June 28, 2026, at 661) 862-5034 or [email protected] of your intention. If you have specific questions RECEIVED JUN 10 2026
regarding this action and the program, please contact James Golden at (661) 862-5130 or [email protected]. I am also always available personally for a meeting and discussion. We look forward to hearing from you soon. Thank you for your consideration of this matter.
Sincerely,
7144121
CRAIG M. MURPHY, Director
Kern County Planning and Natural Resources Department
CMM:pg
Enclosures: HUD Notice CPD-26-08
Urban County Qualification Deadline
Instructions for Processing the Cooperation Agreement & Adoptive Resolution Emailed Notification
Patricia Gomez
From: Patricia Gomez
Sent: Thursday, May 28, 2026 3:59 PM
To: '[email protected]'
Cc: Paul Johnson; Dennis McNamara; Teresa Pickens; Na Deng Subject: Urban County Qualification - City Cooperation Agreement for 7/1/2027 - 6/30/2029 Attachments: Notice CPD-26-08 Instructions for Urban County Qualification for Participation in the Community Development Block Grant (CDBG) Program.pdf; FY 2026 Urban County Qualification Deadlines.pdf
Eric Ziegler, City Administrator - City of Maricopa:
The Kern County Planning and Natural Resources Department, Community Development Division (PLNR-CD) invites the City of Maricopa to rejoin the County's Community Development Entitlement Program for the next three-year qualification period, 7/1/2027 - 6/30/2029. On May 28, 2026, HUD provided the FY 2026 Urban County Qualification Deadlines (see attached).
Some of the benefits to rejoining the County entitlement program are:
• The City would receive an annual allocation of CDBG funds to build new and/or rehabilitate existing public facilities and infrastructure;
• Qualifying homeowners in the City would have the opportunity to rehabilitate their principal residence through our Housing Rehabilitation Deferred Loan Program;
• City residents with permanent physical disabilities could apply to our Home Access Program for a grant to make handicap access modifications to their residence;
• City staff and elected officials would have direct local access to PLNR-CD staff for technical assistance in project development, environmental review, and project implementation and administration; • PLNR-CD staff may implement new housing construction projects, housing rehabilitation, home access, and first- time home buyer projects where CDBG and HOME funds could be used in conjunction with funds from other resources.
Enclosed find HUD's Notice for Urban County Qualification (CPD-26-08). If the City elects to return to the County's Entitlement Program, a Cooperation Agreement and Resolution must be executed by the City and returned to the County by July 7, 2026, to allow time for processing, Board of Supervisors' approval, and submission to HUD.
Processing the Cooperation Agreements with Resolutions is very time-critical due to HUD's significantly short processing deadlines. Should the City decide to rejoin the County's program, all necessary forms will be provided for your completion.
If the City chooses to be excluded from participation with the County, the City must notify the County and HUD of such decision, in writing (preferably by email), by July 7, 2026. Any election to be excluded will be effective for the entire three-year period for which the County qualifies for CDBG, HOME, and ESG Program funding, unless the City specifically elects to be included in a subsequent year for the remainder of the County's three-year qualification period.
We would be very pleased if your City decides to join our program for the next three-year qualification period. Please contact Patricia Gomez no later than June 28, 2026, at 661) 862-5034 or [email protected] with your intentions and how we may help.
We look forward to hearing from you soon.
RESOLUTION NO.:
Resolution of the City Council of the City of
To Cooperate with the County of Kern
included in the County of Kern's Community Development Block Grant program WHEREAS, the County of Kern has identified this City as authorized to be entitlement pursuant to Title I of the Housing and Community Development Act of 1974, as amended, (hereinafter the "Act"); and
HOME Investment Partnerships program as defined in Title II of the Cranston-Gonzales WHEREAS, HUD has notified the County of Kern that it is a participant in the National Affordable Housing Act of 1990, as amended; and WHEREAS, HUD has notified the County of Kern that it is a participant in the Emergency Solutions Grants program; and
WHEREAS, the Act requires the execution of a Cooperation Agreement between this City and the County of Kern; and
County of Kern's in determining a basic annual Community Development Block Grant, WHEREAS, such Agreement allows this City's population to be included with the HOME Investment Partnerships program, and Emergency Solutions Grants program grant amounts; and
County of Kern to cooperate in undertaking, or assist in undertaking, essential community WHEREAS, it is the intention of this City to enter into such an Agreement with the development and housing assistance activities in the incorporated area of this City.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Elects to participate in the Community Development Block Grant, HOME Investment Partnerships programs, and Emergency Solutions Grants programs for the three program years commencing with 2027-2028 and continuing through 2029-2030 and authorizes the Agreement's one-time automatic renewal for Fiscal Years 2030-2031 through 2032-2033 in accordance with the regulations by the Act; Directs, City Manager to sign the required Agreements and approve required amendments to such Agreements and execute any other required documents; anc , City Manager from this City to execute and/or
Authorizes
perform all other appropriate acts necessary to accomplish the purpose of the Resolution. (Add appropriate dated certification)
COOPERATION AGREEMENT FOR COMMUNITY DEVELOPMENT
This Agreement, made and entered into on _by and between the COUNTY OF KERN, a political subdivision of the State of California (hereinafter "COUNTY") and the → a municipal corporation located
within Kern County (hereinafter "CITY"),
RECITALS:
WHEREAS, the United States Department of Housing and Urban Development (hereinafter "HUD"') has notified the COUNTY that it is considered to have the required qualifications (determination of essential powers) to participate in the Community Development Block Grant Entitlement (hereinafter "CDBG") program as an urban county as that term is defined in Title I of the Housing and Community Development Act of 1974, as amended (hereinafter the "Act"); and WHEREAS, HUD has notified the COUNTY that it is a participant in the HOME Investment Partnerships Program (HOME) as defined in Title II of the Cranston-Gonzales National Affordable Housing Act of 1990, as amended; and
WHEREAS, HUD has notified the COUNTY that it is a participant in the Emergency Solutions Grants (ESG) Program; and
WHEREAS, the CDBG qualification process requires that, following HUD's determination that a county possesses the essential powers to participate in the CDBG program as an urban county, the units of general local government within the county be notified of their opportunity to participate in the county's CDBG, HOME, and ESG programs by entering into a cooperation agreement with the designated urban county; and
WHEREAS, such cooperation agreements provide that the unit of general local government and the county will cooperate in essential community development and housing assistance activities and that the area and population of the unit of general local government will be included with that of the county by HUD in determining funding levels; and
WHEREAS, the COUNTY has notified the CITY of the opportunity to participate in the COUNTY's CDBG, HOME, and ESG programs; and
WHEREAS, the CITY desires to participate in and be a part of the COUNTY's CDBG, HOME, and ESG programs;
AGREEMENT:
1. This Agreement shall remain in effect through the 2029 program year (a program year is the twelve-month period commencing July 1 and continuing through and including the following June 30). federal fiscal years for which the COUNTY is to qualify and from any program income generated from the expenditure of such funds, including such additional time as may be required for completion of funded activities and the expenditure of any such funds granted by the COUNTY to the CITY. The COUNTY shall notify the CITY, by the deadline published in the Urban County Qualification Deadlines on the HUD.gov Urban Counties website, of the CITY's right not to participate in the subsequent Urban County qualification period. The Cooperation Agreement must remain in effect until the CDBG (and HOME and ESG, where applicable) funds and program income received with respect to activities carried out during the three-year qualification period are expended and the funding activities completed.
2. This Agreement shall automatically renew for one additional three-fiscal-year Urban County qualification period, federal fiscal years 2030, 2031, and 2032, unless the CITY notifies the COUNTY in writing of its decision not to participate by the deadline published in the Urban County Qualification Deadlines on the HUD.gov Urban Counties website. The COUNTY shall notify the CITY of this right not to participate prior to each qualification period. The Agreement may not auto-renew beyond one additional qualification period. Auto-renewal Cooperation Agreement 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.
3. While it remains in effect, neither the COUNTY nor the CITY shall terminate or withdraw from this Agreement (other than as provided by rules and regulations of the Act adopted by the Federal government subsequent to this Agreement).
4. The COUNTY and the CITY shall cooperate to undertake, or assist in undertaking, essential community development and housing assistance activities.
5. The COUNTY shall have final responsibility for selecting CDBG, HOME, and ESG activities, for the filing of the Consolidated Plan with HUD, and implementing the Consolidated Plan as approved by HUD.
6. The CITY shall undertake, without reservation or intent to obstruct, all actions determined by the COUNTY or HUD to be necessary to carry out the CDBG, HOME, and ESG programs and the approved Consolidated Plan and to comply with all CDBG, HOME, and ESG program requirements and applicable Federal and State laws and regulations during the three program years for which the COUNTY qualifies as an urban county and for such additional time as may be required for completion of funded activities and the expenditure of funds granted by the COUNTY for such period.
The COUNTY and CITY hereby assume the obligation to take all required actions necessary to assure compliance with the COUNTY's certification required by section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, and the implementing regulations at 24 FR part 1, and the Fair Housing Act (Title VIll of the Civil Rights Act of 1968), and the implementing regulations at 24 CFR part 100, and affirmatively furthering fair housing (AFFH). See 24 CFSubsection 91.225(a) and Affirmatively Furthering Fair Housing definitions and certifications (86 FR 30779 June 10, 2021) to be codified at 24 CFR 5.151 and
5.152, available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring= affirmatively-furthering-fair-housing-definitions-and-certifications. Additionally, County and CITY shall take all actions to comply with section 109 of Title I of the Housing and Community Development Act of 1974, and 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 Il of the Americans with Disabilities Act, and the implementing regulations at 28 CFR part 35, the Age Discrimination Act of 1975, and the implementing regulations at 24 FR part 146, and Section 3 of the Housing and Urban Development Act of 1968, Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, and implementing regulations at 49 FR Part 24, Section 104(d) of Housing and Community Development Act of 1974, and implementing regulations at 24 FR Part 42, and any and all other applicable laws, regulations and orders. By this assumption, the COUNTY and CITY recognize and accept the provisions of the Act prohibiting urban county funding for activities in, or in support of, any cooperating unit of general local government that does not affirmatively further fair housing within its own jurisdiction or that impedes the COUNTY's actions to comply with its fair housing certification.
8. Pursuant to the requirements of the Act and implementing regulations found at 24 CFR 570.501(b), the CITY hereby agrees to be subject to the same requirements applicable to subrecipients, including the requirement of a written agreement as precedent to implementation of individual CDBG funded activities, as set forth at 24 CFR 570.503.
The CITY shall maintain appropriate record of and return to the COUNTY on receipt by the CITY, any income generated by the expenditure of CDBG, HOME, and ESG funds received by the City. In then ot Cs community development program close-out or change in the CITY's status, any such program income that is on hand or received by the CITY subsequent to such close-out or change in status shall immediately be paid to the COUNTY.
10. The CITY has adopted and is enforcing:
a. a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non-violent civil rights demonstrations; and
b. a policy of enforcing applicable State and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non- violent civil rights demonstrations within its jurisdiction; The CITY shall comply with those provisions of the CDBG, HOME, and ESG program which apply to real property acquired or improved in whole or in part using CDBG, HOME, and ESG funds and which is within the control of the CITY. Such provisions include CITY responsibility to:
a. make timely notification to the COUNTY of any modifications or change in the use of the real property from that planned and approved by the COUNTY at the time of acquisition or improvement, including its disposition; b. reimburse the COUNTY in an amount equal to the current fair market value (less any portion thereof attributable to expenditures of non-HUD funds) of property acquired or improved with CDBG, HOME, or ESG funds and that is sold or transferred for a use which does not qualify under CDBG, HOME, or ESG program regulations; and
immediately return to the COUNTY any program income generated from the disposition or transfer of property prior to or subsequent to close-out, change of status or termination of this Agreement of Cooperation.
12. The CITY understands and agrees that, as a part of the COUNTY's CDBG program:
a. it may not apply (except as otherwise provided by legislation adopted by the Federal government subsequent to this Agreement) for grants under the HUD- Administered or State-Administered Small Cities or State CDBG programs from appropriations from a fiscal year for which it is participating in the Entitlement CDBG Program with the COUNTY; and
b. it may receive a formula allocation under the HOME Investment Partnerships program or Emergency Solution Grants program only through the COUNTY, 3 regardless of whether the COUNTY receives a HOME Investment Partnerships or Emergency Solutions Grant formula allocation.
Parties to this Agreement understand and agree that they may not sell, trade, or otherwise transfer all or any portion of its HUD 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.
14. This Agreement may only be modified by an instrument in writing executed by the COUNTY and the CITY and approved by HUD.
Any and all notices sent pursuant to, or in furtherance of the purposes of, this Agreement shall be deemed delivered if personally served upon the Clerk of the Board of Supervisors of the COUNTY or upon the Clerk of the City Council of the CITY, or if sent via the United States Postal Service, postage prepaid, directed to COUNTY, addressed as follows:
Clerk of the Board of Supervisors
County of Kern
1115 Truxtun Avenue, Fifth Floor
Bakersfield, California 93301
or directed to the CITY, addressed as follows:
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the day and year first above written.
Recommended and Approved as to Content
PLANNING AND NATURAL RESOURCES COUNTY OF KERN
DEPARTMENT
By_ By_
Craig M. Murphy, Director Chairman of the Board of Supervisors "COUNTY"
Approved as to Form:
OFFICE OF COUNTY COUNSEL CITY OF
By. By
Joshua H. Rudnick, Deputy
Printed Name
City Manager
"CITY"
4 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
3* * 7 WASHINGTON, DC 20410-7000
Hill
OFFICE OF COMMUNITY PLANNING
AND DEVELOPMEN
SPECIAL ATTENTION: NOTICE: CPD-26-08
All Regional Administrators Issued: May 15, 2026
All CPD Regional Offices Expires: Remains in effect until amended, All CPD Field Office and Program Directors superseded, or rescinded.
All OGC Field and Regional Offices Supersedes: Notice CPD-25-04 All CDBG Grantees Cross Reference: 24 CFR 570.307
SUBJECT: Instructions for Urban County Qualification for Participation in the Community Development Block Grant (CDBG) Program
TABLE OF CONTENTS
SECTION 1: OVERVIEW OF THE URBAN COUNTY NOTICE . 3
1.1 Who's this Notice for?..... 3
1.2 What is an "Urban County" in the CDBG Program? ... 3
1.3 What is Urban County "qualification" and why are Urban Counties required to requalify every three federal fiscal years (FYs)?. . 3
1.4 What's covered in this Notice?........ .. 5
1.5 What's new in this Notice?............ ..5
1.6 Who can I contact if I have questions? 8
1.7 Paperwork Reduction Act (PRA) information. 8
SECTION 2: THE URBAN COUNTY QUALIFICATION PROCESS. ..9
2.1 Step-by-Step Process Map: The Urban County Qualification Process 9
2.2 What happens during each step in the Urban County qualification process? 10
2.3 How long is my Urban County's qualification period?. 13
2.4 Can my Urban County add new Participating UGLGs during our three-year qualification period? 13
2.5 Can my Urban County add a Metropolitan City as a Joint Recipient (under a Joint Agreement) during our three-year qualification period? 14
2.6 Can a Participating UGLG (in a Cooperation Agreement) OR a Metropolitan City (in a Joint Agreement) withdraw from our Urban County during our three-year qualification period? ... 14
2.7 What is HUD's "Determination of Essential Powers"? 14 www.hud.gov
.. 16
SECTION 3: YOUR URBAN COUNTY QUALIFICATION PACKAGE 3.1 What documents must I submit in my Urban County's qualification package? 16 16 3.2 How do I submit my Urban County's qualification package to HUD? 16 What are HUD's requirements for Urban County Participation Decision Letters?
3.3 20
What are HUD's requirements for Cooperation Agreements between
3.4 Urban Counties and Participating UGLGs?...
What are HUD's requirements for Joint Agreements between Urban Counties 20
3.5 20
and Metropolitan Cities (Joint Recipients)?
What are HUD's requirements for County Counsel Legal Opinion Letters?.
3.6 What is HUD's new policy on "auto-renewal" of Cooperation Agreements and .. 20
3.7 Joint Agreements (effective for the FY 2027 Urban County qualification process)? SECTION 4: REQUIREMENTS, DEADLINES, URBAN COUNTY LISTS, 23 AND OTHER GUIDANCE......
4.1 What are all my county's requirements to qualify and receive CDBG funding 23 as an Urban County? . 24
What requirements apply to my Urban County "qualification scenario" this year? 24
4.2 What are the Urban County Qualification Deadlines and where do I find them? 25 4.3
What are the Urban County Lists and where do I find them? 25
4.4 Guidance for First-Time Qualifiers ..26
4.5 Guidance about potential new Metropolitan Cities .. 28
4.6 Can I align my Urban County and HOME program qualification periods?
4.7 Guidance on Urban County qualification deadline extensions and the HOME ..28
4.8 program's September 30 statutory deadline ..
Guidance for counties that may qualify as an Urban County if a Metropolitan City 29
4.9 29
relinquishes its CDBG Entitlement status..
4.10 Guidance for Unique Grantee Situations ..32
32 ATTACHMENTS .....
Attachment 1: Statutory Requirements to be Qualified as an Urban County... 33 Attachment 2: Definitions of Urban County Terms. 40
Attachment 3: HUD Requirements and Sample Language for Cooperation Agreements Attachment 4: HUD Requirements and Sample Language for Joint Agreements 48 ..57
Attachment 5: Cooperation Agreements vs. Joint Agreements Comparison Table 62 Attachment 6: Urban County Qualification Scenarios Comparison Table 2 SECTION 1: OVERVIEW OF THE URBAN COUNTY NOTICE
1.1 Who's this Notice for?
The Urban County Notice is for:
• All Community Development Block Grant (CDBG) grantees (Urban Counties, Metropolitan Cities, and States)
• Units of general local government (UGGs) in Urban Counties • HUD Community Planning and Development (CPD) field and regional staff • HUD Office of General Counsel (OGC) field and regional staff CPD field offices must provide copies of this Notice each year to:
1. All currently qualified Urban Counties
2. Any county that can qualify as a new Urban County
3. Each state administering the State CDBG Program which includes a potentially eligible new Urban County
NOTE: CPD field offices should encourage Urban Counties and potential new Urban Counties to visit the HUD.gov Urban Counties website for more guidance on Urban County qualification.
1.2 What is an "Urban County" in the CDBG Program?
Urban Counties are counties in metropolitan areas that qualify to directly receive CDBG annual formula funding because they meet a population threshold (generally 200,000), or meet other special characteristics, identified in the Housing and Community Development Act (HCDA) of 1974, as amended.' Urban Counties are CDBG Entitlement Communities under the CDBG Program. For more detailed information on the statutory requirements to be qualified as an Urban County, GO TO ATTACHMENT 1. For definitions of the terms used in this Notice, GO TO ATTACHMENT 2.
1.3 What is Urban County "qualification" and why are Urban Counties required to requalify every three federal fiscal years (FYs)?
1.3.1 Urban County qualification is required by the HCDA and CDBG regulations The HCDA of 1974, as amended, and CDBG program regulations at 24 CFR Part 570 require counties to "qualify" as Urban Counties through a process that involves submitting specific qualification documentation to HUD. The overall reason HUD must qualify Urban Counties is to ensure they are eligible for CDBG funding. 1 Refer to the official definition of Urban Counties at Section 102(a)(6)(A) of the HCDA for more information:
https://www.govinfo.gov/content/pkg/COMPS-10382/pdf/COMPS-10382.pdf 3 Per CDBG program regulations on Urban Counties at 24 CFR 570.307(a):
"The Secretary will determine the qualifications of counties to receive entitlements as urban counties upon receipt of qualification documentation from counties at such time, and in such manner and form as prescribed by HUD. The Secretary shall determine eligibility and applicable portions of each eligible county for purposes of fund allocation under section 106 of the [HCDA] on the basis of information available from the U.S. Bureau of the Census with respect to population and other pertinent demographic characteristics, and based on information provided by the county and its included units of general local government."
1.3.2 Urban Counties are required to requalify every three federal fiscal years (FYs) The three-fiscal-year Urban County qualification period is a statutory requirement,? which is also codified in CDBG program regulations at 24 CFR 570.307(d)(L):
"The qualification by HUD of an urban county shall remain effective for three successive Federal fiscal years regardless of changes in its population..."
1.3.3 Purposes of Urban County qualification
The four main purposes are officially verifying and ensuring:
1. Counties meet the population threshold to be an Urban County. In general, this is based on the combined population in: a) the county's unincorporated areas and b) "participating" units of general local government (Participating UGLGs).3
2. HUD can accurately allocate formula grant funding for the CDBG program and HOME Investment Partnerships (HOME) and Emergency Solutions Grant (ESG) programs, if applicable).* Urban County "configurations" affect formula funding amounts across the entire CDBG Entitlement grantee portfolio.
3. Intergovernmental agreements or IGAs (agreements between local governments)® for Urban Counties are legally sufficient for HUD. These legal agreements are between Urban Counties and Participating UGLGs (or Metropolitan Cities).
4. Participating UGLGs (in Cooperation Agreements) and Metropolitan Cities (in Joint Agreements) have an opportunity every three years to choose whether to continue, or opt out of, participating in their Urban County. 2 Section 102(d) of the HDA (42 U.S.C. 5302(d)) states: "The population of any UGLG which is included in that of an urban county [...] shall be included in the population of such urban county for three program years beginning with the program year that its population was first so included." 3 The population of Metropolitan Cities is never counted towards Urban Counties, including under Joint Agreements. 4 The HOME and ESG programs are marked "if applicable" because not all Urban Counties receive HOME or ESG funding. Some Urban Counties are not eligible and some choose not to participate in those programs. 5 There are approximately 1,300 CDBG Entitlement Communities (cities and counties), which directly receive CDBG grants annually. There are approximately 1,100 Metropolitan Cities and approximately 200 Urban Counties. 6 There are two types of agreements: 1) Cooperation Agreements (between Urban Counties and Participating UGLGs); and 2) Joint Agreements (between Urban Counties and Metropolitan Cities [CDBG Entitlements]).
4. 1.4 What's covered in this Notice?
This Notice establishes and explains requirements for Urban County qualification? Below is a summary of the Notice's sections and attachments:
• Section 1: Overview of the Urban County Notice (this section) introduces this Notice and Urban County qualification. Please note that SECTION I.5 highlights the changes HUD is making to this Notice from Notice CPD-25-04. • Section 2: The Urban County Qualification Process provides a step-by-step process map of the qualification process and a brief explanation of each step in the process. This section will help you understand how the process works. • Section 3: Your Urban County Qualification Package covers the requirements for your county's "qualification package" that you must submit to your CPD field office. It also provides instructions on how to submit your qualification package.
Specifically, this section provides guidance on: 1) Urban County Participation Decision Letters; 2) Cooperation Agreements and Joint Agreements; and 3) County Counsel Legal Opinion Letters.
• Section 4: Requirements, Deadlines, Urban County Lists, and Other Guidance summarizes all requirements to receive CDBG funding as an Urban County, provides more information on the Urban County Qualification Deadlines and Urban County Lists that HUD will publish annually on the HUD.gov Urban Counties website, and provides other technical guidance for qualifying counties. • Attachments includes six attachments:
Attachment 1: Statutory Requirements to be an Urban County Attachment 2: Definitions of Urban County Terms
Attachment 3: HUD Requirements and Sample Language for Cooperation Agreements Attachment 4: HUD Requirements and Sample Language for Joint Agreements Attachment 5: Cooperation Agreements vs. Joint Agreements Comparison Table Attachment 6: Urban County Qualification Scenarios Comparison Table
1.5 What's new in this Notice?
• Converted to a standing Notice: HUD will no longer publish an Urban County Notice annually. This Notice will remain in effect until amended, superseded, or rescinded by a new Urban County Notice. As a supplement to this Notice, HUD will publish two additional guidance products annually on the HUD.gov Urban Counties website: updated 1) Urban County Qualification Deadlines and 2) Urban County Lists.
7 In this Notice, HUD uses the phrases "Urban County qualification" or "qualifying Urban Counties" for simplicity instead of using "Urban County qualification and requalification" or "qualifying or requalifying Urban Counties." Requalifying as an Urban County is essentially the same process as qualifying the first time. • Removed references to specific fiscal years (FYs) and three-year Urban County qualification periods: Because HUD converted this Notice to a standing Notice, this Notice no longer refers to specific FYs or specific three-year qualification periods (e.g., FYs 20XX-20XX). The only exception is to explain the effective date of HUD's policy change to "auto-renewal" of Urban County agreements. • Added new content in Section 1 (Overview of the Urban County Notice): HUD added new content to Section 1 to provide more foundational information on Urban County qualification for grantees and HUD staff. The new sections (SECTION 1.2 and SECTION 1.3) explain the statutory and regulatory basis for Urban County qualification under the HCDA of 1974, as amended, and CDBG regulations at 24 CFR 570.307. HUD also more thoroughly explains the purposes of Urban County qualification in SECTION 1.3.3. • Revised Section 2 (The Urban County Qualification Process): HUD revised the Step-by-Step Process Map (GO TO SECTION 2.I) and the narrative explanation of improve the explanation of the qualification process, and made minor revisions each step in the process (GO TO SECTION 2.2). HUD revised these sections to to the final steps of the process to ensure CPD field staff and Urban Counties are notified which counties are qualified for the next three-year qualification period. • Replaced the previous Section 3 with a new Section 3 ("Your Urban County Qualification Package") and added content reorganized from other sections in previous Notices: HUD added this new section to consolidate guidance on the "qualification package" Urban Counties must submit to CPD field offices:
and Joint Agreements (if any), and 3) County Counsel Legal Opinion Letters. 1) Urban County Participation Decision Letters, 2) Cooperation Agreements • Replaced the previous Section 4 (Attachments) with the previous Section 3 and revised the name and content of the new Section 4 ("Requirements, Deadlines, requirements, explains "qualification scenarios" counties will be in over time, Urban County Lists, and Other Guidance"): The new Section 4 summarizes all and explains the Urban County Qualification Deadlines and Urban County Lists which will be updated each year on the HUD.gov Urban Counties website.
Eliminated specific names for Urban County notification letters: HUD eliminated the four specific names for notification letters to UGLGs and of using a single name for all notification letters: Urban County Participation Metropolitan Cities (e.g., Nolification of Opportunity to be Excluded) in favor Decision Letters. HUD made this change to make it easier for grantee staff to understand the notification letters. This change does not imply all notification letters to UGLGs have the same requirements (they do not). However, all letters are seeking CDBG program participation decisions from UGLGs and Metropolitan new naming convention for these letters is simpler and easier to understand. Cities in Urban Counties (opting in/out of the Urban County). HUD believes the • Changed HUD's policy on "auto-renewal" of Cooperation and Joint Agreements (effective for the FY 2027 Urban County Qualification Process): In this Notice, HUD is notifying Urban Counties and partnering local governments that HUD is changing its policy on "auto-renewal" of Cooperation Agreements and Joint Agreements. Please note that this new policy will go into effect for the FY 2027 Urban County qualification process (for the FYs 2028-2030 qualification period).
HUD is delaying the effective date to provide Urban Counties sufficient time to implement this policy change.
• Under the new policy, Cooperation and Joint Agreements may only auto-renew for one three-fiscal-year qualification period, rather than in perpetuity. Essentially, the agreements may only be in place for a maximum of six years (two qualification periods)® before the parties involved must reauthorize and re-execute the agreements). GO TO SECTION 3.7 to learn more about the new policy.
• Defined additional Urban County Terms (Attachment 2): HUD defined more terms used in this Notice to help grantees and HUD staff, especially new staff, better understand Urban County qualification. There are many unique terms related to Urban Counties and the qualification process. This attachment provides a helpful resource for readers to learn what specific Urban County terms mean. • Revised HUD Requirements for Cooperation Agreements and Sample Language for Cooperation Agreements (Attachment 3): HUD made minor adjustments to Cooperation Agreement requirements and the sample language for Cooperation Agreements and combined these two previous attachments into one. Most of the adjustments HUD made were to conform this attachment with HUD's new policy on "auto-renewal" of Urban County agreements.
• Added new guidance on HUD Requirements and Sample Language for Joint Agreements (Attachment 4): HUD added new guidance to clarify requirements, and provide sample language, for Joint Agreements. HUD added this guidance to avoid confusion for grantees about what must be included in Joint Agreements.
While the requirements for Cooperation Agreements and Joint Agreements are similar, there are several differences.
• Added new Cooperation Agreements vs. Joint Agreements Comparison Table (Attachment 5): HUD added this new table to provide a useful tool for Urban Counties, UGLGs, and Metropolitan Cities to compare the differences between Cooperation Agreements and Joint Agreements. HUD added this guidance due to confusion among Urban Counties, UGLGs, and Metropolitan Cities on the distinction between Cooperation Agreements and Joint Agreements. 8 HUD will allow an emergency exception to allow agreements to auto-renew for one additional qualification period (maximum total of nine years) with written approval from the Urban County's CPD field office. • Revised and improved the Urban County Qualification Scenarios Comparison Table (Attachment 6): HUD made minor adjustments to this table to better explain the distinctions between the three Urban County qualification scenarios that Urban Counties may experience any given year.
1.6 Who can I contact if I have questions?
Contact your CPD Representative or your CPD field office. To reach the CPD Entitlement Communities Division with questions about Urban Counties, email [email protected].
NOTE: HUD encourages Urban Counties, potential new Urban Counties, and UGLGs in Urban Counties to contact their CPD field office first before emailing the CPD Entitlement Communities Division.
1.7 Paperwork Reduction Act (PRA) information
The Office of Management and Budget (OMB) has approved the information collection requirements in this Notice under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501- 3520). The assigned OMB control number for this information collection is 2506-0170.
SECTION 2: THE URBAN COUNTY QUALIFICATION PROCESS
2.1 Step-by-Step Process Map: The Urban County Qualification Process STEP 3
STEP 2
STEP 1 URBAN COUNTIES DRAFT 1) COOPERATION
URBAN COUNTIES INITIATE PROCESS LOCALLY- AGREEMENTS AND/OR JOINT AGREEMENTS (OR CPD FIELD OFFICES INITIATE PROCESS-EMAILING SENDING URBAN COUNTY PARTICIPATION DECISION AMENDMENTS TO AGREEMENTS) AND 2) COUNTY
THIS NOTICE TO CURRENT AND POTENTIAL URBAN COUNTIES AND REFERRING THEM TO GUIDANCE LETTERS TO UGGS AND METROPOLITAN CITIES AND COUNSEL LEGAL OPINION LETTERS (AS NECESSARY) ON THE HUD.GOV URBAN COUNTIES WEBSITE RECEIVING RESPONSE LETTERS (AS NECESSARY) STEP 4
STEP 5
STEP G OPTIONAL: OGC FIELD OR REGIONAL COUNSEL
URBAN COUNTIES, PARTICIPATING UGGS, AND COMPLETE PRELIMINARY REVIEWS OF DRAFT
COUNTIES SUBMIT QUALIFICATION PACKAGES TO THEIR METROPOLITAN CITIES AUTHORIZE AND EXECUTE NEW AGREEMENTS (OR AMENDMENTS) AND CPD FIELD OFFICES WITH 1) PARTICIPATION DECISION AGREEMENTS, AUTO-RENEW EXISTING AGREEMENTS, COUNTY COUNSEL LEGAL OPINION LETTERS LETTERS, 2) AGREEMENTS OR AMENDMENTS, AND OR AMEND EXISTING AGREEMENTS (AS NECESSARY) 3) COUNTY COUNSEL LEGAL OPINION LETTERS
STEP 9
STEPS
STEP 7 CPD OFFICE OF TECHNOLOGY, INNOVATION, AND
CPD FIELD OFFICES UPDATE URBAN COUNTY EVALUATION (CPD-OTIE) COMPLETES REVIEW OF
OGC FIELD OR REGIONAL COUNSEL COMPLETES WORKSHEETS IN THE GMP-R URBAN COUNTY URBAN COUNTY WORKSHEETS IN THE GMP-R LEGAL REVIEW OF 1) AGREEMENTS (OR AMENDMENTS) MODULE AND CONTACT URBAN COUNTIES TO URBAN COUNTY MODULE AND NOTES ANY ISSUES AND 2) COUNTY COUNSEL LEGAL OPINION LETTERS VERIFY THEIR URBAN COUNTY CONFIGURATIONS
AND CERTIFIES THEY MEET HUD REQUIREMENTS
STEP 10
STEP 11
STEP 12 CPD FIELD OFFICES VERIFY FINAL URBAN COUNTY
AFTER FIELD OFFICE VERIFICATION, CPD-OFO CONFIGURATIONS IN THE GMP-R URBAN COUNTY
CPD FIELD OFFICES SEND LETTERS TO PROVIDES CPD FIELD OFFICES WITH THE FINAL MODULE AND NOTIFY CPD-OTIE OF ANY ISSUES URBAN COUNTIES NOTIFYING THEM THAT LIST OF URBAN COUNTIES QUALIFIED FOR THE WITHIN TEN (10) BUSINESS DAYS
THEY ARE QUALIFIED FOR THE UPCOMING UPCOMING THREE-YEAR QUALIFICATION PERIOD
THREE-YEAR QUALIFICATION PERIOD
2.2 What happens during each step in the Urban County qualification process?
2.2.1 Step 1: CPD field offices initiate process-emailing this Notice to current and potential Urban Counties and referring them to guidance on the HUD.gov Urban Counties website
CPD field offices initiate the Urban County qualification process by emailing this Notice to all currently qualified (and potential new) Urban Counties. In this email, CPD field offices will also refer counties to two additional guidance products that HUD will publish annually on the HUD.gov Urban Counties website: 1) Urban County Qualification Deadlines and 2) Urban County Lists.
NOTE: GO TO SECTION 4.3 for more information on Urban County Qualification Deadlines and GO TO SECTION 4.4 for more information on Urban County Lists.
2.2.2 Step 2: Urban Counties initiate process locally-sending Urban County Participation Decision Letters to UGLGs and Metropolitan Cities and receiving response letters (as necessary)
RECOMMENDATION: HUD recommends that Urban Counties begin outreach with UGLGs and Metropolitan Cities in their county near the beginning of the year (e.g., January) to secure their participation decisions on joining, continuing, or opting out of their Urban County for the next three-fiscal-year qualification period. Counties should not wait for HUD to contact them (Step 1) OR for HUD to publish an updated Urban County Notice or updated Urban County Qualification Deadlines and Urban County Lists. Beginning the Urban County qualification process in January of the qualification year allows 8-9 months to complete the whole process.
Your county will initiate the qualification process locally by contacting all UGLGs in your county (including potential new Metropolitan Cities) in writing (letters) to determine their CDBG program participation decisions for the upcoming three-year Urban County qualification period. With this Notice, HUD is renaming these official letters: Urban County Participation Decision Letters.
NOTE: GO TO SECTION 3.3 for guidance on Urban County Participation Decision Letters and GO TO SECTION 4.6 for guidance on potential new Metropolitan Cities. (The U.S. Census Bureau identifies potential new Metropolitan Cities around July or August each year based on updated data.) Urban Counties are not required to contact current Metropolitan Cities (independent CDBG Entitlement grantees) with Urban County Participation Decision Letters.
However, your Urban County may consider communicating with current Metropolitan Cities to discuss partnering with your Urban County under a Joint Agreement.
NOTE: HUD understands that relationships between Urban Counties and current independent Metropolitan Cities (CDBG Entitlements) vary widely across the Nation. Most current independent Metropolitan Cities will prefer to administer their own CDBG programs and are not interested in joining an Urban County. However, some current independent Metropolitan Cities may be interested in pursuing a Joint Agreement with their Urban County.
10 2.2.3 Step 3: Urban Counties draft 1) Cooperation Agreements with Participating UGLGs and/or Joint Agreements with Metropolitan Cities (or amendments to agreements) and 2) County Counsel Legal Opinion Letters (as necessary) After your county secures participation decisions, you will draft: 1) Cooperation Agreements with Participating UGLGs and/or Joint Agreements with Metropolitan Cities (or amendments to agreements) AND 2) a County Counsel Legal Opinion Letter (as necessary). GO TO SECTION 3 for the requirements for these documents.
HUD RECOMMENDATION: HUD encourages your county to submit a draft Cooperation Agreement and/or draft Joint Agreement (or draft amendment) for a preliminary legal review by OGC Field or Regional Counsel. This may help avoid time-consuming, back-and-forth revisions between your county and HUD after you submit your qualification package (Step 6). For example, it may help avoid HUD deeming your agreements) or amendments) unacceptable after all your Urban County's participating governments have authorized and executed them. Your county should request a preliminary review early enough in the process to execute any needed changes before the deadline for submitting your complete Urban County qualification package to HUD.
2.2.4 Step 4 (Optional Step): OGC Field or Regional Counsel complete preliminary reviews of draft Cooperation and/or Joint Agreements) (or amendments) and County Counsel Legal Opinion Letters
If your Urban County chooses to submit a draft Cooperation Agreement and/or Joint Agreement to HUD (or draft amendment), OGC Field or Regional Counsel will perform a preliminary legal review of your draft agreement (or amendment) and County Counsel Legal Opinion Letter (if also provided). This optional step includes any back-and-forth between HUD and your county on revising the draft agreement (or amendment) and County Counsel Legal Opinion Letter.
2.2.5 Step 5: Urban Counties, Participating UGLGs, and Metropolitan Cities authorize and execute new agreements (or amendments to existing agreements) OR "auto-renew" existing agreements per HUD's "auto- renewal" policy (as necessary)
Your county must officially authorize and execute new Cooperation Agreements and/or Joint Agreements (or amendments to existing agreements). This means securing authorization from governing bodies for all participating governments (e.g., city or county council resolutions) AND executing agreements/amendments with signatures from the chief executive officers of all participating governments.
HUD will accept "digital" signatures if they show a) verification the chief executive officer (or their designee) completed the signature and b) a time and date stamp. 9 The "chief executive officer" is an elected official, or legally designated official, who has the primary responsibility for the conduct of governmental affairs. Examples include the mayor, county executive, board chairperson, or governor.
Refer to the official definition at 24 CFR 570.3.
11 Existing Urban County agreements that contain auto-renewal provisions may also be "auto-renewed," consistent with HUD's "auto-renewal" policy for Cooperation Agreements and Joint Agreements.
NOTE: HUD is announcing a new "auto-renewal" policy in this Notice. However, that policy will not take effect until the FY 2027 Urban County qualification process and does not affect Urban Counties qualifying in FY 2026 (for FYs 2027-2029). GO TO SECTION 3.2 for more information.
2.2.6 Step 6: Urban Counties submit qualification packages to their CPD field offices with 1) Urban County Participation Decision Letters, 2) Cooperation and/or Joint Agreements (or amendments), and 3) County Counsel Legal Opinion Letters Your county must submit its final Urban County qualification package to your CPD field office with all required qualification documents for HUD's review and approval.
As necessary, your package must include: 1) all Urban County Participation Decision Letters, 2) authorized and executed Cooperation Agreements and/or Joint Agreements (or amendments), and 3) a County Counsel Legal Opinion Letter. GO TO SECTION 3 for more guidance on the documents you must submit to your CPD field office.
NOTE: Counties seeking Urban County qualification for the first time must submit their package to their CPD field office and the CPD Entitlement Communities Division ([email protected]).
GO TO SECTION 4.5 for more guidance on Urban County qualification for First-Time Qualifiers.
2.2.7 Step 7: OGC Field or Regional Counsel completes official legal review of 1) Cooperation and/or Joint Agreements (or amendments) and 2) County Counsel Legal Opinion Letters and certifies they meet HUD requirements OGC Field or Regional Counsel completes its official review of your Cooperation and/or Joint Agreements (or amendments) and County Counsel Legal Opinion Letter.
OGC Field or Regional Counsel must officially certify that each agreement meets HUD requirements for Cooperation Agreements and Joint Agreements in this Notice.
OGC Field or Regional Counsel submit their certifications to the CPD field office.
2.2.8 Step 8: CPD field offices update Urban County worksheets in the GMP-R Urban County Module and contact Urban Counties to verify their Urban County configurations
Based on the documentation submitted by Urban Counties, CPD field offices will update Urban County worksheets in the GMP-R Urban County Module. CPD field offices will also update Urban County worksheets for currently qualified Urban Counties adding new Participating UGLGs for the rest of their qualification period.
After CPD field staff update the worksheets, they will send them to Urban Counties to double-check and verify the data on the Participating UGLGs and Metropolitan Cities (in Joint Agreements) for each Urban County. Verifying this data is accurate is critical because your Urban County's population size affects formula funding allocations across the entire CDBG Entitlement grantee portfolio. 12 2.2.9 Step 9: CPD Office of Technology, Innovation, and Evaluation (CPD-OTIE) completes review of Urban County worksheets in the GMP-R Urban County Module and notes any issues
CPD-OTIE will review the Urban County worksheets in the GMP-R Urban County Module and will note any issues with the worksheets (Urban County configurations) that need to be resolved by CPD field offices.
2.2.10 Step 10: CPD field offices verify final Urban County configurations in the GMP-R Urban County Module and notify OTIE of any issues within ten (10) business days
CPD field offices will review and verify the final Urban County configurations in the GMP-R Urban County Module. CPD field offices must notify CPD-OTIE within ten (10) business days if there are any data errors in the Urban County worksheets and work with CPD-OTIE to resolve those issues.
2.2.11 Step 11: After field office verification, CPD-Office of Field Operations (CPD-OFO) provides CPD field offices with the final list of Urban Counties qualified for the upcoming three-year qualification period Following field office verification that Urban County worksheets are accurate, CPD-OFO, CPD-OBGA, and CPD-OTIE will coordinate and concur on the final list of Urban Counties qualified for the upcoming three-year qualification period.
CPD-OFO will distribute this final list of Urban Counties to all CPD field offices, with instructions to notify Urban Counties that they are officially qualified.
2.2.12 Step 12: CPD field offices send letters to Urban Counties notifying them that they are qualified for the upcoming three-year qualification period CPD field offices will notify your Urban County in writing that your county is qualified as an Urban County for the upcoming three-year qualification period.
2.3 How long is my Urban County's qualification period? After qualifying, your county is entitled to receive CDBG funds as an Urban County for three consecutive fiscal years, if Congress appropriates funds and if your county submits its Consolidated Plan/Action Plan by August 16 each year. Urban Counties requalify for their next qualification period in their third and final year of their current qualification period.
2.4 Can my Urban County add new Participating UGLGs during our three-year qualification period?
Yes. Your Urban County may add previously Nonparticipating UGLGs to your Urban County as Participating UGLGs for your second and/or third years of your qualification period if UGLGs decide they want to participate. During years 1-2 of your qualification period, your county may choose to send an Urban County Participation Decision Letter 13 to any Nonparticipating UGLGs in your county offering them the opportunity to join your Urban County for the remainder of the qualification period. Sending reminder letters to Nonparticipating UGLGs during your Urban County's qualification period about their opportunity to join is optional.
addition of any new Participating UGLGs for the second and/or third years of your qualification period. NOTE: HUD calculates your Urban County's CDBG grant amount annually and it will account for the
2.5 Can my Urban County add a Metropolitan City as a Joint Recipient (under a Joint Agreement) during our three-year qualification period? No. Your Urban County may only add a Metropolitan City as a Joint Recipient (under a Joint Agreement) during your Urban County's qualification year for the next three-year qualification period. Per 24 CFR 570.308(a)(1), Joint Requests for an Urban County to administer a Metropolitan City's CDBG grant program, in addition to administering the Urban County's CDBG program, may only be submitted and considered by HUD the year that your Urban County is requalifying.
2.6 Can a Participating UGLG (in a Cooperation Agreement) OR a Metropolitan City (in a Joint Agreement) withdraw from our Urban County during our three-year qualification period?
No. Participating UGLGs in Cooperation Agreements may not withdraw from your Urban County during your qualification period—-unless your county does not receive a CDBG participate in your Urban County even if they become eligible to be a Metropolitan City grant for any year during the qualification period. Participating UGGs must continue to in Joint Agreements with your Urban County also may not withdraw from your Urban during your Urban County's three-year qualification period. Similarly, Metropolitan Cities County during your three-year qualification period —unless your county does not receive a CDBG grant for any year during the qualification period.
NOTE: If an unincorporated area of your county incorporates (becomes an UGLG) during your qualification period, it must remain part of your Urban County until your current qualification period ends. If this occurs, your county must execute a Cooperation Agreement with the new UGLG if your county does not have 'essential powers" in UGLGs.
2.7 What is HUD's "Determination of Essential Powers"?
carry out "essential community development and housing assistance activities." HUD calls As part of Urban County qualification, HUD must determine where your county can legally this the "Determination of Essential Powers," and usually makes this determination the first time an Urban County qualifies. When an Urban County is requalifying, HUD may rely on its previous determinations), unless there is evidence to the contrary.
In the Determination of Essential Powers, OGC Field or Regional Counsel determines the legal authority of your county to conduct "essential community development and housing 14 assistance activities" in your county's 1) unincorporated areas and 2) UGGs (without consent by UGLG governing bodies). In carrying out its review, OGC Field or Regional Counsel may request and consider information provided by your county, in addition to other relevant information obtained from independent sources.
To be qualified as an Urban County, your county must have "essential powers" in its unincorporated areas, at a minimum, per the HCDA of 1974, as amended. This requirement and the quoted language on "essential powers" is in the HDA of 1974, as amended, and CDBG program regulations on Urban Counties at 24 CFR 570.307, as shown below:
• Per Section 102(a)(6)(A)(i) of the HCDA of 1974, as amended, an Urban County must be "authorized under State law to undertake essential community development and housing assistance activities in its unincorporated areas, if any, which are not units of general local government..."
• Per the Urban Counties regulations at 24 CFR 570.307(b)(1): "the Secretary shall determine which counties have authority to carry out essential community development and housing assistance activities in their included units of general local government without the consent of the local governing body and which counties must execute cooperation agreements with such units to include them in the urban county for qualification and grant calculation purposes." 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 UGLGs because UGLGs are granted authority over their jurisdictions. Because most states do not 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. 15 SECTION 3: YOUR URBAN COUNTY QUALIFICATION PACKAGE
3.1 What documents must I submit in my Urban County's qualification package? Your Urban County must submit three sets of documents to your CPD field office:
1. Urban County Participation Decision Letters exchanged back and forth between your county, UGLGs, and Metropolitan Cities about participating or not participating in your Urban County's CDBG program
2. Authorized and executed Cooperation Agreements with Participating UGLGs and/or Joint Agreements with Metropolitan Cities (or Amendments to agreements)
3. County Counsel Legal Opinion Letter
3.2 How do I submit my Urban County's qualification package to HUD? You should submit your qualification package to your CPD field office via email to your qualification package to your CPD field office and the CPD Entitlement Communities CPD Representative. If you are a First-Time Qualifier, your county must submit your Division ([email protected]).
NOTE: GO TO SECTION 4.5 for more guidance for First-Time Qualifiers.
3.3 What are HUD's requirements for Urban County Participation Decision Letters? HUD has simplified the naming convention for the notification letters that qualifying process. The new name for these letters is simpler and more descriptive: Urban County Urban Counties must send to UGLGs and Metropolitan Cities during the qualification Participation Decision Letters. HUD changed the name of the letters to better capture their purpose: securing CDBG program participation decisions from UGLGs and Metropolitan Cities for the Urban County's upcoming three-year qualification period.
NOTE: Urban County Participation Decision Letters refers to both the outgoing letters sent by the qualifying Urban County and any response letters received from UGLGs or Metropolitan Cities.
3.3.1 Urban County Participation Decision Letters for all UGLGs in your county Each time your Urban County qualifies, you must contact all UGGs in your county (except current independent Metropolitan Cities) with an Urban County Participation Decision Letter. This is true regardless of a) each UGLG's past CDBG program participation decisions, b) if your county has "essential powers" in UGLGs, and c) if you have Auto-Renewal Cooperation Agreements in place.
For example, your Urban County may have a Nonparticipating UGLG that has three years, you still must give this UGLG the opportunity to change their CDBG chosen not to participate for 25 years. When your Urban County requalifies every program participation decision and join your Urban County's CDBG program. 16 Letter Requirements and CDBG Program Participation Options for UGLGs UGLGs in requalifying Urban Counties will be in a variety of scenarios during an Urban County's requalification year, depending on the relationships and legal authorities between the Urban County and its UGLGs. For example, when Urban Counties are requalifying, some UGLGs will be:
• Participating UGLGs in the Urban County in its current qualification period (either in a Cooperation Agreement or not, depending on "essential powers.") • Nonparticipating UGLGs in the Urban County in its current qualification period. • "Split places," which have unique CDBG program participation options because their jurisdictions are in multiple counties.
If your Urban County has "essential powers" in UGLGs (applies to few states):
UGGs are automatically included as participants in your Urban County-unless they ask to be excluded from the Urban County. If these UGLGs do not respond to your Urban County Participation Decision Letter, they will be included in your Urban County (even if they chose to be a Nonparticipating UGLG during the last qualification period). They must opt out of each qualification period.
If your Urban County does not have "essential powers" in UGLGs: UGLGs must choose to join your Urban County and must execute a Cooperation Agreement.
If these UGLGs do not respond to your Urban County Participation Decision Letter, they cannot be included in your Urban County.
Regardless of each UGLG's specific situation, your Urban County must a) contact all UGLGs (except current independent Metropolitan Cities/CDBG Entitlements) to notify them of their CDBG program participation options for your Urban County's upcoming three-year qualification period and b) request their participation decisions in a response letter by the deadline set in the Urban County Qualification Deadlines posted on the HUD.gov Urban Counties website.
CDBG Program Participation Options for UGLGs currently in Cooperation Agreements with your Urban County (currently Participating UGL Gs)
1. Continue as a Participating UGLG in your Urban County by renewing their Cooperation Agreement for the upcoming three-year qualification period.
This means submitting a newly-executed agreement OR auto-renewing the agreement, per HUD's "auto-renewal" policy. (Please note again that the new "auto-renewal" policy outlined in SECTION 3.7 will take effect in FY 2027.)
2. Opt out of being a Participating UGLG in your Urban County by terminating or not renewing their Cooperation Agreement for the upcoming three-year qualification period. After opting out, an UGLG may choose to seek State CDBG program funding as a Non-Entitlement UGLG OR not participate in the CDBG program altogether.
17 CDBG Program Participation Options for UGLGs that are currently Nonparticipating UGLGs in vour Urban County
1. Join your Urban County as a Participating UGLG by executing a Cooperation Agreement with your Urban County, if necessary, based on "essential powers."
2. Continue to opt out of your Urban County by responding to your Urban County's letter stating that their UGLG does not wish to participate. After opting out, an UGLG may choose to seek State CDBG program funding as a Non-Entitlement UGLG OR not participate in the CDBG program altogether:
CDBG Program Participation Options for "Split Places" (UGLGs whose jurisdictions are "split" across two or more counties)
For split places partly located in only ONE Urban County, one of these applies:
1. If it's a split place where your county has essential powers in incorporated areas (rare), the entire area of the split place will be included in your Urban County for the qualification period (unless the split place asks to be excluded); OR
2. If the split place can only be included in your Urban County with a Cooperation Agreement, the entire area of the split place may be included in your Urban County for the qualification period after executing a Cooperation Agreement.
For split places partly located in TWO OR MORE Urban Counties, the split place may choose from one of three participation options:
1. To be excluded from all Urban Counties
2. To be included entirely in one Urban County and excluded from the other Urban County(ies)
3. To participate in more than one Urban County in which it's partially located, but there must be no overlapping. Your Urban County can't expend CDBG funds in the part of a split place that is in another Urban County's CDBG program.
3.3.2 OPTIONAL: Urban County Participation Decision Letters for Nonparticipating UGGs during a currently qualified Urban County's qualification period If your currently qualified Urban County has Nonparticipating UGGs, you may re-invite these UGLGs to join your Urban County for the remaining 1-2 years of your current qualification period. HUD defers to your county on that decision because HUD already requires your Urban County to notify all UGGs (except current independent Metropolitan Cities) of their participation options each requalification year. The list of qualified Urban Counties with Nonparticipating UGLGs will be published each year on the HUD.gov Urban Counties website (List 5). GO TO SECTION 4.4 for more information on Urban County Lists.
NOTE: If a Nonparticipating UGLG decides to join your Urban County and a Cooperation Agreement is necessary, then your Urban County must execute an agreement that meets HUD requirements for Cooperation Agreements in ATTACHMENT 3. 18 3.3.3 Urban County Participation Decision Letters for Metropolitan Cities currently in Joint Agreements with an Urban County
For requalifying Urban Counties that are in Joint Agreements with Metropolitan Cities, your county must also send letters to those Metropolitan Cities notifying them of their opportunity to change their CDBG program participation decision, even if you have an Auto-Renewal Joint Agreement in place with the jurisdictions.
Your Urban County must request a participation decision from the Metropolitan City in a response letter by the deadline set in the Urban County Qualification Deadlines published on the HUD.gov Urban Counties website.
CDBG Program Participation Options for Metropolitan Cities currently in Joint Agreements with your Urban County
1. Renew the Joint Agreement with your Urban County for the upcoming three-year Urban County qualification period. This means reauthorizing and re-executing the agreement OR auto-renewing the agreement, per HUD's "auto-renewal" policy. (Please note again that the new "auto- renewal" policy outlined in SECTION 3.7 will take effect in FY 2027.)
2. Terminate the Joint Agreement with your Urban County, relinquish their CDBG Entitlement status, and execute a Cooperation Agreement to continue participating in your Urban County (as a Participating UGLG) for your upcoming three-year Urban County qualification period.
3. Terminate the Joint Agreement with your Urban County and resume their independent CDBG Entitlement status as a Metropolitan City.
4. Terminate the Joint Agreement with your Urban County, relinquish their CDBG Entitlement status, and become a Non-Entitlement UGLG.
They may then choose to seek State CDBG Program funding OR not participate in the CDBG program altogether.
NOTE: If a Metropolitan City is geographically "split" across multiple Urban Counties, they may only be in a Joint Agreement with one of the Urban Counties.
3.3.4 Urban County Participation Decision Letters from Metropolitan Cities accepting or deferring their CDBG Entitlement status
If applicable, you may also need to submit letters sent and received from:
1. Any UGLG that may newly qualify as a Metropolitan City but wants to defer its CDBG Entitlement status;
2. Any UGLG currently deferring Metropolitan City (CDBG Entitlement) status that wants to continue to defer its CDBG Entitlement status;
3. Any UGLG accepting Metropolitan City (CDBG Entitlement) status stating it will enter into a Joint Agreement with your Urban County 19 (and a letter from your Urban County confirming willingness to enter into the Joint Agreement); and
4. Any UGLG accepting Metropolitan City (CDBG Entitlement) status - stating that they will cease participation in your Urban County's CDBG program and become an independent CDBG Entitlement.
3.4 What are HUD's requirements for Cooperation Agreements between Urban Counties and Participating UGLGs?
GO TO ATTACHMENT 3 for HUD's list of requirements for Cooperation Agreements.
HUD also provides sample language for Cooperation Agreements in ATTACHMENT 3.
3.5 What are HUD's requirements for Joint Agreements between Urban Counties and Metropolitan Cities (Joint Recipients)?
GO TO ATTACHMENT 4 for HUD's list of requirements for Joint Agreements. HUD also provides sample language for Joint Agreements in ATTACHMENT 4.
NOTE: If either your Urban County or the Metropolitan City falls under the "exception criteria" at 24 CFR 570.208(a)(1)(ii) for activities that benefit low-and moderate-income residents of an area, your Urban County must notify the Metropolitan City in a letter of the potential effects of Joint Agreements on these activities.
3.6 What are HUD's requirements for County Counsel Legal Opinion Letters? legal official" for your county) in an official letter: HUD will accept letters issued by your You must submit a legal opinion from your county counsel's office (office of the "chief county's Office of County Counsel, Office of General Counsel, or similarly named office. HUD will also accept letters signed by an attorney who is not the "chief legal official," such as your Deputy County Counsel or Legal Branch Chief. This legal opinion letter must state two things: 1) that state and local law authorizes the terms and provisions of your Cooperation Agreements with Participating UGLGs and/or Joint Agreements with Metropolitan Cities (Joint Recipients) AND 2) that the agreements provide full legal authority for your county to undertake, or assist in undertaking, essential community development and housing assistance activities in incorporated areas.
3.7 What is HUD's new policy on "auto-renewal" of Cooperation Agreements and Joint Agreements (effective for the FY 2027 Urban County qualification process)?
3.7.1 Background and history on "auto-renewal" of Urban County agreements In the past, HUD allowed Urban Counties and partnering local governments to "auto-renew" their Urban County agreements (Cooperation Agreements and Joint Agreements) in perpetuity by adding an auto-renewal provision to their agreements. to their agreements if required by HUD (in a new Urban County Notice) or Urban Counties and partnering local governments would only make amendments because new federal, state, or local laws necessitated updating the agreements. 20 3.7.2 Why HUD is updating its "auto-renewal" policy for Urban County agreements HUD is aware that some Urban Counties have Cooperation Agreements that have not been reauthorized or re-executed for many years. This was not the intent of HUD's policy on "auto-renewal" for agreements, and intergovernmental agreements should be revisited, reauthorized, and re-executed more frequently, given changing conditions at the local level. Furthermore, automatic renewal of Cooperation Agreements and Joint Agreements was not provided for, or mentioned, in the HCDA of 1974, as amended, or CDBG regulations at 24 CFR 570.307.
HUD is modifying its "auto-renewal" policy for Cooperation Agreements and Joint Agreements to re-align the Urban County qualification process more closely with the intent of the HCDA of 1974, as amended. HUD is retaining "auto-renewal" of agreements under a new policy, after careful consideration, to allow flexibility for large Urban Counties that may have many Participating UGLGs (and therefore, many Cooperation Agreements to reauthorize and re-execute).
3.7.3 HUD's new "auto-renewal" policy for Urban County agreements HUD's new policy aligns with HUD's original intent by limiting the time an "auto-renewal" agreement may be in effect. Urban Counties and participating governments may also no longer use amendments to extend their agreements for an indefinite amount of time without reauthorizing and re-executing the entire Cooperation or Joint Agreement.
Per the new policy, Auto-Renewal Cooperation Agreements and Joint Agreements may only "automatically renew" for one three-year qualification period after the initial three-year qualification period. This means an "auto-renewal" agreement may only be in effect for a total of six fiscal years (two qualification periods). After that six-year period, the Urban County and Participating UGLG (or the Metropolitan City for Joint Agreements) must reauthorize and re-execute a new agreement. New Auto-Renewal Agreements, under the new policy, also must list the fiscal years they are effective, with an end date for the agreements.
To align this Notice with the new "auto-renewal" policy, HUD:
• modified the definitions of Auto-Renewal Cooperation Agreement or Joint Agreement and Amendment (Attachment 2);
• modified the "auto-renewal" and "amendment" language in HUD's list of requirements and sample language for Cooperation Agreements (Attachment 3); and
• ensured that HUD's new list of requirements and sample language for Joint Agreements (Attachment 4) reflects this policy.
21 3.7.4 Applicability, effective date, and phase-in of new "auto-renewal" policy Given the significant change for Urban Counties, HUD will phase in this new "auto-renewal" policy. The policy will take effect for the FY 2027 Urban County qualification process (not the FY 2026 qualification process). Urban Counties must comply with the new "auto-renewal" policy when they requalify (beginning with Urban Counties requalifying in FY 2027 for FYs 2028-2030), but Urban Counties are not required to comply before their next requalification year or to amend their current Auto-Renewal Cooperation or Joint Agreements.
Many Urban Counties requalify in FY 2026 (122), which is more than sixty percent of currently qualified Urban Counties. The (122) Urban Counties requalifying in FY 2026 (for the FYs 2027-2029 qualification period) are not required to comply with the new "auto-renewal" policy until their next requalification year (FY 2029). They may "auto-renew" their agreements for one final three-year qualification period, following the procedures they have used in the past. These Urban Counties also do not need to amend their agreements at any time during FYs 2027-2029 for the purpose of complying with HUD's new "auto-renewal" policy.
3.7.5 Auto-Renewal Emergency Exception
To enable flexibility, HUD is also including an "emergency exception" to the new "auto-renewal" policy that may be granted by CPD field offices on a one- time, case-by-case basis. If an Urban County has Auto-Renewal Cooperation Agreements or Joint Agreements that the Urban County is due to reauthorize and re-execute (e.g., after six years, but the Urban County experiences an emergency preventing them from renewing their agreements, HUD may permit their agreements to "auto-renew" for one additional three-year Urban County qualification period due to the emergency (maximum total of nine years for the agreements) to be in place).
If an Urban County is in this situation, the Urban County must submit a written request to their CPD field office. This request must explain why their county needs the emergency exception and why they cannot renew their agreements) for the next three-year Urban County qualification period. For example, their operations during the Urban County qualification process (which runs through Urban County experienced a natural disaster that impacted the county's the spring and summer months and ends September 30). CPD field offices will consider auto-renewal emergency exception requests on a case-by-case basis.
CPD field offices must review and approve or deny the request within 15 days and must notify the CPD Entitlement Communities Division of this decision at [email protected].
22 SECTION 4: REQUIREMENTS, DEADLINES, URBAN COUNTY LISTS,
AND OTHER GUIDANCE
4.1 What are all my county's requirements to qualify and receive CDBG funding as an Urban County?
1. Meet a population threshold during Urban County qualification. [GO TO ATTACHMENT I]
2. Possess "essential powers" (legal authority) to carry out "essential community development and housing assistance activities" in unincorporated areas AND in Participating UGLGs or joint recipient Metropolitan Cities. [GO TO SECTION 2.7] NOTE: For counties that do not have state-granted authority to carry out these types of activities in incorporated areas, they must execute Cooperation Agreements (with Participating UGLGs) or Joint Agreements (with Metropolitan Cities). This applies to most counties in the United States.
3. Meet all notification requirements for UGLGs and Metropolitan Cities by sending Urban County Participation Decision Letters to UGLGs and Metropolitan Cities and providing all outgoing and response letters. [GO TO SECTION 3.3]
4. Hold fully authorized and executed Cooperation Agreements that meet HUD requirements and/or Joint Agreements that meet all HUD requirements (legally sufficient intergovernmental agreements), along with submitting a valid County Counsel Legal Opinion Letter. [GO TO SECTION 3]
5. Incorporate new HUD requirements into Cooperation Agreements and/or Joint Agreements by revising, reauthorizing, and re-executing agreements when requalifying as an Urban County (if necessary). [GO TO SECTION 3]
6. Submit all required documentation in your Urban County qualification package to your CPD field office and meet all Urban County Qualification Deadlines during the Urban County qualification process. [GO TO SECTION 3 and GO TO SECTION 4.3]
7. Submit a Consolidated Plan and Action Plans as required by 24 CFR Part 91 to receive a CDBG grant each year. ' By statute, your county must submit its Consolidated Plan and Annual Action Plans by August 16 each year. Failure to do so will result in 1) a loss of CDBG funds for that program year and 2) termination of your qualification as an Urban County-unless Congress extends the August 16 deadline by statute.
NOTE: If your Urban County enters into a Joint Agreement with one or more Metropolitan Cities, your county must submit a Consolidated Plan covering the county and the Metropolitan City(ies). 10 See Notice CPD-26-05 (or any subsequent updated "Consolidated Plan Notice") for guidance on submitting Consolidated Plans and Annual Action Plans.
23 4.2 What requirements apply to my Urban County "qualification scenario" this year? Current or potential new Urban Counties are in one of three Urban County "qualification scenarios" each year. GO TO ATTACHMENT 6 to view the Urban County Qualification Scenarios Comparison Table, which compares requirements for the three scenarios below:
1. Requalifying This Year (Requalifiers): Currently qualified Urban Counties requalifying this fiscal year for the subsequent three fiscal years. Requalifiers must go through the full qualification process. This includes sending Urban County Participation Decision Letters, reauthorizing and re-executing Cooperation Agreements and/or Joint Agreements (if necessary, preparing an updated County Counsel Legal Opinion Letter (if necessary), and submitting their qualification package to their CPD field office.
2. Requalifying Next Year or Year After Next: Currently qualified Urban Counties that are not requalifying this year because they are in years 1-2 of their current qualification period. These Urban Counties will requalify next year or the year after next. The only action item for these counties (which is optional) is to invite Nonparticipating UGLGs to join their Urban County for the remainder of their current qualification period.
3. First-Time Qualifiers: Counties seeking Urban County qualification for the first time.
These potential new Urban Counties must go through the full qualification process.
Because they are new, they also have two unique requirements: 1) OGC Field or Regional Counsel must complete the "Determination of Essential Powers" for their county and 2) they must submit their qualification package to their CPD field office and the CPD Entitlement Communities Division."
NOTE: GO TO SECTION 2.7 for more information on HUD's "Determination of Essential Powers" and GO TO SECTION 4.5 for guidance for First-Time Qualifiers on Urban County qualification.
4.3 What are the Urban County Qualification Deadlines and where do I find them? Deadlines for a series of actions that qualifying Urban Counties, UGLGs, and Metropolitan Cities must complete for Urban County qualification in the spring and summer months each year. These deadlines guide Urban Counties through the qualification process, ensuring that counties remain on track and meet iterative milestones to successfully qualify as an Urban County before September 30 (HOME program statutory deadline). HUD publishes updated Urban County Qualification Deadlines annually on the HUD.gov Urban Counties website.
4.3.1 How to request extensions for Urban County Qualification Deadlines If your Urban County needs an extension for any of the Urban County Qualification Deadlines published on the HUD.gov Urban Counties website, please reach out to your CPD field office. CPD field offices will review your request and may approve " Qualification packages from First-Time Qualifiers must be emailed to the CPD Entitlement Communities Division at [email protected]. The reason First-Time Qualifiers must submit their package to HUD regarding Urban County qualification and may need additional guidance. In addition, it is helpful for HUD Headquarters is that these counties and their partnering local governments tend to have more questions headquarters to track potential new Urban Counties as they progress towards becoming a new Urban County. 24 an extension, taking into consideration your Urban County's overall progress towards qualification and the HOME program's September 30 statutory deadline.
NOTE: CPD field offices may also contact the CPD Entitlement Communities Division, as needed, to discuss whether an extension may be granted. GO TO SECTION 4.8 for more guidance on deadline extensions and the HOME program's September 30 statutory deadline.
4.4 What are the Urban County Lists and where do I find them? The Urban County Lists are seven lists of counties prepared annually by CPD-OTIE based on updated data from the U.S. Census Bureau. These lists are the authoritative data source on current and potential new Urban Counties. Each year, HUD will publish the seven updated Urban County Lists below on the HUD.gov Urban Counties website:
1. All Currently Qualified Urban Counties
2. Urban Counties Requalifying in [This Fiscal Year]*
3. Urban Counties Requalifying in [Next Fiscal Year]*
4. Urban Counties Requalifying in [Fiscal Year After Next]*
5. Urban Counties Qualified through [Next Fiscal Year or Fiscal Year After Next]* That Contain Nonparticipating UGLGs
6. Counties That May Qualify if Metropolitan Cities Relinquished Entitlement Status
7. Counties Previously Determined Eligible but NOT Accepting Urban County Status * NOTE: On the website, HUD will include the actual fiscal years in the names for Lists 2-5.
4.5 Guidance for First-Time Qualifiers
This section provides guidance for First-Time Qualifiers because these counties do not have previous experience with the qualification process and may have more questions.
4.5.1 Where to start as a First-Time Qualifier
Your first step is to contact your CPD field office as soon as possible to let them know your county is seeking to qualify. It is helpful for your CPD field office to know your county is seeking to qualify, so they can guide you throughout the process and answer any questions. HUD recommends that First-Time Qualifiers read this Notice in its entirety to become more familiar with Urban County terms (GO TO ATTACHMENT 2) and the qualification process (GO TO SECTION 2).
4.5.2 Determination of Essential Powers as a First-Time Qualifier After you notify your CPD field office of your county's intent to seek Urban County qualification, your CPD field office will request OGC Field or Regional Counsel complete a Determination of Essential Powers for your county. OGC Field or Regional Counsel will complete this determination and provide your CPD field office with the results. Your CPD field office will then provide this determination to your county. GO TO SECTION 2.7 for more information about this process. 25 4.5.3 Submitting your qualification package as a First-Time Qualifier You should submit your qualification documentation to your CPD field office via email to a "CPD Representative." Contact your CPD field office to identify the specific staff member (CPD Representative) at your CPD field office to email your qualification package. Because your county is a First-Time Qualifier, you must also email your qualification package to the CPD Entitlement Communities Division at urbancounties@)hud.gov.
4.6 Guidance about potential new Metropolitan Cities
At some point, a Participating UGLG in your Urban County may become eligible to be a Metropolitan City (CDBG Entitlement) for the first time due to population growth that pushes their population over 50,000.!2 If this occurs in your Urban County, the Participating UGLG must remain part of your Urban County until your current Urban County qualification period ends, per SECTION 2.6. They cannot withdraw from your Urban County to become a Metropolitan City (CDBG Entitlement) during the three- year qualification period.
A potential new Metropolitan City has four options to choose from at the time your Urban County is requalifying for the upcoming three-year qualification period:
• Option 1: Accept its CDBG Entitlement status and administer its own CDBG program as an independent Metropolitan City (not participate in your Urban County for the upcoming three-year qualification period). • Option 2: Accept its CDBG Entitlement status but continue to participate with your Urban County as a Metropolitan City under a Joint Agreement. • Option 3: Defer its CDBG Entitlement status (not accept it) and continue to participate in your Urban County under a Cooperation Agreement as a Participating UGLG.
• Option 4: Defer its CDBG Entitlement status (not accept it) and opt out of your Urban County to become a Nonparticipating UGLG. They may then choose to seek State CDBG program funding as a Non-Entitlement UGLG OR not participate in the CDBG program altogether:
12 Under Section 102(a)(4) of the HCDA of 1974, as amended, a city within a metropolitan area may qualify as a Metropolitan City if it has a population of 50,000 or more. For this determination, HUD relies on population data compiled and published by the U.S. Census Bureau, including data from the latest decennial census or the American Community Survey, as applicable, together with applicable metropolitan area delineations published by the Office of Management and Budget (OMB). See 42 U.S.C. 5302(a)(4), 24 CFR 570.3, and 24 CFR 570.4(c). 26 4.6.1 When HUD expects the list of potential new Metropolitan Cities to be available The U.S. Census Bureau will provide HUD with updated Census data on or around July 1 each year: 3 This will include a list of newly eligible potential Metropolitan Cities (in addition to previously eligible potential Metropolitan Cities).
The CPD Entitlement Communities Division will provide this information to CPD field offices during July or August in the Potential New Entitlements Memo. CPD field offices must notify each potential new Metropolitan City via letter and give them the opportunity to accept or defer their CDBG Entitlement status. Generally, HUD offers potential new Metropolitan Cities 30 days to notify their local CPD field office of their decision on accepting or deferring CDBG Entitlement status.
4.6.2 Guidance on how to proceed with the Urban County qualification process for Urban Counties with UGLGs who may become Metropolitan Cities The list of potential new Metropolitan Cities becomes available late in the Urban County qualification process. This can result in delays completing Urban County qualification, particularly if an UGL decides to accept its CDBG Entitlement status (become a Metropolitan City) after it agreed to participate in your Urban County as a Participating UGLG for the next qualification period. HUD cannot avoid this timing conflict but has identified two options for dealing with this.
Option 1: Negotiate a delayed schedule with the UGLG who may become a Metropolitan City (potential new CDBG Entitlement)
This is HUD's preferred option. You can negotiate a schedule with the UGLG to provide extra time to receive notification from HUD of their CDBG Entitlement eligibility. If the UGLG ends up not being eligible to become a Metropolitan City (or becomes eligible and defers its CDBG Entitlement status), then your Urban County can still execute a Cooperation Agreement with the UGLG and meet the Urban County Qualification Deadlines.
Option 2: Include a void clause in the Cooperation Agreement with the UGLG who may become a Metropolitan City (potential new CDBG Entitlement) You can include a void clause in the Cooperation Agreement with the UGLG which states the agreement will be voided if the UGLG is notified by HUD of its eligibility to become a Metropolitan City and chooses to accept its CDBG Entitlement status.
This is the best option if your county believes that delaying executing a Cooperation Agreement will prevent your county from meeting the Urban County Qualification Deadlines. If you include a void clause in a Cooperation Agreement, it must state that if the agreement is not voided, then the UGLG must participate in your Urban County for the entire three-year qualification period.
13 Each summer, the U.S. Census Bureau releases new Population and Housing Unit Estimates for incorporated areas (cities and counties).
27 4.7 Can I align my Urban County and HOME program qualification periods? Yes. If your Urban County qualification and HOME consortium qualification periods are not synced, you may align these periods, per 24 CFR 92.101(c). The Urban County (CDBG) and HOME consortia qualification periods are both three years. Your HOME consortium may choose a shorter qualification period than three years (one or two years) to sync your HOME qualification period with your Urban County qualification period moving forward. All your HOME consortium members must also have the same program year start date.
4.8 Guidance on Urban County qualification deadline extensions and the HOME program's September 30 statutory deadline
The Urban County qualification schedule is coordinated with the schedule for HOME consortia qualification because the HOME program must use the identical CDBG Urban County configurations for determining HOME formula allocations.!4 The Urban County Qualification Deadlines will typically end by September 20 each year. This provides HUD with enough time, before the September 30 deadline for the next FY's funding under the HOME Program, to notify counties that they qualify as Urban Counties under the CDBG Program. To avoid any issues with the HOME program's September 30 statutory deadline, your county must complete all steps in the Urban County qualification process by September 20 (at the latest).
In the past, Urban Counties have requested extensions to submit required documents because some Participating UGGs' governing bodies don't meet during the summer:
any extensions past September 15 each year. Urban Counties must consider the meeting Although flexibility exists to allow extensions in unusual situations, HUD will not grant schedules of Participating UGGs' governing bodies during the requalification process. HUD encourages Urban Counties to try to execute their Cooperation Agreements and Joint Agreements before summer recess begins to avoid issues.
Many Urban Counties are simultaneously completing HOME consortia qualification and Urban County qualification. The HOME consortia qualification process must be completed by the statutory deadline of September 30 to receive a HOME formula allocation. If the Urban County qualification process is not completed by September 30 for Urban Counties that are participating jurisdictions (PJs) in the HOME program, including consortia, the PJ cannot receive a HOME allocation.! 14 This is due to HOME program statutory requirements (42 USC 12747(b)(1)(A) and regulatory requirements (24 CFR 92.50(c)) for HOME formula allocation. The HOME program formula allocation must be based on data for jurisdictions that make up the Urban County as of September 30 of the prior fiscal year (FY). HUD can't allocate HOME program funding to Urban Counties using inaccurate data. 15 42 U.S.C. 12747(b)(3)
28 4.9 Guidance for counties that may qualify as an Urban County if a Metropolitan City relinquishes its CDBG Entitlement status
Your county may be in a situation where it could qualify as an Urban County, but only if a Metropolitan City (or Cities) in your county relinquishes their CDBG Entitlement status. The list of Urban Counties fitting this description will be published each year on the HUD.gov Urban Counties website (List 6). If a Metropolitan City is willing to relinquish its CDBG Entitlement status, they may participate in your Urban County as a Participating UGLG in a Cooperation Agreement (like other Participating UGLGs who are not eligible to become CDBG Entitlements).
If your county wants to pursue Urban County qualification because a Metropolitan City in your county is willing to relinquish its CDBG Entitlement status, please notify your CPD field office no later than two weeks after receiving the Metropolitan City's notification that it is relinquishing its CDBG Entitlement status. Your county must provide your CPD field office with: 1) a letter from the Metropolitan City stating its intent to relinquish its CDBG Entitlement status and 2) a letter from your county stating your intent to qualify as an Urban County. CPD field offices must send these documents to the CPD Entitlement Communities Division (urbancounties@,hud.gov) immediately after receiving them.
4.10 Guidance for Unique Grantee Situations
4.10.1 When an UGLG dissolves, unincorporates, or merges into another UGLG At some point, an UGLG in your Urban County may dissolve, unincorporate, or merge with another UGLG. The bullets below provide guidance on how this may affect your Urban County based on three different scenarios that may occur:
• Assuming your Urban County has "essential powers" in unincorporated areas (as Urban Counties must have), the dissolved UGLG (which is now an unincorporated area will automatically become part of your Urban County. • If the dissolved UGLG merges into another Participating UGLG in your Urban County, then the newly expanded Participating UGLG will remain a participant in your Urban County. If this occurs, a revised Cooperation Agreement reflecting the expanded jurisdiction of the Participating UGLG must be submitted to your local CPD field office and OGC Field or Regional Counsel for review.
• If the dissolved UGLG merges with a Nonparticipating UGLG in your Urban County, the dissolved UGLG is still considered part of your Urban County until your Urban County requalifies.
The U.S. Census Bureau's designation of a former incorporated UGLG as dissolved, or a former unincorporated UGLG as incorporated, is important because Section 102(b) of the HCDA requires the definitions in Section 102(a) (City, Metropolitan 29 City, and Urban County) to be based on the most recent data compiled by the U.S.
Census Bureau. The bullets below provide guidance on how this affects your Urban County based on two different scenarios that may occur:
• If your Urban County is requalifying this year or the following year, and the UGLG is recognized by Census as dissolved, the former UGLG will be considered a part of the unincorporated area of your Urban County.
In that instance, CDBG funds may be used for activities in the former UGLG, and its residents may benefit from CDBG-funded activities. • If your Urban County is requalifying this year, and the UGLG is not recognized as dissolved by Census (although dissolution has occurred), the UGLG will become part of your Urban County, as the UGLG has legally ceased to exist, regardless of being recognized as such by Census.
4.10.2 Qualification of New York Towns as Metropolitan Cities (CDBG Entitlements) In the State of New York, there are eight towns that can qualify as Metropolitan Cities if the town secures the participation of all the incorporated villages in their boundaries to attain Metropolitan City status. These eight towns are in existing Urban Counties and are eligible to be Metropolitan Cities but have not taken steps to qualify as Metropolitan Cities: Greenburgh, Hempstead, North Hempstead.
Oyster Bay, Clarkstown, Ramapo, Smithtown, and Southampton.
These eight towns have decided to participate in their respective Urban Counties' CDBG programs as Participating UGGs. But when their respective Urban Counties requalify, these eight towns may decide to become Metropolitan Cities and administer their own CDBG programs. This means that the towns would leave the Urban Counties in which they are currently Participating UGGs.
If a New York town decides to become a Metropolitan City and administer its own CDBG Entitlement program, they must take the following steps:
1. The New York town should decide before the Urban County requalification process starts whether it will accept its CDBG Entitlement status. HUD's experience has shown that UGLGs need plenty of time to complete all the necessary processes, so HUD recommends that this decision-making process should start the year before the requalification year. The town can't qualify as a Metropolitan City unless it secures participation of all the villages in its boundaries by executing a Cooperation Agreement with those villages.
Depending on local circumstances, it may take several months to notify every village by letter of its intent to become a separate CDBG Entitlement community and to secure the participation of all villages. 16 HUD uses a variety of U.S. Census data sets for the CDBG program, including: Population and Housing Unit Estimates (updated annually), the American Community Survey 5-Year Survey (updated annually), and the Decennial Census (updated every ten years). HUD also uses OMB data as well. 30 2. The Urban County must notify all Participating UGLGs by letter (typically in April) that they may choose to opt out of the Urban County's CDBG program.
The UGLGs must notify the Urban Counties by letter of their decisions (typically in June). The New York town must respond to the Urban County's correspondence by that date. If the town has an Auto-Renewal Cooperation Agreement with the Urban County, it must notify the Urban County (typically by mid-June) that it is terminating the Cooperation Agreement.
3. The Urban County must be notified by the deadline set in the Urban County Qualification Deadlines on the HUD.gov Urban Counties website so that it may complete the requalification process on time. Failure to meet the deadlines may result in the New York town having to remain part of the Urban County for the next three-year qualification period. If one of these New York towns notifies its Urban County it is leaving, but does not sign up all the villages, then the town (and villages that have signed on to the town's decision to seek CDBG Entitlement status) may be excluded from the Urban County. But the town (and the villages that signed on) can't receive CDBG funding as a CDBG Entitlement grantee because the town did not qualify as a Metropolitan City due to failing to sign up all its villages.
31 ATTACHMENTS
Attachment 1: Statutory Requirements to be Qualified as an Urban County Section 102(a)(6)(A) of the Housing and Community Development Act of 1974 (HCDA) (42 U.S.C. 5301 et seq.) defines Urban Counties. In general, an Urban County must:
a) have authority under state law to carry out "essential community development and housing assistance activities" in their unincorporated areas [Section 102(a)(6)(A)(i) of HCDA] AND
b) meet one of these three population thresholds:
1. Have a total combined population of 200,000 or more in their unincorporated areas and Participating UGLGs. [Section 102(a)(6)(A)(i)(ii)(I) of HCDA]
2. Have a total combined population of at least 100,000 (but fewer than 200,000) in their unincorporated areas and Participating UGLGs, if those areas (combined) include the majority of low- and moderate-income people in the county. HUD calls this the "low- and moderate-income preponderance test." [Section 102(a) (6)(A)(i)(ii)(I) of HCDA] • CPD-OTIE performs calculations to determine if a county can meet the low- and moderate-income preponderance test if it does not meet the first population threshold above or third population threshold below.
• The county itself (overall) still must have a minimum population of 200,000, excluding its Metropolitan Cities. This means that the total population of the county in unincorporated areas, Participating UGLGs, and any Nonparticipating UGGs is greater than 200,000.
3. Have a population of 100,000 or more, a population density of at least 5,000 persons per square mile, and not have any incorporated places (UGGs) as defined by the U.S.
Census Bureau. [Section 102(a)(6)(A)(i)(i) II) of HCDA] NOTE 1: The population of Metropolitan Cities must be excluded from all population threshold calculations, including when a Metropolitan City executes a Joint Agreement with an Urban County.
NOTE 2: Some counties previously qualified as Urban Counties under Section 102(a)(6)(C) and (D) of the HCDA. No Urban Counties currently qualify under this authority.
NOTE 3: Due to a special condition in the HDA of 1974, as amended, any county that was classified as an Urban County for FY 1999 is eligible to requalify as an Urban County regardless of if the county can meet one of the an Urban County if it meets Section 102(a)(6)(A) of the Housing and Community Development Act of 1974. Urban County population thresholds. Any county that qualified as an Urban County after FY 1999 will remain 32 Attachment 2: Definitions of Urban County Terms
NOTE: HUD italicized terms, within each definition, that are also defined in Attachment 2 (except for the term Urban County or Urban Counties due to the frequency of their use).
Amendment: A change, correction, clarification, or deletion to a Cooperation Agreement or Joint Agreement. An amendment may be necessary due to shifting requirements at the federal, state, or local government level that happen during an Urban County's qualification period.
Auto-Renewal Cooperation Agreement or Joint Agreement: A Cooperation Agreement or Joint Agreement containing an "auto-renewal" provision stating the agreement will automatically renew for one additional three-year qualification period after the initial three-year qualification period (enabling the agreement to be in effect for a total of six years). The Urban County still must send Urban County Participation Decision Letters to all UGLGs (Participating and Nonparticipating UGGs) and any Metropolitan Cities in Joint Agreements every requalification year as they retain the option to opt out of an Urban County's CDBG program each requalification year. The Urban County may make an Amendment to their auto-renewal agreements at any time (any year of their qualification period), if necessary, and when they are requalifying for the one additional three-year qualification period permitted under HUD's auto-renewal policy for Urban County agreements.
Auto-Renewal Emergency Exception: An exception, allowed by a CPD field office, to HUD's policy on Auto-Renewal Cooperation or Joint Agreements. This exception enables "auto-renewal" of the agreement for one more three-year Urban County qualification period (on a one-time basis) due to an emergency which prevents the Urban County, Participating UGGs, and/or Metropolitan Cities from reauthorizing and re-executing their Cooperation and/or Joint Agreements. The Urban County must submit a written request to their CPD field office explaining why they need this exception and why they cannot fully renew their agreements) for their next qualification period.
For example, their Urban County experienced a natural disaster impacting the county's operations during the Urban County Qualification Process (runs through the spring and summer months and ends September 30). The CPD field office must review and approve or deny the request within 15 days and notify the CPD Entitlement Communities Division at [email protected].
CDBG Entitlement Communities ("CDBG Entitlements"): Jurisdictions which qualify to directly receive annual formula funding under the CDBG Entitlement Program. There are two types of CDBG Entitlement Communities: 1) cities designated as Metropolitan Cities (which includes Principal Cities) and 2) qualified Urban Counties.
CDBG Entitlement Program: HUD grant program which provides annual CDBG formula grants to CDBG Entitlement Communities (Metropolitan Cities and Urban Counties) to develop viable urban communities, provide decent housing and suitable living environments, and expand economic opportunities for low- and moderate-income people.
Chief Executive Officer: An elected official, or legally designated official, who has the primary responsibility for the conduct of governmental affairs in a jurisdiction. Examples include mayor; county executive, board chairperson, or governor: Refer to 24 CFR 570.3 for official definition. 33 Cooperation Agreement: Intergovernmental Agreement (IGA) between an Urban County and a Participating UGLG, 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 UGLG's jurisdiction with the UGLG's "cooperation." Cooperation Agreements are required for counties that do not have "essential powers" in UGLGS (which is most counties in the U.S.). However, HUD also encourages counties that are granted "essential powers" countywide (including in UGLGs) to also execute Cooperation Agreements with their Participating UGGs. Per 24 CFR 570.503, minimally, there must be an agreement between an Urban County and its Participating UGLGs that meets the requirements for subrecipient agreements. 24 CFR 570.501(b) instructs Urban Counties to apply "the same requirements as are applicable to subrecipients" to Participating UGGs in their Urban County.
County Counsel Legal Opinion Letter: A legal opinion letter prepared by an Urban County's chief legal official (e.g., County Counsel or OGC) which states that the terms and provisions of the Urban County's agreements with Participating UGLGs (Cooperation Agreements) and agreements with Metropolitan Cities (Joint Agreements) are authorized by state and local law and that they provide full legal authority for the Urban County to undertake, or assist in undertaking, essential community development and housing assistance activities in UGLGs.
CPD: HUD's Office of Community Planning and Development. CPD is responsible for administering all CPD funding, such as the five annual formula grant programs: 1) CDBG, 2) HOME Investment Partnerships (HOME), 3) Housing Trust Fund (HTF), 4) Emergency Solutions Grants (ESG), and 5) Housing Opportunities for Persons With AIDS (HOPWA); other homelessness grants (such as Continuum of Care [CoC]); and Community Project Funding (CPF) grants (congressionally directed grants).
CPD Entitlement Communities Division: The CPD division at HUD Headquarters, under the CPD Office of Block Grant Assistance (OBGA), that administers the CDBG Entitlement Program and prepares this Urban County Notice. This division can address any questions about Urban County qualification. The division can be reached at [email protected].
CPD Office of Block Grant Assistance (CPD-OBGA): The CPD office containing the CPD Entitlement Communities Division. OBGA is the main program office for the CDBG program.
CPD Office of Field Operations (CPD-OFO): The CPD office responsible for overseeing the administration of CPD programs and policies across the Nation. CPD-OFO is made up of a front office at HUD Headquarters and the CPD field office structure across the Nation, including ten regional offices and more than 40 field offices across HUD's ten regions.
CPD Office of Technology, Innovation, and Evaluation (CPD-OTIE): The CPD office at HUD Headquarters that manages the GMP-R Urban County Module used for Urban County qualification. CPD-OTIE also manages the CPD annual formula allocation process. CPD- OTIE was formerly known as the Systems Development and Evaluation Division (SDED). 34