June 20, 2023
Community Development
DATE: June 20, 2023
TO: Mayor Martinez and Members of the City Council
FROM:
Lina Velasco, Director of Community Development
Jesus M. Morales, Housing Manager
Subject:
Cooperation Agreement with Contra Costa County for the
Community Development Block Grant (CDBG),
Emergency Solutions Grant (ESG), and HOME
Investment Partnerships Act (HOME) Programs
FINANCIAL IMPACT: There is no impact to the general fund to continue to participate in the Urban County Program; however,
should the City Council decide to administer the program locally, the general fund would likely need to provide a partial subsidy of a position since the program caps
planning and administration costs to 20 percent of the
sum of grant plus program income that is received during the program year.
PREVIOUS COUNCIL
ACTION:
October 6, 2015
STATEMENT OF THE
ISSUE:
City staff is recommending the City of Richmond continue its partnership with Contra Costa County’s “Urban
County” Program to access Community Development
Block Grant (CDBG), Emergency Solutions Grant (ESG),
and HOME Investment Partnerships Act program funds
for local funded projects. Participation in the Urban
County Program with Contra Costa County will allow the
City to access the federal funds without the
administrative burden of overseeing the program locally.
AGENDA
REPORT
June 20, 2023
RECOMMENDED ACTION:
APPROVE the City of Richmond's continued participation
in the Cooperation Agreement with Contra Costa County
for the next three-year qualification period for Fiscal Years 2024 – 2026, for the Community Development
Block Grant (CDBG), Emergency Solutions Grant (ESG),
and HOME Investment Partnerships Act (HOME)
programs – Community Development (Lina
Velasco/Jesus M. Morales 510-620-6706).
DISCUSSION:
Twelve cities in the County of Contra Costa have a population of less than 50,000.
Certain of these cities may join with the County to form a combined population of 200,000 or more (“Urban County”). The Urban County administers the allocation of funds for the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Act (HOME) on behalf of any non- direct recipient cities in Contra Costa County (“County”). The City of Richmond (“City”) is not a direct recipient of federal funding for the aforementioned programs. As such, it participates with the Urban County to access these funds. The Urban County expects to receive approximately $4.5 million in CDBG funds, $400,000 in ESG funds, and $3.3 million in HOME funds in each of the three years covered by the Cooperation Agreement for fiscal years 2024–2026. Richmond has a population of more than 50,000 and previously was a CDBG and HOME entitlement jurisdiction with an annual allocation of approximately $1,000,000 in CDBG and $400,000 in HOME funds. The City was not a direct recipient of ESG funds.
In 2015, the City Council adopted Resolution No. 98-15, authorizing to join the Urban County. The current agreement, executed December 15, 2015, provides for automatic renewal for participation in successive three-year qualification periods. The City’s participation in the Urban County program provides for a greater pool of funds for which Richmond-based projects are eligible to apply. Based on County data, Richmond- based projects have averaged about $2.3 million annually in funding, which is greater than the City’s entitlement allocation.
Units of general local government in which counties have authority to carry out essential community development and housing activities without the consent of the local governing body are automatically included in the Urban County unless they elect to be excluded at the time of qualification or requalification. Any county that has such a unit of general local government (i.e., the City of Richmond) must notify each unit that it may elect to be excluded from the Urban County. If the City decides to continue to participate, it does not need to take any action as the current Cooperation Agreement between the city and the Urban County will remain in effect for the next three years since it allows for automatic renewals.
June 20, 2023
If the City elected not to participate with the Urban County, it would have to notify both the Urban County and the U.S. Department of Housing and Urban Development (HUD) of the selection to be excluded in writing by July 7, 2023. Such an election would be effective for the entire three-year period for which the Urban County qualifies, unless the excluded unit specifically elected to be included in a succeeding year for the remainder of the Urban County qualification period.
There are several benefits for the City and Richmond-based projects to continue to participate with the Urban County to access CDBG, ESG, and HOME funding. The City would need to hire a full-time staff person to administer these programs and provide monitoring of recipients receiving funding on an ongoing basis. Currently, the Housing Division within the Community Development Department does not have the capacity to administer any of these programs with the current staffing level. Additionally, the Assistant Deputy Director at the Contra Costa County Department of Conservation and Development noted that the City has been able to access funding for various projects, whether for infrastructure projects in the city or by local organizations, that exceed what the City may have received as a direct recipient of funds. This also saves City resources to focus on other efforts and projects, including homelessness and expanding affordable housing options in the city.
For these reasons, City staff recommends the City Council approve the City's continued participation in the Cooperation Agreement with Contra Costa County for the next three- year qualification period for FYs 2024 – 2026, for the Community Development Block Grant (CDBG), Emergency Solutions Grant (ESG), and HOME Investment Partnerships Act (HOME) programs. The City’s election to or not to participate in the Urban County program can be revisited again in 2026 to determine if it would be a benefit to Richmond-based projects to bring the funding back locally.
DOCUMENTS ATTACHED:
Attachment 1 – Letter to Richmond for Urban County Requalification Attachment 2 - Cooperation Agreement and Amendments