____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting:
Disposition:
Agenda Item No: 2.f
Meeting Date: July 20, 2026
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: Community and Economic Development
Prepared by: Alexis Captanian,
Housing Manager
City Manager Approval: ______________
TOPIC: COOPERATION AGREEMENT WITH COUNTY OF MARIN FOR GRANT PROGRAMS SUBJECT: RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT TO THE CITY’S COOPERATION AGREEMENT DATED 2020 WITH THE COUNTY OF
MARIN FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) AND HOME
PROGRAMS TO EXTEND THE AGREEMENT FOR ANOTHER THREE YEARS AND
OTHER MODIFICATIONS
RECOMMENDATION:
Staff recommends that the City Council adopt a resolution authorizing an amendment to the City’s Cooperation Agreement with the County of Marin for the Community Development Block Grant (CDBG) and HOME programs.
BACKGROUND:
The Community Development Block Grant Program (CDBG) provides grants from the U.S. Department of Housing and Urban Development (HUD) to local governments for housing, community facility, and public service programs serving lower-income people. The Home Investment Partnerships Program (HOME) provides additional assistance for affordable housing activities.
The County of Marin’s Federal Grants Team, part of its Community Development Agency (CDA), is asking all Marin County cities and towns to renew existing three-year Cooperation Agreements to participate in a single joint countywide program for HOME and CDBG allocations. The current CDBG cooperation agreement (Attachment 2) will expire this year, and for the County to continue receiving maximum funds for federal fiscal years 2027-2029 (on the October 1 – September 30 funding calendar), and subsequent three-year periods thereafter, it is necessary for each city and the County of Marin to renew their joint participation by formally executing an amendment. See Attachment 3 for the City of San Rafael’s proposed amendment.
Prior three-year cooperation agreements signed by the City since 2008 have improved the application and administration of funding to the City and other Marin County jurisdictions. By applying jointly, Marin County jurisdictions can collectively qualify as a HUD “urban county,” enabling Marin to receive annual CDBG and HOME grant allocations established by formula. The urban county designation allows the jurisdictions to jointly apply for, claim, administer, and report on their funding under the umbrella of the County’s Federal Grants Division of its CDA.
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Funding recommendations are overseen by a Countywide Priority Setting Committee (PSC) composed of City and Town Council members, a County Supervisor, and community residents representing protected classes (race, color, national origin, religion, sex, familial status, or disability) under fair housing laws. Under the cooperative agreement, the City is responsible for allocating CDBG funding for projects serving the San Rafael planning area. The City Council provides its recommendations to the PSC, which in turn provides San Rafael’s recommendations, along with recommendations for the two other planning areas, to the Board of Supervisors (BOS).
Additionally, by designating the County of Marin as the entitlement jurisdiction, the County assumes responsibility for managing and administering the CDBG and HOME programs. These responsibilities include disseminating program funds, Davis-Bacon Compliance, NEPA reviews, development and updating of consolidated plans and annual action plans, and all CDBG and HOME related monitoring and reporting.
In the proposed Third Amendment to the Cooperation Agreement, County staff made minor changes to the language as required to comply with the latest HUD guidelines for the urban county qualification.
For the 2026 federal fiscal year, the City’s funding portion brought $203,000 to housing projects, $210,000 to capital projects, and $95,000 to public services. HOME funding County-wide totaled $700,000 in 2026, which was awarded through the County’s Affordable Housing NOFA. The County takes approximately twenty percent (20%) of the CDBG funds that are awarded annually, and 15% of HOME funds annually, to cover administrative expenses.
ANALYSIS:
Changes from the 2020 Cooperation Agreement
The 2020 Cooperation Agreement (Attachment 2) was set to automatically be renewed for three years, unless the City provides notice of its intent to discontinue the agreement, and unless programmatic changes require the County to replace or amend the agreement. In this case, in addition to updating the dates to fiscal years 2027-2029, the County’s proposed updates to the cooperation agreement incorporate language required by HUD Office of Community Planning and Development (CPD) Notice CPD-26-08, including HUD’s updated requirements for Urban County cooperation agreements.
In addition to agreeing to required textual changes, the City will execute a HUD 424-B form “Applicant and Recipient Assurances and Certifications” (Attachment 4). In executing form 424-B, the City will commit to comply with relevant portions of Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, the American Disabilities Act, the Age Discrimination Act of 1975, the Fair Housing Act as amended, the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, the Housing and Community Development Act of 1974, the National Environmental Policy Act, and the prohibition of use of federal funds for lobbying.
Finally, the City will send a letter to HUD (Attachment 5) indicating its desire to defer its “metropolitan city” status and remain part of the CDBG urban county for an additional three fiscal years.
The City’s Status in Absence of a Cooperation Agreement SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
With a population over 50,000, San Rafael meets the criteria to establish itself as an “entitlement jurisdiction” as a “metropolitan city,” which would allow the City to receive its proportion of CDBG and HOME funding independently of other Marin jurisdictions. By entering into this Cooperation Agreement, San Rafael is relinquishing this authority and designating the County of Marin as the entitlement jurisdiction through the “urban county” HUD qualification.
Failure to renew would mean that the City would not be considered part of the urban county for fiscal years 2027-2029. The City would need to apply for and administer its own funding independently, while obtaining an administrative fee that could be too small to cover the costs of operating the program.
Furthermore, without the City of San Rafael’s participation, the collaborative would lack a sufficient population to meet the urban county designation, causing other qualified jurisdictions to lose the benefits and efficiencies of the collaborative.
Staff Recommendation
Staff recommends that City Council adopt the Resolution to approve and authorize the Mayor to execute, on behalf of the City, a three-year amendment to its Community Development Block Grant Cooperation Agreement with the County of Marin, to execute the required HUD 424-B Assurance and Certifications form for CDBG grantees, and to send HUD a letter stating its intention to participate in a collaborative process.
FISCAL IMPACT:
There is no fiscal impact associated with continuing the CDBG Cooperation Agreement with the County of Marin.
In return for managing the CDBG and HOME programs, the County of Marin uses approximately twenty percent (20%) of the CDBG funds that are awarded annually to cover administrative expenses. This practice is allowed per Section 3 of the cooperation agreement. County of Marin staff have indicated that these funds do not fully cover their CDBG and HOME-related administrative expenses.
OPTIONS:
The City Council has the following options to consider on this matter:
1. Adopt resolution.
2. Adopt resolution with modifications.
3. Direct staff to return with more information.
4. Reject resolution and direct staff to renegotiate Cooperation Agreement.
RECOMMENDED ACTION:
Staff recommends that the City Council adopt a resolution authorizing an amendment to the City’s Cooperation Agreement with the County of Marin for the Community Development Block Grant (CDBG) and HOME programs.
ATTACHMENTS:
1. Resolution
2. 2020 Cooperation Agreement
3. Proposed Third Amendment to 2020 Cooperation Agreement
4. HUD 424-B Assurances and Certifications
5. Letter to HUD to defer “metropolitan city” status
RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL AUTHORIZING THE MAYOR TO EXECUTE A THIRD AMENDMENT TO THE CITY’S COOPERATION AGREEMENT DATED 2020 WITH THE COUNTY OF MARIN FOR THE COMMUNITY DEVELOPMENT
BLOCK GRANT (CDBG) AND HOME PROGRAMS TO EXTEND THE AGREEMENT FOR
ANOTHER THREE YEARS AND OTHER MODIFICATIONS
WHEREAS, it is mutually desired by the City of San Rafael and the County of Marin that they may enter into a Cooperation Agreement, in accordance with the Housing and Community Development Act of 1974, as amended, in order to jointly undertake community renewal and lower income housing assistance activities; and
WHEREAS, as a result of the Cooperation Agreement between the Marin cities and towns and the County of Marin, Marin has received over $79 million in CDBG and HOME funding for housing and community facilities and public service projects benefiting lower income persons since 1975;
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of San Rafael approves and authorizes the Mayor, on behalf of the City, to execute the Third Amendment to the Cooperation Agreement dated 2020 with the County of Marin for the Community Development Block Grant Program, the HOME Investment Partnerships Program and the Emergency Solutions Grants Program as attached to the accompanying staff report. The three-year period shall be for the federal Fiscal Years 2027, 2028 and 2029.
I, LINDSAY LARA, City Clerk of the City of San Rafael, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the City Council of said City held on the 20th day of July, 2026 by the following vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
___________________
Lindsay Lara, City Clerk
THIRD AMENDMENT TO THE COOPERATION AGREEMENT BETWEEN THE COUNTY OF
MARIN AND CITY OF SAN RAFAEL FOR A COMMUNITY DEVELOPMENT PROGRAM This THIRD AMENDMENT (“Third Amendment”) to that certain Community Development Block Grant and Home Investment Partnerships Program Cooperation Agreement between the County of Marin, a political subdivision of the State of California, hereinafter called "County," and City of San Rafael, a municipal corporation of the State of California, located in the County of Marin, hereinafter called "City," collectively referred to as “Parties,” dated on or about ______________, as amended by the First Amendment effective July 25, 2023 and the Second Amendment effective September 30, 2023 (“Cooperation Agreement”), is hereby entered into between the Parties, effective __________.
The purpose of this Third Amendment is to renew the Cooperation Agreement for federal fiscal years 2027, 2028, and 2029 and to incorporate into the Cooperation Agreement language required by the U.S.
Department of Housing and Urban Development (HUD), Office of Community Planning and Development (CPD) Notice CPD-26-08, including HUD’s updated requirements for Urban County cooperation agreements.
Accordingly, the County of Marin and the City hereby agree as follows:
1. Amendment to Paragraph 1. Paragraph 1 of the Cooperation Agreement is hereby amended in its entirety as follows:
The parties hereto agree to cooperate to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities, pursuant to the Housing and Community Development Act of 1974, as amended, the HOME Investment Partnerships Act, as amended, and the Stewart B. McKinney Homeless Assistance Act, as amended.
City agrees to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities. This Cooperation Agreement became effective for an initial three-year term on October 1, 2020, and was in effect through September 30, 2023. The Cooperation Agreement was renewed for federal fiscal years 2024, 2025, and 2026 through the First Amendment and is hereby renewed for federal fiscal years 2027, 2028, and 2029. This Cooperation Agreement shall remain in effect through September 30, 2029, and until Community Development Block Grant, HOME Investment Partnerships Program, and Emergency Solutions Grants Program funds from appropriations for federal fiscal years 2021 through 2029, and any program income received with respect to activities carried out during those qualification periods, are expended and the funded activities are completed, or until such time as it is replaced by a fully executed agreement of the Parties. This Cooperation Agreement shall not automatically renew beyond federal fiscal year 2029 unless permitted by applicable HUD guidance or written HUD approval.
Neither County nor City may terminate, withdraw from, or be removed from this Cooperation Agreement while it remains in effect.
The County will notify the City in writing, by the date specified in the Urban County Qualification Deadlines published on HUD.gov for the next qualification period, of the City’s right not to participate in the Urban County for the next qualification period. A copy of the County’s notification shall be sent to the HUD field office by the date specified on HUD.gov. If the City or the County elects not to participate in a new qualification period, the terminating party shall provide written notice to the other party and shall send a copy of the notice to the HUD field office by the applicable HUD deadline.
The Parties agree to adopt amendment(s) to this Cooperation Agreement as may be required by HUD to meet any new Urban County Qualification requirement(s), when applicable. Failure by either Party to adopt any such amendment, and to submit such amendment to HUD, will void the Cooperation Agreement for such qualification period.
2. Amendment to Paragraph 8 Paragraph 8 of the Cooperation Agreement, and all related references to the applicable qualification periods, are hereby amended to add federal fiscal years 2027, 2028, and 2029 to the existing qualification periods covered by the Cooperation Agreement, as previously amended. Nothing in this Third Amendment shall be construed to remove, limit, or otherwise affect the applicability of the Cooperation Agreement to federal fiscal years 2021, 2022, 2023, 2024, 2025, and 2026, or to any CDBG, HOME, ESG, or program income funds awarded, received, expended, or administered for those prior qualification periods. All references to “subsequent three-year periods thereafter,” automatic renewal, or substantially similar language are hereby limited as provided in Paragraph 1 of this Third Amendment.
3. Amendment to Paragraph 9. Paragraph 9 of the Cooperation Agreement is hereby amended in its entirety as follows:
County, City, and all other cooperating cities shall take all actions necessary to assure compliance with the urban county’s certification under section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, and that the grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 and the implementing regulations at 24 CFR Part 1, the Fair Housing Act (Title VIII of the Civil Rights Act of 1968), and the implementing regulations at 24 CFR part 100, and will affirmatively further fair housing. See 24 CFR § 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. County, City, and all other cooperating cities shall also take all actions necessary to assure compliance with Section 109 of Title I of the Housing and Community Development Act of 1974, and the implementing regulations at 24 CFR part 6, which incorporates Section 504 of the Rehabilitation Act of 1973, and the implementing regulations at 24 CFR part 8, Title II of the Americans with Disabilities Act, and the implementing regulations at 28 CFR part 35, the Age Discrimination Act of 1975, and the implementing regulation at 24 CFR part 146, and Section 3 of the Housing and Urban Development Act of 1968; the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and the implementing regulations at 49 CFR Part 24; Section 104(d) of the Housing and Community Development Act of 1974 and the implementing regulations at 24 CFR Part 42; and other applicable laws.
The Parties agree that Urban County funding in no event will be used for activities in, or in support of, any cooperating unit of general local government that impedes the County’s actions to comply with the County’s fair housing certification and duty to affirmatively further fair housing. The City must also sign the assurances and certifications in the HUD 424-B, attached hereto.
Pursuant to 24 CFR 570.501(b), City is subject to the same requirements applicable to subrecipients, including the requirement of a written agreement as described in 24 CFR 570.503. The County shall not disburse CDBG funds to the City for an activity unless and until the applicable written agreement required by 24 CFR 570.503 has been executed, as applicable.
County, City, all other cooperating cities, metropolitan cities, urban counties, units of general local government, Indian tribes, and insular areas that directly or indirectly receive funds provided under Title I of the Housing and Community Development Act of 1974, as amended, may not sell, trade, or otherwise transfer all or any portion of such funds to another such entity in exchange for any other 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.
4. Amendment to Paragraph 12. Paragraph 12 of the Cooperation Agreement is hereby amended as follows with additions shown in underlined italics:
The parties hereto agree that the final responsibility for analyzing needs, setting objectives, developing plans, selecting projects for community development and housing assistance, selecting Community Development Block Grant, HOME, and ESG activities, and filing the Consolidated Plan and other required documentation rests with County, as required by the Housing and Community Development Act of 1974, as amended. No provision of this Cooperation Agreement shall be construed to permit the City to veto, restrict, or otherwise obstruct implementation of the County’s approved Consolidated Plan, Annual Action Plan, or selection and administration of CDBG, HOME, or ESG activities during the period in which this Cooperation Agreement remains in effect.
5. Amendment to Paragraph 15. Paragraph 15 of the Cooperation Agreement is hereby amended as follows with additions shown in underlined italics and deletions shown in strikethrough:
The cooperating unit of general local government has adopted and are 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 jurisdictions.
The phrase “cooperating unit of general local government” has the same meaning in this Cooperation Agreement as it does in HUD Notice #CPD-13-04CPD-26-08.
6. All Other Provisions Unchanged. All provisions of the Cooperation Agreement not explicitly amended through this Third Amendment remain in full force and effect.
7. Authority to Execute Amendment. The person signing on behalf of the City of San Rafael certifies to the County that he/she/they has the authority to execute this Third Amendment, and that execution of this Third Amendment on behalf of the City is in accord with all City processes for obtaining such signature. The person executing this Third Amendment on behalf of the City recognizes that the County will rely on this certification in order to procure funds from HUD for use by the City.
IN WITNESS WHEREOF, the Parties have executed the above instrument on the day and year first above written.
COUNTY OF MARIN CITY OF SAN RAFAEL
By: By:
Eric Lucan, President Kate Colin
Board of Supervisors Mayor
ATTEST: ATTEST:
Deputy Clerk of the Board City Clerk
MASTER FORM APPROVED AS TO FORM:
Kate Stanford
Deputy County Counsel
County of Marin
July 20, 2026
Chris Anderson, AICP
[email protected]
Community Planning and Development Division
US Department of Housing and Urban Development
One Sansome Street, Suite 1200
San Francisco, CA 94104
Dear Mr. Anderson:
In 2008, the City of San Rafael chose to defer its “metropolitan city” status for the Community Development Block Grant Program (“CDBG“) and remain part of the CDBG urban county for the three-year qualification period for appropriations for federal fiscal years 2009-2011.
Subsequently, the City of San Rafael has chosen to continue to defer its “metropolitan city” status for the CDBG program and remain part of the CDBG urban county for fiscal years 2012-2026.
The City of San Rafael wishes to continue to defer its “metropolitan city” status, maintain its current relationship with the County of Marin, and remain part of the CDBG urban county for the three-year qualification period for appropriations for federal fiscal years 2027, 2028, and 2029. This action was approved by the City Council of the City of San Rafael on July 20, 2026.
Sincerely,
Kate Colin, Mayor
City of San Rafael
CC: Leelee Thomas, Deputy Director, Marin County CDA
Rachel Kertz, Priority Setting Committee Member
Micah Hinkle, Community Development Director
Alexis Captanian, Housing Manager