2005 AGN JUN 07 I10 - Laserfiche WebLink

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City Council Meeting of June 7, 2005 CDBG Agreements Page 2 of 3 that would be required to participate as a Metropolitan City. It is staff's opinion that due to the complexity of preparing and submitting all grant related documents, implementing HUD mandated programs and financial systems, meeting HUD housing requirements, including fair housing, and coordinating with Federal monitors and inspectors on program and project performance and compliance, it is in the best interest of the City of Colton to continue the participation with the County in the CDBG Program. The Agreement will allow the City to participate in the Urban County CDBG County Program as a "joint applicant" for fiscal years 2006-2007, 2007-2008, and 2008-2009. The attached Joint Resolution will accompany a duly executed Cooperation Agreement that will be submitted to HUD by the County. In addition to the Three Year CDBG Cooperation Agreement, HUD has requested that a separate Three Year Cooperation Agreement also be approved by the City to participate with the County as a HOME Consortium member for the HOME Investment Partnership Program (HOME). The Agreement will cover the Federal Fiscal years beginning October 1, 2005 and ending on September 30, 2008. The HOME Investment Partnership Program (HOME) is a federally funded housing program created in 1990. The HOME Program serves individuals and households earning eighty percent (80%) or less of the area median income established by HUD. There are five (5) well established programs currently being managed and staffed by the County that are in operation and funded with HOME Program funds. As a "Cooperating City" the residents of the City of Colton were automatically included and eligible for any assistance available through the HOME Program. The attached list provides an overview of the County's HOME Program. Now that the City of Colton is recognized as a "Metropolitan City", HUD requires execution of the Three Year Agreement with the County to participate as a HOME Consortium member. It should be noted that the Cities of Chino Hills, Highland, Rancho Cucamonga, and Redlands are also recognized as "Metropolitan Cities' and have selected to continue their participation with the County in the HOME Program and are HOME Consortium members. ALTERNATIVES: The City may elect not to participate in the Urban County CDBG Program for the next three years and can enter into an agreement directly with HUD and participate as a Metropolitan City. However, as a direct recipient of CDBG funds, the City assumes direct accountability with HUD and will be responsible for preparing and submitting all grant related documents in compliance with stringent federal requirements. FINANCIAL IMPACT: The County has requested that six (6) executed agreements be returned by no later than June 10, 2005, to continue participation with the County in the CDBG Program, and five (5) executed agreements be returned to participate in the HOME Program as a HOME Consortium member. By continuing to participate with the County in the CDBG and HOME Programs, the City of Colton will receive an annual allocation of CDBG funds for the next three years and will insure that HOME funds continue to be made available to City residents. It is estimated that the City will receive approximately $518,000 in CDBG funds for fiscal year 2005-2006. ENVIRONMENTAL IMPACT: None for the requested action, however, all CDBG funded projects require compliance with Federal and State environmental procedures prior to implementation.