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HomeMy WebLinkAboutItem 5.7 Three-Year Cooperative Agreement with Alameda County for Participation in the Urban County Program for Community Development Block Grant and HOME Investment Partnership Funds Agenda Item 5.7 STAFF REPORT CITY COUNCIL Page 1 of 7 DATE: June 16, 2026 TO: Honorable Mayor and City Councilmembers FROM: Colleen Tribby, City Manager SUBJECT: Three-Year Cooperative Agreement with Alameda County for Participation in the Urban County Program for Community Development Block Grant and HOME Investment Partnership Funds Prepared by: Jason Earl, Senior Management Analyst EXECUTIVE SUMMARY: The City Council will consider a three-year cooperative agreement with Alameda County for participation in the Alameda County Urban County program for Community Development Block Grant and HOME Investment Partnership funds. This agreement will allow the City's continued participation in the Urban County program beginning July 1, 2027, for federal fiscal years 2027-2029. The City must notify HUD and the County of its decision by June 23, 2026. STAFF RECOMMENDATION: Adopt the Resolution Authorizing the Continued Participation of the City of Dublin in the Alameda County Urban County for Community Development Block Grant Funds and Authorizing Execution of the Cooperation Agreement Between the City and County of Alameda Regarding Participation in the Alameda County Urban County for Community Development Block Grant Funds. FINANCIAL IMPACT: The agreement would allow the City to continue receiving CDBG and/or HOME funds during the upcoming three-year cycle. Dublin has used CDBG and/or HOME funds to directly support City programs as well as programs that serve Dublin residents through Tri-Valley organizations. Historically, Dublin has exceeded its proportional share of allocated funds by accessing unused public service and capital funds from other Urban County jurisdictions. Although the agreement would not directly change the City’s financial obligations, fewer funds may be available in the future because of increased use by other Urban County jurisdictions. 1471 Page 2 of 7 DESCRIPTION: Background The Community Development Block Grant (CDBG) program is a federally authorized program, administered by the U.S. Department of Housing and Urban Development (HUD), that provides annual funding to state and local jurisdictions to support community development activities benefiting low- and moderate-income residents. Funding allocations are determined by HUD using a formula that considers factors such as population, poverty, housing age, overcrowding, and regional growth trends. The City currently receives CDBG funds through the Urban County program administered by the Alameda County Department of Housing and Community Development (HCD). The Urban County program provides an opportunity for cities with a population of less than 50,000 to receive CDBG funds (cities over 50,000 may also choose to receive their CDBG allocation through the Urban County program). As a city with a population over 50,000, Dublin could choose to become an Entitlement City and administer the CDBG funds directly by HUD. Historically Dublin has participated in the Urban County program as the administration requirements of an Entitlement City are significant and the funding allocation would be similar or less. As a result, Dublin participates in the Urban County program through a Cooperative Agreement with Alameda County for the unincorporated portions of the County and the cities of Albany, Emeryville, Newark, and Piedmont. Alameda County administers the CDBG program on behalf of participating jurisdictions, including preparation of the required Consolidated Plan, Annual Action Plan, and Citizen Participation Plan. The Consolidated Plan is updated every five years. The current Plan is for years 2025 - 2030 and outlines community needs, priorities, goals, and projections, while the Annual Action Plan is completed annually to identify program goals, activities, and budget allocations. The County is also responsible for HUD-required compliance activities, including financial administration, reporting, and ongoing monitoring of subrecipients. Alameda County HCD administers certain CDBG-funded programs that serve all Urban County jurisdictions. These include fair housing and landlord-tenant services provided through a County contract with ECHO Housing. The County also administers program activities such as the Minor Home Repair Program, which is administered by Healthy Homes. The City of Dublin receives approximately $19,000 annually for the Minor Home Repair Program. Dublin’s allocation of Public Service Grants, which are discretionary CDBG funds, are currently allocated through the City’s Human Services Grants Program and provide financial support to local non-profits. These discretionary funds are subject to the federal cap limiting public service expenditures to 15 percent of the City’s total non-capital CDBG allocation. Historically, Dublin has exceeded its proportional share of the cap by accessing unused public service funds from other Urban County jurisdictions. For example, in Fiscal Year 2025-26 Dublin received $55,500 in Public Service Grant funding which is nearly triple its federal cap amount of approximately $18,000. Future allocations will depend on the extent to which other participating jurisdictions utilize their public service funds, which may reduce the availability of excess funds. In recent discussions, Alameda County has indicated that the urban county jurisdictions currently 1472 Page 3 of 7 anticipate using their public service fund allocations going forward, thus reducing future excess allocations available to Dublin. Over the past six years, the City of Dublin has secured $419,908 in public service funding for local service organizations, which is more than $314,000 above the amount the City would have received under the federal limitation of 15 percent on non-capital CDBG funding for service grants, as shown in Table 1. Table 1. Public Service CDBG Funding FY 2020/21 through FY 2025/26 Fiscal Years Non Capital CDBG Funding Public Service Funds Dublin Received Public Service Funds capped at 15% Difference FY 2020/21 $125,821 $85,984 $18,873 $67,111 FY 2021/22 $125,357 $83,608 $18,804 $64,804 FY 2022/23 $126,639 $84,954 $18,996 $65,958 FY 2023/24 $129,099 $54,862 $19,365 $35,497 FY 2024/25* $104,889 $55,000 $11,490 $43,510 FY 2025/26 $122,039 $55,500 $18,306 $37,194 Total $733,844 $419,908 $105,834 $314,074 * The County reduced our non-capital funding because they directly funded $19,397 for Dublin’s Minor Home Repair program The Capital Grant Program is administered by Alameda County and provides CDBG funding for capital improvement projects. Funding applications are submitted to the County. Approximately $350,000 is available annually for allocation among Urban County jurisdictions. Capital Pool funds are shared among Urban County jurisdictions and awarded on a competitive basis; Therefore, the amount available to the City of Dublin varies annually. Over the past 6 years the City has secured $1,858,335 in capital funding for local service organizations, as shown in Table 2. In the current fiscal year, the City of Dublin secured $319,000 in Capital Grant funding through the Urban County Program. This funding includes $269,000 for Tri-Valley Haven to rebuild and expand its domestic violence shelter and $50,000 for the School of Imagination to construct a new classroom serving additional students in Dublin. This funding level exceeds the approximately $160,000 in Capital Grant funding the City would receive as an Entitlement City. Table 2 summarizes Capital Grant funding awarded to the City over the past six years. 1473 Page 4 of 7 Table 2. Capital Grant Funding FY 2020/21 through FY 2025/26 Fiscal Year Amount Recipient(s) FY 2020-21 $ 330,000 Open Heart Kitchen FY 2021-22 $ 300,000 Open Heart Kitchen FY 2022-23 $ 419,130 Axis Community Health $200,000 School of Imagination parking lot $219,130 FY 2023-24 $ 240,205 Tri Valley Haven FY 2024-25 $ 250,000 Tri Valley Haven FY 2025-26 $ 319,000 School of Imagination $50,000 Tri Valley Haven $269,000 Total $ 1,858,335 The City is required to make a determination every three years regarding continued participation in the Urban County program or election to become an Entitlement City. Dublin first became eligible for Entitlement City status in 2014, when its population exceeded 50,000. In 2014, 2017, 2020, and 2023, the City Council chose to remain in the Urban County program. The City must again decide whether to: 1) remain in the Urban County program by entering into a new three-year Cooperative Agreement, or 2) become an Entitlement City and initiate the steps necessary to establish that program. The City is required to notify the U.S. Department of Housing and Urban Development (HUD) and Alameda County HCD of its decision by June 23, 2026. Analysis The City of Dublin has the option to become an Entitlement City and receive CDBG funds directly from HUD, assuming responsibility for administration of the CDBG program beginning in 2027, or to remain a participant in the Urban County Program. Table 3 provides a comparison of CDBG program components under the current Urban County structure and the estimated Entitlement City model for Dublin. All dollar amounts are based on Fiscal Year 2025 - 26 funding levels and estimates provided by HUD. Table 3. Urban County & Entitlement City Program Matrix Program Component Urban County Program (FY 2027/2028) Entitlement City (FY 2027/2028 Estimated) CDBG Annual Allocation (Allocated to programs noted below) $274,500 (estimated portion of Urban County funds attributable to Dublin's participation in the program. These funds are not the exclusive use of Dublin nor are they a cap on annual funding available to Dublin based programs and services) $274,500 +/- (estimated total amount that would be available to Dublin in year 1 of the program) 1474 Page 5 of 7 Program Component Urban County Program (FY 2027/2028) Entitlement City (FY 2027/2028 Estimated) Public Service Grants (To non-profit service providers and limited to 15% max. of annual allocation) $18,000 (Note: Can utilize unused Urban County funds to increase this amount. For example, Dublin is awarding $55,500 in FY 2025/26 by accessing unused funds from other Urban County jurisdictions) $41,175 (estimated total amount based on the above number) Capital Grants (To non- profit organizations for capital improvements) Portion of $350,000 Urban County pool awarded by County (Recent examples include: Tri- Valley Haven $269K domestic violence shelter expansion funding, School of Imagination $50K classroom expansion funding. Total funding of $319K for FY 2025/26) $163,925 total to be allocated by Dublin for City and/or community projects (Unused funds can be carried over into future years with certain limitations) Economic Development (Job creation for small, low income owned or operated businesses) Amount varies per year and determined by program administration and funded from the annual CDBG allocation based on program priorities. Amount varies per year and determined by program administration and funded from the annual CDBG allocation based on program priorities. (would reduce amount of funding for Capital projects) Tenant-Based Rental Assistance (Emergency housing funds available partly from CDBG program, and partly HOME) This program is administered directly through the Urban County. CDBG can be used for related support services outside of 15% services cap. HOME funds are used to provide financial assistance and are administered by the County. HOME Funds (rental assistance, down payment assistance, homebuyer counseling, affordable housing production) Share of $585,000 pool awarded on competitive basis to organizations serving Urban County jurisdictions. $75,000 (program administered by City, but funds continue to be administered by HCD) HUD 108 Loans (For Capital Projects or Programs as 20-year, low interest loan) Available only in partnership with an Entitlement City (example: Axis Health and the City of Livermore which is an Entitlement City) Up to 5x CDBG allocation (total cumulative balance of all outstanding HUD 108 Loans cannot exceed this amount) Program Administration (20% max. of annual allocation to cover program administration, and preparation of Consolidated Plan, Annual Action Plan, Citizen Participation Plan) $6,600 to Dublin $54,900 to Dublin 1475 Page 6 of 7 Program Component Urban County Program (FY 2027/2028) Entitlement City (FY 2027/2028 Estimated) Consolidated Plan Prepared every 5 years by County with staff input (costs offset by Program Administration funds) Prepared every 5 years by the City (estimated cost: $55,000) Annual Action Plan and Citizen Participation Plan Prepared annually by County with staff input Prepared annually by City (costs offset by Program Administration funds) Monitoring and Reporting to HUD Prepared annually by the County Prepared annually by the City Comparable/Nearby Entitlement Cities Table 4 below provides the Fiscal Year 2025-26 CDBG allocations for comparable nearby Entitlement Cities. CDBG funding levels for cities are based on three primary factors: the age of its housing inventory, the number of low-income census tracts, and its population size. Although Dublin is comparable in size to other cities, it has a significantly smaller stock of older housing and no low-income census tracts. As a result, Dublin is eligible for a lower level of CDBG funding. Table 4. Comparable Entitlement City Annual Allocations City Population 2020 Census CDBG Allocation FY 2026/27 Walnut Creek (Contra Costa County) 70,127 $ 400,232 Pleasanton (Alameda County) 79,871 $ 384,450 Milpitas (Santa Clara County) 80,273 $ 538,212 Livermore (Alameda County) 87,955 $ 394,163 Dublin (Alameda County) 72,589 $ 274,500 Urban County Program Historically, the City of Dublin has benefited from participation in the Urban County program by accessing Capital Grant funding from the Urban County pool and by utilizing more than its proportional share of available Public Service Grant funds, while not having the burden of the costs and staff time associated with program administration and reporting as an Entitlement City. At a minimum, the City will receive a share of CDBG proportional to its population, and may have opportunities to request unused funds to support CDBG-eligible programs in Dublin. In addition, the City could potentially utilize CDBG Economic Development funds to support job creation and retention efforts, including the establishm ent, stabilization, or expansion of small businesses that are owned by low-income individuals or employing low-income workers. Entitlement City Becoming an Entitlement City would provide the City with greater control over CDBG program administration, provide greater certainty regarding annual Capital Grant funding, and result in 1476 Page 7 of 7 an estimated $41,000 annually for Public Service Grant funding. However, it could also reduce the maximum amount of potential Capital Grant funding dollars available each year because the City could no longer utilize unused funds in the Urban County pool. This increased control would also result in additional work to administer the program including up-front consultant time and costs to establish the program. Staff believes significant additional staff time would be necessary to manage the CDBG start-up and ongoing program administration, either through redeployed staff resources or through use of a consultant. Participation Agreement Staff recommends that the City remain in the Urban County program. The new three-year Cooperation Agreement will enable the City to continue participating in the Urban County program beginning July 1, 2027, for federal fiscal years 2027 through 2029. The City Council is currently being asked to adopt the resolution included as Attachment 1, authorizing the continued participation in the Urban County Program and authorizing the execution of the Cooperation Agreement with Alameda County included as Attachment 2. ENVIRONMENTAL REVIEW: This information report is not subject to the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines Section 15378 as it does not meet CEQA’s definition of a project and will not result in direct or indirect physical changes in the environment. STRATEGIC PLAN INITIATIVE: None. NOTICING REQUIREMENTS/PUBLIC OUTREACH: The City Council Agenda was posted. ATTACHMENTS: 1) Resolution Authorizing the Continued Participation of the City of Dublin in the Alameda County Urban County for Community Development Block Grant Funds and Authorizing Execution of the Cooperation Agreement Between the City and County of Alameda Regarding Participation in the Alameda County Urban County for Community Developmen t Block Grant Funds 2) Exhibit A to Resolution - Cooperative Agreement Between City of Dublin and the County of Alameda 1477 Attachment 1 Reso. No. XX-26, Item X.X, Adopted 06/16/2026 Page 1 of 2 RESOLUTION NO. XX – 26 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DUBLIN AUTHORIZING THE CONTINUED PARTICIPATION OF THE CITY OF DUBLIN IN THE ALAMEDA COUNTY URBAN COUNTY FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS AND AUTHORIZING EXECUTION OF THE COOPERATION AGREEMENT BETWEEN THE CITY AND COUNTY OF ALAMEDA REGARDING PARTICIPATION IN THE ALAMEDA COUNTY URBAN COUNTY FOR COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS WHEREAS, the United States Congress has enacted the Housing and Community Development Act of 1974 and Federal regulations have been adopted pursuant thereto, hereinafter called the “Act”;; and WHEREAS, Title I of the Act consolidates previously separate grant programs for open space, public facility loans, water and sewer grants, urban renewal, model cities, rehabilitation loans, and affordable housing into a program called the Community Development Block Grant (“CDBG”) program; and WHEREAS, Title I makes available entitlement grants to cities whose 2020 Census population exceeds 50,000 persons; and to counties which qualify as an urban county; and WHEREAS, the term "urban county" means any county within a metropolitan area which: (1) is authorized under state law to undertake essential community development and housing assistance activities in its incorporated areas which are not units of general local government; and, (2) has a combined population of 200,000 or more in such unincorporated areas and in its included units of local government: (A) in which it has authority to undertake essential community development and housing assistance activities and which do not elect to have their population excluded; or, (B) with which it has entered into cooperation agreements to undertake or to assist in the undertaking of essential community development and housing assistance activities; and WHEREAS, the U.S. Department of Housing and Urban Development (“HUD”) has made a determination that the County of Alameda has the essential powers to operate as an urban county; and WHEREAS, four cities (Albany, Emeryville, Newark and Piedmont) in Alameda County have a 2020 Census population of less than 50,000 and desire to participate in the Alameda County Urban County; and one city has a population over 50,000 (Dublin) and desires to participate in the Alameda County Urban County Program to continue in the Alameda County Urban County for federal fiscal years 2027, 2028 and 2029; and 1478 Reso. No. XX-26, Item X.X, Adopted XX/XX/2026 Page 2 of 2 WHEREAS, the participating cities, combined with the unincorporated portions of the County of Alameda, form a combined 2020 Census population of 200,000 or more persons, thereby qualifying as an urban county, and becoming eligible for an entitlement of CDBG and HOME Investment Partnership (HOME) funds; and WHEREAS, the participating cities agree that by executing these cooperative agreements they may not apply for grants under the Small Cities o r State CDBG Program from appropriations for fiscal years during the period in which it is participating in the Urban County's CDBG program; and WHEREAS, the County and City cannot withdraw from the cooperative agreement while the Program Year 2027-2029 Agreement remains in effect. NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Dublin does hereby resolve, declare, determine, and order as follows: SECTION 1. The Dublin City Council hereby authorizes the continued participation of the City of Dublin in the Alameda County Urban County. SECTION 2. The Dublin City Council hereby authorizes the City Manager to execute a cooperation agreement with the Alameda County in order to continue the City’s participation in the Urban County. SECTION 3. This resolution shall take effect immediately upon its adoption. BE IT FURTHER RESOLVED that the City Manager is authorized to execute the cooperative agreement, attached hereto as Exhibit A, and make any necessary, non-substantive changes to carry out the intent of this Resolution. PASSED, APPROVED AND ADOPTED BY the City Council of the City of Dublin, on this 16th day of June, 2026 by the following vote: AYES: NOES: ABSENT: ABSTAIN: ______________________________ Mayor ATTEST: _________________________________ City Clerk 1479 Attachment 2 Exhibit A to the Resolution Cooperative Agreement – Page 1 of 13 ALAMEDA COUNTY HOUSING AND COMMUNITY DEVELOPMENT DEPARTMENT COOPERATIVE AGREEMENT BETWEEN CITY OF DUBLIN AND THE COUNTY OF ALAMEDA This AGREEMENT is made and entered into on this 1st day of July, 2026 by and between the COUNTY OF ALAMEDA, a body corporate and politic of the State of California (hereinafter referred to as the “COUNTY”), and the CITY OF DUBLIN, a California municipal corporation located within Alameda County (hereinafter referred to as the “CITY”). WHEREAS, the Congress of the United States has enacted the Housing and Community Development Act of 1974, hereinafter referred to as “the Act”, and Federal regulations have been adopted pursuant thereto; and WHEREAS, Title I of the ACT consolidates previously separate grant programs for open space, public facility loans, water and sewer grants, urban renewal, model cities, rehabilitation loans, and affordable housing; and WHEREAS, Title I makes available entitlement grants to (1) cities whose 2020 Census population exceeds 50,000 persons; and (2) counties which qualify as an urban county; and WHEREAS, the term “urban county” means any county within a metropolitan area which is authorized under state law to undertake essential community development and housing assistance activities in its incorporated areas which are not units of general local government, and which has a combined population of 200,000 or more in such unincorporated areas and in its included units of local government with which it has entered into cooperation agreements to undertake or to assist in the undertaking of essential community development and housing assistance activities; and WHEREAS, four cities (Albany, Emeryville, Newark, and Piedmont) in Alameda County have a 2024 Census population of less than 50,000 and desire to participate in the Alameda County Urban County, and one city has a population over 50,000 (Dublin) and desires to participate in the Alameda County Urban County, and WHEREAS, the participating cities, combined with the unincorporated portions of the County of Alameda, form a combined 2024 Census population of 200,000 or more persons, thereby qualifying as an urban county and becoming eligible for an entitlement of Community Development Block Grant (CDBG) and HOME Investment Partnership (HOME) funds; and 1480 Cooperative Agreement – Page 2 of 13 WHEREAS, the participating cities agree that by executing these cooperative agreements they may not apply for grants under the Small Cities or State CDBG Program from appropriations for fiscal years during the period in which they are participating in the Urban County’s CDBG program; and WHEREAS, the COUNTY and the CITY cannot withdraw from this cooperative agreement while the Program Years 2027, 2028, and 2029 remain in effect; and WHEREAS, the COUNTY and the CITY desire to provide flexibility in the administration of CDBG-funded activities by establishing within this Agreement two parallel administrative frameworks: (i) a Pass-Through Framework, under which the CITY directly administers CDBG- funded activities as a subrecipient of the COUNTY; and (ii) a Direct Administration Framework, under which the COUNTY directly administers and implements CDBG-funded activities on behalf of the URBAN COUNTY, with the CITY able to elect the Direct Administration Framework on a per-activity basis prior to commitment to activity in accordance with the procedures set forth herein. THEREFORE, it is agreed that: I. GENERAL COOPERATION AND URBAN COUNTY OPERATION 1. The CITY and COUNTY will cooperate in the operation of the URBAN COUNTY to undertake, or assist in undertaking, community renewal and lower income housing assistance activities, specifically urban renewal and publicly assisted housing, hereinafter called “PROGRAM”, to be carried out with annual Community Development Block Grant, hereinafter called “CDBG”, and HOME Investment Partnership funds, hereinafter called “HOME”, from federal fiscal years 2027, 2028, and 2029 appropriations and from any program income generated from the expenditure of such funds. Community renewal and lower income housing assistance activities shall be those designated or referred to within Title I of the ACT and Title II of the Cranston-Gonzalez National Affordable Housing Act and the regulations issued pursuant thereto. 2. The COUNTY is authorized to and shall act in a representative capacity as the lead entity for all members of the URBAN COUNTY for the purposes of administering the CDBG program. The COUNTY assumes overall responsibility for ensuring that the URBAN COUNTY’s CDBG program is carried out in compliance with the requirements of the CDBG program, including requirements concerning the Consolidated Plan. 3. The CITY may not apply for grants under the Small Cities or State CDBG Program from appropriations for fiscal years during the period in which the CITY is participating in the Urban County’s CDBG program. 1481 Cooperative Agreement – Page 3 of 13 4. The CITY may only receive a portion of the formula allocation under the HOME Program through the Urban County. If the Urban County does not receive a portion of the HOME formula allocation, the CITY cannot form a HOME Consortium with other local governments. An Urban County or a unit of government participating with the Urban County may apply to the State of California for HOME funds, if the State allows. The distribution of HOME funds to the Urban County is based on the review and recommendations of proposals received in response to an annual RFP issued by the COUNTY. 5. The CITY may only receive the formula allocation under the Emergency Solutions Grant (ESG) Program through the Urban County. If the Urban County does not receive the ESG formula allocation, the CITY cannot participate in an Urban County ESG arrangement with other local governments. An Urban County or a unit of government participating with the Urban County may apply to the State of California for ESG funds, if the State allows. II. URBAN COUNTY GOVERNANCE 6. The CITY shall designate a staff member to participate in the Urban County Technical Advisory Committee (the “TAC”). The TAC shall serve as the primary forum for member jurisdiction participation in URBAN COUNTY governance and funding recommendations. CITY participation in the TAC shall apply regardless of the administrative framework under which any individual CDBG-funded activity is carried out under this Agreement. 7. The CITY shall have thirty (30) calendar days to approve the portions of the Consolidated Plan which pertain to the CITY before the COUNTY submits the final Consolidated Plan to U.S. Department of Housing and Urban Development (HUD). The COUNTY shall incorporate the CITY’s changes to the Consolidated Plan, if any, provided that they meet CDBG requirements. This review right shall apply regardless of the administrative framework under which any individual CDBG-funded activity is carried out. 8. The TAC shall provide input and recommendations on each project proposed for funding with CDBG funds before the COUNTY approves funding for the project, provided that TAC approval or disapproval shall not obstruct the implementation of the approved Consolidated Plan or the COUNTY’s compliance with applicable federal requirements. Final authority for project selection, funding decisions, and implementation shall rest with the COUNTY as lead entity. 9. The CITY shall designate a representative to whom all notices and communications from the COUNTY shall be directed. The COUNTY’s duty to notify the CITY shall be complete when the communication is sent to the designated official or deputy. It is the exclusive duty of the designated official or deputy to notify the correct individuals or departments within the CITY. 1482 Cooperative Agreement – Page 4 of 13 III. ADMINISTRATIVE FRAMEWORKS FOR CDBG ACTIVITIES 10. Definitions. For purposes of this Agreement, the following terms shall have the meanings set forth below: a. “CDBG Activity” (Activity) means any activity proposed for funding from CDBG appropriations under this Agreement. b. “Pass-Through Activity” means a CDBG Activity that is administered by the CITY directly as a subrecipient of the COUNTY, with the COUNTY distributing CDBG funds to the CITY for the activity. c. “Direct Activity” means a CDBG Activity that is administered and implemented by the COUNTY directly on behalf of the URBAN COUNTY, with no distribution of CDBG funds to the CITY for the activity. d. “Notice of Election” means a written notice filed by the CITY with the COUNTY, in substantially the form attached hereto as Exhibit B, designating a specific CDBG Activity as a Direct Activity. e. “Schedule of Activities” means the running schedule of CDBG Activities funded under this Agreement, in the form attached hereto as Exhibit A, identifying each Activity’s administrative framework. f. “Commitment of funds” means the COUNTY (or the CITY as the sub recipient) and the project owner have executed a written legally binding agreement under which HOME assistance will be provided to the owner for an identifiable project. 11. Default Framework. Each CDBG Activity proposed by or for the benefit of the CITY shall be administered as a Pass-Through Activity unless and until the CITY files a Notice of Election designating that Activity as a Direct Activity in accordance with Paragraph 12. 12. Election Procedure. a. Timing. The CITY may elect to designate a CDBG Activity as a Direct Activity prior to commitment of funds to the Activity. Once a CDBG Activity has commenced under the Pass-Through Framework, it cannot subsequently be converted to a Direct Activity under this Agreement. b. Authorization. The CITY shall determine the appropriate internal authorization for filing a Notice of Election in accordance with the CITY’s own protocols. A Notice of Election may be executed by the City Manager (or designee) or pursuant to a resolution of the City Council, at the CITY’s discretion. 1483 Cooperative Agreement – Page 5 of 13 c. Filing and Acceptance. The CITY shall file the Notice of Election with the COUNTY. The COUNTY shall record the election in the Schedule of Activities and confirm acceptance and the effective date in writing to the CITY. The COUNTY may decline to accept a Notice of Election only if the Activity has already commenced as a Pass-Through Activity or if the Notice does not satisfy the requirements of this Agreement. d. Irrevocability. An election to designate a CDBG Activity as a Direct Activity is one -way and may not be revoked. Once a Notice of Election is filed and accepted by the COUNTY, the Activity shall remain a Direct Activity for its duration. 13. Allocation. The CITY’s notional fair-share allocation of CDBG funds shall be preserved regardless of the administrative framework under which any individual Activity is carried out. The TAC may recommend, and the COUNTY may approve, reallocation of funds among Activities or among participating jurisdictions as necessary to ensure compliance with CDBG requirements, including timely expenditure requirements under 24 CFR 570.902. The COUNTY retains final authority on reallocation decisions consistent with Paragraph 8. 14. Schedule of Activities. The Schedule of Activities (Exhibit A) shall be maintained by the COUNTY as a running record of all CDBG Activities funded under this Agreement. The Schedule shall be updated by the COUNTY administratively, without amendment of this Agreement, upon: (a) Commitment of funds to an Activity; (b) filing and acceptance of a Notice of Election; (c) reallocation of funds pursuant to Paragraph 13; or (d) Activity completion. The COUNTY shall provide the CITY with an updated Schedule of Activities upon request and not less than annually. IV. PASS-THROUGH FRAMEWORK 15. Application. This Section IV applies to each CDBG Activity that is a Pass-Through Activity under this Agreement. 16. Subrecipient Designation. Pursuant to 24 CFR 570.501(b), the CITY is treated as a subrecipient of the COUNTY for each Pass-Through Activity and is subject to the requirements applicable to subrecipients, including the requirement of a written subrecipient agreement satisfying 24 CFR 570.503 17. Distribution of Funds. The COUNTY shall distribute CDBG funds to the CITY for each Pass-Through Activity in accordance with the CITY’s notional fair-share allocation as set forth in Paragraph 13 and the terms of the applicable subrecipient agreement. 18. Reporting and Records. The CITY shall provide the COUNTY with all information concerning the CITY and the activities the CITY carries out under this Agreement that the COUNTY requires to prepare: (1) documents required to be submitted to HUD; (2) the annual performance report; and (3) such other documents as the COUNTY may require to carry out 1484 Cooperative Agreement – Page 6 of 13 community renewal and lower income housing activities or meet Federal requi rements. All information shall be submitted on forms prescribed by the COUNTY. The CITY agrees to make available upon request all records concerning the activities carried out under this Section IV for inspection by the COUNTY or Federal officials during regular business hours. 19. Program Income. The CITY shall inform the COUNTY of any income generated by the expenditure of CDBG funds received by the CITY for a Pass-Through Activity. The CITY shall pay any such program income to the COUNTY, or the CITY may retain program income subject to the requirements set forth in this Agreement and with written approval of the COUNTY. Any program income the CITY is authorized to retain may only be used for eligible activities in accordance with all CDBG requirements as may then apply. The COUNTY has the responsibility for monitoring and reporting to HUD on the use of any such program income, thereby requiring appropriate record-keeping and reporting by the CITY as may be needed for this purpose. In the event of close-out or change in status of the CITY, any program income that is on hand or received subsequent to the close-out or change in status shall be paid to the COUNTY. 20. Real Property. With regard to real property that is within the control of the CITY due to being acquired or improved in whole or in part using CDBG funds under a Pass-Through Activity, the CITY must give timely notification to the COUNTY of any modification or change in the use of the real property from that planned at the time of acquisition or improvement, including disposition. The CITY must reimburse the COUNTY in an amount equal to the current fair market value (less any portion thereof attributable to expenditures of non-CDBG funds) of property acquired or improved with CDBG funds that is sold or transferred for a use which does not qualify under the CDBG regulations. Any program income generated from the disposition or transfer of such property prior to or subsequent to the close-out, change of status, or termination of the cooperation agreement between the COUNTY and the CITY shall be paid to the COUNTY. 21. Indemnification – Pass-Through Activities. With respect to each Pass-Through Activity, the CITY shall defend, indemnify, and hold harmless the COUNTY, its officers, employees, and agents from liability for any fines, penalties, or damage of any type accruing to the COUNTY by virtue of the CITY’s failure to comply with any requirement of the ACT and the regulations issued pursuant thereto, or failure to comply in any respect with the PROGRAM described herein with respect to that Activity. Further, the CITY shall defend, indemnify, and hold harmless the COUNTY, its officers, employees, and agents against any and all liability for injury or damage caused by any act or omission of the CITY or any of the CITY’s employees or volunteers in the performance of the Activity, and the CITY shall hold the COUNTY harmless from any and all loss occasioned in the performance of, or otherwise arising out of, that Activity. The provisions of California Government Code Section 895.4 apply to the allocation of liability between the parties for Pass-Through Activities. 1485 Cooperative Agreement – Page 7 of 13 V. DIRECT ADMINISTRATION FRAMEWORK 22. Application. This Section V applies to each CDBG Activity that is a Direct Activity under this Agreement. 23. Direct Administration. The COUNTY shall directly administer and implement each Direct Activity on behalf of the URBAN COUNTY as the entitlement grantee. The CITY shall not directly administer such Activity. The CITY’s role with respect to each Direct A ctivity shall be governance and consultation through the TAC and the procedures set forth in Section II of this Agreement, together with the cooperation obligations set forth in Paragraphs 25 and 28. 24. Compliance with 24 CFR Part 570. The COUNTY shall comply with all applicable requirements of 24 CFR Part 570 in its administration of each Direct Activity. Where the COUNTY engages a third-party service provider, contractor, or subgrantee to carry out any portion of a Direct Activity, that entity shall be treated as a subrecipient pursuant to 24 CFR 570.501(b), and a written agreement satisfying 24 CFR 570.503 shall be executed with that entity. 25. Reporting and Records. The COUNTY shall be responsible for preparing and submitting all required documentation to HUD and maintaining all program records for each Direct Activity, including but not limited to: (1) documents required to be submitted to HUD; (2) the annual CDBG performance report as it relates to the Activity; and (3) such other documents required to carry out eligible activities or meet Federal requirements. The CITY agrees to provide the COUNTY with site access, project-related information, and reasonable cooperation as needed for COUNTY administration of each Direct Activity. 26. Program Income. Any program income generated by the expenditure of CDBG funds for a Direct Activity shall be paid to and retained by the COUNTY, subject to the requirements set forth in this Agreement and applicable CDBG regulations. The COUNTY shall use any such program income only for eligible activities in accordance with all CDBG requirements as may then apply. 27. Real Property. With regard to real property that is within the control of the COUNTY due to being acquired or improved in whole or in part using CDBG funds under a Direct Activity, the COUNTY shall comply with applicable property disposition and use restrictions under 24 CFR Part 570. Any program income generated from the disposition or transfer of such property shall be retained by the COUNTY. 28. Indemnification – Direct Activities. Pursuant to California Government Code Section 895.4, with respect to each Direct Activity, the COUNTY shall defend, indemnify, and hold harmless the CITY, its officers, employees, and agents from liability for any fines, penalties, or damage of any type accruing to the CITY by virtue of the COUNTY’s failure to comply with any requirement of the ACT and the regulations issued pursuant thereto, or failure to comply in any respect with the PROGRAM described herein with respect to that Activity. Further, the COUNTY shall defend, 1486 Cooperative Agreement – Page 8 of 13 indemnify, and hold harmless the CITY, its officers, employees, and agents against any and all liability for injury or damage caused by any act or omission of the COUNTY or any of the COUNTY’s employees or volunteers in the performance of the Activity, and the COUNTY shall hold the CITY harmless from any and all loss occasioned in the performance of, or otherwise arising out of, that Activity. VI. UNIVERSAL COMPLIANCE AND PROHIBITIONS 29. Civil Rights and Fair Housing. As a recipient of the CDBG/HOME/ESG Funds from HUD, the COUNTY and the CITY must take all actions necessary to assure compliance with the Urban County’s certification required by Section 104(b) of Title I of the Housing and Community Development Act of 1974, as amended, regarding Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and to affirmatively further fair housing. The COUNTY and the CITY must comply with Section 109 of Title I of the Housing and Community Development Act of 1974, which incorporates Section 504 of the Rehabilitation Act of 1973 and the Age Discrimination Act of 1975, and other applicable laws, and all regulations issued pursuant thereto. Further, urban county funding for activities in or in support of any city 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 is prohibited. 30. Non-Violent Civil Rights Demonstrations. The COUNTY and the CITY must adopt and enforce a policy prohibiting the use of excessive force by law enforcement agencies within their respective jurisdictions against any individual engaged in non-violent civil rights demonstrations, and 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 their jurisdictions. 31. Prohibition on Transfer of Funds. Neither the COUNTY nor the CITY may sell, trade, or otherwise transfer all or any portion of the CDBG/HOME FUNDS to a metropolitan city, urban county, unit of general local government, or Indian tribe or insular area that directly or indirectly receives CDBG funds in exchange for any other funds, credits, or non-federal considerations. The COUNTY and the CITY must use the CDBG/HOME FUNDS for activities eligible under Title I of the Housing and Community Development Act of 1974, as amended, and Title II of the Cranston-Gonzalez National Affordable Housing Act. 32. Audit Cooperation. The CITY agrees to cooperate, at no cost to the COUNTY, in any audit of program activities involving program funds received by or expended for the benefit of the CITY, including preparing appropriate financial statements, promptly following up and taking corrective action on audit findings, complying with any corrective action plans issued in connection with the audit, and providing the auditor with information as needed for the auditor to perform the audit required by applicable regulations. This obligation applies to both Pass-Through Activities and to the CITY’s cooperation in audits of Direct Activities to the extent the CITY’s records, personnel, 1487 Cooperative Agreement – Page 9 of 13 or facilities are relevant to the audit. VII. TERM, TRANSITION, AND EXECUTION 33. Term. This Agreement shall go into effect immediately upon the signature of both parties and shall continue in full force and effect until the CDBG/HOME/ESG Funds and program income received with respect to activities carried out during the three-year qualification period (Federal fiscal years 2027, 2028, and 2029) are expended and the funded activities completed. The CITY will be included in the urban county for the entire three-year period funded by CDBG/HOME/ESG Funds from Federal fiscal years 2027, 2028, and 2029. Appropriations may not be withdrawn from the urban county during this agreement period. During the three-year qualification period, Federal fiscal years 2027, 2028, and 2029, the CITY and any other included unit of general local government shall not withdraw from nor be removed from the Urban County and cannot terminate or withdraw from the cooperation agreement. 34. Transition from Prior Cooperation Agreements. Activities funded under prior cooperation agreements between the COUNTY and the CITY, including but not limited to the cooperation agreement covering Federal fiscal years 2024, 2025, and 2026, shall continue to be governed by those prior agreements until the funds with respect to those funding years are expended and the funded activities are completed. The administrative framework election procedures established by this Agreement apply only to CDBG Activities funded from federal fiscal years 2027, 2028, and 2029 appropriations and any program income arising therefrom. 35. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same Agreement. [SIGNATURES TO FOLLOW ON THE NEXT PAGE] 1488 Cooperative Agreement – Page 10 of 13 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. COUNTY OF ALAMEDA CITY OF DUBLIN By: _______________________________ By: ______________________________ President of the Board of Supervisors Colleen Tribby City Manager Date: ______________________________ Date:_____________________________ Approved as to form by: Approved as to form by: Andrea L. Weddle, Interim County Counsel By: _______________________________ By: ______________________________ Kathleen Flynn, John Bakker Deputy County Counsel City Attorney Date: _____________________________ By signing above, signatory warrants and represents that he/she executed this Agreement in his/her authorized capacity and that by his/her signature on this Agreement, he/she or the entity upon behalf of which he/she acted, executed this Agreement. 1489 Cooperative Agreement – Page 11 of 13 EXHIBIT A SCHEDULE OF CDBG ACTIVITIES This Schedule is maintained by the COUNTY as a running record of all CDBG Activities funded under the Cooperative Agreement between the City of Dublin and the County of Alameda dated July 1, 2026. The Schedule is updated administratively by the COUNTY upon Commitment to Activity, filing and acceptance of a Notice of Election, reallocation of funds, or Activity completion. Updates do not require amendment of the Cooperative Agreement. Activity ID Activity Name / Description Program Year Initial Allocation Administrative Framework Notice of Election Date Status Administrative Framework values: “Pass-Through” or “Direct Administration.” Notice of Election Date is populated only for Direct Activities. Status values: “Active,” “Completed,” or “Closed-Out.” 1490 Cooperative Agreement – Page 12 of 13 EXHIBIT B FORM OF NOTICE OF ELECTION This form, when completed and signed by an authorized representative of the City and submitted to the County, constitutes a Notice of Election under Paragraph 12 of the Cooperative Agreement. [CITY LETTERHEAD] [Date] Director Alameda County Housing and Community Development Department [Address] Re: Notice of Election to Designate CDBG Activity as a Direct Activity Dear Director: Pursuant to Paragraph 12 of the Cooperative Agreement between the City of Dublin and the County of Alameda dated July 1, 2026 (the “Cooperative Agreement”), the City of Dublin hereby provides notice of its election to designate the following CDBG Activity as a Direct Activity, to be administered and implemented by the County of Alameda on behalf of the Urban County: Activity Name: ____________________________________________ Activity Description: ____________________________________________ Program Year: ____________________________________________ Anticipated Allocation: $__________________________________________ Anticipated Activity Commitment Date: ____________________________________ This election is one-way and may not be revoked. The City acknowledges that, upon County acceptance of this Notice, the County shall directly administer and implement the Activity, and the provisions of Section V of the Cooperative Agreement (Direct Administration Framework) – including the indemnification, program income, real property, and reporting provisions – shall govern the Activity. 1491 Cooperative Agreement – Page 13 of 13 Authorization. The City has authorized this Notice of Election as follows (check one): ☐ This Notice is executed by the City Manager (or designee) pursuant to existing City authorization. ☐ This Notice is executed pursuant to City Council Resolution No. _________ adopted on _____________. Resolution attached hereto. Sincerely, ___________________________________ Name: Title: cc: City Council City Attorney COUNTY ACCEPTANCE The County of Alameda confirms receipt and acceptance of this Notice of Election. The above- referenced Activity has been recorded in the Schedule of Activities (Exhibit A) as a Direct Administration Activity effective on the date set forth below. ___________________________________ Date: _________________________ Director, Alameda County HCD 1492