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CC SR 20260616 E - CDBG County Agreement FY26-27 to 28-29 CITY COUNCIL MEETING DATE: 06/16/2026 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider approving the City’s participation in the Los Angeles Urban County Program (LACDA) for funding the Community Development Block Grant (CDBG) program for Fiscal Years 2026-27 to 2029-30. RECOMMENDED COUNCIL ACTION: 1) Adopt Resolution No. 2026-___, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PROGRAM FOR COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) FOR FISCAL YEARS 2026-27-2029-30; and 2) Authorize the Public Works Director to execute a Cooperative Agreement with LACDA for CDBG funding for Fiscal Years 2026-27 to 2029-30 in a form approved by the City Attorney. FISCAL IMPACT: There is no fiscal impact in Fiscal Year 2026-27 with the recommended action. Adopting the resolution and authorizing the signature of the Cooperative Agreement allows the City to continue to receive CDBG funding for use towards eligible projects. VR Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Ramzi Awwad, Director of Public Works REVIEWED BY: Catherine Jun, Deputy City Manager CJ APPROVED BY: Ara Mihranian, AICP, City Manager ATTACHED SUPPORTING DOCUMENTS: 1) Resolution No. 2026-___ Approving participation in the LACDA program for Fiscal Years 2026-27 to 2029-30 (page A-1) 2) Sample CDBG program cooperative agreement for Fiscal Years 2026-27 to 2029- 30 (page B-1) 1 BACKGROUND: Through the CDBG program, the U.S. Department of Housing and Urban Development (HUD) provides grant funds for community development projects or services to principally benefit persons of low and moderate-income levels and/or aid in the prevention of blighted conditions in primarily disadvantaged communities. Other federal programs like HOME Investment Partnerships and Emergency Solutions Grant Program, when funded, pass- through CDBG to the County for disbursement to participating jurisdictions. The CDBG program funds projects and services with the goal of providing housing, economic, and community development opportunities. LACDA administers the program, and the City has participated since 1986. The City has typically used CDBG grant funds to improve access for persons with disabilities by installing Americans with Disabilities Act (ADA) compliant curb ramps and improving sidewalks to become ADA accessible. Considering the various demands on the City’s budget, CDBG funds are expected to continue to be used for curb ramp and sidewalk improvements as proposed in the FY 2026 -27 Capital Improvement Program (CIP). The City Council is asked to approve each project proposing to use CDBG funds, including the specific location of improvements. The City’s annual grant allocation is determined by a formula which considers poverty, population, housing overcrowding, age of housing stock, population growth, and the number of cities participating in the countywide program. The formula results in a typical grant allocation to the City of approximately $150,000, based on the factors listed above. DISCUSSION: In order to continue to receive CDBG funds for the next three-year funding cycle which runs from July 1, 2027 through June 30, 2030, the City is required to send a City Council- adopted resolution authorizing continued participation . The resolution (Attachment A) and a signed Cooperative Agreement (Attachment B) to LACDA are attached. Funds may be used towards eligible activities, including social programs, as approved annually by the City Council. CONCLUSION: Staff recommend that the City Council adopt the attached resolution (Attachment A) authorizing continued participation in LACDA programs and authorizing the Public Works Director to execute a Cooperative Agreement for FY 2026-27 to 2029-30. The FY2026- 27 resolution is self-renewing for the remaining years of the Cooperative Agreement. ALTERNATIVES: In addition to Staff’s Recommendations, the following alternative actions are available for the City Council’s consideration: 2 1) Do not adopt a resolution authorizing continued participation in LACDA programs, and direct staff to return with alternate local sources of funding for the program. 2) Do not adopt a resolution authorizing continued participation in the LACDA program and discontinue the program. 3) Take other action as deemed appropriate. 3 RESOLUTION NO. 2026-__ A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES APPROVING PARTICIPATION IN THE LOS ANGELES URBAN COUNTY PROGRAM FOR COMMUNITY DEVELOPMENT BLOCK GRANTS (CDBG) FISCAL YEARS 2027-2029. WHEREAS, the City of Rancho Palos Verdes desires to continue participating in the Los Angeles Urban County Program for Community Development Block Grant (“CDBG”) funds, and if applicable, the HOME Investment Partnerships (“HOME”) Program, and the Emergency Solutions Grant (“ESG”) Program, in the County’s Consolidated Plan for Fiscal Years 2026-27 to 2029-30, commencing on July 1, 2027 through June 30, 2030; and, WHEREAS, the City authorizes the execution of a Cooperation Agreement with the County of Los Angeles in order to receive said CDBG Funds for Fiscal Years 2027 - 2030; and, NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES DOES HEREBY FIND, DETERMINE, AND RESOLVE AS FOLLOWS: Section 1. The City Council adopts and approves its participation in the Los Angeles Urban County Program to receive CDBG funds, and if applicable, HOME and ESG Program funds, and execution of the Cooperation Agreement between the City of Rancho Palos Verdes and the County of Los Angeles for the time period of July 1, 2027 through June 30, 2030 and self-renewing thereafter. Section 2. The City Council authorizes the Public Works Director, as the Mayor’s designee, to execute the Cooperation Agreement and any and all related documents necessary, for participation in the Los Angeles Urban County Program on behalf of the City. A-1 Resolution No. 2026-__ Page 2 of 2 PASSED, APPROVED AND ADOPTED on this 16th day of June, 2026. ________________________________ Paul Seo, Mayor ATTEST: ________________________________ Teresa Takaoka, City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss CITY OF RANCHO PALOS VERDES ) I, Teresa Takaoka, City Clerk of the City of Rancho Palos Verdes, hereby certify that the above Resolution No. 2026-__ was duly and regularly passed and adopted by the said City Council at a regular meeting thereof held on June 16, 2026. ________________________________ Teresa Takaoka, City Clerk A-2 June 2026 1 COUNTY OF LOS ANGELES COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM HOME INVESTMENT PARTNERSHIPS PROGRAM EMERGENCY SOLUTIONS GRANT PROGRAM PARTICIPATING CITY COOPERATION AGREEMENT This COOPERATION AGREEMENT (“Agreement”) is being entered into on this «Day» day of «MONTH_YEAR», to be effective on the 1st day of July 2027, by and between the CITY OF «PARTICIPATING_CITY», hereinafter referred to as “City,” and the County of Los Angeles, by and through the Executive Director of the Los Angeles County Development Authority, hereinafter referred to as “County,” and shall remain in effect for the County's Consolidated Plan for Fiscal Years 2027-2029. The County and the City are collectively referred to as the “Parties” or individually “Party.” WITNESSETH THAT: WHEREAS, in 1974, the U.S. Congress enacted and the President signed a law entitled, the Housing and Community Development Act of 1974, as amended, herein called the “Act”; WHEREAS, the Parties desire to cooperate to undertake, or assist in undertaking, community development, community renewal of lower-income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act, the Cranston-Gonzalez National Affordable Housing Act (“NAHA”), and the U.S. Housing Act of 1937, as amended; WHEREAS, the Community Development Block Grant (“CDBG”) Program, the HOME Investment Partnerships (“HOME”) Program, and the Emergency Solutions Grant (“ESG”) Program are required to have an approved comprehensive housing strategy as authorized under NAHA; WHEREAS, the County has requested of the U.S. Department of Housing and Urban Development, hereinafter referred to as “HUD”, that the County be designated as an urban county, hereinafter referred as to the “Los Angeles Urban County”; WHEREAS, the City has participated with the County in the Los Angeles Urban County Program and desires to renew its participation with the County in said Los Angeles Urban County Program for the County's Consolidated Plan for Fiscal Years 202 7-2029; WHEREAS, as the Los Angeles Urban County designee , the County will take responsibility and assume all obligations of an applicant under federal statutes, including: the analysis of needs, the setting of objectives, the preparation of community development and housing assistance plans, the consolidated plan, and the assurances of certifications; B-1 June 2026 2 WHEREAS, the terms and provisions of this Agreement are fully authorized under state and local law, and this Agreement provides full legal authority for the County to undertake, or assist in undertaking, essential community development and housing assistance activities, specifically urban renewal and publicly assisted housing; and WHEREAS, by executing this Agreement, the Parties hereby give notice of the intention to participate in the Los Angeles Urban County Program. NOW, THEREFORE, the Parties agree as follows: 1.The City hereby authorizes the County to perform, or cause to be performed, those acts necessary or appropriate to implement the community development and housing assistance activities. Specifically urban renewal and publicly assisted housing, including, but not limited to, improvement or development of housing for persons of low- to moderate-income, and other community or urban renewal activities authorized under the Act for the City in the County's Consolidated Plan for Fiscal Years 2027-2029, which will be funded from the CDBG Program, and, where applicable HOME and ESG Programs, from federal annual appropriations and from any program income generated from the expenditure of such funds. In the event this Agreement extends into succeeding fiscal years and funds have not been appropriated, this Agreement will automatically terminate as of June 30 of the then-current fiscal year. The County will endeavor to notify the City in writing within ten (10) days of receipt of non-appropriation notice. 2.This Agreement covers the following formula funding programs administered by HUD where the County is awarded and accepts funding directly from HUD: The CDBG Program, the HOME Program, and the ESG Program. 3.In executing this Agreement, the City understands the following: a.The County has the final responsibility for selecting CDBG, and, where applicable, HOME and ESG, activities and submitting the Consolidated Plan to HUD. b.The City is not eligible to apply for grants under the State CDBG (“Small Cities CDBG”) Program for appropriations for the County's Consolidated Plan for Fiscal Years 2027-2029. c.The City may participate in the HOME Program only through the Los Angeles Urban County Program. Thus, even if the County does not receive a HOME formula allocation, the City cannot form a HOME consortium with other local governments. d.The City may participate in the ESG Program only through the Los Angeles B-2 June 2026 3 Urban County Program. 4.The term of this Agreement shall be for the County's Consolidated Plan for Fiscal Years 2027-2029 and commence on July 1, 2027 through June 30, 2030 ("Urban County Term"). The Parties agree that they cannot terminate or withdraw from this Agreement while it remains in effect. The City provides written notice at least 60 days prior to June 30, 2030 that it elects not to participate in the next urban county qualification period. Towards the end of the second year of the Urban County Term, the County will notify the City in writing of its right not to participate in the County's successive Consolidated Plan for the next three-year period. The Parties agree to adopt amendments to this Agreement incorporating changes necessary to meet the requirements for cooperation agreements set forth in HUD’s Urban County Qualification for Participation Notice, prior to the subsequent three- year extension of the term. 5.This Agreement shall be effective for the Urban County Term and for such period of time for the expenditure of all CDBG funds, or where applicable, HOME and ESG funds, allocated to the City under this Agreement and appropriations from any program income therefrom and for the completion of the funded activities. The Parties agree that they cannot terminate or withdraw from this Agreement while it remains in effect. 6.The Parties agree to cooperate to undertake, or assist in undertaking, community renewal and lower-income housing assistance activities, specifically urban renewal and publicly assisted housing, including, but not limited to, the improvement or development of housing for persons of low- to moderate-incomes, and other community or urban renewal activities authorized by the Act. The Parties in the performance of this Agreement shall take all actions necessary or appropriate to assure compliance with the Los Angeles Urban County Program’s certification under Section 104(b) of Title I of the Act, as amended, 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, and the Fair Housing Act, 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, available at https://www.federalregister.gov/documents/2021/06/10/2021-12114/restoring- affirmatively-furthering-fair-housing-definitions-and-certifications. Furthermore, the Parties in the performance of this Agreement shall take all actions necessary or appropriate to assure compliance with Section 109 of Title I of the Act, 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 B-3 June 2026 4 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, and all other applicable laws and regulations. The Parties agree that CDBG and, where applicable, HOME and ESG funding is prohibited for any activities in, or in support of, any cooperating City that does not affirmatively further fair housing within its own jurisdiction or that impedes the County’s action to comply with its fair housing certification. The City acknowledges and agrees to HUD’s 424-B Form, Assurances and Certifications. 7.Pursuant to 24 CFR § 570.501(b), the City is subject to all requirements applicable to subrecipients, including the requirement of a written agreement as set forth in 24 CFR § 570.503. 8.The City shall report to the County of any income generated by the use of CDBG and, where applicable, HOME and ESG funds received by the City. Any such program income, if applicable, must be remitted to the County within 30 days of receipt. Such program income may be used for eligible activities in accordance with all CDBG and, where applicable, HOME and ESG, requirements as may then apply. 9.The County shall be responsible for monitoring and reporting to HUD on the use of any program income; therefore, the City shall be required to maintain appropriate record keeping and reporting for this purpose. 10.The City may not sell, trade or otherwise transfer all or any portion of CDBG, and, where applicable, HOME and ESG funds to another metropolitan city, urban county, unit of general local government, or Indian tribe, or insular area that directly or indirectly receives CDBG, and, where applicable, HOME and ESG funds in exchange for any other funds, credits or non-federal consideration, but must use such funds for activities eligible under Title I of the Act. 11.In the event of grant close-out or termination of this Agreement, any program income that is on hand or received subsequent to the close-out or change in status shall be paid to the County within 60 days after grant closeout or termination of this Agreement. 12.All program income generated from the disposition or transfer of real property acquired or improved by the City using CDBG and, where applicable, HOME and ESG, funds or program income, during the Urban County Term, shall be subject to all the terms and conditions of this Agreement. 13.Any real property which is acquired or improved by the City during the term of this Agreement, in whole or in part, using CDBG and/or HOME and ESG funds or program income in excess of $25,000, shall be subject to the following standards: B-4 June 2026 5 a.The County shall be notified by the City in writing of any modification or change in the use or disposition of such real property from that planned at the time of the acquisition or improvement. Such notification shall be made prior to the modification, change in use or disposition. b.If such real property is sold within five (5) years or transferred for a use which does not qualify as an eligible activity under CDBG and/or HOME and ESG regulations, the City shall reimburse to the County an amount equal to the pro-rata share of the current fair market value of the property or proceeds from the sales. The pro-rata share shall be calculated by multiplying the current market value by the percentage of the purchase price paid with CDBG funds or program income. 14.The City shall make available for inspection and audit to County’s and HUD’s representatives, upon request, at any time during the duration of this Agreement and for a period of five (5) years thereafter, all of its books and records relating to CDBG and, where applicable, HOME and ESG, program activities and income. 15.Following the end of the three-year reimbursable contract period and after resolving any financial or programmatic findings, if the City elects to leave the Los Angeles Urban County Program and is not eligible to become an entitlement city, the City will be unable to request that its allocation or any remaining balance be transferred to the City. Any remaining balance will be transferred to the funding pool of the Supervisorial District in which the City is located. 16. 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. 17. The City shall provide a drug-free workplace by: a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the City’s workplace and specifying the actions that will be taken against employees for violation of such prohibition. b.Establishing an ongoing drug-free awareness program to inform employees about: i. The dangers of drug abuse in the workplace; B-5 June 2026 6 ii.The City’s policy of maintaining a drug-free workplace; iii.Any available drug counseling, rehabilitation, and employee assistance programs; and iv.The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. c.Making it a requirement that each employee who will be engaged in the performance of the grant be given a copy of the statement required by paragraph “a” of this Section 17. d.Notifying the employee in the statement required by paragraph “a” of this Section 17 that, as a condition of employment funded by the CDBG, and where applicable, HOME and ESG grant, the employee will: i.Abide by the terms of the statement; and ii.Notify the City in writing of his or her conviction of a violation of a criminal drug statute occurring in the workplace no later than five (5)calendar days after such conviction. e.Notifying the County in writing, within ten (10) calendar days after receiving notice under subparagraph d(ii) of this Section 17 from an employee or otherwise receiving actual notice of any such conviction; and the City must provide written notice, including position or title, of any City employees convicted of any criminal drug statute to every County officer or other designee who processed a CDBG, HOME, or ESG grant which funded any activity on which the convicted employee was working, unless HUD has designated an identification number(s) of each affected grant. f.Taking one (1) of the following actions, within 30 calendar days of receiving notice under subparagraph d(ii) of this Section 17, with respect to any employee who is so convicted: i.Taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or ii.Requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purpose by a federal, state, local health, law enforcement, or other appropriate agency. g.Making a good faith effort to continue to maintain a drug-free workplace through the implementation of paragraphs a, b, c, d, e, and f, of this Section 17. B-6 June 2026 7 18.This Agreement may be executed in any number of counterparts, each of which shall be effective only upon delivery, and therefore shall be deemed an original, and all of which shall constitute one and the same document, for the same effect as if all parties hereto had signed the same signature page. The facsimile, email, or other electronically delivered signature of the Parties shall be deemed to constitute original signatures, and facsimile or electronic copies hereof shall be deemed to constitute duplicate originals. B-7 IN WITNESS WHEREOF, the Board of Supervisors of the County of Los Angeles has caused this Agreement to be subscribed by the Executive Director of the LACDA, and the City has subscribed the same through its duly authorized officers, on the day, month, and year first above written. County Counsel Certification The office of the County Counsel hereby certifies that the terms and provisions of this Agreement are fully authorized under state and local laws, and that the Agreement provides full legal authority for the County to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and public assisted housing. By: ___________________________________ ___________________________ Principal Deputy County Counsel Date COUNTY OF LOS ANGELES By: ________________________________ EMILIO SALAS, Executive Director Los Angeles County Development Authority ATTEST: City Clerk By: ________________________________ APPROVED AS TO FORM: DAWYN R. HARRISON County Counsel By: ________________________________ BEHNAZ TASHAKORIAN Principal Deputy County Counsel CITY OF «PARTICIPATING_CITY» By: ________________________________ MAYOR OR DESIGNEE APPROVED AS TO FORM: By: ________________________________ CITY ATTORNEY B-8