Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Raymond Hodges, Director, Department of Housing
Subject: Execution of a Second Amendment to the Cooperation Agreement between San Mateo County and Non-Entitlement cities for participation in the Urban County
RECOMMENDATION:
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Adopt a resolution authorizing the County Executive Officer, or designee, to execute the Second Amendment to the Cooperation Agreements between San Mateo County and each of the sixteen (16) non-entitlement cities for participation in U.S. Department of Housing and Urban Development programs as a qualified “Urban County” for federal fiscal years 2027, 2028, and 2029 and a subsequent three-year period.
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BACKGROUND:
The County of San Mateo (“the County”) receives funding allocations from the U.S. Department of Housing and Urban Development (“HUD”) under three programs: Community Development Block Grant (“CDBG”), HOME Investment Partnership Program (“HOME”), and Emergency Solutions Grant (“ESG”) Program. To maximize funding allocations in these programs, the County has been designated as a qualified “Urban County” by HUD. To maintain Urban County status, the County must requalify with HUD every three years and, if required, amend the Cooperation Agreement with all non-entitlement cities to solicit their cooperation and co-participation in the Urban County housing and community development programs.
DISCUSSION:
The County, with participation of non-entitlement cities, qualifies as an Urban County under the CDBG Program guidelines and therefore is an “entitlement jurisdiction.” As such, the County is entitled to receive annual allocations of funding under the federal CDBG Program. The San Mateo Urban County also receives funding under the HOME and ESG Programs.
The four largest cities in the County, including Daly City, South San Francisco, San Mateo and Redwood City, have populations of over 50,000 and receive a direct allocation of CDBG funds from HUD. The smaller cities in the County are considered “non-entitlement” jurisdictions and do not receive a direct allocation of funding from HUD. Through participation in the HUD programs as part of the County’s qualified Urban County designation, non-entitlement jurisdictions can access CDBG, HOME, and ESG funds. The County and non-entitlement cities entered into the Urban County Cooperation Agreement in September of 2017 and the First Amendment to the Cooperation Agreement in July of 2023.
In May 2026, HUD notified San Mateo County of the need to make minor changes to the existing Cooperation Agreement between the County and the non-entitlement cities to requalify as an Urban County. The primary changes were to: 1) require the jurisdiction’s governing board to authorize, and the County Executive and/or City Executive, to execute any amendments to the existing Urban County Cooperation Agreement as set forth in HUD Notice CPD-17-03; and 2) add language limiting automatic renewals of the Cooperation Agreement to one three-year period. The Second Amendment also includes other minor and clarifying revisions.
In consultation with HUD, the Department of Housing (“DOH”) proposes to enter into a Second Amendment to the Cooperation Agreement with each non-entitlement jurisdiction to ensure that all HUD requirements for the Urban County Cooperation Agreements are met. The Board is being asked to authorize the execution of a Second Amendment to the Cooperation Agreements with the following sixteen (16) non-entitlement cities: Atherton, Belmont, Brisbane, Burlingame, Colma, East Palo Alto, Foster City, Half-Moon Bay, Hillsborough, Menlo Park, Millbrae, Pacifica, Portola Valley, San Bruno, San Carlos and Woodside to obtain recertification as an Urban County and jointly participate in the housing and community development programs through the County’s qualified “Urban County” designation. Copies of the sixteen Second Amendments to the Cooperative Agreements, which have been reviewed and approved by the County Attorney, are attached to the accompanying resolution. The Resolution delegates authority to the County Executive, or designee, to sign each of the sixteen amendments, and to make minor revisions, as needed, to conform to any administrative requirements of the individual non-entitlement cities. The formal deadline for submitting the fully executed Amendments to HUD is on August 10, 2026. Given this deadline, and due to the need for each legislative body to approve the Second Amendments, the amendments will be executed in counterpart. The Cities’ signatures will be obtained prior to DOH sending the amended Cooperative Agreements to HUD.
The County Attorney has reviewed and approved the accompanying resolution as to form.
COMMUNITY IMPACT:
CDBG, HOME, and ESG programs provide funding for a variety of housing and community development activities across unincorporated San Mateo County and its non-entitlement cities, including public services (e.g., home delivered meals for older adults, legal and eviction prevention services, food pantries), rehabilitation of multi-family affordable housing developments, minor housing repairs for single family homes owned and occupied by lower income families, support for homeless shelters and related services, and economic development. These programs target households and individuals earning less than 80 percent of the area median income.
FISCAL IMPACT:
There is no net County cost.