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Item 4J memoCITY OF SOUTHLAK- MEMORANDUM July 30, 2014 To: Shana K. Yelverton, City Manager From: Ken Baker, Senior Director of Planning and Development Services Subject: Resolution No. 14-034 — Participation in the Tarrant County consortium for the Community Development Block Grant (CDBG) HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) Entitlement funding through 2017 Action Requested: Approve Resolution No. 14-034, a resolution to continue to participate in the Tarrant County consortium for the Community Development Block Grant (CDBG) HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) Entitlement funding programs through 2017. Background Information: Tarrant County is eligible to receive U.S. Department of Housing and Urban Development (HUD) entitlement grant funds by having a combined population of 200,000 or more from unincorporated areas and participating municipalities. Tarrant County however must qualify once again as an Urban County, as defined by the Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) programs, by meeting the criteria mentioned previously. Entitlement counties must re -qualify every three years to maintain funding status. Although not necessarily seeking funding from these programs, the City of Southlake has historically been a part of the Tarrant County consortium in order to assist Tarrant County in qualifying for the entitlement funding. In order to ensure Tarrant County's eligibility for the programs, a resolution agreeing to continue participation in the consortium needs to be passed by the City. Participating Municipalities in the Tarrant County Consortium (2012-2014): City of Azle City of Haltom City City of Richland Hills City of Bedford City of Haslet City of River Oaks City of Blue Mound City of Hurst City of Saginaw City of Burleson City of Keller City of Sansom Park City of Crowley City of Kennedal City of Southlake City of Dalworthington Gardens Town of Lakeside City of Watauga City of Euless City of Lake Worth Town of Westworth Village City of Everman City of Mansfield City of White Settlement City of Forest Hill City of North Richland Hills City of Grapevine Town of Pantego Financial Consideration: N/A City Council Meeting Meeting Date — August 5, 2014 Page 2 of 6 Strategic Link: Partnerships & Volunteerism Legal Review: This resolution will be reviewed by the City Attorney and has been forwarded to the City of Southlake by the Tarrant County Commissioners Court Administrators Office. Staff Recommendation: Staff recommends the approval of the resolution to continue to participate in the Tarrant County consortium. Supporting Resolution No. 14-034 Document: 2 City Council Meeting Meeting Date — August 5, 2014 Page 3 of 6 RESOLUTION #14-034 RESOLUTION REGARDING CITY OF SOUTHLAKE PARTICIPATION IN TARRANT COUNTY'S COMMUNITY DEVELOPMENT BLOCK GRANT, HOME INVESTMENT PARTNERSHIP AND EMERGENCY SOLUTIONS GRANT CONSORTIUM FOR THE THREE PROGRAM YEAR PERIOD, FISCAL YEAR 2015 THROUGH FISCAL YEAR 2017. WHEREAS, Title I of the Housing and Community Act of 1974, as amended through the Housing and Community Act of 1992, establishes a program of community development block grants for the specific purpose of developing viable communities by providing decent housing and suitable living environment and expanding economic opportunities principally for persons of low and moderate income, and WHEREAS, Title 11 of the Cranston -Gonzalez National Affordable Housing Act, as amended, establishes the HOME Investment Partnership Act to expand the supply of decent, safe, sanitary and affordable housing for very low-income and low-income Americans, and WHEREAS, Tarrant County has been designated an "Urban County" by the Department of Housing and Urban Development entitled to a formula share of Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) program funds provided said County has a combined population of 200,000 persons in its unincorporated areas and units of general local government with which it has entered into cooperative agreements, and WHEREAS, Article 111, Section 64 of the Texas Constitution authorizes Texas counties to enter into cooperative agreements with local governments for essential Community Development and Housing Assistance activities, and WHEREAS, the City of Southlake shall not apply for grants under the State CDBG Program from appropriations for fiscal years during the period in which it is participating in Tarrant County's CDBG program, and WHEREAS, the City of Southlake shall not participate in a HOME consortium except through Tarrant County, regardless of whether or not Tarrant County receives a HOME formula allocation, and WHEREAS, through cooperative agreements Tarrant County has authority to carry out activities funded from annual Community Development Block Grant (CDBG), HOME Investment Partnership (HOME) and Emergency Solutions Grant (ESG) Program Allocation from Federal Fiscal Years 2015, 2016, and 2017 appropriations and from any program income generated from the expenditure of such funds, and WHEREAS, Tarrant County and the City of Southlake agree to cooperate to undertake, or assist in undertaking, community renewal and lower income housing assistance activities, and WHEREAS, Tarrant County will not fund activities in, or in support of, any cooperating unit of general local government that does not affirmatively further fair housing 3 City Council Meeting Meeting Date — August 5, 2014 Page 4 of 6 within its own jurisdiction or that impedes the county's actions to comply with the county's fair housing certification, and WHEREAS, Tarrant County will not fund activities in support of City of Southlake that does not 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 WHEREAS, the City of Southlake has adopted and is enforcing 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 WHEREAS, the City of Southlake has adopted and is enforcing 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, and WHEREAS, Tarrant County and the City of Southlake shall 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, including Title VI of the Civil Rights Act of 1964, and Title VIII of the Civil Rights Act of 1968, section 109 of Title I of the Housing Community Development Act of 1974, and other applicable laws, and WHEREAS, prior to disbursing any CDBG, HOME and ESG Program funds to a subrecipient, Tarrant County shall sign a written agreement with such subrecipient, and WHEREAS, the City of Southlake agrees to inform the county of any income generated by the expenditure of CDBG funds received and that any such program income must be paid to the county to be used for eligible activities in accordance with all CDBG, HOME and ESG Program requirements, and WHEREAS, in accordance with 24 CFR 570.501(b), Tarrant County is responsible for ensuring that CDBG, HOME and ESG funds are used in accordance with all program requirements, including monitoring and reporting to U.S. Department of Housing and Urban Development on the use of program income and that in the event of close-out or change in status of the City of Southlake, any program income that is on hand or received subsequent to the close-out of change in status shall be paid to the county, and WHEREAS, in accordance with 24 CFR 570.501(b), Tarrant County, as the recipient is responsible for ensuring that CDBG funds are used in accordance with all program requirements. The use of designated public agencies, subrecipients, or contracts does not relieve Tarrant County of this responsibility. Tarrant County is also responsible for determining the adequacy of performance under subrecipient agreements and procurement contracts, and for taking appropriate action when performance problems arise, such as the actions described in §570.910. Where a city is participating with, or as part of Tarrant County Urban County, as a participating unit, or as part of a metropolitan city, the County is responsible for applying to the unit of general local government the same requirements as are applicable to subrecipients, except that the five-year period identified under §570.503 (b) (8) (i) shall begin with the date that the unit of general local government is no longer considered by HUD to be a 4 City Council Meeting Meeting Date — August 5, 2014 Page 5 of 6 part of the metropolitan city or urban county, as applicable, instead of the date the subrecipient agreement expires. WHEREAS, the City of Southlake agrees to notify Tarrant 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, and further agrees to reimburse the County in an amount equal to the current fair market value (less any portion thereof attributable to expenditure 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, and WHEREAS, any money generated from disposition or transfer of property will be treated as program income and returned to the county prior to or subsequent to the close-out, change of status or termination of the cooperation agreement between county and the City of Southlake; WHEREAS, Tarrant County and City of Southlake may not sell, trade, or otherwise transfer all or any portion of such funds to another such 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, but must use such funds for activities eligible under title I of the Act in the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2014, Pub. L. 113-76. NOW, THEREFORE, BE IT RESOLVED, by the City of Southlake, that the City Council of Southlake, Texas supports the application of Tarrant County for funding from Housing and Community Development Act of 1974, as amended, and Cranston -Gonzalez National Affordable Housing Act, as amended, and asks that its population be included for three successive years with that of Tarrant County, Texas to carry out Community Development Program Activities Eligible for Assistance under Public Law 93-383, and Affordable Housing activities under Public Law 101-625, and authorizes the Mayor of Southlake, Texas to sign such additional forms as requested by the Department of Housing and Urban Development pursuant to the purposes of the Resolution, and further that the City of Southlake, Texas understands that Tarrant County will have final responsibility for selecting projects and filing annual grant requests. BE IT FURTHER RESOLVED, this agreement will automatically be renewed for participation in successive three-year qualification periods, unless Tarrant County or the City of Southlake provides written notice it elects not to participate in a new qualification period. Tarrant County will notify the City of Southlake in writing of its right to make to such election on the date specified by the U.S. Department of Housing and Urban Development in HUD's urban county qualification notice for the next qualification period. Any amendments or changes contained within the Urban County Qualification Notice applicable for a subsequent three-year urban county qualification period must be adopted by Tarrant County and the City of Southlake, and submitted to HUD. Failure by either party to adopt such an amendment to the agreement will void the automatic renewal of this agreement. This agreement remains in effect until CDBG, HOME, ESG funds and income received to the fiscal 2015, 2016, 2017 programs, and to any successive qualification periods provided through the automatic renewal of this agreement, are expended and the funded activities completed, neither Tarrant County nor the City of Southlake may terminate or withdraw from the agreement while the agreement remains in effect. City Council Meeting Meeting Date — August 5, 2014 Page 6 of 6 Official notice of amendments or changes applicable for a subsequent three-year urban county agreement shall be in writing and be mailed by certified mail to the City Secretary of the City of Southlake. Any notice of changes or amendments to this agreement by the City of Southlake to Tarrant County shall be in writing to the Tarrant County Community Development Division Director. ATTEST: CITY SECRETARY PASSED AND APPROVED THIS 5T" day of August, 2014 APPROVED: MAYOR Commissioners Court Clerk County Judge Approval Form for District Attorney Approved as to Form* *By law, the District Attorney's Office may only advise or approve contracts or legal documents on behalf of its clients. It may not advise or approve a contract or legal document on behalf of other parties. Our review of this document was conducted solely from the legal perspective of our client. Our approval of this document was offered solely for the benefit of our client. Other parties should not rely on this approval, and should seek review and approval by their own respective attorney(s). I