TO: MAYOR AND CITY COUNCIL MEMBERS, CITY OF CHINO
FROM: WARREN MORELION, AICP, DIRECTOR OF DEVELOPMENT SERVICES
SUBJECT
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Cooperation Agreement with the County of San Bernardino for Housing and Urban Development Community Planning and Development Grants.
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RECOMMENDATION
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1) Adopt Resolution No. 2026-041 approving the Cooperation Agreement between the City of Chino and the County of San Bernardino for Housing and Urban Development Community Planning and Development grants for Program Years 2027-28, 2028-29, and 2029-30, including one automatic three-year renewal for Program Years 2030-31, 2031-32, and 2032-33, unless terminated in accordance with the agreement; 2) approve the accompanying Community Development Block Grant City-County Delegate Agency Agreement; and 3) authorize the City Manager or designee, to execute all related documents.
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FISCAL IMPACT
The net fiscal impact over the three-year term of this agreement is difficult to quantify. The City will recognize a reduction in CDBG administrative funds, however, will benefit from increased funding opportunities to HOME and ESG-funded programs such as the County’s rapid-rehousing program.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above furthers the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Public Service Excellence through Internal and External Partnerships
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BACKGROUND
The City of Chino currently receives Community Development Block Grant (CDBG) funds directly from the U.S. Department of Housing and Urban Development (HUD) as an entitlement community but does not receive direct HOME Investment Partnerships Program (HOME) or Emergency Solutions Grant (ESG) allocations.
San Bernardino County qualifies as a HUD Urban County and receives direct CDBG, HOME, and ESG funding. The proposed Cooperation Agreement would allow Chino to participate in the County’s Urban County program beginning in Program Year 2027-28. Under the agreement, the County would administer the City’s HUD Community Planning and Development grants, including CDBG, and provide access to County-administered HOME and ESG resources.
Information on the Urban County program was shared with the City Council Housing Committee at their April meeting.
ISSUES/ANALYSIS
Participation in the Urban County program would shift primary HUD program administration responsibilities from the City to the County. The County would be responsible for preparing and submitting required HUD planning and reporting documents, including the Consolidated Plan, Annual Action Plans, Citizen Participation Plan, Consolidated Annual Performance and Evaluation Reports (CAPERs), and related documents. The County would also provide technical assistance, compliance support, and oversight for City-implemented CDBG projects including consultant support to ensure compliance with federal prevailing wage requirements.
Although the County would become the formal grantee and administrator, and the County Board of Supervisors would retain final authority over the disposition and distribution of funds, the Cooperation Agreement preserves meaningful local input over Chino’s priorities. The Cooperation Agreement provides that, to the greatest extent feasible, CDBG funds will be allocated to the City based on proportional demographics for eligible activities and projects prioritized by the City. Staff anticipate that the City Council would continue to review and approve proposed CDBG projects and public service allocations before those recommendations are submitted to the County.
The City would remain responsible for selecting local projects and programs, implementing approved CDBG-funded activities, tracking outcomes for reporting purposes, and complying with applicable federal requirements. County authorization would be required before funds are obligated or project costs are incurred.
Additionally, participation in the Urban County program would provide the City with access to County-administered HOME and ESG resources. HOME funds would not be guaranteed, but eligible affordable housing projects could compete for funding through the County’s local Notice of Funding Availability process. Chino residents and service providers may also benefit from County ESG-funded homelessness programs, which include homelessness prevention, rapid rehousing, emergency shelter, street outreach, and related services.
The primary benefit of participating in the Urban County program is reduced administrative burden. The City would no longer be responsible for preparing its HUD Consolidated Plan, Annual Action Plans, CAPERs, and related entitlement documents. The City may also benefit from the County’s experience administering HUD programs and the efficiencies of a larger regional program.
The primary drawback of participating in the Urban County program is reduced direct control. During the term of the Cooperation Agreement, Chino would no longer receive its CDBG allocation directly from HUD, and City-prioritized projects would be subject to County approval. However, the City would continue to identify local funding priorities.
The Cooperation Agreement covers Program Years 2027-28 through 2029-30 and automatically renews for one additional three-year period, through Program Year 2032-33, unless either the City or County elects to terminate at the conclusion of the initial three-year term. The Cooperation Agreement may not be terminated during the term.
Staff believes that participation in the Urban County program will provide administrative efficiencies and regional funding opportunities that support the City’s housing, community development, and homelessness response goals. The Cooperation Agreement has been reviewed and approved by the City Attorney’s Office.
If approved, the City’s CDBG allocation would be administered through the County’s Urban County program beginning in Program Year 2027-28. The County may use allowable planning and administrative fees and project implementation fees for program administration.
The City would continue to incur staff costs associated with local project selection, public service funding recommendations, project implementation, reporting, reimbursement processing, and compliance. Eligible administrative and project delivery costs may be reimbursable with CDBG funds, subject to program requirements and approval.
Attachment - Resolution 2026-041