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ITEM 8.c. TOWN OF FOUNTAIN HILLS STAFF REPORT Meeting Date: 6/16/2026 Meeting Type: Town Council Regular Meeting Submitting Department: Administration Prepared by: Rachael Goodwin, Town Manager Staff Contact Information: Phone: 480-816-5166 Email: rgoodwin@fountainhillsaz.gov Request to Town Council Regular Meeting (Agenda Language) CONSIDERATION AND POSSIBLE ACTION: Approving Resolution 2026-17, a Cooperation Agreement between the Town of Fountain Hills and Maricopa County, for participation in the Community Development Block Grant (CDBG) Program. Staff Summary (background) Background The Community Development Block Grant (CDBG) Program is a federal program administered by the U.S. Department of Housing and Urban Development (HUD). Maricopa County administers the Maricopa Urban County CDBG Program for eligible municipalities that are not direct CDBG entitlement communities. Through the Urban County structure, eligible cities and towns may be included in the County’s consolidated planning process and may remain eligible for County-administered CDBG-related programs, subject to applicable program requirements and funding availability. Prior Council Action The Town initially joined the Maricopa Urban County CDBG Program in 2017. The Town Council subsequently approved continued participation through three-year renewals in 2020 and 2023. The 2026 action is consistent with those prior Council actions and would continue the Town’s participation for the next three-year period, July 1, 2026 through June 30, 2029. For this cycle, Maricopa County has provided a new Cooperation Agreement rather than another amendment so that each participating municipality has a clean and complete agreement reflecting current HUD requirements. Current Action The proposed Cooperation Agreement would continue the Town’s participation in the Maricopa Urban County CDBG Program for the 2027, 2028, and 2029 HUD program years. Approval of the agreement does not guarantee that CDBG funding will be awarded to the Town or to any specific Town project. However, participation keeps the Town and eligible residents within the County-administered CDBG framework and preserves the opportunity for the Town, or qualifying Fountain Hills residents, to benefit from eligible County-administered programs when available. A key benefit of continued participation is that Maricopa County remains responsible for the primary administrative, planning, filing, and reporting requirements associated with the Urban County CDBG Program. Approval of the Cooperation Agreement itself does not require a Town appropriation, local match, or expenditure of Town funds. It also does not commit the Town to administer a specific project or program. The agreement does include standard cooperation and federal compliance provisions associated with participation in the Urban County CDBG Program. If a future CDBG-funded Town project or activity were proposed that required Town resources, that item would be evaluated separately at that time. CDBG Program Context CDBG-funded programs are generally targeted to low- and moderate-income persons, households, or qualifying areas. Because Fountain Hills does not have the same concentration of low- and moderate-income areas as some other parts of the County, the Town is less likely to qualify for larger area-based municipal infrastructure projects, such as street, sidewalk, water, sewer, ADA accessibility, lighting, or other public facility improvements, unless the specific service area for the project satisfies applicable CDBG eligibility requirements. For context, Maricopa County’s CDBG Program has supported or proposed similar types of improvements in other Urban County communities, including roadway improvements, curb and gutter repairs, ADA sidewalk ramp improvements, sewer service line replacement, waterline replacement, neighborhood lighting improvements, fire safety equipment, public service programs, emergency shelter services, and owner-occupied housing rehabilitation. These examples illustrate the range of eligible CDBG uses in qualifying communities and service areas, but they should not be interpreted as an expectation that Fountain Hills would qualify for similar municipal infrastructure funding. For Fountain Hills, the more practical benefit of continued participation may be preserving eligibility for qualifying individual residents located throughout the community. One example is Maricopa County’s Emergency Home Repair Program, which assists eligible low-to moderate-income homeowners with urgent health and safety repairs. Based on information provided by County staff, Fountain Hills residents who have used this program have typically received assistance with HVAC-related repairs or replacements. The program is income- qualified and subject to eligibility requirements, including household income and asset limitations, so relatively few Fountain Hills residents are expected to qualify. However, County staff has verbally advised Town staff that approximately six Fountain Hills residents over the past six years, or roughly one resident per year, have been able to use the Emergency Home Repair Program because the Town participated in the Urban County CDBG Program. County staff indicated those residents would not have been eligible if the Town were not participating in the program. Continued participation may also provide flexibility in unusual or emergency circumstances. During the COVID-19 pandemic, qualifying Fountain Hills residents were able to apply for and receive County-administered rental and utility assistance through COVID-related funding. Continued participation helps maintain the Town’s inclusion in the County- administered framework so that eligible residents may access similar assistance programs if funding and program criteria allow in the future. For these reasons, staff recommends continued participation. The agreement has no direct fiscal impact to the Town, maintains eligibility for potential future CDBG-related opportunities, and may help qualifying residents access County-administered assistance programs, including emergency assistance programs when available. Related Ordinance, Policy or Guiding Principle A.R.S. § 11-952; HUD Community Development Block Grant Urban County participation requirements. Risk Analysis Approval of the Resolution and Cooperation Agreement would continue the Town’s participation in the Maricopa Urban County CDBG Program for the next three-year cycle. There is no direct cost to the Town to approve the agreement, and participation may provide access to future County-administered CDBG-related opportunities for the Town or qualifying residents. If the Town does not approve the Cooperation Agreement, the Town would not participate in the Maricopa Urban County CDBG Program for the 2027-2029 program period. This could make the Town and qualifying Fountain Hills residents ineligible for certain County- administered CDBG-related programs and assistance during that period. Recommendation(s) by Board(s) or Commission(s) N/A Staff Recommendation(s) Staff recommends Council adoption of the resolution. Suggested Motion MOVE TO APPROVE Resolution 2026-17 FISCAL IMPACT Fiscal Impact: There is no direct fiscal impact associated with approving the Cooperation Agreement. Approval does not require a Town appropriation, local match, or commitment of Town funds. Any future project or activity requiring Town resources would be reviewed separately. Budget Reference: N/A Funding Source: N/A ATTACHMENTS 1. Town of Fountain Hills Notification for UC CDBG LOI 2. Resolution_2026-17_CDBG-and_Cooperation_Agreement