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Letter Requirements and CDBG Program Participation Options for UGLGs UGLGs in requalifying Urban Counties will be in a variety of scenarios during an Urban County's requalification year, depending on the relationships and legal authorities between the Urban County and its UGLGs. For example, when Urban Counties are requalifying, some UGLGs will be: • Participating UGLGs in the Urban County in its current qualification period (either in a Cooperation Agreement or not, depending on "essential powers.") • Nonparticipating UGLGs in the Urban County in its current qualification period. • "Split places," which have unique CDBG program participation options because their jurisdictions are in multiple counties. if your Urban County has "essential powers" in UGLGs (applies to few states UGLGs are automatically included as participants in your Urban County —unless they ask to be excluded from the Urban County. If these UGLGs do not respond to your Urban County Participation Decision Letter, they will be included in your Urban County (even if they chose to be a Nonparticipating UGLG during the last qualification period). They must opt out of each qualification period. ifyour Urban County does not have "essential powers" in UGLGs: UGLGs must choose to join your Urban County and must execute a Cooperation Agreement. If these UGLGs do not respond to your Urban County Participation Decision Letter, they cannot be included in your Urban County. Regardless of each UGLG's specific situation, your Urban County must a) contact all UGLGs (except current independent Metropolitan Cities/CDBG Entitlements) to notify them of their CDBG program participation options for your Urban County's upcoming three-year qualification period and b) request their participation decisions in a response letter by the deadline set in the Urban County Qualification Deadlines posted on the HUD Exchange Urban Counties website. CDBG Program Participation Options for UGLGs currently in Cooperation Agreements with your Urban County (currently Participating UGLGs) Continue as a Participating UGLG in your Urban County by renewing their Cooperation Agreement for the upcomingthree-year hree-qualification period. This means submitting a newly -executed agreement OR auto -renewing the agreement, per HUD's "auto -renewal" policy. (Please note again that the new "auto -renewal" policy outlined in SECTION 3.7 will take effect in FY 2027.) 2. Opt out of being a Participating UGLG in your Urban County by terminating or not renewing their Cooperation Agreement for the upcomingthree-year qualification period. After opting out, an UGLG may choose to seek State CDBG program funding as a Non -Entitlement UGLG OR not participate in the CDBG program altogether. 17 573