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3.7.2 Why HUD is updating its "auto -renewal" policy for Urban County agreements HUD is aware that some Urban Counties have Cooperation Agreements that have not been reauthorized or re -executed for many years. This was not the intent of HUD's policy on "auto -renewal" for agreements, and intergovernmental agreements should be revisited, reauthorized, and re -executed more frequently, given changing conditions at the local level. Furthermore, automatic renewal of Cooperation Agreements and Joint Agreements was not provided for, or mentioned, in the HCDA of 1974, as amended, or CDBG regulations at 24 CFR 570.307. HUD is modifying its "auto -renewal" policy for Cooperation Agreements and Joint Aeements to re -align the Urban County qualification process more closely with the intent of the HCDA of 1974, as amended. HUD is retaining "auto -renewal" of agreements under a new policy, after careful consideration, to allow flexibility for large Urban Counties that may have many Participating UGLGs (and therefore, many Cooperation Agreements to reauthorize and re -execute). 3.7.3 HUD's new "auto -renewal" policy for Urban County agreements HUD's new policy aligns with HUD's original intent by limiting the time an "auto -renewal" agreement may be in effect. Urban Counties and participating governments may also no longer use amendments to extend their agreements for an indefinite amount of time without reauthorizing and re -executing the entire Cooperation or Joint Agreement. Per the new policy, Auto -Renewal Cooperation Agreements and Joint Agreements matey "automatically renew" for one three-year qualification period after the initial three-year period. This means an "auto -renewal" agreement may only be in effect for a total of six fiscal years qualification periods). After that six -year period, the Urban County and Participating UGLG (or the Metropolitan City for Joint Agreements) must reauthorize and re -execute a new agreement. New Auto -Renewal Agreements, under the new policy, also must list the fiscal years they are effective, with an end'date for the agreements. To align this Notice with the new "auto -renewal" policy, HUD: • modified the definitions of Auto -Renewal Cooperation Agreement or Joint Agreement and Amendment (Attachment 2); • modified the "auto -renewal" and "amendment" language in HUD's list of requirements and sample language for Cooperation Agreements (Attachment 3); and • ensured that HUD's new list of requirements and sample language for Joint Agreements (Attachment 4) reflects this policy. 21 577