When flags of States, cities, or localities, or pennants of societies are flown on the same halyard with the flag of the United States, the latter should always be at the peak. When the flags are flown from adjacent staffs, the flag of the United States should be hoisted first and lowered last. No such flag or pennant may be placed above the flag of the United States or to the right of the flag of the United States (the viewer's left). When the flag is half-masted, both flags are half-masted, with the US flag at the mid-point and the other flag below.
US Flag Code.
The President can render to governor's the right to lower US Flag to Half Staff. Done on regular basis.
Some locals do it without asking.
Church Pennant
The Church Pennant is the only flag ever flown over the National Ensign at the same point of hoist. It is displayed during church services conducted by a Chaplain, both ashore and afloat.