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-2- <br />Properties must, as a minimum, be brought into compliance with HUD <br />Housing Quality Standards for Section 8 Existing. <br />Owners must agree not to convert the property to condominiums and not <br />to discriminate against subsidized tenants for 10 years. <br />Rental subsidies will be provided from two federal funding sources -- the Section 8 <br />Existing program and the new housing voucher demonstration program. The Section 8 <br />certificates and vouchers will be available to households with incomes below 50% of <br />the area median. <br />Program Funding <br />The program will be administered both by cities and states. In Minnesota only <br />St. Paul, Minneapolis, Duluth and Hennepin County are eligible to receive direct <br />allocations of funds. The remainder of the eligible cities may participate only <br />under the auspices of a state -level administrator. <br />States may choose not to administer the program, in which case the HUD area office <br />will competitively select from among the eligible cities and administer the program <br />directly. <br />The act excludes from Rental Rehabilitation Program eligibility, all cities and areas <br />which are eligible to receive assistance from the Farmer's Home Administration under <br />Title V of the new housing bill. Therefore, only the following areas in Minnesota <br />are eligible: <br />Albert Lea Rochester <br />Austin St. Cloud <br />East Grand Forks Sartell <br />Hibbing Sauk Rapids <br />LaCrescent Virginia <br />Mankato Winona <br />Moorhead <br />Municipalities in counties in the Twin Cities MSA, as <br />indicated below: <br />All of Ramsey and Washington Counties <br />Anoka Co. except St. Francis <br />Carver Co. except Cologne, Hamburg, New Germany, Waconia <br />and Watertown <br />Dakota Co. except Farmington, Hampton, Miesville, New Trier, <br />Randolph and Vermillion <br />Scott Co. except Belle Plaine, Elko, Jordan, New Market and <br />New Prague <br />Entitlement cities in Minnesota will receive $1,065,800 in Rental Rehabilitation grant <br />funding and approximately 213 Section 8 certificates /vouchers. The state -level <br />administrator will receive $778,700 in grant funding and approximately 155 certificates/ <br />vouchers. <br />Administrative Requirements <br />Administrators must comply with a number of standards in administering the program: <br />28 <br />