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Agenda Item 3 <br />Staff Originator Mary Vaske <br />Date May 19, 1998 <br />Topic Opportunity for Communities to Withdraw from the 1999- <br />2001 Community Development Block Grant and Home <br />Programs <br />Background <br />Anoka County has been notified by HUD that it is time for a new three year cycle <br />of Community Development Block Grant (CDBG) and HOME Programs. HUD <br />requires that the County give the communities an opportunity to "opt -out" of the <br />programs at the beginning of each three -year cycle. <br />A community's decision to withdraw from the program reduces the County's <br />CDBG population count and entitlement amount and technically is effective for <br />three years, until June 30, 2002. Anoka County can exercise the option to invite <br />a community that has "opted -out" of the program to participate in the second or <br />third year. <br />If the City of Lino Lakes wants to "opt - out" and have its population <br />excluded from Anoka County's total for the CDBG and HOME Programs we <br />must provide this in writing to the County and HUD no later than June 5, <br />1998. <br />All of the communities executed Joint Cooperation Agreements for 1987 that will <br />automatically renew and continue in effect so long as there is a CDBG Program <br />and they do not elect to withdraw. This agreement has been amended to include <br />the HOME Program. If we choose to remain included in the Urban County, we <br />are notified of the following: <br />1. The city is ineligible to apply for grants under the HUD- Administered Small <br />Cities or State CDBG programs while part of the Urban County. <br />2. The city can only participate in the HOME Program through the Urban <br />County. <br />Options. <br />1. Continue to stay in the Urban County CDBG Program through the 1999 <br />2002 grant years. <br />"Opt-out" of the Urban County CDBG Program through the 1999 -2002 <br />grant years. <br />Recommendation <br />