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The pooling of CDBG and HOME funds has been occurring in Ramsey County since 1991, as Hennepin County is proposing, funds are awarded on a competitive basis. St. Anthony has been participating in Ramsey County's program since then. Ad with Ramsey County, St. Anthony will need to put together a grant proposal and submit it for consideration if the City wants CDBG funding for a project. Funds will be awarded based upon the merits of the project, the importance/impact of the project to 'the community and the number of eligible criteria the project meets. In talking with Barbara Hayden and Mark Hendrickson, both with Hennepin County, they indicated that cities who do not wish to participate as Cooperating Units will be able to submit grant applications for CDBG funds to the State. They both said that cities choose to do so will have little or no chance of securing funds because they would be competing with cities from out-state Minnesota. Most of these cities are rural and the State views them as having a greater need than those cities in the metro-area. Mark Hendrickson also indicated that St. Anthony should consider staying divided between Ramsey and Hennepin counties. He said that presently, we would be able to submit proposals to both counties, thereby increasing the odds that we would be awarded funding by at least one county and very possibly both,counties. Mark also said that St. Anthony may not be able to request exclusion from Ramsey County's program until the end of the qualification period. The end of the qualification period for Ramsey County isn't until Summer, 1997. RECOMMENDATION: Staff recommends the following: 1. Execute the participation agreement. 2. To participate as part of each county based on the population residing in each county.