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Y' Hennepin County Department of Transit&Community Works <br /> N 417 North Fifth Street,Suite 320 612-348-9260,Phone <br /> Minneapolis,Minnesota 55401-1362 612-348-9710,Fax <br /> -�: www.co.hennepin.mn.us <br /> May 22, 2002 <br /> Mr. Michael Morrison <br /> Manager <br /> City of St. Anthony <br /> 3301 Silver Lake Road <br /> St. Anthony,MN 55418 <br /> Subject: Fiscal Year 2003-2005 Joint Cooperation Agreement <br /> Dear Mr. Mornson: <br /> Accompanying for your review and execution is the Urban Hennepin County Joint Cooperation <br /> Agreement for FY 2003 —2005. The agreement sets forth broad shared powers for carrying out <br /> housing and community development activities. The U.S. Department of Housing and Urban <br /> Development(HUD)requires the agreement in order for Hennepin County to qualify as an <br /> urban county and receive Community Development Block Grant(CDBG) and HOME <br /> Investment Partnership Program (HOME) entitlement funds. <br /> A draft gray-line copy of the agreement is enclosed,which details all revisions to the current <br /> agreement. There are several significant changes. The first deals with the need for"timely" <br /> expenditure of funds. This relates to the HUD requirement that unexpended CDBG funds <br /> cannot total more than 1.5 times the last grant allocation. The hard work of municipal and <br /> county staff to meet this expenditure goal have proven successful, but it is felt advisable to <br /> provide additional flexibility to address this problem and to avoid financial penalty in the future. <br /> One of these changes reduces the time for implementing activities from 24 months to 18 months. <br /> Another change is to increase the county administrative fee from 10 to 13 percent of the grant <br /> total to offset increasing county property tax expenditures for this purpose. Additionally,this <br /> administrative fee will include a set aside for countywide fair housing efforts. <br /> As a community participating in the Urban Hennepin County Program, your city would not be <br /> eligible in FY 2000—2002 to apply for grants under the small cities or state CDBG programs. <br /> Your community will automatically participate in the Hennepin County HOME Program and <br /> will not be eligible to receive HOME funds through the state or other consortiums. <br /> Your city is considered a split place by HUD,because a portion of the city's population is <br /> outside of Hennepin County. By executing this agreement the entire city population will be <br /> included in the Urban County Program. <br /> An Equal Opportunity Employer Recycled Paper <br />