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Hcnntpin County Dopartmont of Transit & Community Works <br />Hennepin <br />417 North Fifth Street, Suite 320 <br />Minneapolis, Minnesota 55401-1362 <br />612-348-9260, Phone <br />612-348-9710,Fax <br />www.co.hennepin.mn.us <br />May 22,2002 <br />Mr. Ronald Moorse <br />City Administrator <br />City of Orono <br />PO Box 66 <br />Crystal Bay, MN 55323 <br />.e <br />• r. <br />Subject: Fiscal Year 2003-2005 Joint Cooperation Agreement <br />Dear Mr. Moorse: <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 quality 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 has proven successful, but it was 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 2003 - 2005 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 />An Equal Opportunity Employer Becycted Paper