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I I ! I I I I i I I ! I I I ! I I I I devel~t needs. Sinoe 1981 ~ dollars may also be loaned or granted to finance private development ooets related to buildin] o0~structio~ and equi~ment acquisition that benefits low i~ persons or prevents blight. Where is it bein~ used and how much money is in%Dlved?--Oorgress designed fIBG in 1974 to replace several ir~ffectual urban renewal programs whose funding had primarily gc~e to large cities. These cities became '.entitled'. to receive ~pecific amounts of CE~G. ~he nine entitlement cities ar~ counties in Minnesota have received $356,600,257 frcm 1974 to 1983. According to H3D, in 1984 the followir~ entitle~ent cities ar~ counties recei~_=d $31,789,450 in C[BG funds (D~kota Oounty beca~ an :entitlement: ocunty in 1984)~ Local Unit Anoka Oounty $ 2, Bloomington $ 475, Duluth $ 2,890, ~mepin Oounty $ 2,981, Mim~apolis $14,867, Moc~bead $ 298, Bochester $ 493, St. Cloud $ 500, Saint Paul $ 7,945, Dakota Gounty $ 1,338, Sc~ smaller cities which had been major recipients of urban renewal funds prior to ~ were '.beld ha~m]ess', for the first five years of the CDBG grants and therefore also automatically received some of the ~ allocation ($26,519,000 fr(~ 1975 to 1979). ~he rest of the allocation, appr~i~tely 30 percent of the total ~ distributed in Mirnesota, has been distributed to small cities wlD apply ar~ ~c~_pete for the funds. A pool of $21,689,000 in C~BG ~ (about 40 l~rcent of the total block 9rant to Minnesota in 19~4) ~s available fc~ _~11 cities on a oc~petitive basis last year. The state awarded grants to about 26 cutstate local governments. Of th~ total granted to small cities, abcut $5.4 million of the mo~ey was used in downtown revitalization projects, about ~4.3 million for housing rehab, ar~ about ~4.6 million for sewer and water improv~nts. Proposed charges.--~ Beagan administration proposes $3.1 billion for the 1986 C~BG program, a 10 percent reduction fr~ the 1985 level. It would also change the distribution of (DBG fur~, giving a larger share of the money to the small city program, and correspondingly less to the large city/urban county program. B) Urban Develc~ment ~tion Grant (UI~G) What it is.--(h~ress designed UIAC~ to eh=outage private real estate investment in cities experie~irg economic distress. Eligible cities apply to ~ for a ~ g~ant which they tf~n lc~n to the de~aloper. The federal government requires that UI~%G mo~ey be a loan of last resort~ private financing for the project must exceed the UII%G amount by a factor of at least two and a half. The m~%ey can be used for cleara_~e, site imp~, provision of infrastructure, rehab and oonstruction of c~=_rcial, industrial, ar~ mixed-use develops_ ~ _~ts. Mo~ey that cities a~quire fr~ th~ repay~nt of tte loans may be used for future de~loim~nt loans or in other ways cor~istent with UE~G objectives.