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I I I I I I I Volume 13, Number 2 Jan uary, 1986 Small City UDAG Program Undergoes Change HUD revised their minimum standards of eligibility for the Small City Urban Development Action Grant (UDAG) program and published a revised list of small cities in Minnesota that are now eligible to apply for UDAG grants. The revised distress standards and eligibility list were published in the Federal Register on October 22, and will be in effect for the next application cycle that begins on January 1, 1986. New Minimum Eligibility Standards of Distress The revised minimum standards for distress are based on data from the Census Bureau and the Department of Labor's Employment Training Administration. The revised standards are based on 1982 population, 1981 per capita income, 1980 housing and poverty, and 1982 retail and manufacturing employment data. To qualify as distressed, a small city must meet three of the following minimum standards of physical and economic distress: at least 20.6 percent of the applicant's housing units must have been constructed prior to 1940; the net increase in per capita income from 1969 to 1981 must have been $5,467 or less; the rate of population growth between 1970 and 1982 must have been 3.4 percent or less; the rate of growth in retail and manufacturing jobs between 1977 and 1982 must have been 3.4 or less for cities of 25,000 or more; and the small city must either be entirely within or partially within an area which meets the criteria for designation as a labor surplus area as of October 1984. In small cities where the percentage of poverty is less than half the minimum standard. the city must meet four standards. New UDAG Eligible Cities in Minnesota A total of 471 small cities in Minnesota are now eligible for the UDAG program. This represents a net gain of 54 over the previous list published last year. The 7 cities listed below were dropped from the new eligibility list: Coates Richmond Madison Lake Florence Solway Halma Taconite I I I I I I I I I I These cities listed below were added to the 1985 eligibility list: Appleton Becker Benson Big Lake Bird Island Bricelyn I I Buhl Butterfield Clara City Cleveland Climax Coleraine Crookston Crosslake Darwin Dassel Easton Elizabeth Ellsworth Elrosa Elysian Eveleth Fountain Foxhome Franklin Good Thunder Grand Rapids Grove City Hartland Hector Heidelberg Hendrum Hermantown Hibbing Isanti Isle Ivanhoe Kasota Keewatin LaFayette . LeCenter ~ Po ~ (""~' Litchfield ~, $:-- ~ . Lyle ~ 'v ~ Milaca ~ /~:..,-," Minnesota Lak~\ /)~" Montevideo . .' >- Morristown Morton New Prague Osakis Pease Princeton Sleepy Eye' Storden Tenney Utica Waldron Waterville Winn ~. \';> t' ./-""'" UDAG Grant Application Cycle The application cycle for the Small Cities UDAG program starts every 4 months. The next deadline for application is January 1. 1986. Before a city can submit a UDAG application it must first prepare and submit a preapplication to confirm eligibility to the Minneapolis Area Office. All 61 new eligible cities in Minnesota were already mailed the preapplication materials. Cities listed above that did not receive a notification from HUD or that would like help in completing it are asked to call the HUD Area Office at (612) 349-3019. ,- \ HOUSINGANDCOMMUNl'l'YDEVELOPMENTBlUEFSiBajoint pubJicationoftheLeague of Minnesota Cities, the Department of Energy and Economic: Development, the Minnesota Housing FiIIance Agency, and the Minnesota Chapter 01 the NationalAaociation of Housing and Redevelopment 0f6cia1s. Prepared by the DepartmeDl of Energy and Economic: Development, 8th Floor, American Center BlIilding, 180 E. Kellogg, St. Paul, MN 85101. Michael Auger, Editor (618) 886-8394. LeuelB, articles and suggestions from reade18 are welcome.