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has an impact on eligibility for Community Development <br />Block Grants and on apportionment of funding among <br />eoolicants. First, with the exception of ~hree percent <br />s~ aside for the Secretary's discretionary fund, 80 <br /> <br />~o be allocated to metropolitan areas, which are defined <br />as S~-'..SA's, and 20 percent is allocated ~o nonmetropo!itan <br />areas. Therefore, as the number of S~SA's and countles <br />within SMSA's increases, the comoetition for the metropolitan <br />share of the funds increases. <br /> <br />By statute, in the allocation process almost all of <br />the metropolitan area funds (80 percent of the total) <br />go to "entitlement" communities which are cities with <br />ooou!ations above 50,000, urban counties (that is, counties <br />'~i%hin SMSA's) with populations above 200,000, or central <br />cities of SMSA's. The remarning metropolitan area funds <br />are available for the small cities program and are subdivided <br />by formula into shares for the metrooo~itan areas of <br />each State. <br /> <br />In comparison, only a small portion of the nonm~tropolitan <br />area funds (20 percent of the total) currently goes to <br />~entittement" (hold harmless) communities; as of fiscal <br />year 1980, there will be no bold harmless funding. These <br />nonmetropolitan area funds a~ailable to the small cities <br />program are subdivided by formula ihto shares for the <br />nonmefropolitan areas of-each State. <br /> <br />Thust metropolitan area funds and nonmetropolitan area <br />funds remain separate through the allocation process. <br />Small cor~munities in the metropolitan areas within a <br />State compete against each other for the State's share <br />of the metropolitan area funds, while small communities <br /> in the nonmetropo!itan areas within a State compete against <br />each other for that State's share'of the nonmetropo!itan <br /> <br />The statutory formulas for allocation and distribution of funds <br /> to metropolitan areas ~lso make use of the SMSA definition. <br />In these formulas the average of the ratios of population, <br />poverty, age of housing, and overcrowded housing in metropolitan <br />cities and urban counties to population, poverty, age of housing, <br />and overcrowded housing in metropolitan areas are used to <br />determine the amount of funding an applicant receives. Metro- <br />potitan cities in the numerators of these ratios are defined <br />as S.qSA central cities or cities with populations above <br /> <br /> <br />