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m !0 on Block 'gran~. The u=e of S:.~SA's to define metropolitan J{'~'~{~" ..... areas can affect the compet~£~n for grants awarded rd ~'~.. small cities. Also, changes in S~4S~ boundaries ~=~ raise or lower .~be mediCn family income used ~o define low income ~ami!ies ahd can affect the ratios used to allocate funds. Furthermore, chang es in SMSA's can indirectly affect an applicant's'eligibility for Block Grants, in that an applicant ls required to demonstrate compliande. with the requirements of OMB Circular NO. A-95. In so doing, the applicant submits his proposal so a clearinghouse . {:.~:.. defined bv SMSA boundaries. --:~:' ComPrehensive P!anein~ Assistance Pro, ram. Under this Proqram,'States, local governments, ~cropclltan and non- metropolitan clearinghouses, councils of governments, and Indian tribes may apoly for grants to SUPPOrt comorehensive planning for urban and rural development. The legal ~uthority for the Program is derived from Section 701 of the Housing Act of 1954 (P.L. 83-560} and the ~ousing and Community Develop- ment Act of 1974 (P.L. 93-383). By statute, the grant -~' cannot exceed two-thirds of the total cost of the work, which may include such activities as improving management caoabilities, developing energy conservation plans, develop- ::~? and assessing transportation needs. The Program encourages ...... planning "relating to all the developmental aspects of the total metropolitan area;" metropolitan area is defined ,.~.,~ in the statute as an SMSA, subjec~ to modification by the Secretary of HUD. HUD divides appropriations first into separate metropolitan and nonmetropolitan allocations and then divides the al!oca- tions among the 10 regions across the country. While formulas for allocation of appropriations are not specified by law or regulations, the ~egional 'metrooo!itan allocation is determined by sum-~,ing the .ratios of population, poverty, housing deficiencies, and number of agencies 'in the region's .':-'.~:.::- SMSA's to these same factors in all SMSA's nationwide. The sum of these ratios is then divided by four to derive ~-a given region's metropolitan allocation. A region's .v::.:...... nonmetroDolitan allocation uses a similar formula, sub- ~'!'~'!~':" stitutin~ figures for the nonmetropotitan areas in the region and nonmetropolitan areas nationwide. An agency :::::::' applies for mouey from one of the 20 portions, depending on on its region and SMSA status. '" Changes in S~.~SA definitions could affect the size of a crant ..::.' allocation, depending upon the housing stock end population iiL:.:.'.. characteristics of the counties added to or eliminated from SMSA's. Furthermore, classification of agencies may be changed from metropolitan to nonmetropo!itan or vice versa, i~!i~'.:' thereby affecting the method for receiving ccmprebensive