(a) Group A. Eligibility requirements for Group A shall be as follows:

1. (1) To be eligible for program aid, a COG shall comply with the following requirements:

   1. (i) The COG membership shall consist of at least two municipalities each of which shall have entered into a formal agreement or arrangement in forming the COG.
   2. (ii) The COG shall be organized to continuously address itself to matters of areawide concern.
   3. (iii) If the COG is formed to carry out a functional program, at least 2/3 of the COG membership shall participate in the program. Where a COG has only two members mutual consent shall be required.
2. (2) To be eligible for program aid it is not necessary that a grouping of municipalities be formally known as a COG.