|
|
Congressman Dave Loebsack announces new developments with CDBG Funds |
| Posted: August 13, 2009 |
WASHINGTON DC – Today, Congressman Dave Loebsack announced that $517 million in Community Development Block Grant (CDBG) funds allocated to Iowa in the last round of disaster funds are now available for State application. Additionally, the Department of Housing and Development (HUD) has now published information on the additional $311 million in CDBG funds that should benefit Iowa. The Congressman is also proud to announce that several waivers of CDBG restrictions were granted by HUD, including extending the three month limit on interim mortgage assistance to up to twenty months.
“As we rebuild Iowa, this movement with an additional $517 million in CDBG funds and HUD waivers are big strides forward,” said Congressman Loebsack. “While the road to recovery is long, I will continue fighting for Iowans who are still reeling from the effects of last summer’s floods.”
The total CDBG funding allocated to Iowa has been made available through the two 2008 Emergency Appropriations Acts which Congressman Loebsack helped spearhead last fall in response to last summer’s flooding. With this latest influx in CDBG funds, this brings the total CDBG funds for Iowa to nearly $800 million. Now that the funds are available, the state can now send their Disaster Action Plan to HUD for approval, and outline how they will spend the funds. Upon approval the State can begin budgeting and implementing the plans outlined in their Disaster Action Plan.
Additionally, Iowa can now be certain of how to obtain a portion of the additional funding from a merit based fund of $311 million. The $311 million fund will reward forward thinking long-term recovery planning.
In addition to the availability of CDBG funds, the Congressman was able to work with HUD to waive three restrictions on CDBG funds the Governor’s office had previously requested. Due to several issues with disaster relief funding, CDBG funds have restrictions that often impede rebuilding efforts. In response to the Congressman’s inquires and letters, HUD will waive the three month limit on interim mortgage assistance, among others.
“After the floods of last summer, thousands of homeowners were displaced throughout the state. As many families struggle to maintain dual residences while waiting to find out what will happen to their family home, we must do everything we can to aid them,” said Congressman Loebsack. “A few weeks ago, I wrote to HUD Secretary Donovan urging him extend mortgage assistance for Iowa families. I am pleased that HUD has granted an extension of interim mortgage assistance for up to twenty months– greatly reducing the burden placed on our flood ravaged communities.”
|