$517 million coming for Iowa's rebuild efforts - KWWL - Eastern Iowa Breaking News, Weather, Closings

$517 million coming for Iowa's rebuild efforts

Posted:
CEDAR RAPIDS (KWWL) - Iowa received an additional $516.7 million in Community Development Block Grant (CDBG) funding Wednesday. The total CDBG funding allocated to Iowa has been made available through the two 2008 Emergency Appropriations Acts in response to last summer's flooding.

Lawmakers worked with the Department of Housing and Urban Development (HUD) to alter the formula that penalized Iowa in the first allocation of CDBG funding. In the most recent allocation, Iowa received less than 6% of the CDBG funds allocated. Under the reworked formula, Iowa, competing with 11 eligible states, received 14% of the CDBG funding. In addition to the funds that are allocated this time, Iowa will be eligible to receive funding from a merit based revenue stream of $311 million. The $311 million will reward long-term recovery planning.

"After the last HUD allocation, which was unacceptable, I went to work in Washington. I made sure that Administration and HUD officials understood what was happening on the ground in Iowa, and fought for Iowans to receive their fair share," noted Congressman Dave Loebsack. "Iowa received under 6% of the total funding from the last allocation, and this time, we have more than doubled Iowan's share and received 14%."

These funds are critical to the long-term recovery of Iowa's communities, particularly to areas such as Cedar Rapids, Palo, Iowa City, and Oakville. Cedar Rapids alone suffered billions of dollars in damage.

This brings the total CDBG funds that Iowa has received since the floods of last summer to nearly $800 million. While nothing can replace the loss of personal items and memories, this funding will help repair and revamp flood-ravaged communities.

Online Producer: Jason Mortvedt

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