Cities complain rules keep money from Iowa disaster victims - KWWL - Eastern Iowa Breaking News, Weather, Closings

Cities complain rules keep money from Iowa disaster victims

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CEDAR RAPIDS, Iowa (AP) -- City officials say they're frustrated that rules imposed on government funding are making it harder to distribute disaster recovery funds to homeowners.

Cedar Falls Mayor Jon Crews says his city is having a hard time seeing how it can distribute assistance earmarked for flooding and natural disaster victims to citizens.

He says he has spoken with officials from Cedar Rapids, Iowa City, Waterloo and Des Moines and that they are seeking a meeting with Gov. Chet Culver to discuss state government's interpretation of guidelines for millions of dollars in federal Community Development Block Grant money designated for housing assistance.

State Director of Economic Development Mike Tramontina says the state is working with the federal government to see what changes can be made to ease the process.

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