Wednesday, September 3, 2008
Harkin, Grassley Urge HUD to Release Disaster Funding for Iowa Housing Needs
Iowa Senators Tom Harkin and Chuck Grassley today urged the U.S. Department of Housing and Urban Development (HUD) to take the actions necessary to release funding that was allocated to Iowa on August 4 for disaster-related needs. In a letter to HUD Secretary Steve Preston, the lawmakers expressed concern about the delay in releasing emergency Community Development Block Grant Program (CDBG) funding, which can be used for home buyouts, public infrastructure projects and flood mitigation.
The senators said it has been more than two months since the Congress passed and the President signed supplemental appropriations legislation providing $300 million in CDBG disaster funding. $85 million of the first $100 million of that funding has been specifically allocated to Iowa, but it cannot be spent until HUD releases a notice of funding availability and then approves a state plan that outlines where the dollars would go.
"Iowans should not have to wait a minute longer for this funding. These federal dollars will help Iowans begin to rebuild their lives following our state’s historic flooding," said Harkin. "This funding was approved and signed into law over two months ago and the time is long overdue for these dollars to be put to use by families and communities devastated by the floods."
"We’re going to stay on top of the federal bureaucracy to make sure it delivers the funding that’s been commited to Iowa’s recovery by Congress and the President. Those federal dollars then go to the state of Iowa and can flow directly to communities as soon as the state’s work plan is finalized," Grassley said. "The Community Development Block Grant program has proven to be an effective tool in helping local leaders pursue development and redevelopment initiatives that are specifically tailored to their communities."
The full text of the letter follows:
September 3, 2008
Mr. Steve Preston
Secretary
U.S. Department of Housing and Urban Development
451 7th Street S.W.
Washington, DC 20410
Dear Mr. Preston:
There is ever growing frustration with the slow pace of actually having HUD funding available to help with disaster relief in Iowa. Saturday marked two full months after the Congress passed and the President signed supplemental appropriations providing $300 million in CDBG disaster funding. On August 4th HUD allocated the first $100 million of $300 million of those funds.
As you know, prior to the release of those funds, HUD must produce a notice of funding availability (NOFA) containing the waivers that will be allowed for the use of funds. Then, the states will have to respond with plans for the expenditure of those funds which will have to be agreed to by HUD. Iowa hopes to respond as quickly as possible with a plan but the speed of its delivery with HUD will depend on the precise content of the NOFA. We are aware that HUD and the states have been having discussions about the content of the NOFA.
We ask that the NOFA be released as soon as possible and that the state be given as much information about the draft NOFA as possible.
We believe there is a desperate need for this assistance to be made swiftly available to provide initial help to beneficiaries. As you would expect the buildup of need for immediate funding assistance has been growing every day.
We appreciate your quick action on our request.
Sincerely,
_____________________________ _____________________________
Tom Harkin Charles Grassley
United States Senator United States Senator
