Loebsack Announces Nearly $517 Million in Community Development Block Grant Funding for Iowa’s Rebuild Efforts

Washington, DC – June 10, 2009 – (RealEstateRama) — Today, Iowa received an additional $516.7 million in Community Development Block Grant (CDBG) funding. The total CDBG funding allocated to Iowa has been made available through the two 2008 Emergency Appropriations Acts which Congressman Dave Loebsack helped spearhead last fall in response to last summer’s flooding.

“On my trips back to the district, I have been moved by the will and spirit of Iowans. These funds will help our struggling families and small businesses, and give them the tools they need to move forward,” stated Congressman Loebsack.

Congressman Loebsack worked with the new 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 today, 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 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. Today’s announcement means several hundred million dollars will be provided for Iowa’s severely flood-damaged communities in the Second District including Linn, Johnson, and Louisa counties.

“Working closely with HUD, I made sure that Iowa’s case was heard and will continue to do so as Iowans travel on the road to long-term recovery. This funding is the largest influx of money that the state has seen for its recovery efforts, and it clearly will go a long way toward helping our communities recover and rebuild,” noted Congressman Loebsack. “As our families struggle to move forward, it is essential that we distribute these funds without delay to our communities. One of the communities that will benefit significantly from these funds is Linn County, whose citizens are still coping with severe damage to their homes, businesses, and infrastructure.

“This brings the total CDBG funds that Iowa has received since the floods of last summer to $798 million. While nothing can replace the loss of our personal items and memories, this funding will help repair and revamp our flood-ravaged communities. I will continue to make the recovery and rebuilding of our communities my top priority and to make sure that Washington recognizes and understands the long-term recovery needs of Iowa. I will continue my efforts to advocate on behalf of the people of Iowa. Iowans are the hardest working people in America, and together we can rebuild.”

Contact: Sabrina Siddiqui 202-226-6476
Sabrina.Siddiqui (at) mail.house (dot) gov