CEDAR RAPIDS - The U.S. Department of Housing and Urban Development (HUD) has approved Iowa’s $516.7 million action plan for disaster Community Development Block Grant (CDBG) funding.

The approval was granted when Governor Culver spoke with HUD Secretary Shaun Donovan Thursday in Washington, D.C.

“With this approval, we will soon be able to draw down more than a half-billion dollars in funds, allowing Iowa to complete all non-FEMA housing buyouts and continue to rebuild our homes, businesses, and communities,” said Governor Culver.

With Secretary Donovan’s approval, state officials, Councils of Government, and Entitlement Cities will begin the process of contracting for the allocation of the funds. However, it will still take time for those funds to be distributed.

This allocation brings Iowa’s funding from HUD’s CDBG disaster program to nearly $800 million to date.

Below is a summary of key components of the $516.7 million Action Plan:

$220,000,000 to Buyouts – These funds will be able to meet the non-FEMA buyout needs statewide, as identified by the COGs and Entitlement Cities. When combined with other CDBG allocations, the total available is $230 million.

$125,000,000 to Housing Production – These funds will be used to create new housing and rental units.

$75,000,000 to Business Assistance – These funds will be used to assist businesses damaged by the floods. When combined with other CDBG allocations, the total available to the state is $85,000,000.

$64,662,175 to Infrastructure – These funds will be used to rebuild Iowa’s damaged infrastructure. When combined with other CDBG allocations, the total available to the state is $122,412,175.

$10,000,000 to Flood Plain Mapping – These Funds will be used to create new flood plain maps, giving Iowans greater knowledge of the threats of flood dangers. When combined with other CDBG allocations, the total available to the state is $15,000,000.

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