Preston accepts $10 million Indiana Disaster Recovery Plan

HUD funding to help State buy flood damaged homes and develop green spaces

WASHINGTON, D.C. - October 22, 2008 - (RealEstateRama) — U.S. Housing and Urban Development Secretary Steve Preston today accepted a $10 million disaster plan from the State of Indiana to recover from severe storms, tornadoes and flooding earlier this year. Indiana intends to use the funding provided through HUD’s Community Development Block Grant (CDBG) Program to acquire and demolish substantially damaged residential properties contained within a flood plain or floodway and to redevelop the area into permanent green space for community use.

“These funds will help Indiana to redevelop flood-prone areas into attractive green spaces and open areas in some of the State’s most affected counties,” said Preston. “HUD will continue to work very closely with Governor Daniels and his staff to support long-term sustainable recovery throughout the State.”

In August, HUD allocated $10 million in supplemental CDBG funds to Indiana to support the State’s long-term disaster recovery and critical infrastructure needs. In addition, HUD will shortly make $200 million in additional allocations to Midwestern States when the Department completes a more thorough study of each state’s unmet needs.

The Indiana Housing and Community Development Authority (IHCDA), in coordination with the Indiana Department of Homeland Security (IDHS) will offer grants to communities in 42 counties to acquire and demolish substantially damaged residential properties contained within a floodplain or floodway. Once the local units of government purchase these properties, they will use HUD’s funding to redevelop the area into permanent green space for community use.

Local communities must initiate these programs and property acquisitions must be agreed to by individual homeowners. Interested communities must submit a joint grant application to IDHS. Once a property is approved for purchase, the Federal Emergency Management Agency (FEMA) will cover 75 percent of the acquisition cost with the remaining 25 percent to be paid by the local unit of government, which can use CDBG funding to offset its match requirement. Priority will be given to communities with the greatest needs considering the concentration of affected individuals and financial need of each local unit of government.

Contact:
Brian Sullivan
(202) 708-0685

 

 

 

 

USGBC - U.S. Green Building Council

HUD - U.S. Department of Housing and Urban Development

NAR - National Association of REALTOR

RealtyTrac

FHFA - Federal Housing Finance Agency

Freddie Mac

MBA - Mortgage Bankers Association