CUOMO SAYS MINNESOTA COMMUNITIES GET $92 MILLION IN GRANTS UNDER NEW HUD DISASTER RECOVERY INITIATIVE

Cuomo announced the aid totals on a visit today to East Grand Forks, which was hit hard by winter storms and heavy spring flooding. The announcement came at East Grand Forks Town Hall, after Cuomo completed a walking tour of the flood-devastated area with Mayor Lynn Stauss.

Cuomo said $20,469,522 in grants is going to East Grand Forks and the remaining $71,541,507 is going to Minnesota state government for distribution to communities around the state. The direct aid to the state includes $50 million announced previously by Cuomo. The grants were authorized under disaster relief legislation signed into law by President Clinton in June.

"No amount of money can erase the terrible devastation caused by severe winter storms and massive spring flooding in Minnesota, but this assistance can help speed recovery efforts to create stronger and better communities," Cuomo said. "The Clinton Administration and all Americans share the goal of Minnesotans to rebuild from the damage caused by this disaster as completely and quickly as humanly possible."

Funds under the new HUD Disaster Recovery Initiative can be used for long-term recovery efforts, property buyouts, relocations and efforts to prevent future flood damage. The initiative will give communities great flexibility in meeting local needs quickly.

The HUD assistance will supplement aid from the Federal Emergency Management Agency and other federal agencies.

Communities can use HUD funds for: rehabilitation of residential and commercial buildings; acquisition, construction or reconstruction of public facilities and improvements, including streets, neighborhood centers, and water and sewer facilities; homeownership assistance, including downpayment assistance and interest rate subsides; building new replacement housing; code enforcement; and assistance to businesses for carrying out economic development activities for job creation and retention.

Within Minnesota's grant, the following cities and counties have been designated as priority areas for assistance: Ada, Big Stone County, Breckenridge, Chippewa County/Montevideo, Polk County, Norman County, Moorehead and Warren/Marshall County.

In addition to the above areas, the following counties are eligible for HUD grants because they were designated disaster areas by President Clinton: Aitkin, Anoka, Becker, Beltrami, Benton, Blue Earth, Brown, Carver, Cass, Clay, Clearwater, Cottonwood, Dakota, Douglas, Faribault, Freeborn, Goodhue, Grant, Hennepin, Houston, Hubbard, Jackson, Kandiyohi, Kittson, Lac Qui Parle, Lake of the Woods, Le Sueur, Lincoln, Lyon, Mahnomen, Martin, McLeod, Meeker, Morrison, Murray, Nicollet, Noble, Otter Tail, Pennington, Pipestone, Pope, Ramsey, Red Lake, Redwood, Renville, Rock, Roseau, Scott, Sherburne, Sibley, St. Louis, Stearns, Steele, Stevens, Swift, Todd, Traverse, Wabasha, Wadena, Waseca, Washington, Watonwan, Wilkin, Winona, Wright and Yellow Medecine.

Senator Paul Wellstone said: "This is an important step in helping the entire East Grand Forks community to rebuild and to move forward with their lives. I am very pleased that the federal government is able to provide this much-needed assistance."

Congressman Collin C. Peterson said: "I want to thank Secretary Cuomo for what he has done today for the City of East Grand Forks. I also expect that the additional funds he has directed to Breckenridge, Ada, Warren and Moorehead will help ease the financial burden in these and other flood damaged communities throughout the Red River Valley."