CUOMO ANNOUNCES $900,000 GRANT FOR CHICAGO UNDER HUD DISASTER RECOVERY INITIATIVE

WASHINGTON -- Housing and Urban Development Secretary Andrew Cuomo today announced a $900,000 grant to Chicago under HUD's Disaster Recovery Initiative to help the city recover from severe rainstorms and flash flooding that hit the area last August, leaving many homes and businesses damaged.

The grants were authorized under disaster relief legislation signed into law by President Clinton in June.

"No amount of money can erase the devastation caused by the severe storm in Chicago, but this assistance can help speed recovery efforts," Cuomo said. "The Clinton Administration and all Americans stand with the people of Chicago in our determination to rebuild from the damage caused by this disaster."

"The damage caused by the storm last August was extensive," said Senator Carol Moseley-Braun. "Federal assistance is necessary to help Chicago repair past damage and prepare for future calamity."

Congressman Luis Gutierrez said: "The HUD assistance to communities in the 4th Congressional District that were affected by flooding will be extremely important. The federal assistance provided FEMA, the Small Business Administration and now HUD has been invaluable to the people I represent."

Congressman Danny Davis said: "I commend Secretary Andrew Cuomo and the Department of Housing and Urban Development for coming to the aid of Chicago and Cook County residents who suffered tremendous losses during the flood last August. This is a prime example of government working for the people."

Congressman Rod Blagojevich said: "HUD officials have worked quickly and efficiently to ensure that this new infusion of disaster relief money would be available to Chicago area homeowners and businesses. The investment will enable them to continue repairing the damage from last summer's heavy flooding and allow them to take much-needed steps to protect against future flood damage."

Funds under the HUD Disaster Recovery Initiative can be used for long-term recovery efforts, property buyouts, relocation of residents and businesses and efforts to prevent future flood damage. The program gives communities great flexibility in meeting local needs quickly.

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.

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