HUD Archives: News Releases

HUD No. 08-116
Brian Sullivan
(202) 708-0685
For Release
August 4, 2008

First installment of disaster aid will help states in long-term recovery

WASHINGTON - Recognizing the tremendous needs of Midwest states following recent natural disasters, U.S. Housing and Urban Development Secretary Steve Preston today announced HUD will immediately allocate $100 million to Iowa, Indiana and Wisconsin.The emergency funding is provided through HUD's Community Development Block Grant (CDBG) Program and will help support the states' long-term disaster recovery and critical infrastructure needs.

Preston announced the following allocations among the three impacted states:Iowa, $85 million; Indiana, $10 million; and Wisconsin $5 million.HUD's initial calculations are based on preliminary estimates of total housing damage and business loss.The remaining funds will be allocated once more detailed data on unmet housing, business, and infrastructure loss become available.

"Families and communities need help now to rebuild their homes and lives," said Preston."Iowa, Indiana and Wisconsin suffered greatly.As we continue to study the impact of these storms, we intend to allocate the remaining disaster assistance as quickly as possible."

Congress recently appropriated $300 million in emergency disaster assistance and directed HUD to allocate the funding based on each state's unmet needs.Understanding that Midwestern states must begin their long-term disaster recovery planning, HUD allocated a third of the emergency funds as quickly as possible based on the Department's initial damage assessment. HUD will allocate the remaining $200 million when it completes a more thorough study of each state's unmet needs.

HUD's analysis is focusing on each state's unmet housing, business and infrastructure needs.It is likely it will require several more weeks before enough data is available, allowing HUD to make certain the remaining funding is allocated to States with the greatest needs. HUD will shortly publish a notice providing guidance to these states and to assist them in their long-term recovery planning, particularly as they relate to meeting the tremendous housing needs of their citizens. Once these local action plans are developed, they will be provided to HUD for review.

Since 1974, HUD's Community Development Block Grant (CDBG) Program has allocated approximately $120 billion to state and local governments to target their own community development priorities. CDBG is one of HUD's oldest and most flexible programs. The rehabilitation of affordable housing and construction of public facilities and improvements have traditionally been the largest uses of the grants, although CDBG is also an important catalyst for job growth and business opportunities.


HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet and

Content Archived: May 14, 2010