HUD ACCEPTS ILLINOIS' $17 MILLION DISASTER RECOVERY PLAN
State will use CDBG funding to support housing buyouts and infrastructure needs

WASHINGTON - The U.S. Department of Housing and Urban Development today accepted a $17.3 million plan from the State of Illinois to support its recovery following last year's devastating floods. The emergency funding is provided through HUD's Community Development Block Grant (CDBG) Program and will help Illinois to buyout homes and support local infrastructure projects located in flood-prone areas.

Last summer, torrential storms caused several rivers to overrun their banks, inundating homes, businesses and infrastructure in 24 counties throughout Illinois. The $17.3 million recovery plan that HUD is accepting today is part of $186.5 million the Department has allocated to Illinois to support its long-term disaster recovery.

"HUD and the State of Illinois are working hand-in-hand to do the hard work of long-term disaster recovery," said HUD Secretary Shaun Donovan. "Often times, the best approach to recovery is making certain the next disaster isn't as devastating as the last. This is precisely the approach Illinois is taking."

Illinois intends to use its CDBG disaster recovery funding in the following manner:

Public Infrastructure Projects - $12,474,363

CDBG funds will be used to offset the 25 percent local match required by the Federal Emergency Management Agency (FEMA) to repair or replace infrastructure projects in flood-prone areas and for projects that FEMA or other sources cannot fund, but which are nevertheless critical to recovery. Examples include damaged water and sewer systems, storm drainage, levees, roads and bridges.

Housing Buyouts - $4,000,000

Illinois intends to use HUD funds to meet the 25% local match required for the FEMA home buyouts program in flood-prone areas.

Should funds become available, Illinois also intends to offer grants and low-interest loans to help affected businesses that were damaged during last year's floods. To read the full text of the State of Illinois' disaster recovery plan, visit HUD's website.

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