State Receives Additional $95 Million for Long-Term Disaster Recovery

Press Release

State Receives Additional $95 Million for Long-Term Disaster Recovery

Governor Mitch Daniels announced that Indiana will receive an additional $95 million in federal funding to help with long-term disaster recovery efforts for damage caused by federally declared natural disasters in 2008.

"Though we've had more than our fair share of severe weather and flooding over the past year, we will not let up in our efforts to help Indiana communities get back on track," said Daniels. "Indiana has always been a state where neighbors help neighbors, but if we can help supplement that assistance with some additional federal dollars, we'll absolutely do that."

The funding is provided through the U.S. Department of Housing and Urban Development's (HUD) Community Development Block Grant Program (CDBG) and represents a portion of the supplemental funding Congress appropriated in September for emergency disaster assistance in states affected by severe storms and flooding in 2008. The new funding can be used by the state for long-term recovery efforts for damage caused by any previous natural disaster which received a federal declaration this year. It is in addition to the $67 million the state was allocated in September that can be used exclusively for recovery efforts from damage caused by June storms and flooding.

The funds will be distributed through the Indiana Office of Community and Rural Affairs (OCRA). A specific plan for use of the $95 million will be outlined by OCRA in the coming weeks and will likely focus on unmet housing needs, including home buy-outs and aiding in low cost housing development as well as infrastructure revitalization projects not covered by other federal funds.

Per HUD's protocol for distributing funds, a final plan outlining proposed state use of the first $67 million the state was allocated in September will be issued for public comment tomorrow and then submitted to HUD for final approval. Once the plan is approved, communities and other qualifying organizations may apply for funding through OCRA and the Indiana Department of Homeland Security. The plan will focus on offsetting the local match requirements for communities participating in the Federal Emergency Management Agency's (FEMA) Public Assistance program and supplementing the funding available for communities to purchase homes through FEMA's Hazard Mitigation Program.

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