FOR IMMEDIATE RELEASE: June 16, 1997
CONTACT: Dana Hagerty 202/225-2165
WASHINGTON, DC -- Congressman Collin C. Peterson (DFL-7th District) applauded Sunday's announcement by Housing and Urban Development Secretary Andrew Cuomo of $50 million in expedited assistance for the flood damaged communities of Minnesota.
"In the weeks before Congress acted on the flood relief bill, Secretary Cuomo and I worked together to develop an action plan so that funds could flow quickly once the bill was passed," Peterson said. "Sunday's announcement of emergency Community Development Block Grant (CDBG) funds came 72 hours after the bill was signed by the President, and I think he and the people at H.U.D. deserve our praise and thanks for acting so quickly.
"This is long awaited news that should relieve some of the financial pressures and allow all of our flood damaged communities to start rebuilding with some renewed confidence. I am very pleased that this first $50 million of disaster assistance is coming to Minnesota so quickly.
"This is the same amount of money that's going to Grand Forks, North Dakota and it's more than I expected," Peterson said. "People need to know that Grand Forks is an entitlement community, so their check will go directly to the City of Grand Forks. In Minnesota, the damaged communities are not entitlement communities, so the money will go to Department of Trade and Economic Development (DTED), and it will be up to them to allocate it.
"I've met with the Governor's people several times, and they understand that this money was in the bill because of the damage in East Grand Forks, Breckenridge, the rural communities along the Red River Valley, as well as Ada and Warren," Peterson continued. "I expect the state to move this money quickly to our affected communities."
These emergency CDBG funds are to be used for long-term recovery efforts, property buyouts, relocation, and efforts to prevent future flood damage. Communities will have a great deal of flexibility in their use of these funds, including 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 downpayments assistance and interest rate subsidies; code enforcement; clearance and demolition; and assistance to business for carrying out economic development activities for job creation and retention.
"CDBG is a very flexible program, and it provides an excellent method for putting resources and decision making in the hands of Minnesota's state and local officials", Peterson said. "This will help us move our planning process along faster, and give us the best opportunity to keep our flood damaged communities together and rebuilding."