State could lose HUD funds

Iowa could feel the pinch if Congress proceeds with its proposed budget cutsfor the Department of Housing and Urban Development, or HUD. Steve Shelleyis a spokesman for the Iowa HUD office in Des Moines and says Iowa’s lostfunding could be in the millions of dollars.Shelley says Congress proposes cutting 1-point-6 billion dollars from theHUD budget, which means HUD will have less money to filter down to thestates. He says Iowa could lose more than 12-million dollars in HUD “block”grants.Shelley says block grants are very popular in many cities nationwide. NineIowa cities are considered “entitlement” cities for the grants: Cedar Falls,Cedar Rapids, Council Bluffs, Davenport, Des Moines, Dubuque, Iowa City,Sioux City and Waterloo.Block grants are often used for programs like: low-income housing, homerepairs, home downpayments, street & water repairs and business start-ups.Shelley says some block grants go toward creating jobs — he says more than athousand jobs would NOT be created in Iowa under the budget cut proposals.