Two new programs developed by the Iowa Department of Economic Development (IDED) were recently approved by the U.S. Department of Housing and Urban Development (HUD). The programs will utilize Community Development Block Grants (CDBG) funds.

The Equipment Reimbursement Assistance Program (ERAP) provides funds to aid in the purchase of equipment for businesses that owned their own building or leased rental space during the 2008 disasters.

Read more for the details…

As the House adjourned the 2nd session of the 83rd General Assembly, the House Republican Research Staff put together an end of session wrap-up of notable bills in all committees.

2010 End of Session Wrap-up

Having awarded $799 million to Iowa for recovery from the 2008 natural disasters, the federal government performed a routine audit on the use of some of those funds. Specifically, they reviewed the State’s Jumpstart Business Assistance program and the roughly $14.9 million that program spent in Cedar Rapids.

The audit notes that “the Iowa Department of Economic Development (DED) was tasked with administering the disaster recovery activities of the State.” In regards to the Jumpstart program, it was to offer forgivable loans to businesses who reopened their doors within 12 months. The maximum loan was 25% of a disaster loan from an eligible lender, up to $50,000. DED contracted with the City of Cedar Rapids to administer the Jumpstart program. The City ended up subcontracting with the chamber of commerce for administration of the program.

The audit from the Inspector General’s office made two conclusions. First, the State provided disaster assistance fund to businesses without supporting their eligibility for funding. Second, the State failed to check for duplicate benefits before awarding disaster assistance funds.

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Iowans value local control and local decision making. SF 2265, the eco-friendly SMART planning bill, works against these founding principles. As it passed the Senate, the bill creates a permanent 31 member task force to investigate statewide urban and rural plan. The RIO office and the Department of Management provide the staff support.

Many feel the bill works against those cities that already paid $8,000 or up to $20,000 for a comprehensive plan. Others trust the planning already underway in many communities and through the existing regional COGS.

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Now that the intensity of the 2008 flood is over the RIO office is turning its attention to statewide planning.

Senate File 2265 is a RIO bill creating a permanent 31 member comprehensive planning task force. The bill also codifies “SMART” comprehensive planning principles for state, regional, county and city planning.

The “SMART” planning is a project management tool developed by psychologists as a tool to help set and reach goals. This model features goal setting that is specific, measurable, attainable, relevant and time-bound.

Concerns about this RIO bill are mounting. Continue reading…

As required by House File 64, the Rebuild Iowa Office (RIO) submitted their quarterly report on July 10. The report highlights accomplishments of the agency and provides updated information on progress benchmarks and the distribution of recovery funding.

The report identifies one of the key problems the State faces in recovering from such a large disaster. While many sources of funding for relief have been made available from the federal government, very few of the funding sources were designed with disaster relief in mind.

This results in difficulties and inefficiencies for state and local agencies attempting to administer funds that are not tailored specifically for the needs of disaster victims. Businesses and individuals seeking relief are often subject to duplicative reviews and benefits checking. In fact, the report identifies 30 different programs providing disaster recovery support from state and federal agencies.

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Recently, the Iowa Economic Development Board (IDED) announced it will extend the deadline businesses have to apply for financial assistance programs. Businesses that were damaged by the floods and tornados of last summer now have until July 31, 2009 to submit their applications for disaster recovery assistance.

The IDED Board decided yesterday how to allocate the department’s portion of the Fiscal Year 2010 Values Fund allotment. New guidelines governing the Values Fund, passed by the legislature last session, provide the IDED Board with more flexibility on how it designates the dollars it receives from the legislature. The new law that went into effect July 1st also provides them with the authority to shift funding for disaster assistance if necessary.

For more information, contact the the Rebuild Iowa Office at 866.849.0323.

As the House adjourned for the 1st session of the 83rd General Assembly, the House Republican Research Staff put together an end of session wrap-up of notable bills in all committees.

2009 End of Session Wrap-up

A bill analysis was uploaded for Senate File 44 – Local Option Sales Tax After Disaster. You can view that file here.

For more information on Republican thoughts on SF44, take a look at this document.

The House will take up this bill for debate at noon today.

From this week’s House Republican Newsletter:

House Passes Disaster Relief Bill

On Tuesday evening the legislature passed HF 64 by a vote of 98-0. The bill appropriated $56 million to the flood relief victims and codified the establishment of the Rebuild Iowa Office. Some of the specifics of the bill are below.

Jumpstart Plus The legislature appropriated $24 million to the Jumpstart program while at the same time expanding the eligibillity of the program. The current program is designed to assist home owners making 100% of the area median average and landlords. The bill assists those individuals making up to 150% of the area median average however it then limits the grant size to $24,999.

The legislature also established a priority process for distribution of the funds.

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