The Galveston City Council has adopted a plan for rebuilding public housing destroyed by Hurricane Ike, preventing the loss o millions in federal disaster funds, according to The Houston Chronicle:
The council unanimously adopted a plan similar to one Mayor Lewis Rosen and all but one of the six council members opposed during their election campaigns this year. The U.S. Housing and Urban Development Department had set a Saturday deadline for submitting a plan for rebuilding 569 Ike-damaged units or face the loss of $589 million in disaster funds and millions in other grants the city regularly receives.
The Texas General Land Office, which has been negotiating with the city on HUD’s behalf, cut off funds for new projects last week and threatened to force the city to pay back $56 million in already spent disaster funds if it failed to meet the deadline.
Galveston Housing Authority Chairman Buddy Herz told the council that he was ready to begin negotiations Wednesday with the Land Office on the newly adopted plan.