HUD threatens Galveston with loss of funds

Newly elected Galveston Mayor Lewis Rosen will imperil hundreds of millions of dollars in federal disaster money if he proceeds with a plan to halt the rebuilding of public housing damaged by Hurricane Ike, federal housing officials said in a letter received by the city Tuesday.  “Please be aware that city actions that impede or limit the rebuilding of 569 replacement units will likely lead to adverse consequences” for disaster recovery money and other federal housing funds, said the July 1 letter, signed by three assistant secretaries of the U.S. Department of Housing and Urban Development. The letter refers to $586 million allocated to the city to help rebuild homes damaged or destroyed by the hurricane.

- Houston Chronicle

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