Nearly $300k in federal funding for local assistance programs still on hold

September 9, 2020 | 12:09 am

Updated September 8, 2020 | 10:03 pm

The City of Owensboro is currently accepting applications for low-income renters and  small businesses that are in need of financial assistance due to being impacted by COVID-19. | Graphic by Owensboro Times

Nearly $300,000 in federal funding set to be dispersed in Owensboro has been put on hold due to computer software issues faced by Louisville’s Department of Housing and Urban Development (HUD). 

Roughly $294,000 was split up to help low-income citizens needing rental assistance and small business owners needing assistance, according to Community Development Director Abby Shelton. 

“We executed those agreements and sent them back to HUD but, now, apparently they’re having problems with programming on their side,” Shelton said. 

The programs were submitted to HUD online, Shelton said. The Louisville office workers found that when opening the programs from the City of Owensboro, the information they received didn’t match what was sent. 

“So the budget is backwards,” she said. “They’re reviewing that. There’s another city that’s going through the same thing, so I don’t know if it’s just luck of the draw … but, anyway, we’re waiting on plan approval and we can’t release funds or do any contracts until it happens.” 

The Louisville HUD office administers the federal side of things for Owensboro, Shelton said. They are the ones who review the plans for approval. The office would have to fix their software before those funds could be dispersed.

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September 9, 2020 | 12:09 am

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