CEDAR FALLS -- Mayors of Iowa's flood-damaged cities are worried restrictions on state-administered federal housing dollars will prevent them from helping many flood-stricken homeowners.

Cedar Falls Mayor Jon Crews said he and the other mayors are hoping to meet with Gov. Chet Culver next week to discuss ways to get some of the $85 million in federal block grant money flowing to flood victims needing to make repairs as cold winter weather sets in.

Crews believes state officials' interpretation of federal guidelines is logjamming that money.

"Some of the state's interpretations are making it more restrictive," Crews said. "We want to talk to the governor's office about some ways to hopefully make it more user friendly and able to get that money out to our people."

As it stands now, he said, " We don't think we're going to be able to use much of that money."

Waterloo Community Development Coordinator Nancy Gulick, who is processing flood relief applications for homeowners, said the proposed rules need to be revised or many may go without assistance.

"It's a huge concern for us," Gulick said. "We're not trying to get around any federal rules -- we work with them all the time -- we just want to help the most people."

Crews said mayors of the five large flood-stricken cities -- Waterloo, Cedar Rapids, Cedar Falls, Iowa City and Des Moines -- and representatives from the regional councils of governments distributing funds, including the Waterloo-based Iowa Northland Regional Council of Governments, have been meeting regularly on flood matters.

At issue now is some $85 million in state-administered federal block grant money available for residential flood relief and how that should be applied.

Proposed guidelines would require the entire home to be brought up to federal housing standards, including costly lead paint abatement, if any of the federal dollars are awarded to a homeowner.

Funding caps and a shortage of lead abatement contractors would make that impossible in many cases.

The mayors would like to see a portion of that money available for emergency repairs go to basic items like furnaces, "rather than have them do the whole house, as long as it's going to be healthy and safe to move back in," Crews said.

"We want to meet with the governor and some of his staff and say, 'Here's some things we need to adjust to make it work," Crews said. "It's not going to bring everyone up to pre-flood (standards), but lift up everyone possible and help them recover."

Gulick noted one Waterloo flood victim who received funds to replace a furnace from the Federal Emergency Management Agency, but couldn't turn it on until the home's electrical service is repaired.

"All she needs is her electrical work done," Gulick said. "Why do we need to bring the whole house up to code so she can get her furnace turned on?"

Time is at a premium winter approaching, Crews indicated. In Cedar Falls, he said, "we had 220 housing permits taken out in the flood plain by the end of September. Now we're into November."

Some homeowners are hoping for reimbursement for repairs already made, he noted.

"The process is very complicated and very confusing," INRCOG executive director Sharon Juon said.

"What (the Iowa Department of Economic Development) wants us to do is to not only repair the flood work -- which is obviously everyone's priority -- but bring all those houses up to code," she said. "Yet, we're limited to $66,000 per house. On top of that, we also have lead abatement.

"Our contention is there are people that have emergency needs we need to get to right away. If we have to bring them up to code, and do lead abatement, $66,000 isn't going to cut it.

"We commend the state for their intentions," Juon said, "but we're very concerned we're not going to be able to spend their money in a timely fashion," or at all. "We might have to turn down some homeowners because we can't bring them up to code and abate the lead for $66,000. Plus we don't have enough lead inspectors in this area; we don't have enough contractors licensed for lead abatement."

Juon agreed with Crews that time is of the essence for emergency repairs with winter coming.

And there's a need. Within INRCOG's own six-county area -- Black Hawk, Bremer, Butler, Buchanan Grundy and Chickasaw counties -- the agency has received 335 applications for residential flood assistants with state Jumpstart money. To date, the agency has bene able to help 39 of those applicants with almost all of its $1.6 million in state Jumpstart money spent.

INRCOG also is working with five additional Northeast Iowa counties on flood assistance.

Juon said the mayors and COGs want to make the governor aware of the situation. And she said their concerns are not intended as a criticism of Iowa DED. "They're trying very hard to work with us," Juon said, and anticipate and "mesh" traditional federal requirements with local needs. Crews said local state lawmakers also have been made aware of the situation.

Gulick said another concern with the federal guidelines involves money for down payment assistance.

Under the state's Jumpstart program, homeowners waiting for a possible buyout could get up to $50,000 for a new home, knowing the money would be deducted from the buyout when it occurred.

Under the federal rules, Gulick said, "they can't be assisted until they have a contract with the city to buy their house, and that won't happen until June."

The city of Waterloo used the state Jumpstart housing dollars to assist 32 flood victims. About 170 other homeowners have filled out applications so far, hoping to be funded through the federal portion.

Contact Tim Jamison at (319) 291-1577 or Tim.Jamison@wcfcourier.com