04272010 - News Article - Clay: D.C. meeting positive despite feds still saying no - City will use its block grant funds for demolition of dilapidated houses, commercial properties

Clay: D.C. meeting positive despite feds still saying no
City will use its block grant funds for demolition of dilapidated houses, commercial properties 

Post-Tribune (IN)
April 27, 2010 

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GARY -- Mayor Rudy Clay went to Washington last week searching for answers from the U.S. Housing and Urban Development agency. 

Clay considered the meeting a positive one, although the end result stayed the same -- no new HUD stimulus cash for the city. 

The city hoped to receive a share of $1.93 billion in HUD's Neighborhood Stabilization Program. Gary had applied for $25 million in HUD stimulus money grant for the demolition of 900 abandoned homes and about 200 empty commercial buildings. 

Clay and U.S. Sen. Evan Bayh met with HUD Secretary Shaun Donovan Friday to ask why Gary failed to win a $25 million grant to demolish houses and buildings on the city's east side. 

On Monday, Clay said Gary will be eligible to reassign as much as $7 million in Community Development Block Grant money for demolition, and Community Development Director Jacquelyn Drago - Hunter will work with HUD to meet all necessary deadlines. 

Gary has until Sept. 13, Clay said, to reassign the first $2 million for demolition. 

Though it isn't the $25 million the city originally sought, Clay still called his meeting in 

Washington productive."It's all about tearing houses down," Clay said. "It also will create jobs."