Audit: Federal funds for flood recovery in Hamburg misused

HAMBURG, Iowa — A new report from the State Auditor’s Office revealed that federal funding sent to Hamburg after a devastating flood was misspent.

In 2019 a levee failed, causing water from the Missouri River to pour into town. The flooding damaged nearly every single building.

According to the audit, the federal funding intended to help demolish some of the damaged homes was instead used on buildings that didn’t qualify. State Auditor Rob Sand also said that the city kept poor records of the funds, making it difficult to identify where the money went.

Sand also claims there was a possible conflict of interest. According to the audit, at least two of the homes that received funding had connections to city officials.

The news is tough to hear for those who were denied recovery funds, like the Blue Moon Bar where half of the bar still hasn’t been repaired. A flower shop in town closed for good after the owner was denied funding to repair the shop.

“You know for a long time here it was a lot of money just flying around,” Phil Kuhr of Hamburg said. “It was like just standing in one place and you’ll catch some of it. You would find just astounding amounts being granted or whatever.”

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