The Galveston County Daily News reported Monday that most of the money is expected to go for housing rehabilitation projects. So far about 280 people signed up seeking assistance.
Ike stormed ashore on Sept. 13, swamping about 75 percent of the houses on the island. The Daily News reports only about two-thirds of property owners had flood insurance.
The Galveston City Council on May 14 will discuss the proposed recovery projects.
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