GALVESTON - State officials Monday threatened to force Galveston to repay $56 million in disaster funds if it fails to come up with a plan by Sept. 1 to rebuild public housing damaged by Hurricane Ike. "The city could be required to pay back those funds if program requirements are not met, as well as any ongoing expenditures on infrastructure projects," the Texas General Land Office said in a letter to Mayor Lewis Rosen. Rosen did not respond to a request for comment, but Galveston Housing Authority Chairman Buddy Herz said he doubted the city could agree to a...
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