(Hamburg) Auditor of State Rob Sand today released a report on a special investigation of the City of Hamburg for the period of March 1, 2019 through August 31, 2023.
The special investigation was requested by Iowa Economic Development Authority and Homeland Security and Emergency Management Department as a result of concerns communicated to the Department’s regarding certain grant funds and a forgivable loan received by the City following the March 2019 flood. Concerns were also received regarding City officials, City employees, and their family members and friends receiving direct benefit from the funds awarded to the City.
Key findings include:
Nuisance Property and Abandoned Building Remediation Loan Program: The City failed to enter a formal agreement with the Hamburg Economic Development Council (HEDC) to manage the program. Properties purchased under the program were not properly documented, and city funds were used to build two private homes without repayment from the owners, including one linked to a City Council member.
Community Catalyst Building Remediation Grant Program: The City did not disclose a conflict of interest involving a City Council member who received grant funds for two buildings. Additionally, required financial matches were not provided by some applicants, and the city violated Iowa law by improperly transferring a deed to a grant recipient.
Other issues included a $50,000 duplicate payment to HEDC and the improper deposit of $23,690 in donations intended for the city. Familial relationships between grant recipients and city officials were also identified.
The report has been referred to the Iowa Division of Criminal Investigation and other authorities.
You can view the full report here: City of Hamburg Report
