The state is ineligible for future hazard mitigation funding as long as compliance issues in Kokomo persist, which could result in millions of dollars lost.
The IHCDA is working with FEMA and the Department of Homeland Security to buyout homes across the state that are in areas prone to flooding.
Kokomo officials are monitoring the city's water levels and preparing for floods to prevent damage.
Homeowners should open storm drains blocked by snow to prevent local flooding.
After major flooding this weekend, parts of Indiana accumulated up to seven inches of water.
The City of Kokomo plans to demolish homes located in a frequent flood plain. Current residents will be relocated by the city.
The city held an open forum to discuss flood prevention days before the 5-year anniversary of a massive flood that caused $500 million in damage.
But without additional help, the cash amounts to a drop in the bucket.
Vigo County residents have been putting out sandbags in anticipation of more rain Tuesday night.
Howard County residents started to clear debris and fix parts of their homes Monday that were damaged by flood waters.