RAPID CITY, S.D. (AP) - Rapid City learned this week that it could lose nearly $500,000 in federal low-income housing and service funds as early as next year.

The Rapid City Journal reports that Community Development Division Manager Barbara Garcia told the city's Legal and Finance Committee that the city received $466,188 from Housing and Urban Development in 2013.

But Garcia says the allocation might be eliminated next year because of federal sequestration cuts and an increasingly limited HUD budget.

The block grant money is used to assist low-income residents with housing issues, help fund public programs such as Head Start and provide other services.

Garcia says Rapid City would lose out because its allocation would be under the minimum allowed level of funding under proposed cuts.

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