Leamington will not be declared a disaster area and therefore is not eligible for funding under the Disaster Relief Assistance Program.
The Ministry of Municipal Affairs has determined the damage from the storm a month ago did not qualify under the program.
Residents in Leamington said it was the worst flooding in the region in 20 years.
Leamington Mayor John Paterson says the program is used primarily for principle residence and many of the homes along Lake Erie are cottages or rentals.
According to the ministry, there were 'no areas identified along Lake Erie where there was costly and widespread damage to eligible private property,'
The program also doesn't help rebuild breakwalls.
"The biggest part of the destruction that people are having to face is the replacement of the breakwalls and that too is not covered under the DRA," says Paterson.
He says the town tried its best.
"We did everything possible that we could come up with to supply them with the information that they needed," he says. "We were pleasantly surprised that the ministry sent their staff down to Leamington."
High water levels and winds sent water crashing into the shorelines April 14 to 16.
ERCA estimated 6-12 homes were destroyed by the storm and flooding as well as some roads were damaged.
- with files from AM800's Rob Hindi