Southern Manitoba was covered in 1,680 square kilometres of water during the peak of the spring flooding in mid-April. (CBC)

The Manitoba government announced Monday it will spend up to $40 million to compensate flood-damaged areas.

The disaster financial assistance program (DFA) has already received more than 1,000 applications for help and paid out nearly $2.5 million in aid, said Intergovernmental Affairs Minister Steve Ashton.

"We are doing everything possible to help those Manitobans impacted by this year's flood," he said. "Many of the eligible claims have already received financial assistance, and the remainder are being processed as quickly as possible."

Private homeowners are eligible to receive up to $200,000 or the assessed value of their home, farm or business, according to a provincial press release.

The announcement also highlighted a new cost sharing deal between municipalities and the province for repairing damaged infrastructure. In the deal, once municipal spending has reached $5 per capita, the province will assume 100 per cent of the costs, according the release.

"This will greatly lessen the burden shouldered by municipalities after severe flooding and shows the spirit of co-operation between the province and municipalities," said Doug Dobrowolski, of the Association of Manitoba Municipalities.

"It helps municipalities budget better, actually to budget for impending disaster. It doesn't matter what size of municipality you are, you know what it will cost you to deal with a disaster."

The money announced does not include the buyouts for 40 flood-prone cottages and homes built on Crown land in North Breezy Point, located north of Winnipeg along the Red River in the rural municipality of St. Andrews.

The federal government is expected to cover a substantial portion of the cost of this spring's flood, though no information has been released on exactly how much.

Application forms and further details about DFA are available online or by contacting the Manitoba Emergency Measures Organization at 204-945-4772 or 1-888-267-8298 (toll free). Applications are also available at most municipal offices.

The online applications can be found by following the link at the top right corner of this page.