According to Mayor Rick Rosenberg, FEMA requires damage to 100 homes in an affected area for individuals to qualify for federal money.
He said Santa Clara has damage to 61 homes.
Rosenberg said the city's may qualify for federal assistance if they reach a $3.7 million threshold.
The public infrastructure has suffered $2.8 million in damages thus far.
The city received $70,000 from the U.S. Department of Agriculture's Natural Resources Conservation Service to build a surface channel to divert water from the dam back into the Santa Clara river and away from streets and the sewer system.
Homeowner Susan Broberg said she does not who is going to foot the bill for the damages to her home.
She, like many others, did not have flood insurance.
Broberg's basement was flooded and she remained cleaning out valuables from her home Thursday.
"I don't know the rules, but they should be changed for us to qualify for assistance," she said. "We need the help."