In a Federal Register notice published on May 18, HUD announced the allocation of $2 billion in long-term disaster recovery funds to states, territories, and local governments impacted by major disasters in 2022. The funds, allocated via the Community Development Block Grant – Disaster Recovery (CDBG-DR) Program, are designed to meet the unmet needs of disaster survivors in the impacted areas and are eligible for a broad range of disaster recovery activities including the repair and construction of affordable housing. Eighty percent of the funding must be used in HUD-identified Most Impacted and Distressed (MID) areas. Seventy percent of the funds must benefit low- and moderate-income households.
The notice allocated the funding to 12 different territories, states, and local governments including: Alaska, the Florida state government plus five counties in Florida, Kentucky, two municipalities in Missouri, Oklahoma, one county in Illinois, and Puerto Rico. The greatest allocation went to Lee County in Florida which was heavily impacted by Hurricane Ian in 2022.
The allocation of funding by HUD is only one step in a complicated process due to the lack of permanent authorization of the CDBG-DR program. States will now conduct public comment sessions and draft Action Plans detailing the proposed use of the funds. The plans will subsequently be approved by HUD before the agency issues a grant agreement transferring the funds to the grantee. The grantee will then conduct their disaster recovery program, which will include conducting an application process for impacted renters and homeowners to receive disaster assistance. This process commonly takes one or more years.
The complicated nature of the program would be lessened if it was permanently authorized. The “Reforming Disaster Recovery Act,” a bill supported by NLIHC, would permanently authorize the program and put in place additional requirements to ensure that disaster assistance is quickly reaching those most impacted by disasters, including households with low incomes. The bill is expected to be reintroduced shortly in the Senate.
The allocation notice is available at: https://bit.ly/3MEDkEc
More information about disaster housing programs is on page 6-52 of NLIHC’s 2023 Advocates’ Guide.