HUD Disaster Recovery

OverviewIRWA FAU - 2013

U.S. Department of Housing and Urban Development

CPD Program Funding• CDBG• HOME

•CDBG-DR – Supplemental funding– Flexibility of CDBG program –Waivers & alternative requirements

The Process

After a disaster is Presidentially-Declared…

Administers Directly and/or

Distributes

CongressCongress

HUDHUD

Local Gov’tLocal Gov’t

Local AgencyLocal

Agency

StateState State AgencyState

Agency

Approves Appropriation

1. Calculates & announces allocations

2. Publishes a Notice in the Federal Register

3. Awards funds

Congressional Appropriations

$46+ billion CDBG-DR since FY2001 • FY 2013 – $16 billion - Hurricane Sandy • FY 2008 - $6.1 billion - Hurricanes Ike, Gustav and

Dolly • FY 2006 - $16.7 billion - Hurricanes Katrina, Rita, and

Wilma • FY 2002 - $2.783 billion – post 9/11 recovery efforts • FY 2001 - $700 million – post 9/11 recovery efforts

Eligible Uses of Funds

The Appropriation Laws

Funds must be used for: “…necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure, housing, and economic revitalization…”

What does this mean?For CDBG disaster recovery, each activity must:

1. address a disaster-related impact (direct or indirect) in a Presidentially-declared county for the covered disaster,

2. be a CDBG eligible activity (according to regs and waivers)

3. meet a national objective

“Recovery” ActivitiesDisaster-related activities are those that are able

to demonstrate a logical connection between the impacts of the covered disaster and the activity’s contribution to community recovery.

Examples:– rebuilding homes and infrastructure damaged by the

disaster – providing assistance to affected business owners

HousingActivities that lead to restoring and improving

the housing stock

Examples:– new construction – rehabilitation/reconstruction– single family or multifamily– owner or rental

Restoration of Infrastructure

Activities that rebuild or replace impacted public infrastructure

Examples:– May obtain waiver for “buildings for the general

conduct of government”– Schools– Health care facilities– Water & wastewater facilities

Economic Revitalization Activities that serve to address job losses,

impacts to tax revenues, and impacts to businesses

Examples:– Job training and workforce development– Loans and grants to businesses– Improvements to commercial/retail districts

Waivers and Resources

WaiversPer the appropriation laws: •the Secretary of HUD may waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or the use by the recipient of these funds or guarantees (except for requirements related to fair housing, nondiscrimination, labor standards, and the environment)…

Waivers (cont.)• …upon a request by the grantee explaining

why such waiver is required to facilitate the use of such funds or guarantees, if the Secretary finds that such waiver would not be inconsistent with the overall purpose of Title I of the Housing and Community Development Act of 1974

Common Waivers and Suspensionsof Acquisition and Relocation Requirements

URA– 49 CFR 24.2(a)(6)(viii) and 24.402(b)(2) and 24.404

(30% of income)– 49 CFR 24.2(a)(6)(ix) and 24.402(b) (comparable

replacement dwelling and rental assistance payment) • May offer tenant-based rental assistance

– 49 CFR 24.101(B)(2)(i)-(ii) (arm’s length voluntary purchase)

– 49 CFR 24.302 (fixed payment for moving expense)

Common Waivers and Suspensionsof Acquisition and Relocation Requirements

Section 104(d)•24 CFR 42.350 (Relocation Assistance for Displaced Persons)– 60 months of assistance v. 42 months

•24 CFR 42.375 (One-for-One Replacement of Housing Requirements)– Exemption for certain disaster-damaged units

Common Waivers and Suspensionsof Acquisition and Relocation Requirements

Optional Relocation Assistance*•24 CFR 92.353(d) and•24 CFR 570.606(d) (requirements to establish optional relocation policies at the Grantee or State level)

*HUD program regulations for the HOME Program and the Community Development Block Grant Program permit relocation assistance:(1)to displaced persons at levels in excess of URA requirements; and (2)where persons are displaced as a result of HUD-assisted activities not covered by the Uniform Act.

Resources • HUD Real Estate and Relocation website:

http://www.hud.gov/relocation

• CDBG Disaster Recovery website: http://portal.hud.gov/hudportal/HUD?src=/program_offices/comm_planning/communitydevelopment/programs/drsi

• Sandy Notice / CDBG-DR: FR/Vol. 78, No. 43 – March 5, 2013