$5 Billion in CDBG-DR Funds Headed to Texas for Harvey Recovery

November 20, 2017 | By Jerry Ashworth | Post a Comment

ocean-wave-386363-mFederal funds continue to go out to those hit by natural disasters this summer, and in especially large amounts. Just last Friday, the Department of Housing and Urban Development (HUD) announced that it had awarded $5.024 billion to help those residents of Texas recover from severe floods caused by Hurricane Harvey. The grant is provided through HUD’s Community Development Block Grant – Disaster Recovery (CDBG-DR) Program and will support the repair of damaged homes, businesses and critical infrastructure in the state.

Gov. Greg Abbott noted that “the urgency with which our federal partners are addressing the needs of Texans following Harvey is exactly what is needed to help them rebuild their lives. Our goal from the start has been work in conjunction with federal and local leaders to help Texans repair and rebuild as quickly as possible, and this funding is a good start that brings us one step closer to achieving that goal.”

The Additional Supplemental Appropriations for Disaster Relief Requirements Act of 2017 appropriated $7.4 billion in CDBG-DR funding for major disasters declared in calendar year 2017. To distribute these funds, the act requires HUD to direct the funds to the areas most impacted by qualifying disasters. HUD stated that it will announce additional grants to other jurisdictions as more data become available on the unmet needs from other disasters such Hurricane Irma, Hurricane Maria and the California wildfires.

HUD’s analysis found more than 230,000 homes with damage, approximately 65,000 of which had serious damage that is not covered by other sources. In addition, more than 4,000 businesses also suffered serious damage from flooding that is not covered by insurance or other resources. The CDBG-DR grant is designed to meet needs not being met by private insurance or other sources of federal assistance.

CDBG-DR grants support a wide variety of activities including housing redevelopment, business assistance and infrastructure repair.  State and local governments are required to spend the majority of these recovery funds in “most impacted” areas as identified by HUD. The CDBG-DR initiative is built upon the basic CDBG program, and HUD will shortly issue administrative guidelines for use of the funds.

The damage done by these storms, as well as the wildfires, was widespread and devastating. This is a huge amount of money, and hopefully these funds will help those impacted residents begin to rebuild and get their lives back to normal.

Let us know what you think about these disaster funds. We’d love to hear from you.

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