Disaster Recovery Assistance

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	Quick Facts
CFDA #: 14.218, 14.228 Office: Community Planning and Development Type of Program:Other Administrator: Office of Community Planning and Development: Jessie Handforth Kome, Director

Application Deadline: N/A. The Community Development Block Grant (CDBG) Disaster Recovery grants are noncompetitive, nonrecurring Disaster Recovery grants as directed by statute, usually by a method that considers disaster recovery needs unmet by other Federal disaster assistance programs.

Application Due Date and Time: Determined by HUD based upon a Presidential declaration of an area as a major disaster.

Online Application: Action Plans for Disaster Recovery may be submitted, in part, via HUD's web-based Disaster Recovery Grant Reporting (DRGR) system. HUD provides access to the DRGR system when a state, city or county receives Congressionally-appropriated CDBG funds. In addition, quarterly performance reports must be submitted via the DRGR system.

Application Kit: N/A

Available Funds: Funds are available only by supplemental appropriations acts.

Initiative: N/A

Summary:
HUD Disaster Recovery Assistance provides supplemental Community Development Block Grant funds appropriated by Congress for recovery from major disasters declared by the United States President. Each supplemental appropriations statute specifies the disasters or time period of disaster declarations for which funding is available. Grant funds are made available to states and units of general local government, Indian tribes, and Insular areas, unless provided otherwise by supplemental appropriations statute, based on their unmet disaster recovery needs. Unless otherwise restricted by statute or provided by waiver, the funds may be used for any activity eligible under section 105(a) of the Housing and Community Development Act of 1974, as amended, that meets a national objective under section 104(b)(3) of that Act, and is related to the covered disaster. Generally, at least 50 percent of the funds must be for activities that principally benefit persons of low and moderate income. Grantees must report program progress quarterly via a web-based Disaster Recovery Grant Reporting (DRGR) system.

Purpose:
To assist communities recover from Presidential declared natural disasters.

Eligible Applicants:
States and units of general local government, unless limited by specific supplemental appropriations acts.

Satellite Broadcast: N/A

Amount Allocated:
Recent CDBG Disaster Recovery appropriations by Congress include:

• FY 2006 – $16.5 billion to assist the victims of Hurricanes Katrina, Rita, and Wilma
• FY 2005 - $150 million to assist recovery from multiple disasters
• FY 2002 - $2.783 billion to assist post-September 11th New York City’s recovery efforts
• FY 2001 - $700 million to assist post-September 11th New York City’s recovery efforts
• FY 1999 - $20 million to assist recovery from multiple disasters
• FY 1998 - $130 million to assist recovery from multiple disasters
• FY 1997 - $500 million to assist recovery from upper Midwest floods
• FY 1996 - $50 million to assist recovery from multiple disasters
• FY 1995 - $39 million to assist with recover from the Oklahoma City bombing
• FY 1994 - $180 million to assist with recovery from Tropical Storm Alberto and $400 million for the Northridge Earthquake
• FY 1993 - $450 million to assist with recovery from Midwest floods
• FY 1992 - $85 million to assist with recovery from Hurricanes Andrew, Iniki, and Typhoon Omar

Application/Plan Submission Requirements:
Submission requirements for Action Plans for Disaster Recovery are prescribed by notice in the Federal Register based on specific supplemental appropriations statutes.

OMB Application Paperwork:
OMB approval number 2506-0165 (expires 5/31/2001) for Disaster Recovery Grant Reporting System (DRGR) data, including Action Plan for Disaster Recovery, quarterly performance reports, as well as the Standard Form 424 (not included in DRGR).

OMB Administrative Requirements:
OMB Circulars A-21, A-87, or A-122, as applicable.

Amplification Regarding Eligible Applicants:
States and units of general local government, unless limited by specific supplemental appropriations acts.

Address for Submitting Applications:
Action Plans for Disaster Recovery are submitted by eligible jurisdictions to the applicable HUD field office.

Corrections to Deficient Applications: N/A

List of HUD funded applicants:
States, cities, counties, Indian tribes, Insular areas
Most recently, funded applicants for the aftermath of Katrina, Wilma and Rita during FY 2006 include: the States of Louisiana, Mississippi, Florida, Texas, and Alabama.

Award Document: Form HUD-7082.

Matching Requirements:
Dependent on statute language.

Detailed Explanation of Matching Requirements:

1. Certain supplemental appropriations acts require that "each State shall provide not less than 25 percent in non-Federal public matching funds or its equivalent value (other than administrative costs)" for any HUD Disaster Recovery Assistance grant funds which it receives.
2. Match contributions must be made to DR-funded recovery projects related to covered disasters.
3. Match may be provided by any public entity from non-Federal cash (e.g., general or dedicated revenues), real estate, or other similar assets owned or controlled by the public entity or the value of public improvements and public facilities activities, or force account undertaken.
4. Match funds must be reasonably valued. For example, base the value of cash grants on the dollar value of the grant; value below market interest rate loans on the present discounted cash value of the amount of subsidy; value taxes forgiven for future years based on the present discounted cash value of the revenue foregone; and value a donation of real estate titled to the State or State grant recipient based on a professional appraisal.
5. The State must make match contributions before all DRI funds are expended. Match contributions must total not less than 25 percent of the disaster grant funds drawn from the State's line of credit, excluding funds drawn for administrative and planning costs.
6. States may not count administrative costs toward the required non-Federal public matching funds or equivalent value.
7. Contributions that have been or will be counted as satisfying a matching requirement of another Federal grant or award, including any other DRI grant or Community Development Block Grant, may not count as satisfying the matching contribution requirement for the HUD Disaster Recovery Initiative.
8. Match contributions must be contributed permanently to a disaster-related activity. To receive match credit for the full amount of a loan made with non-Federal public funds to a DRI funded activity, all repayment, interest, or other return on the loan must be treated as CDBG program income.
9. The following are examples that do not count toward meeting a grantee's matching contribution requirement:
   • Contributions made with or derived from Federal resources or funds, regardless of when the Federal resources or funds were received or expended. Use of CDBG funds (defined at 24CFR 570.3) under section 105(a)(9) of the Act for payment of the non-Federal share required in connection with a Federal grant-in-aid program is permissible;
   • Contributions made with or derived from private resources or funds, regardless of when the private resources or funds were received or expended;
   • The interest rate subsidy attributable to the Federal tax exemption on financing or the value attributable to Federal tax credits;
10. Contributions are credited at time the contribution is made and reported to HUD quarterly, as follows:
    • Credit a cash contribution when the funds are expended for a disaster-related activity or at the time the State awards DR funds if the activity was completed before the award of DR funds;
    • Credit the subsidy value of a below-market interest rate loan at the time of the loan closing;
    • Credit the value of State or local taxes, fees, or other charges that are normally and customarily imposed but waived, foregone, or deferred at the time the State or State grant recipient or other public entity officially waives, forgoes, or defers the taxes, fees, or other charges;
    • Credit the value of donated land or other real property at the time ownership of the property is transferred to the public entity carrying out the DR-assisted or disaster-related activity;
    • Credit the direct cost of relocation payments and services at the time that the payments and services are provided.
11. For DR-assisted projects involving more than one State, the State that makes the match contribution may decide to retain the match credit or permit the other State to claim the credit.

Program Fund Limitations or Caps:
Generally, grants have a 20% limitation on planning and administrative costs; 15% limitation on public services expenditures. Additionally, states are limited to 2% of the grant for state administrative costs, unless specified otherwise in statute or alternative requirement.

Formula Computation Rules:
CDBG supplemental disaster funds are generally allocated on the basis of unmet disaster recovery needs for activities not reimbursable by or for which funds are made available by the Federal Emergency Management Agency, the Small Business Administration, or the Army Corps of Engineers, and may reflect provisions of specific supplemental appropriations statutes.

Threshold Requirements For Funding Consideration:
A jurisdiction in or with an area designated in a Presidential declaration of a major disaster under the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended (42 U.S.C. 5121, et seq.) that has unmet disaster recovery needs for activities not reimbursable by or for which funds are made available by the Federal Emergency Management Agency, the Small Business Administration, or the Army Corps of Engineers. factors

Factors For Award:
N/A

Selection Process:
CDBG supplemental disaster appropriations are generally allocated based on unmet disaster recovery needs for activities not reimbursable by or for which funds are made available by the Federal Emergency Management Agency, the Small Business Administration, or the Army Corps of Engineers.

Program Components: NA

Eligible Activities:
The most appropriate disaster-related use of funds is for long-term recovery needs, such as: rehabilitating residential and commercial buildings; homeownership assistance, including down-payment assistance and interest rate subsidies; building new replacement housing; code enforcement; acquiring, constructing or reconstructing public facilities and improvements, including streets, neighborhood centers, and water and sewer facilities; assistance to disaster-affected businesses for carrying out economic development activities to create and retain jobs; buying flood prone properties and making other mitigation efforts to protect damaged properties from, and reduce the cost of, future disaster damage; and making relocation payments to displaced people and businesses, and other activities. Funds may also be used for emergency response activities, such as debris removal, clearance, and demolition not funded by other federal disaster assistance; and extraordinary increases in the level of public services for disaster victims.

Ineligible Activities:
Ineligible activities are generally specified in 42 U.S.C. 5305 and 24 CFR 570.207.

Grant Sizes & Terms: Determined by HUD prior to award.

Grantee Responsibilities:
Grantees are responsible for carrying out activities in accordance with applicable statutes, regulations, and Federal Register notice requirements.

Environmental Requirements:
24 CFR Part 58 Environmental Review Procedures for Entities Assuming HUD Environmental Requirements.

Environmental Impact Statement:
An environmental review is required for the program. A Finding of No Significant Impact was published in the Federal Register for the program's rules/Notice of Funding Availability. For project level actions, see 24 CFR Part 58 Environmental Review Procedures for Entities Assuming HUD Environmental Requirements.

Cross-cutting Requirements: See CDBG List.

Grant Reform Initiatives: NA

Section 103 of the HUD Reform Act: NA

Information Collections:
Information on the proposed and actual uses of funds is collected in the web-based Disaster Recovery Grant Reporting (DRGR) system for the Action Plan for Disaster Recovery, and for quarterly performance reporting as required by statute.

Documentation and Public Access and Disclosure:
24 CFR 570.508, 24 CFR 570.490, 570.506, 570.507, 570.508.

Prohibition Against Lobbying Activities:
In compliance with 13 U.S.C. 1353, regarding anti-lobbying, a grantee must certify that to the best of its knowledge and belief:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;
2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions; and
3. It will require that [specific anti-lobbying language in the certification to HUD] be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

Authority:
42 U.S.C. 5301 et seq., 107 Stat. 264, 107 Stat. 748, 108 Stat. 12, 42 U.S.C. 5321, 108 Stat. 2334, 109 Stat. 253, 110 Stat.1321-334, 110 Stat. 1321-335, 111 Stat. 198, 111 Stat. 1358, 112 Stat. 76, 112 Stat. 2476, 112 Stat. 2478, 112 Stat. 2486, 112 Stat. 2681-546, 112 Stat. 2681-578, 113 Stat. 109.

Federalism Statement:
In accordance with E.O. 13132, any proposed rules are reviewed to determine that they do not have federalism implications before they are published in the Federal Register, and a statement to this effect is published as part of the proposed rule.

Terms and Conditions:
Terms and conditions vary based on specific requirements of supplemental appropriations acts.

Other: N/A