Community development block grant disaster recovery (cdbg-DR) and community development block grant mitigation (cdbg-MIT) grant funds are appropriated by congress and allocated by the department of…

The Department of Housing and Urban Development's Assistant Secretary for Community Planning and Development awarded $7.719 million to the Alabama Department of Economic and Community Affairs on February 9, 2026, under the Community Development Block Grants/State's program (CFDA 14.228). This is a formula grant for Community Development Block Grant Disaster Recovery (CDBG-DR) and Community Development Block Grant Mitigation (CDBG-MIT) funding authorized under Title I of the Housing and Community Development Act of 1974, as amended.

The funding supports disaster-related long-term recovery, restoration of infrastructure, housing, economic revitalization, and mitigation activities in presidentially declared disaster areas. The recipient must develop an action plan outlining how it will allocate funding across a combination of recovery programs, make the draft action plan available for public comment, and submit the plan to HUD for approval before implementation begins. All CDBG-DR and CDBG-MIT activities must address a direct or indirect impact of the covered disaster within the presidentially declared area. The recipient serves as the state's fiscal agent and pass-through entity for federal funding to local governments and nonprofit sub-recipients throughout Alabama.

Performance occurs in Montgomery, Alabama. The award period extends from February 9, 2026, through February 9, 2032.

Activities

State and local governments receive cdbg-DR and cdbg-MIT funds from HUD to assist communities recovering from a presidentially declared disaster. HUD allocates funds based on the unmet recovery needs of each community. HUD issues an allocation announcement notice in the federal register which will include the list of grantees, allocations, and any waivers and alternative requirements. Grantees may use the funds for disaster related long-term recovery, restoration of infrastructure, housing, economic revitalization, and mitigation activities. All cdbg-DR and cdbg-MIT activities must clearly address a direct or indirect impact of the disaster in a presidentially declared area for the covered disaster. Each grantee must develop an action plan that outlines how the grantee plans to allocate funding to a combination of recovery programs. Each grantee must make the draft action plan available for public comment and feedback prior to submitting the plan to HUD for review. Once approved, the action plan serves as the blueprint for the grantee's cdbg-DR program. The action plan process is outlined in the applicable allocation announcement notice.

Expected outcomes

Cdbg-DR funds are expected to result in long-term disaster recovery for communities impacted by presidentially declared disasters.

Intended beneficiaries

Cdbg-DR funds are intended primarily for low- and moderate-income households per statutory requirements. Cdbg-DR is the only federal disaster resource that prioritizes low- and moderate-income households. Low- and moderate-income means a family or household with an annual income less than the section 8 low income limit, which is generally 80 percent of the area median income. Most allocations of cdbg-DR and cdbg-MIT funds require grantees use 70 percent of the grant funds to benefit low- and moderate-income persons, however grantees must review the applicable federal register notice governing the funds to confirm the requirements of each grant. Overall, cdbg-DR funds should be used to assist individuals, communities, and/or businesses situated in the most impacted and distressed areas affected by a presidentially declared disaster.

Subrecipient activities

The subrecipient activities are unknown at the time of award.