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 $134.687 million to the Economic Development Authority Iowa under the Community Development Block Grants/State's program and Non-Entitlement Grants in Hawaii program (CFDA 14.228) on August 15, 2025. This formula grant, obligated through August 15, 2031, provides funding for disaster recovery and mitigation activities in presidentially declared disaster areas throughout Iowa. The award enables the state to support long-term community recovery initiatives, including infrastructure restoration, housing rehabilitation and recovery, economic revitalization programs, and disaster mitigation projects with emphasis on benefiting low- and moderate-income populations affected by qualifying disasters.

As the administering state agency, IEDA will develop a comprehensive action plan outlining the allocation of these funds across recovery programs and must conduct public comment periods prior to HUD approval. All funded activities must directly or indirectly address impacts from the covered disaster in presidentially declared areas. The grantee is responsible for compliance with Title I of the Housing and Community Development Act of 1974, maintenance of required documentation for three years following activity completion, and adherence to applicable audit requirements under 2 CFR Part 200, Subpart F.

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.