Community Development Block Grant Disaster Recovery (CDBG-DR)

Support long-term disaster recovery of housing and infrastructure, economic revitalization, and mitigation following major Presidentially-declared disasters, especially in low-income areas.

Community Development Block Grant Disaster Recovery (CDBG-DR) provides grants to state and local governments to support disaster recovery activities that demonstrate a logical connection between the impacts of the covered disaster and community recovery and ongoing resilience to natural disasters. CDBG-DR focuses on long-term recovery efforts and addresses unmet recovery needs that remain after other federal disaster recovery programs (e.g. FEMA, SBA, or USACE programs).

The principal beneficiaries of CDBG-DR funds are low- and moderate-income households (households earning 80% of the area's median income). Grantees generally must certify that at least 70% of the grant funds received are expended for activities that will principally benefit low- and moderate-income persons. Beneficiaries can also include low- and moderate-income persons or households and businesses.

CDBG-DR appropriation acts typically require that all funds benefit the most impacted and distressed (MID) areas resulting from a major disaster. MID areas can be designated by both HUD and the CDBG-DR grantee. CDBG-DR activities support disaster relief, long-term recovery, restoration of infrastructure and housing, economic revitalization, and mitigation in MID areas resulting from a qualifying major disaster.

CDBG-DR grantees may use up to five (5) percent of the total grant award for grant administration and up to fifteen (15) percent of the total grant award for planning costs. In addition, grantees are limited to spending a maximum of fifteen (15) percent of their total grant amount on public services. Public service costs subject to the fifteen (15) percent cap are those defined in 42 U.S.C. 5305(a)(8) and more broadly in 24 CFR 570.201(e). For all other eligible uses, the aggregate use of CDBG-DR funds shall principally benefit low- and moderate-income families in a manner that ensures that at least seventy (70) percent, (or another percentage permitted by HUD in a waiver), of the grant amount is expended for activities that benefit low and moderate income persons.

Program of assistance is for activities that must be expended in 6 years, but activities generally may be extended beyond 6 years once an authorized extension is approved, in order to complete activities. Method of awarding/releasing assistance: grant agreement.

For HUD to determine grant allocation amounts, HUD collects data from FEMA, SBA, and other sources to estimate unmet disaster recovery needs. HUD offices, including Policy Development & Research (PD & R) and Community Planning and Development (CPD), work together to develop a formula methodology that determines the proposed levels of allocations to State and local governments. Allocations are typically announced by the HUD Secretary via a press release and Federal Register notice. CPD and the HUD Office of Congressional and Intergovernmental Relations (CIR) work together to provide a prior Congressional notification for each announced allocation. The allocation methodology utilized by HUD is appended to the applicable Federal Register notice.

Each grantee receiving a Community Development Block Grant Disaster Recovery (CDBG-DR) allocation (notified via Allocation Award Notification Letter), must submit an Action Plan for disaster recovery and its Financial Management and Grant Compliance certifications to US Department of Housing and Urban Development (HUD). HUD reviews and approves the Action Plans, including Administration-only Action Plans, and certification submissions. The grant agreement documents (HUD Form 7082 or grant agreement) are sent to the grantee for signature first. The grant agreement is always signed by the grantee first and then returned to HUD for signature.

The target deadlines for HUD review and approval of grantee action and certifications are listed in the applicable Federal Register notice.

Extensions can be granted in cases where a valid reason for the extension is presented by the grantee and subsequently approved by HUD.

Administrative appeals process followed if grant funds are withheld or reduced, or repayment proposed for non-compliance or non-performance.