National Disaster Resilience Competition

The overall CDBG program objective is to develop viable urban communities, by providing decent housing and a suitable living environment, and by expanding economic opportunities, principally for persons of low and moderate income. The National Disast

Disaster Relief Appropriations Act, 2013 Public Law 113-2.

CDBG-DR competitive funds are made available to States and units of general local governments designated by the President of the United States as disaster areas. These communities must have significant unmet recovery needs and the capacity to carry out a disaster recovery program (usually these are governments that already receive HOME or Community Development Block Grant allocations). Grantees may use CDBG-DR funds for recovery efforts involving housing, economic development, infrastructure and prevention of further damage to affected areas. However, CDBG-DR funds may not be used for activities reimbursable by or for which funds are made available by the Federal Emergency Management Agency or the Army Corps of Engineers.

The principal beneficiaries of CDBG-DR funds are low- and moderate-income persons (generally defined as a member of a family having an income equal to or less than the Section 8 low income limit established by HUD) in communities that have experienced a disaster event. Generally, grantees must use at least half of Disaster Recovery funds for activities that principally benefit low-and moderate-income persons. These can be either activities in which all or the majority of people who benefit have low or moderate incomes or activities that benefit an area or service group in which at least 51 percent of the populous are of low- and moderate-income. HUD can only waive this requirement on a showing of "compelling need."

The competition supports innovative resilience projects at the local level while encouraging communities to adopt policy changes and activities that plan for the impacts of extreme weather and rebuild affected areas to be better prepared for the future. The competition underscores the ability communities have to not only recover from recent disasters but also rebuild better and stronger for the future. It will allow them to engage local stakeholders, nongovernmental organizations and the philanthropic sector to protect their own communities from the impacts of climate change by enhancing resilient infrastructure, building on sound science, and deploying innovative approaches to investments. These funds will enable eligible communities to access resources that help both recover from the previous disaster and make plans, decisions, and investments that make them more resilient to the next disaster. Recipients may undertake a wide range of activities directed toward disaster relief, long-term recovery, restoration of infrastructure and housing, and economic revitalization. However, Community Development Block Grant Disaster Recovery (CDBG-DR) funds may not be used for activities reimbursable by or for which funds are made available by the Federal Emergency Management Agency (FEMA) or the Army Corps of Engineers. Grantees must conduct an assessment of community impacts and unmet needs to guide the development and prioritization of planned recovery activities and develop their own programs and funding priorities as long as programs/activities conform to the statutory standards and program regulations. Some of the specific activities that can be carried out with CDBG-DR funds include buying damaged properties in a flood plain and relocating residents to safer areas; relocation payments for people and businesses displaced by the disaster; debris removal not covered by FEMA; rehabilitation of homes and buildings damaged by the disaster; buying, constructing, or rehabilitating public facilities such as streets, neighborhood centers, and water, sewer and drainage systems; code enforcement; homeownership activities such as down payment assistance, interest rate subsidies and loan guarantees for disaster victims; public services (generally limited to no more than 15 percent of the grant); helping businesses retain or create jobs in disaster impacted areas; and planning and administration costs (limited to no more than 20 percent of the grant). Eligible activities must meet at least one of three program national objectives: benefit persons of low and moderate income, aid in the prevention or elimination of slums or blight, or meet other urgent community development needs because existing conditions pose a serious and immediate threat to the health and welfare of the community where other financial resources are not available. CDBG-DR grants primarily benefit low-income residents in and around communities that have experienced a natural disaster. Generally, grantees must use at least half of Disaster Recovery funds for activities that principally benefit low-and moderate-income persons. These can be either activities in which all or the majority of people who benefit have low or moderate incomes or activities that benefit an area or service group in which at least 51 percent of the populous are of low- and moderate-income. HUD can only waive this requirement on a showing of "compelling need." Recipients may contract with other local agencies or nonprofit organizations to carry out components of their programs.

Recipients may only carry out eligible activities as listed in 24 CFR 570.201-207 or for which a waiver or alternative requirement has been granted by the Secretary, based upon a determination that good cause exists and that the waiver or alternative requirement is not inconsistent with the overall purposes of Title I of the HCD Act.

To ensure the timely expenditure of funds, section 904(c) under Title IX of P.L. 113-2 requires that all funds be expended within two years of the date HUD obligates funds to a grantee (funds are obligated to a grantee upon HUD's signing of the grantee's CDBG-DR grant agreement). Action Plans must demonstrate how funds will be fully expended within two years of obligation. For any funds that the grantee believes will not be expended by the deadline, it must submit a letter to HUD justifying why it is necessary to extend the deadline for a specific portion of funds. Additionally, P.L. 113-2 requires that HUD obligate all funds provided under Chapter 9, Community Development Fund, not later than September 30, 2017. However, NDR grantees have requested extensions of the expenditure deadline up until September 30, 2022. Those expenditure extensions will be published in a subsequent expenditure Federal Register notice.

As a condition of making any grant under this appropriation, the Secretary is required to certify in advance that grantees have in place proficient financial controls and procurement processes and have established adequate procedures to prevent any duplication of benefits as defined by section 312 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5155), to ensure timely expenditure of funds, to maintain comprehensive websites regarding all disaster recovery activities assisted with these funds, and to detect and prevent waste, fraud, and abuse of funds.

See NOFA

See NOFA or contact the headquarters office.

See NOFA or contact the headquarters office.

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