HUD Releases $2 Billion-Plus for Disaster Recovery and Loss Mitigation

The U.S. Department of Housing and Urban Development (HUD) has issued the Allocations for Community Development Block Grant Disaster Recovery and Implementation of the CDBG-DR Consolidated Waivers and Alternative Requirements Notice [“2020 CDBG-DR Notice”], a step taken by the Department to open access to more than $2 billion in federal funds to help communities recover and improve long-term resilience to disasters and future climate-related impacts.

“As our nation continues to grapple with disasters ranging from hurricanes to wildfires, HUD is aware of the urgent need for equitable recovery and resilience,” said HUD Secretary Marcia L. Fudge. “HUD’s Consolidated Notice ensures that climate justice and racial equity remain central in our work to deliver swift recovery and keep resiliency at the forefront. The Department looks forward to continuing to work with communities so that they can get their disaster recovery and mitigation funds as quickly as possible.”

HUD’s Consolidated Notice, which lays out requirements for the use of these disaster recovery and mitigation funds, will require Community Development Block Grant-Disaster Recovery (CDBG-DR) grantees to incorporate disaster mitigation measures into all recovery activities involving construction and to advance equitable distribution of the disaster recovery assistance.

The Consolidated Notice applies to the more than $2 billion in CDBG-DR funds allocated by the Department in November 2021, and funds appropriated in the continuing resolution, the Extending Government Funding and Delivering Emergency Assistance Act (PL 117-43; the Act), signed into law on September 30, 2021. That allocation was made to 10 states covering 15 separate major disasters that occurred calendar year 2020.

HUD’s Consolidated Notice will accelerate community recovery to low-income residents, and ensure that inclusive resilience and mitigation remain central to disaster recovery. Beyond the Consolidated Notice, HUD recognizes equitable resilience as a core component of its Climate Action Plan, an agency-wide strategy to advance climate adaptation and resilience, reduce greenhouse gas emissions, and deliver environmental justice.

PL 117-43 dedicates $5 billion in CDBG-DR funds with a focus on mitigation for major disasters that occurred in 2020 and 2021. Allocation of the remaining funds will be made over the next few months to address unmet needs from disasters occurring in 2021.