Notice2025-00943
Allocations for Community Development Block Grant Disaster Recovery and Implementation of the CDBG-DR Consolidated Waivers and Alternative Requirements Notice (UN AAN)
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Published
January 16, 2025
Issuing agencies
Housing and Urban Development Department
Abstract
This Allocation Announcement Notice announces $12,070,701,000 of Community Development Block Grant--Disaster Recovery (CDBG-DR) funds made available by the Disaster Relief Supplemental Appropriations Act, 2025, for major disasters occurring in 2023 or 2024. This Allocation Announcement Notice identifies grant requirements for these funds, including requirements in HUD's CDBG-DR Universal Notice ("Universal Notice") published in the Federal Register. The Universal Notice includes waivers and alternative requirements, relevant regulatory requirements, the grant award process, criteria for action plan approval, and eligible disaster recovery activities.
Full Text
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<title>Federal Register, Volume 90 Issue 10 (Thursday, January 16, 2025)</title>
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[Federal Register Volume 90, Number 10 (Thursday, January 16, 2025)]
[Notices]
[Pages 4759-4765]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-00943]
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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
[Docket No. FR-6512-N-01]
Allocations for Community Development Block Grant Disaster
Recovery and Implementation of the CDBG-DR Consolidated Waivers and
Alternative Requirements Notice (UN AAN)
AGENCY: Office of the Assistant Secretary for Community Planning and
Development, HUD.
ACTION: Notice.
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SUMMARY: This Allocation Announcement Notice announces $12,070,701,000
of Community Development Block Grant--Disaster Recovery (CDBG-DR) funds
made available by the Disaster Relief Supplemental Appropriations Act,
2025, for major disasters occurring in 2023 or 2024. This Allocation
Announcement Notice identifies grant requirements for these funds,
including requirements in HUD's CDBG-DR Universal Notice (``Universal
Notice'') published in the Federal Register. The Universal Notice
includes waivers and alternative requirements, relevant regulatory
requirements, the grant award process, criteria for action plan
approval, and eligible disaster recovery activities.
[[Page 4760]]
DATES: Applicability Date: January 21, 2025.
FOR FURTHER INFORMATION CONTACT: Tennille Smith Parker, Director,
Office of Disaster Recovery, Department of Housing and Urban
Development, 451 7th Street SW, Room 7282, Washington, DC 20410,
telephone number 202-708-3587 (this is not a toll-free number). HUD
welcomes and is prepared to receive calls from individuals who are deaf
or hard of hearing, as well as individuals with speech or communication
disabilities. To learn more about how to make an accessible telephone
call, please visit: <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>. Facsimile inquiries may be sent
to Ms. Parker at 202-708-0033 (this is not a toll-free number). Email
inquiries may be sent to <a href="/cdn-cgi/l/email-protection#cda9a4beacbeb9a8bf92bfa8aea2bba8bfb48da5b8a9e3aaa2bb"><span class="__cf_email__" data-cfemail="7f1b160c1e0c0b1a0d200d1a1c10091a0d063f170a1b51181009">[email protected]</span></a>.
SUPPLEMENTARY INFORMATION:
Table of Contents
I. Allocations
II. Use of Funds
III. Overview of Grant Process
IV. Applicable Rules, Statutes, Waivers, and Alternative
Requirements
V. Duration of Funding
VI. Assistance Listing Numbers (formerly known as the CFDA Number)
VII. Finding of No Significant Impact
Appendix A: Allocation Methodology
I. Allocations
The Disaster Relief Supplemental Appropriations Act, 2025 (Pub. L.
118-158) (``the 2025 Appropriations Act''), approved on December 21,
2024, makes available $12,039,000,000 in new CDBG-DR funds. The 2025
Appropriations Act also provides that HUD allocate any unobligated no-
year balances remaining from Public Laws 108-324, 109-148, 109-234,
110-252, 110-329, 111-212, 112-55, and 113-2 (the ``Prior
Appropriations Acts'') for the same purposes as these new funds. The
sum of all unobligated balances from these Prior Appropriations Acts is
$31,701,000. This brings the total funding available for 2023 or 2024
disasters to $12,070,701,000.
These CDBG-DR funds are for necessary expenses for activities
authorized under title I of the Housing and Community Development Act
of 1974 (42 U.S.C. 5301 et seq.) (HCDA) related to disaster relief,
long-term recovery, restoration of infrastructure and housing, economic
revitalization, and mitigation in the ``most impacted and distressed''
(MID) areas resulting from a qualifying major disaster that occurred in
2023 or 2024. The 2025 Appropriations Act provides that $78,850,000 of
these amounts will be made available for these specific purposes:
$45,000,000 for salaries and expenses of the Office of Community
Planning and Development, $1,850,000 for HUD's disaster recovery
portal, $7,000,000 for the Office of Inspector General, and $25,000,000
for capacity building and technical assistance, leaving the remaining
$11,991,851,000 available for allocations to CDBG-DR grantees.
Of the $11,991,851,000 made available, this notice announces
$11,889,437,000 in CDBG-DR allocations for disasters occurring in 2023
or 2024. HUD will allocate the remaining $102,414,000 of available
funds under a separate Allocation Announcement Notice that provides
plus-up funding for disasters that occurred in January 2023 for which
HUD previously allocated funding in a Federal Register notice published
on November 27, 2023 at 88 FR 82982.
The 2025 Appropriations Act requires HUD to include with any final
allocation for the total estimate of unmet need an additional 15
percent of that estimate for additional mitigation activities that
reduce risk in the MID areas (see table 1). The 2025 Appropriations Act
provides that grants shall be awarded directly to a State, unit of
general local government, or Indian Tribe at the discretion of the
Secretary.
Pursuant to the 2025 Appropriations Act, HUD has identified MID
areas based on the best available data for all eligible affected areas.
A detailed explanation of HUD's allocation methodology is provided in
appendix A of this notice. To comply with requirements that all funds
are expended in MID areas, Little Rock, AR; Broward County, FL; Ft.
Lauderdale, FL; Hillsborough County, FL; Lee County, FL; Manatee
County, FL; Orange County, FL; Pasco County, FL; Pinellas County, FL;
St. Petersburg, FL; Sarasota County, FL; Volusa County, FL; Guam; Maui
County, HI; Chicago, IL; Cicero, IL; Cook County, IL; St. Clair County,
IL; Detroit, MI; Wayne County, MI; Ashville, NC; Harris County, TX;
Houston, TX; and Spokane County, WA must use 100 percent of the total
funds allocated to address unmet disaster needs and mitigation
activities that benefit the HUD-identified MID areas identified in the
last column in table 2.
All other grantees must use at least 80 percent of their
allocations to address unmet disaster needs or mitigation activities
that benefit the HUD-identified MID areas, as identified in the last
column of table 2. These grantees may use the remaining 20 percent of
their allocation to address unmet disaster needs or mitigation
activities in those areas that the grantee determines are ``most
impacted and distressed'' within an area that received a Presidential
major disaster declaration (i.e., grantee-identified MID areas)
identified by the Federal Emergency Management Agency (FEMA) disaster
numbers listed in column two of table 1. However, these grantees are
not precluded from spending 100 percent of their allocation to benefit
the HUD-identified MID areas if they choose to do so. Detailed
requirements related to MID areas are provided in section III.D.2 of
the Universal Notice.
Table 1--Allocations for Unmet Needs and Mitigation Activities Under Public Law 118-158 for Disasters Occuring in 2023 and 2024
--------------------------------------------------------------------------------------------------------------------------------------------------------
CDBG-DR mitigation
Allocations for set- aside for Total allocated
Year FEMA Disaster No. State Grantee unmet needs under amounts under this under this notice
this notice from notice from Public from Public Law
Public Law 118-158 Law 118-158 118-158
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2023 & 2024...................... 4730; 4836.......... AK State of Alaska..... $16,240,000 $2,436,000 $18,676,000
2023............................. 4698; 4788.......... AR State of Arkansas... 51,346,000 7,702,000 59,048,000
2024............................. 4698................ AR Little Rock, AR..... 18,170,000 2,725,000 20,895,000
2023 & 2024...................... 4699; 4707; 4758.... CA State of California. 362,258,000 54,339,000 416,597,000
2024 & 2024...................... 4734; 4794; 4806; FL State of Florida.... 804,690,000 120,704,000 925,394,000
4828; 4834.
2023............................. 4709................ FL Broward County...... 25,410,000 3,812,000 29,222,000
2023............................. 4709................ FL Ft Lauderdale, FL... 76,566,000 11,485,000 88,051,000
2024............................. 4828; 4834.......... FL Hillsborough County. 616,803,000 92,521,000 709,324,000
2024............................. 4828; 4834.......... FL Lee County.......... 87,550,000 13,133,000 100,683,000
[[Page 4761]]
2024............................. 4806; 4828; 4834.... FL Manatee County...... 219,749,000 32,962,000 252,711,000
2024............................. 4834................ FL Orange County....... 29,006,000 4,351,000 33,357,000
2023 & 2024...................... 4734; 4828; 4834.... FL Pasco County........ 509,308,000 76,396,000 585,704,000
2023 & 2024...................... 4734; 4828; 4834.... FL Pinellas County..... 707,637,000 106,146,000 813,783,000
2023 & 2024...................... 4734; 4828.......... FL St. Petersburg, FL.. 139,030,000 20,854,000 159,884,000
2024............................. 4806; 4828; 4834.... FL Sarasota County..... 182,690,000 27,404,000 210,094,000
2024............................. 4834................ FL Volusia County...... 116,100,000 17,415,000 133,515,000
2023 & 2024...................... 4738; 4821; 4830.... GA State of Georgia.... 231,066,000 34,660,000 265,726,000
2023............................. 4715................ GU Guam................ 435,500,000 65,325,000 500,825,000
2023............................. 4724................ HI Maui County......... 1,425,549,000 213,832,000 1,639,381,000
2024............................. 4796................ IA State of Iowa....... 117,119,000 17,568,000 134,687,000
2023 & 2024...................... 4728; 4749; 4819.... IL Chicago, IL......... 370,963,000 55,645,000 426,608,000
2023 & 2024...................... 4728; 4749; 4819.... IL Cicero, IL.......... 83,482,000 12,522,000 96,004,000
2023 & 2024...................... 4728; 4749; 4819.... IL Cook County......... 212,315,000 31,847,000 244,162,000
2024............................. 4819................ IL St. Clair County.... 77,855,000 11,678,000 89,533,000
2023............................. 4704................ IN State of Indiana.... 6,663,000 1,000,000 7,663,000
2024............................. 4817................ LA State of Louisiana.. 102,562,000 15,384,000 117,946,000
2024............................. 4780................ MA State of 6,917,000 1,037,000 7,954,000
Massachusetts.
2024............................. 4757................ MI State of Michigan... 37,887,000 5,683,000 43,570,000
2024............................. 4757................ MI Detroit, MI......... 301,621,000 45,243,000 346,864,000
2024............................. 4757................ MI Wayne County........ 61,202,000 9,180,000 70,382,000
2023 & 2024...................... 4697; 4727; 4790.... MS State of Mississippi 117,350,000 17,603,000 134,953,000
2024............................. 4827................ NC State of North 1,241,843,000 186,277,000 1,428,120,000
Carolina.
2024............................. 4827................ NC Ashville, NC........ 195,661,000 29,349,000 225,010,000
2024............................. 4795; 4843.......... NM State of New Mexico. 119,285,000 17,893,000 137,178,000
2024............................. 4777................ OH State of Ohio....... 12,275,000 1,841,000 14,116,000
2023 & 2024...................... 4706; 4776.......... OK State of Oklahoma... 34,265,000 5,140,000 39,405,000
2024............................. 4815................ PA State of 12,713,000 1,907,000 14,620,000
Pennsylvania.
2024............................. 4829................ SC State of South 130,743,000 19,611,000 150,354,000
Carolina.
2024............................. 4807................ SD State of South 13,370,000 2,005,000 15,375,000
Dakota.
2023 & 2024...................... 4751; 4832.......... TN State of Tennessee.. 74,555,000 11,183,000 85,738,000
2024............................. 4781; 4798.......... TX State of Texas...... 483,206,000 72,481,000 555,687,000
2024............................. 4781; 4798.......... TX Harris County....... 58,544,000 8,782,000 67,326,000
2024............................. 4781; 4798.......... TX Houston, TX......... 273,604,000 41,041,000 314,645,000
2024............................. 4831................ VA State of Virginia... 40,583,000 6,087,000 46,670,000
2023............................. 4720................ VT State of Vermont.... 58,996,000 8,849,000 67,845,000
2024............................. 4759................ WA Spokane County...... 38,393,000 5,759,000 44,152,000
-----------------------------------------------------------
Totals....................... .................... ............. .................... 10,338,640,000 1,550,797,000 11,889,437,000
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Table 2--Most Impacted and Distressed Areas for Disasters Occuring in 2023 and 2024
----------------------------------------------------------------------------------------------------------------
Minimum amount from
Public Law 118-158 that
must be expended in the
Grantee HUD-identified ``most ``Most impacted and distressed areas``
impacted and distressed
areas'' in column 3
----------------------------------------------------------------------------------------------------------------
State of Alaska...................... $14,940,800 Juneau (Borough) (ZIP code 99801); Lower Yukon
Regional Education (ZIP code 99554).
State of Arkansas.................... 47,238,400 Benton (County) (ZIP code 72756); Cross
(County); Pulaski County).
Little Rock, AR...................... 20,895,000 Little Rock.
State of California.................. 333,277,600 Hoopa Valley Indian Reservation (ZIP code
95546); Merced (County); Monterey (County); San
Benito (County) (ZIP code 95023); San Diego
(County); San Joaquin (County) (ZIP code
95220); San Luis Obispo (County); Santa Cruz
(County); Santa Cruz (County); Tulare (County);
Tuolumne (County) (ZIP code 95370); Ventura
(County).
State of Florida..................... 740,315,200 Charlotte (County); Charlotte (County); Citrus
(County); Collier (County) (ZIP code 34112);
Columbia (County) (ZIP code 32055); DeSoto
(County) (ZIP code 34266); Dixie (County);
Duval (County) (ZIP code 32209); Hamilton
(County) (ZIP codes 32052, 32053); Hernando
(County) (ZIP code 34607); Highlands (County)
(ZIP code 33870); Indian River (County) (ZIP
code 32960); Lafayette (County) (ZIP code
32066); Lake (County); Leon (County); Levy
(County) (ZIP codes 32625, 34498); Madison
(County) (ZIP code 32340); Polk (County);
Seminole (County) (ZIP code 32771); St. Lucie
(County); Sumter (County) (ZIP codes 33597,
34785); Suwannee (County) (ZIP code 32060,
32064); Taylor (County).
Broward County, FL................... 29,222,000 Broward County.
Ft. Lauderdale, FL................... 88,051,000 Ft. Lauderdale.
Hillsborough County, FL.............. 709,324,000 Hillsborough County.
Lee County, FL....................... 100,683,000 Lee County.
Manatee County, FL................... 252,711,000 Manatee County.
Orange County, FL.................... 33,357,000 Orange County.
Pasco County, FL..................... 585,704,000 Pasco County.
Pinellas County, FL.................. 813,783,000 Pinellas County.
St. Petersburg, FL................... 159,884,000 St. Petersburg.
Sarasota County, FL.................. 210,094,000 Sarasota County.
[[Page 4762]]
Volusia County, FL................... 133,515,000 Volusia County.
State of Georgia..................... 212,580,800 Appling (County) (ZIP code 31513); Atkinson
(County) (ZIP code 31642); Bacon (County) (ZIP
code 31510); Berrien (County) (ZIP code 31639);
Bryan (County) (ZIP code 31324); Burke
(County); Candler (County) (ZIP code 30439);
Clinch (County) (ZIP code 31634); Coffee
(County); Columbia (County); Emanuel (County)
(ZIP code 30401); Jeff Davis (County) (ZIP code
31539); Lanier (County) (ZIP code 31635);
Laurens (County) (ZIP code 31021); Lowndes
(County); Lowndes (County) (ZIP code 31601);
McDuffie (County) (ZIP code 30824); Richmond
(County); Spalding (County) (ZIP code 30223);
Toombs (County) (ZIP codes 30436, 30474);
Treutlen (County) (ZIP code 30457); Wheeler
(County) (ZIP code 30428).
Guam................................. 500,825,000 Guam (County-equivalent).
Maui County.......................... 1,639,381,000 Maui (County).
State of Iowa........................ 107,749,600 Cherokee (County) (ZIP code 51012); Clay
(County); Sioux (County); Woodbury (County)
(ZIP code 51109).
Chicago, IL.......................... 426,608,000 Chicago.
Cicero, IL........................... 96,004,000 Cicero.
Cook County.......................... 244,162,000 Cook County.
St. Clair County..................... 89,533,000 St. Clair County.
State of Indiana..................... 6,130,400 Sullivan (County) (ZIP code 47882).
State of Louisiana................... 94,356,800 Ascension (Parish) (ZIP code 70346); Assumption
(Parish) (ZIP codes 70341, 70390); Jefferson
(Parish); Lafourche (Parish); St. John the
Baptist (Parish) (ZIP codes 70068, 70084); St.
Mary (Parish); Terrebonne (Parish).
State of Massachusetts............... 6,363,200 Worcester (County) (ZIP code 01453).
State of Michigan.................... 34,856,000 Macomb (County); Monroe (County) (ZIP code
48166); Oakland (County).
Detroit, MI.......................... 346,864,000 Detroit.
Wayne County......................... 70,382,000 Wayne County.
State of Mississippi................. 107,962,400 Hinds (County); Humphreys (County) (ZIP code
39038); Humphreys (County) (ZIP code 39166);
Jackson (County) (ZIP code 39563); Monroe
(County) (ZIP code 38821); Scott (County);
Sharkey (County).
State of North Carolina.............. 1,142,496,000 Ashe (County); Avery (County); Buncombe
(County); Burke (County); Caldwell (County)
(ZIP code 28645); Cleveland (County) (ZIP code
28150); Haywood (County); Henderson (County);
Madison (County) (ZIP code 28753); McDowell
(County); Mecklenburg (County) (ZIP code
28214); Mitchell (County); Polk (County) (ZIP
code 28782); Rutherford (County); Transylvania
(County); Watauga (County); Yancey (County).
Ashville, NC......................... 225,010,000 Ashville.
State of New Mexico.................. 109,742,400 Chaves (County); Lincoln (County).
State of Ohio........................ 11,292,800 Logan (County).
State of Oklahoma.................... 31,524,000 Carter (County) (ZIP code 73401); McClain
(County) (ZIP code 73010); Murray (County) (ZIP
code 73086); Osage (County) (ZIP code 74002).
State of Pennsylvania................ 11,696,000 Tioga (County) (ZIP code 16950).
State of South Carolina.............. 120,283,200 Aiken (County); Anderson (County); Greenville
(County); Greenwood (County) (ZIP code 29646);
Laurens (County) (ZIP code 29325); Spartanburg
(County).
State of South Dakota................ 12,300,000 Union (County) (ZIP codes 57038, 57049).
State of Tennessee................... 68,590,400 Carter (County) (ZIP code 37643); Cocke
(County); Greene (County) (ZIP code 37743);
Johnson (County) (ZIP code 37683); Montgomery
(County) (ZIP code 37042); Unicoi (County) (ZIP
code 37650); Washington (County) (ZIP codes
37650, 37659).
State of Texas....................... 444,549,600 Anderson (County) (ZIP code 75801); Bell
(County) (ZIP codes 76501, 76502); Brazoria
(County); Cooke (County) (ZIP code 76272);
Dallas (County); Fort Bend (County); Galveston
(County); Guadalupe (County) (ZIP code 78666);
Hardin (County) (ZIP code 77656); Henderson
(County); Hockley (County); Jasper (County)
(ZIP code 75951); Jasper (County) (ZIP codes
75951, 75956); Kaufman (County) (ZIP code
75142); Liberty (County); Liberty (County) (ZIP
code 77327); Matagorda (County); Montgomery
(County); Montgomery (County); Polk (County)
(ZIP code 77351); San Jacinto (County); San
Jacinto (County) (ZIP codes 77331, 77371);
Smith (County); Trinity (County) (ZIP code
75862); Tyler (County) (ZIP code 75979); Walker
(County); Wharton (County) (ZIP codes 77437,
77488).
Harris County........................ 67,326,000 Harris County.
Houston, TX.......................... 314,645,000 Houston.
State of Virginia.................... 37,336,000 Giles (County) (ZIP code 24124); Washington
(County) (ZIP code 24236).
State of Vermont..................... 54,276,000 Lamoille (County) (ZIP code 05656); Washington
(County).
Spokane County....................... 44,152,000 Spokane County.
----------------------------------------------------------------------------------------------------------------
II. Use of Funds
Funds for disasters occurring in 2023 or 2024 announced in this
notice are subject to the requirements of the Universal Notice,
published on January 8, 2025, in the Federal Register at 90 FR 1754,
including sections I through V and appendices A through C.
III. Action Plan Submission Process
As provided in section I.C.3. of the Universal Notice, published at
90 FR 1754, this Allocation Announcement Notice provides a process for
Action Plan submittal. Within 90 days of the applicability date of this
notice, grantees are required to submit their Action Plan to HUD for
review and approval. For all allocations announced in this Allocation
Announcement Notice, HUD is requiring paper submission of the Action
Plan. Grantees shall submit their Action Plan to their assigned
Community Planning and Development (CPD) Specialist or other designated
HUD CPD staff member, with a copy provided to
<a href="/cdn-cgi/l/email-protection#02666b7163717667705d7067616d7467707b426a77662c656d74"><span class="__cf_email__" data-cfemail="1175786270626574634e6374727e67746368517964753f767e67">[email protected]</span></a>. HUD encourages grantees to use the Action
Plan template available on the Universal Notice website at <a href="https://www.hud.gov/program_offices/comm_planning/cdbg-dr/universal_notice_grantees">https://www.hud.gov/program_offices/comm_planning/cdbg-dr/universal_notice_grantees</a>.
IV. Applicable Rules, Statutes, Waivers, and Alternative Requirements
The 2025 Appropriations Act authorizes the Secretary to waive or
specify alternative requirements for any provision of any statute or
regulation that the Secretary administers in connection with the
obligation by the Secretary, or use by the recipient, of these funds,
except for requirements related to fair housing,
[[Page 4763]]
nondiscrimination, labor standards, and the environment. The Universal
Notice describes rules, statutes, waivers, and alternative requirements
that apply to allocations governed by this notice. For each waiver and
alternative requirement in the Universal Notice the Secretary has
determined that good cause exists, and the waiver or alternative
requirement is not inconsistent with the overall purpose of title I of
the HCDA. The waivers and alternative requirements provide flexibility
in program design and implementation to support full and swift recovery
following eligible disasters, while ensuring that statutory
requirements are met.
Grantees may request additional waivers and alternative
requirements from the Department as needed to address specific needs
related to their recovery and mitigation activities. Grantees should
work with the appropriate HUD CPD staff member to request any
additional waivers or alternative requirements from HUD headquarters.
The waivers and alternative requirements described below apply to all
grantees under this notice. Under the requirements of the 2025
Appropriations Act, waivers and alternative requirements are effective
five days after they are published in the Federal Register or on the
website of the Department.
V. Duration of Funding
The Appropriations Act makes these funds available for obligation
by HUD until expended. HUD waives the provisions at 24 CFR 570.494 and
24 CFR 570.902 regarding timely distribution and expenditure of funds
and establishes an alternative requirement providing that each grantee
must expend 100 percent of its allocation within six years of the date
HUD signs the grant agreement. HUD may extend the time period in this
alternative requirement and associated grant period of performance
administratively, if good cause for such an extension exists at that
time, as requested by the grantee, and approved by HUD. When the period
of performance has ended, HUD will close out the grant and any
remaining funds not expended by the grantee on appropriate programmatic
purposes will be recaptured by HUD.
VI. Assistance Listing Numbers (Formerly Known as the CFDA Number)
The Assistance Listing Numbers (formerly known as the Catalog of
Federal Domestic Assistance numbers) for the disaster recovery grants
under this notice are as follows: 14.218; 14.228.
VII. Finding of No Significant Impact
A Finding of No Significant Impact (FONSI) with respect to the
environment has been made in accordance with HUD regulations at 24 CFR
part 50, which implement section 102(2)(C) of the National
Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is
available online on HUD's CDBG-DR website at <a href="https://www.hud.gov/program_offices/comm_planning/cdbg-dr">https://www.hud.gov/program_offices/comm_planning/cdbg-dr</a>. Due to security measures at the
HUD Headquarters building, an advance appointment to review the docket
file must be scheduled by calling the Regulations Division at 202-708-
3055 (this is not a toll-free number). HUD welcomes and is prepared to
receive calls from individuals who are deaf or hard of hearing, as well
as individuals with speech or communication disabilities. To learn more
about how to make an accessible telephone call, please visit <a href="https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs</a>.
Adrianne R. Todman,
Deputy Secretary Performing the Duties of the Secretary of HUD.
Appendix A
Allocation of CDBG-DR Funds to Most Impacted and Distressed Areas Due
to Presidentially Declared Disasters Occurring in 2023 and 2024
Background
The Disaster Relief Supplemental Appropriations Act, 2025
(approved on 12/21/2024) appropriated $12.039 billion for CDBG-
Disaster Recovery funds (CDBG-DR) for disasters ``that occurred in
2023 or 2024.'' The law instructs HUD that the funds are ``for the
same purposes and under the same terms and conditions as funds
appropriated under such heading in title VIII of the Disaster Relief
Supplemental Appropriations Act, 2022 (division B of Pub. L. 117-
43).''
The key statutory text related to the allocation in Public Law
117-43:
``. . . for necessary expenses for activities authorized under title
I of the Housing and Community Development Act of 1974 (42 U.S.C.
5301 et seq.) related to disaster relief, long-term recovery,
restoration of infrastructure and housing, economic revitalization,
and mitigation, in the most impacted and distressed areas resulting
from a major disaster . . . Provided, That amounts made available
under this heading in this Act shall be awarded directly to the
State, unit of general local government, or Indian tribe (as such
term is defined in section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302)) at the discretion of the
Secretary: Provided further, That the Secretary shall allocate,
using the best available data, an amount equal to the total estimate
for unmet needs for qualifying disasters under this heading in this
Act: Provided further, That any final allocation for the total
estimate for unmet need made available under the preceding proviso
shall include an additional amount of 15 percent of such estimate
for additional mitigation:''
This methodology applies to allocations for disasters occurring
on or after January 1, 2023 and had been declared major disasters as
of November 1, 2024. It reflects approximately $11.992 billion under
the Disaster Relief Supplemental Appropriations Act, 2025 after
factoring in additional repurposed amounts and funds for capacity
building and HUD administrative costs. The key statutory text from
the Disaster Relief Supplemental Appropriations Act, 2025 is:
``For an additional amount for ``Community Development Fund,''
$12,039,000,000, to remain available until expended, for the same
purposes and under the same terms and conditions as funds
appropriated under such heading in title VIII of the Disaster Relief
Supplemental Appropriations Act, 2022 (Pub. L. 117-43), . . .
Provided, That the Secretary of Housing and Urban Development shall
allocate all funds provided under this heading in this Act for the
total estimate for unmet needs including additional mitigation for
qualifying disasters and publish such allocations in the Federal
Register no later than January 15, 2025: . . . Provided further,
That unobligated balances remaining as of the date of enactment of
this Act included under Treasury Appropriation Fund Symbol 86 X 0162
from Public Laws 108-324, 109-148, 109-234, 110-252, 110-329, 111-
212, 112-55, and 113-2 shall also be available for the purposes
authorized under this heading in this Act (except that the amount
for each set-aside provided herein shall not be exceeded),
notwithstanding the purposes for which such amounts were
appropriated: Provided further, That of the amounts made available
under this heading in this Act, $45,000,000 shall be transferred to
``Department of Housing and Urban Development--Management and
Administration--Program Offices'' for salaries and expenses of the
Office of Community Planning and Development for necessary costs,
including information technology costs, of administering and
overseeing the obligation and expenditure of amounts made available
for activities authorized under title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) related to disaster
relief, long-term recovery, restoration of infrastructure and
housing, economic revitalization, and mitigation in the most
impacted and distressed areas resulting from a major disaster in
this, prior, or future Acts (``this, prior, 4 or future disaster
Acts''): Provided further, That of the amounts made available under
this heading in this Act, $1,850,000 shall be transferred to
``Department of Housing and Urban Development--Information
Technology Fund'' for the disaster recovery data portal: Provided
further, That of the amounts made available under this heading in
this Act, $7,000,000 shall be transferred to ``Department of Housing
and Urban Development--Office of Inspector General''
[[Page 4764]]
for necessary costs of overseeing and auditing amounts made
available in this, prior, or future disaster Acts: Provided further,
That of the amounts made available under this heading in this Act,
$25,000,000 shall be made available for capacity building and
technical assistance, including assistance on contracting and
procurement processes, to support recipients of allocations from
this, prior, or future disaster Acts:''
Most Impacted and Distressed Areas
As with prior CDBG-DR appropriations, HUD is not required to
allocate funds for all major disasters occurring in the statutory
timeframes. HUD is directed to use the funds ``in the most impacted
and distressed areas.'' HUD has implemented this directive by
limiting CDBG-DR formula allocations to grantees with major
disasters that meet these standards:
(1) Individual and Households Program (IHP) designation. HUD has
limited allocations to those disasters where the Federal Emergency
Management Agency (FEMA) had determined the damage was sufficient to
declare the disaster as eligible to receive IHP funding.
(2) Concentrated damage. HUD has limited its estimate of serious
unmet housing need to counties and zip codes with high levels of
damage, collectively referred to as ``most impacted areas.'' For
this allocation, HUD is defining most impacted areas as either most
impacted counties--counties exceeding $10 million in serious unmet
housing needs--and most impacted Zip Codes--Zip Codes with $2
million or more of serious unmet housing needs. The calculation of
serious unmet housing needs is described below.
For disasters that meet the most impacted threshold described
above, the unmet need allocations are based on the following factors
summed together:
(1) Repair estimates for seriously damaged owner-occupied units
without insurance (with some exceptions) in most impacted areas
after FEMA and Small Business Administration (SBA) repair grants or
loans
(2) Repair estimates for seriously damaged rental units occupied
by very low-income renters in most impacted areas;
(3) Repair and content loss estimates for small businesses with
serious damage denied by SBA; and
(4) The estimated local cost share for Public Assistance
Category C to G projects.
Methods for Estimating Serious Unmet Needs for Housing
The data HUD uses to calculate unmet needs for 2023 and 2024
qualifying disasters come from the FEMA IHP data on housing-unit
damage as of November 20, 2024 and reflect disasters occurring in
2023 and declared on or before November 1, 2024.
The core data on housing damage for both the unmet housing needs
calculation and the concentrated damage are based on home inspection
data for FEMA's IHP and SBA's disaster loan program. HUD calculates
``unmet housing needs'' as the number of housing units with unmet
needs times the estimated cost to repair those units less repair
funds estimated to be provided by FEMA, SBA, and insurance.
Each of the FEMA IHP inspected owner units are categorized by
HUD into one of five categories:
<bullet> Minor-Low: Less than $3,000 of FEMA inspected real
property damage.
<bullet> Minor-High: $3,000 to $7,999 of FEMA inspected real
property damage
<bullet> Major-Low: $8,000 to $14,999 of FEMA inspected real
property damage and/or 1 to 3.9 feet of flooding on the first floor;
<bullet> Major-High: $15,000 to $28,800 of FEMA inspected real
property damage and/or 4 to 5.9 feet of flooding on the first floor.
<bullet> Severe: Greater than $28,800 of FEMA inspected real
property damage or determined destroyed and/or 6 or more feet of
flooding on the first floor.
When owner-occupied properties also have a personal property
inspection or only have a personal property inspection, HUD reviews
the personal property damage amounts such that if the personal
property damage places the home into a higher need category over the
real property assessment, the personal property amount is used. The
personal property-based need categories for owner-occupied units are
defined as follows:
<bullet> Minor-Low: Less than $2,500 of FEMA inspected personal
property damage.
<bullet> Minor-High: $2,500 to $3,499 of FEMA inspected personal
property damage.
<bullet> Major-Low: $3,500 to $4,999 of FEMA inspected personal
property damage or 1 to 3.9 feet of flooding on the first floor.
<bullet> Major-High: $5,000 to $9,000 of FEMA inspected personal
property damage or 4 to 5.9 feet of flooding on the first floor.
<bullet> Severe: Greater than $9,000 of FEMA inspected personal
property damage or determined destroyed and/or 6 or more feet of
flooding on the first floor.
To meet the statutory requirement of ``most impacted'' in this
legislative language, homes are determined to have a high level of
damage if they have damage of ``major-low'' or higher. That is, they
have a FEMA inspected real property damage of $8,000 or above,
personal property damage $3,500 or above, or flooding 1 foot or
above on the first floor.
Furthermore, a homeowner with flooding outside the 1 percent
risk flood hazard area is determined to have unmet needs if they
reported damage and no flood insurance to cover that damage. For
homeowners inside the 1 percent risk flood hazard area, homeowners
without flood insurance with flood damage below the greater of
national median or 120 percent of Area Median Income are determined
to have unmet needs. For non-flood damage, homeowners without hazard
insurance with incomes below the greater of national median or 120
percent of Area Median Income are included as having unmet needs.
The unmet need categories for these types of homeowners are defined
as above for real and personal property damage.
FEMA IHP does not inspect rental units for real property damage
so personal property damage is used as a proxy for unit damage. Each
of the FEMA-inspected renter units are categorized by HUD into one
of five categories:
<bullet> Minor-Low: Less than $1,000 of FEMA inspected personal
property damage.
<bullet> Minor-High: $1,000 to $1,999 of FEMA inspected personal
property damage or determination of ``Moderate'' damage by the FEMA
inspector.
<bullet> Major-Low: $2,000 to $3,499 of FEMA inspected personal
property damage or 1 to 3.9 feet of flooding on the first floor or
determination of ``Major'' damage by the FEMA inspector.
<bullet> Major-High: $3,500 to $7,500 of FEMA inspected personal
property damage or 4 to 5.9 feet of flooding on the first floor.
<bullet> Severe: Greater than $7,500 of FEMA inspected personal
property damage or determined destroyed and/or 6 or more feet of
flooding on the first floor or determination of ``Destroyed'' by the
FEMA inspector.
To meet the statutory requirement of ``most impacted'' for
rental properties, homes are determined to have a high level of
damage if they have damage of ``major-low'' or higher. That is, they
have a FEMA personal property damage assessment of $2,000 or greater
or flooding 1 foot or above on the first floor.
Furthermore, landlords are presumed to have adequate insurance
coverage unless the unit is occupied by a renter with income less
than the greater of the Federal poverty level or 50 percent of the
area median income. Units occupied by a tenant with income less than
the greater of the poverty level or 50 percent of the area median
income are used to calculate likely unmet needs for affordable
rental housing.
The average cost to fully repair a home for a specific disaster
to code within each of the damage categories noted above is
calculated using the median real property damage repair costs
determined by the SBA for its disaster loan program based on a match
comparing FEMA and SBA inspections by each of the FEMA damage
categories described above.
If there is a match of 20 or more SBA inspections to FEMA
inspections for any damage category, the median damage estimate for
the SBA properties is used less the estimated average FEMA IHP
repair grant and average SBA disaster loan grant weighted on take-up
rates, which are generally high for IHP and low and for SBA. Except
that no matched multiplier can be less than the 25th percentile for
all IHP eligible disasters combined in eligible disaster years at
the time of the allocation calculation or more than the 75th
percentile for all IHP eligible disasters combined with data
available as of the allocation.
If there is a match of fewer than 20 SBA inspections to FEMA
inspections within individual damage categories for an individual
disaster, these multipliers are used which are based on the 2020/
2021 disaster years:
[[Page 4765]]
----------------------------------------------------------------------------------------------------------------
Multipliers by disaster type
Disaster type -----------------------------------------------
Major-low Major-high Severe
----------------------------------------------------------------------------------------------------------------
Dam/Levee Break................................................. $33,007 $47,078 $47,078
Earthquake...................................................... 27,141 33,714 134,503
Fire............................................................ 22,971 82,582 134,503
Flood........................................................... 47,074 57,856 64,513
Hurricane....................................................... 36,800 45,952 45,952
Severe Ice Storm................................................ 33,528 33,714 36,592
Severe Storm(s)................................................. 22,971 37,299 37,299
Tornado......................................................... 52,961 82,582 134,503
----------------------------------------------------------------------------------------------------------------
A separate multiplier is applied to mobile homes for all
disaster types. The mobile home multipliers are $77,058 for major-
low, $98,463 for major-high, and $134,834 for severe.
Methods for Estimating Serious Unmet Economic Revitalization Needs
Based on SBA disaster loans to businesses using data for 2023
and 2024 disasters from as of November 19, 2024, HUD calculates the
median real estate and content loss by the following damage
categories for each disaster:
<bullet> Category 1: real estate + content loss = below $12,000
<bullet> Category 2: real estate + content loss = $12,000-$29,999
<bullet> Category 3: real estate + content loss = $30,000-$64,999
<bullet> Category 4: real estate + content loss = $65,000-$149,999
<bullet> Category 5: real estate + content loss = $150,000 and above
For properties with real estate and content loss of $30,000 or
more, HUD calculates the estimated amount of unmet needs for small
businesses by multiplying the median damage estimates for the
categories above by the number of small businesses denied an SBA
loan, including those denied a loan prior to inspection due to
inadequate credit or income (or a decision had not been made), under
the assumption that damage among those denied at pre-inspection have
the same distribution of damage as those denied after inspection.
Because many of the larger disasters of 2023 and 2024 occurred
recently and business need data remain incomplete for many
disasters, no disaster in 2023 or 2024 receives for business unmet
need less than 10 percent of their unmet housing need.
Methods for Estimating Unmet Infrastructure Needs
To calculate 2024 unmet needs for infrastructure projects, HUD
received FEMA cost estimates on November 20, 2024 of the expected
local cost share to repair the permanent public infrastructure
(Categories C to G) to their pre-storm condition.
Because many of the larger disasters of 2023 and 2024 occurred
recently and infrastructure need data remain incomplete for many
disasters, no disaster in 2023 or 2024 receives for infrastructure
unmet need of less than 10 percent of their unmet housing need.
Disaster Level Allocation Calculation
Once eligible entities are identified using the above criteria,
the allocation to individual grantees represents their proportional
share of the estimated unmet needs. For the formula allocation, HUD
calculates total unmet recovery needs for eligible disasters as the
aggregate of:
<bullet> Serious unmet housing needs in most impacted and
distressed areas;
<bullet> Serious unmet business needs; and
<bullet> Unmet infrastructure need.
Mitigation is calculated as 15 percent of the unmet need
calculation. Both unmet needs and mitigation grant amounts are
rounded to the nearest $1,000.
The unmet needs and mitigation are slightly greater than the
amount to be allocated, so the amount allocated reflects the unmet
needs and mitigation less a 1.2488 percent pro-rata reduction.
Grantee Level Allocations
As noted above, the basic formula for allocating these funds is
to calculate for each disaster meeting a minimum ``most impacted and
distressed'' damage threshold a formula that uses an estimate of
unmet needs for housing, economic revitalization, and infrastructure
plus 15 percent more for mitigation. Because in CY 2023 and CY 2024
some States and counties were impacted by multiple disasters, some
States and counties are proposed to receive a single award for
multiple disasters.
Where there are most impacted CDBG entitlement cities and/or
CDBG entitlement urban counties, direct allocations were calculated
to meet the dual goals of (i) funding locally and (ii) supporting
efficient and effective program implementation.
Note that when an urban county is identified, the funds
allocated are for the entirety of the county, not just participating
jurisdiction in the regular CDBG program. The exception is when an
entitlement city is also receiving a direct CDBG-DR award, in which
case that is subtracted out of the county calculation.
[FR Doc. 2025-00943 Filed 1-15-25; 8:45 am]
BILLING CODE 4210-67-P
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</html>Indexed from Federal Register on January 16, 2025.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.