Last month the North Carolina Office of Recovery & Resiliency (NCORR) released the Hurricane Florence CDBG-DR Action Plan outlining how $542.6 million in disaster recovery funds are to be utilized for parts of the state most impacted by the 2018 hurricane. NCORR consulted with numerous resources and conducted extensive analysis to identify unmet recovery needs.
NCORR also studied the economic impacts suffered and housing comes away as the area of the biggest need with over $4.8 billion in damage and destruction of all forms of residential structures (single family, multi-family, manufactured homes, rental housing and supportive housing).
The methodology for distributing funds will largely mirror what is being done for Hurricane Matthew’s CDBG-DR and CDBG-MIT funds. Five of the eight programs that will be funded by Florence’s CDBG-DR monies will be focused on housing recovery. As was discussed on our March 3rd Housing Call with guest Tracey Colores from NCORR, the majority of funds will be going to housing programs. Colores also talked about some of the differences in this Action Plan compared to the programs in the Matthew plans. The other funding programs address infrastructure, workforce development, and code enforcement needs.
The following are the housing programs outlined in the Action Plan:
1. Homeowner Recovery – $325.5 million
Direct assistance in the form of grants to homeowners for the rehabilitation, repair, or reconstruction of their homes. Where applicable, grants can be used to elevate homes or pay for flood insurance subsidies. Owners of manufactured homes are also eligible for assistance with repairs or replacement. Homeowners who expended personal funds in the immediate aftermath to make necessary repairs or purchase replacement manufactured homes may be eligible for reimbursements. Renter households with incomes less than 120% of AMI may be eligible for funds to aid in temporary relocation assistance.
2. Buyouts – $32.5 million
Property owners of homes located in Disaster Risk Reduction Areas (DRRAs) or “buyout zones” will be eligible to receive payment for vacating their property and relocating to other areas. DRRAs are areas NCORR has identified as having “increased hazard risk” based on analysis of resident input, history of repetitive losses and storm damage, floodplain locations and other geographic features.
3. Affordable Housing Development Fund – $59.6 million
This program is a change from how housing needs were addressed in the Action Plans for Hurricane Matthew which focused on small rental repairs and traditional multi-family rental housing structures (i.e. buildings of 3 or more stories). The Affordable Housing Development Fund will allow NCORR greater flexibility in using housing funds to address losses in other forms of housing stock and the variety of geographic settings of impacted areas, such as rural and suburban settings. The Fund will be used for assistance in two tracks:
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- Loans for new construction, rehabilitation, or reconstruction of income-restricted rental housing for LMI households.
- Down Payment Assistance for qualified LMI individuals interested in becoming homeowners.
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NCORR will solicit development project proposals from qualified property management organizations, public organizations, private for-profit or non-profit organizations, CHDOs and CBDOs for the construction activities. For down payment assistance, NCORR will contract with established community entities already engaged in homeownership assistance.
4. Small Rental Repair Program – $32.5 million
Provides assistance to landlords of small rental structures such as single family homes, duplexes, and buildings of four or fewer units. Such landlords typically have portfolios containing smaller numbers of units. Funds will be distributed directly to landlords for repairs and construction in amounts ranging from $5000 to $70,000 per unit.
5. Public Housing Restoration Fund – $16.2 million
Funds administered directly by NCORR to Public Housing Authorities for the rehabilitation and repair of public housing units. Funds may also be used to improve a facility’s resilience in future storm events or to relocate units outside the floodplain.
The Action Plan also outlines construction and green building criteria that will guide all new construction or replacement of residential buildings.
The non-housing related programs include $21.7 million for infrastructure recovery, $5.4 million for construction trades training, and $5.4 million for code enforcement support programs. Approximately $43.4 million will be used for administrative and planning costs.
Comments on the Action Plan are being accepted until March 8 at 5 p.m.
Submit comments by email to: publiccomments@rebuild.nc.gov
Submit comments by USPS mail to:
ReBuild NC
Attn: Florence Comments
P.O. Box 110465
Durham, NC 27709
