Hurricane Matthew Recovery State of North Carolina Community Development Block Grant Disaster Recovery (CDBG-DR) Program Status Update October, 2017

Meeting Objectives Provide Status Update of CDBG-DR Program Review Eligible Activities in State’s CDBG-DR Action Plan Highlight new funding allocations from HUD and Substantial Amendment to Action Plan Review funding awards to Tier I Counties Highlight current efforts

Federal Disaster Relief Appropriation Allocated Effective January 23, 2017, the Department of Housing and Urban Development (HUD) appropriated disaster funding (CDBG-DR) to North Carolina. Action Plan submitted to HUD in April and issued grant agreement August 15, 2017. $198,553,000 appropriated $158,842,400 directed to most impacted counties: Robeson Cumberland Edgecombe Wayne $33,154,010 funds to be distributed in remaining 46 Counties. $1 million cap. Funds to be used for unmet needs remaining after other federal and private assistance has been allocated, such as: Federal Emergency Management Agency (FEMA) Small Business Administration (SBA) Private insurance

Critical Dates September 15, 2017 Tier I Counties CDBG-DR applications submitted. September 15, 2017 11 counties designated Tier II State Disaster Recovery Funds 17 submitted - $10 million dollars in funding. September 27h, 2017 Tier I counties Award Letters totaling $105,850,000 issued. October 16, 2017 Tier II Counties Award Letters Issued. October 20, 2017 Remaining 46 Counties CDBG-DR Applications Due. October 18-31, 2017 Substantial Amendment to Action Plan public comment period. November 7, 2017 Substantial Amendment Due to HUD – 45 day HUD review.

Current Status of CDBG-DR Program Tier I counties issued Award Letters September 27th totaling $105,860,000 for a two year budget period. Robeson County 2 Year Budget $46,600,000 Total Allocation $69,890,656 Cumberland County $23,260,000 $34,945,328 Edgecombe County $19,060,000 $28,591,632 Wayne County $16,940,000 $25,414,784 Year 3 $52,980,000

Program Requirements CDBG – DR Program Requirements Activities must be CDBG Eligible Must meet a CDBG National Objective Activities must address a direct or indirect impact from the Disaster Funds must be used for expenditures related to long-term recovery, housing, infrastructure, supportive housing services, and economic development No Duplication of Benefits (DOB) – CDBG-DR funds must document that the activity or need has not already been met by other federal, state, local resources, private insurance or other funds Must still comply with regular CDBG statutory and regulatory program requirements i.e. Environmental Review Process, Section 3, Davis-Bacon, MWE/WBE, Citizen Participation, Language Access Plan.

Funds Distribution by Program Housing Allocation To Most Impacted Communities Remaining 46 Counties $142,886,811 $114,309,449 $28,577,362 Housing Recovery Program 93,977,299 Rental Housing Recovery 18,204,756 Multi-Family New Construction Public Housing Restoration 5,000,000 (Lumberton PHA) Supportive Housing and Services 7,500,000 Economic Development 10,000,000 8,000,000 2,000,000 Small Business Recovery Community Recovery Program 15,883,239 12,706,591 3,176,648 Planning and Capacity (10%) 19,855,300 Administration (5%) 9,927,650 Total $198,553,000 $158,842,400 $33,754,010 Distribution of CDBG-DR Funds By Program

Recovery Programs Program Name: Homeowner Recovery Program CDBG-DR ALLOCATION: $93,977,299 Eligible Activities: Single Family Homeowner Rehabilitation Single Family Homeowner Reconstruction Mobile Home Repair Mobile Home Replacement Housing Elevation Temporary Rental Assistance Acquisition of homes Flood Insurance Assistance Housing Repair Reimbursement Eligible Applicants: Homeowners; major/severe damage to primary residence; low/moderate income Priorities: Most impacted communities; households with householder age of 65+, households with disability, and households earning less than 60% of Area Median Income. Substantial Amendment proposes to increase eligibility to 80% of AMI. Housing Buy-Out/Elevations will be eligible activity.

Recovery Programs Program Name: Small Rental Repair Program CDBG-DR ALLOCATION: $18,204,756 Eligible Activity Rental units rehabilitation Eligible Applicants: Rental units in structures with less than 10 units; unmet needs remain; units affordable for renters earning less than 80% AMI. Priorities: Most impacted communities; rent-restricted to households earning up to 80% LMI Note: Most maintain affordability for a 5 year period.

Recovery Programs Program Name: Multi-Family Rental Housing CDBG-DR ALLOCATION: $18,204,756 Eligible Activities & Maximum Award: Construction of Housing Eligible Applicants: Developers building affordable multi-family projects (10 units or more) or substantially revitalizing 10 unit or more multi-family projects that withstood major to severe damage in most impacted communities Priorities: Given to projects that: Leverage other resources Produce, new sustainable housing Produce housing that is integrated with neighborhood services and jobs, and provide deeper affordability Note: Must maintain affordability for a minimum of 5 years

Recovery Programs Program Name: Supporting Housing and Services Grant CDBG-DR ALLOCATION: $7,500,000 Eligible Activities & Maximum Award: Construction-related projects Non-construction supportive services Household services Individual services Eligible Applicants: State, county, local, and non-profit organizations that provide supportive services in storm-impacted areas. This is a needs-based award, competitive application process. Priorities: Applicants selected on competitive process that will consider applicant capacity and target group served.

Recovery Programs Program Name: Public Housing Restoration Fund CDBG-DR ALLOCATION: $5,000,000 – Lumberton Housing Authority Eligible Activities & Maximum Award: Public housing rehabilitation Eligible Applicants: Public Housing Authorities Priorities: Restoration of public housing units with remaining unmet need. Substantial Amendment proposes to make all impacted PHA’s an eligible activity.

Recovery Programs Program Name: Small Business Recovery Assistance CDBG-DR ALLOCATION: $10,000,000 Eligible Activities & Maximum Award: Special economic development activity; Microenterprise assistance Eligible Applicants: Small businesses with documented unmet needs to recover business operations due to high costs already incurred (reimbursement for the repair and/or replacement of damaged structures and equipment) or remaining repair costs. Priorities: Micro-businesses (<10 employees); DBE businesses; businesses located in the most impacted communities. Program will be administered by Department of Commerce.

Recovery Programs Program Name: Community Recovery Program CDBG-DR ALLOCATION: $15,883,239 Eligible Activities & Maximum Award: Restoration of basic services, neighborhood facilities Eligible Applicants: Local and county governments; non-profit organizations (must have identified over $60 million in unmet needs for eligible activities) Priorities: Projects in the most impacted communities that serve older adults, children, persons with disability, and families living in poverty.

CDBG-DR Action Plan Substantial Amendment Substantial Amendment to State’s Action Plan HUD issued Federal Register PL August 7, 2017 for additional $37,976,000 of funding Tier I counties will receive additional $30,380,000 of funds. This is stipulated by HUD. State must submit Substantial Amendment to HUD by November 7th Substantial amendment will be posted for public comment beginning October 18-31st . Amendment will be available on ReBuild NC website and Department of Commerce’s website. You may also request a written copy. Proposed Changes include: Additional of a Housing Buy-Out program and funding as an eligible activity $25 million targeted Additional program description and funding for Economic Development activities Proposing to direct more funding to non Tier I counties

Project Oversight   NCEM will enter into grant agreements with counties as the Lead Entities to implement project activities. Counties are to work with their municipal and town governments (UGLG’s) through outreach and collaboration in program activities. To facilitate the construction process, NCEM has retained Construction Managers at Risk (CMR’s) which will coordinate the construction process identification of local contractors, securing bids, and contract management. The CMR’s will work with Lead Entities to identify local contractors from their area. The County will be responsible for intake, processing applicants and determining eligibility. NCEM is staffing up the CDBG-DR program with focus on housing, budget, infrastructure, construction management and CDBG-DR compliance. The CDBG-DR Program Manager is Kevin Landers. Four CD Specialists will be hire to work closely with the counties on compliance, grant management and outreach to local residents. The Department of Commerce has entered into 3 contracts with CFI’s to administer the Small Business Recovery Program.

Contact Information   Kevin Landers CDBG-DR Project Manager and Director EM Kevin.Landers@ncdps.org Phone number: 919 268-1582 Michele Grant Senior Advisor DOC Liaison CDBG-DR EM Michele.Grant@ncdps.org Phone number: 919-825-2578 Iris C. Payne CDBG Director NC Department of Commerce ipayne@nccommerce.com Phone number: 919-814-4663 Action Plan Link http://www.nccommerce.com/rd/state-cdbg/consolidated-plan