How States Have Managed Their Recovery After a Major Disaster – Non Federal Share “Local Match” Program Kris Van Orsdel Managing Director, Infrastructure & Local Government Program Governor’s Office of Storm Recovery March 15, 2017

What is a Non-Federal Share “Local Match” Program A program that uses the flexibility of HUD CDBG-DR funds to pay the Non-Federal Share, “local match” that is required from other federal funding sources. A program that allows applicants to access a larger allocation of Federal disaster funds which assists with community recovery. A program that by coordinating the use of CDBG-DR funds with other Federal resources helps to reduce the financial burden on storm-affected communities as they work to recover and increase their resiliency after a disaster.

Who Has New York State Assisted with the Program GOSR has assisted over 950 public entities including Local, County and State Governments Public Housing Authorities and Not for Profit Housing Entities Primary and Secondary Schools (K-12) and Public Universities First Responders: Police, Sherriff and Fire Departments Hospitals and Not for Profit Community Based Health Entities Wastewater Treatment Plants and Public Utilities Public Parks and Recreation Based Not For Profit Entities Providing ~$300m via the PA match program has allowed applicants to access over $2.1 billion in FEMA PA funds. Providing ~$250m via the HMGP match program has allowed applicants to implement over a $1.2 billion of FEMA funded resiliency projects across New York.

Can You Design and Successfully Run a Local Match Program? ABSOLUTELY! CDBG-DR is a flexible funding source and local match programs are scalable. CDBG-DR funds can be used as match for other federal disaster programs, as long as the activity is an eligible under CDBG-DR regulations. HUD CPD has shown a willingness to work with grantees on how to best develop and craft effective programs. Other HUD Grantees are willing to help and share lessons learned so that new programs can be successful. If you have the ability to work collaboratively and think creatively you can maximize Federal funds and minimize the costs to the local, county and state governments impacted by a disaster and become more resilient.

What Makes the Program Complicated? Each federal program comes with unique regulations, different paperwork requirements, and vary local match rates. Many of these elements are similar or cross cutting, creating opportunities for efficiencies and savings in program design. Demand for funds always exceeds supply of dollars. Early policy coordination between agencies and elected officials can set reasonable, fair standards and equitable allocations. Communication. Tension and uncertainty between federal, state and local agencies leads to cautious decision-making frameworks. Patience, communication, and transparency can improve the quantity and quality leading to successful outcomes. Federal agency teams are eager to modernize and maximize programs. Communicating with federal partners leads to success.

Who are Key Stakeholders for Successful Match Program Grantee -- GOSR/HTFC – responsible for management and expenditure of CDBG-DR funds, development and publication of Action Plan and Amendments, Technical Assistance, etc. HUD – consult early and often on plans for match programs. FEMA – The FEMA Public Assistance (PA) Superstorm Sandy and Region 2 team. State OEM – The Division of Homeland Security Emergency Services (DHSES) is New York’s representative agency to FEMA. DoB – The Department of Budget (DOB) receives and oversees federal funds throughout New York State. Units of Government, Schools, 1st Responders, NPOs and other Entities- - throughout New York State, including local, county and state agencies and authorities.

What Federal Disaster Programs Require a Non-Federal Share or “Local Match” FEMA’s Public Assistance (PA) Program provides funds for post-storm response and recovery needs. By accessing additional “406” funding, the PA program can not only repair and restore a damaged asset, but provide funds to make the facility more storm resilient to future events. Local match requirement varies but is usually 25%. FEMA’s Hazard Mitigation Grant Program (HMGP) provides funds for projects that increase mitigation and resiliency. Projects must satisfy a cost-benefit analysis and cannot depend on other projects to achieve their mitigation goals. Local match requirement is 25%, but can be aggregated. EPA Storm Mitigation Loan Program Federal Highway Administration Emergency Road Program USDA Programs

How Do You Use CDBG-DR Funds in Local Match Program Determine National Objective Match programs primarily utilize: UN, LMI, LMI-C Determine Eligible Activities As with all CDBG-funded activities, the matched project must be a HUD eligible activity. GOSR, with assistance from HUD CPD, defined HUD eligible activities for the Program that are tied to PA categories. Projects must meet HUD’s Non-Federal share eligible activity requirement (Section 105(a)(9)) in addition to one additional eligible activity. GOSR uses: Debris Removal (Section 105(a)(4)) Public Services (Section 105(a)(8)) Public Facilities (Section 105(a)(2))

How Do FEMA Categories Align with HUD Eligible Activities FEMA Category Category Description DRGR Eligible Activity (can be UN or LMI) Response Categories A Debris Removal 105(a)(4) – Clearance B Emergency Protective Measures 105(a)(8) - Public Services Recovery Categories C Roads & Bridges 105(a)(2) - Public Facilities D Water Control Facilities E Buildings & Equipment F Utilities G Parks, Recreation, & Other

How Do You Make a “Tie to the Storm” in a Match Program Tie to the Disaster (Storm) For CDBG-DR, a clear tie to the disaster must be established. FEMA PA program requires clear documentation showing a direct storm related impact as a prerequisite for funding at both the applicant and project (PW) level. The FEMA documentation provides a clear tie to the storm. It is applied to the HUD justification memo that is maintained in the project file. GOSR Match Program addresses federally declared disasters: DR-4020 Hurricane Irene (2011) DR-4031 Tropical Storm Lee (2011) DR-4085 Superstorm Sandy (2012) DR-4111 Winter Storm Nemo (2013) DR-4129 Upstate Severe Storms and Flooding (2013)

How Do You Ensure Work is Done in an Eligible County Eligible Counties CDBG-DR funds can only be used in counties that were presidentially declared disaster areas. These counties are directly tied to the FEMA PA program. By default all PA match projects are in HUD eligible counties. HUD requires the New York utilize 80% of all PL 113-2 funds to be used in HUD-defined most impacted counties: Superstorm Sandy (4085): Long Island: Nassau, Suffolk Hudson River Valley: Rockland, Westchester NYC: Bronx, New York, Queens, Kings, Richmond Program design needs to account for match payments that are not in HUD defined most impacted counties.

How Do You Conduct Environmental Reviews Environmental reviews for federally-funded projects matched by CDBG-DR could be costly and duplicative if not coordinated properly. The Superstorm Sandy allocation (PL 113-2) allows NYS to adopt the environmental review of another federal agency as long as the grantee notifies HUD of this intent. GOSR informed HUD that the State would utilize this provision for the FEMA PA, IA and HMGP Global Match Strategy, whether the review is performed by FEMA or by GOSR under 24 CFR 58. Grantees should pursue adopting the FEMA Environmental Review for match programs that relate to FEMA PA and HMGP programs.

How Do You Document and Show HUD the Files for Match Program GOSR created a data repository (system of record) that accesses data from FEMA , State and Federal Payment Data to minimize duplicative requests made to match applicants. When additional HUD required documentation is needed GOSR via document collection process, collects necessary materials from applicant which is uploaded to the projects file. GOSR developed the FEMA PA Match “HUD View” to enable HUD to review the match program from laptops during audits and monitoring visits. The application provides a comprehensive view of selected PWs through a user interface. HUD view consolidates and shows information from these data systems in a user friendly format that takes the reviewer directly to the HUD required supporting documentation, needed to support the payment.

HUD View HUD View Filter Section for choosing the PW FEMA Specific Section which displays data relevant to the Federal Emergency Management Agency (FEMA) HUD Specific Section which displays data relevant to HUD Draw Section which displays data each time a PW’s Eligible Activity, National Objective, or Draw Amount changes Review and Recommendation Section which displays the review and signoff process that the PW went through

HUD View example Supporting Documents Section which contains the documentation for the PW

GOSR Hazard Mitigation Grant Program (HMGP) Match Program New York State is using a concept known as “Global Match or Coordinated Match” to maximize HMGP funding. HMGP funds allow applicants to develop projects that make assets more resilient to future storm events. HMGP projects have a 25% local match requirement. CDBG-DR can be used as match with APPROVAL from FEMA. HMGP match can be applied at grant level, not project level, creating the opportunity for aggregated “Global Match”. Global Match allows projects to receive up to 100% Federal or Local share, as opposed to the traditional 75%/25% split.

Why New York Pursued a Global Match Solution Governor Cuomo wanted to ensure that New York maximized resiliency funds made available to the State and CDBG-DR was committed as match for seven disasters and all applicants (except NYC). Potential budget shortfall to cover match obligations if a “global” solution could not be attained as a result of multiple storms in successive years. GOSR buyout/acquisition program , part of the Housing Recovery program appeared to meet both FEMA and HUD requirements for many properties, creating an opportunity to match HMGP projects without spending CDBG-DR funds twice. (once for match, once for the buyout) Allowed the state to not only meet the local match requirement but allowed the State to pursue more resiliency projects across the state. Coalition of interested and proactive Federal, State and Local partners who wanted to see New York maximize resiliency funding.

What is the Global Match Program Primarily uses CDBG-DR-funded home buyout program as Match for State’s HMGP Program. GOSR receives credit for each home that is bought out using CDBG-DR funds and turned into green space. Identify infrastructure projects where eligibility lines up between CDBG-DR and FEMA HMGP funding sources. Projects are then developed to meet both requirements. Global Match is especially useful when match funds (i.e. CDBG-DR) may not be eligible/viable for a project Some HMGP projects would but ineligible for CDBG-DR funding because of location or tie to the storm. Global Match made it possible to leverage and use CDBG-DR funds where it is eligible and allowed other resiliency projects to get 100% FEMA funding.

How Does Global Match Work Four projects, three receive 100% FEMA funding, one receives 100% local share Four projects, each receives 75% FEMA funding, 25% local share Both scenarios require equal FEMA and local share dollars Size of disaster does not matter – strategy can follow disaster recovery at any scale

How Do you Create an Effective Global Match Program? Communication, Communication, Communication. Proactively work with FEMA and your State OEM during the HMGP application phase. Ensure that projects being developed meet both HUD and FEMA regulations. Proactively identify projects that are both HMGP and CDBG eligible before an event occurs. In consultation with OEM/FEMA develop 2 types of CDBG-DR projects: “$0” Global Match applications: 0% FEMA / 100% CDBG-DR projects CDBG-DR infrastructure projects that qualify for HMGP match

Requirements to successfully structure a Global Match strategy Identify projects that multiple funding sources are interested in and create an institutional understanding of the crosswalk between funding sources. Conduct project eligibility reviews early and often, especially Benefit Cost Analysis. Create policies that enable, permit and encourage the utilization of inter-agency resources. Work closely with your finance and budget team. Use projects your agency would be doing anyway – the fewer “new” applications you have to write and get approved, the better! Get everything in writing!

Questions Kris Van Orsdel Managing Director Infrastructure and Local Government Program Kris.VanOrsdel@stormrecovery.ny.gov 212-480-6740 Office 917-862-5695 Cell John Scarpa Program Manager, Non Federal Share Programs John.Scarpa@stormrecovery.ny.gov 212-480-6476 Office 347-327-4157 Cell