HUD and Disaster Mitigation ASFPM May 22, 2012

Community Development Block Grant (CDBG) Disaster Recovery In response to a Presidentially-declared disaster, Congress may appropriate funding for long-term recovery through the CDBG program; this funding supplements standard recovery programs administered by other federal agencies HUD allocates the funds as grants to individual states or municipalities affected by the disaster

CDBG Disaster Recovery CDBG-DR awards must be carried out in compliance with the Housing and Community Development Act of 1974 and other federal laws. – Activities must be CDBG eligible (or subject to a waiver granted by HUD) – Activities must meet a CDBG national objective Benefit persons of low and moderate income Aid in the prevention or elimination of slums or blight Meet urgent community development needs

CDBG Disaster Recovery In addition, every activity must respond to a disaster- related impact Typical activities include: – Housing (e.g., rehabilitation of damaged units) – Economic development (e.g., loans to affected businesses) – Infrastructure (e.g., repair of water lines) Through all activities, HUD encourages grantees to rebuild safer, smarter, and stronger

CDBG-DR Funding More than $30 Billion since Sept. 11, 2001 Currently 40 grantees 26 states 14 local governments 2001approx. $3.5 Billion (World Trade Center) 2005approx. $20 Billion (Katrina, Rita, Wilma) 2008approx. $6.4 Billion (Ike, Gustav, Dolly, Midwest Floods) 2010 approx. $100 Million (Severe Flooding) 2011approx. $400 Million (Tornadoes, Flooding, Irene)

Disaster Recovery Enhancement Fund (DREF) Set-Aside of $311 Million from 2008 appropriation Goal: Incentivize investment in projects that mitigate hazards and reduce risk from future disasters How it works: – Grantees eligible for 1-for-1 match as a supplemental allocation from the DREF – Award based on how much of each grantee’s original allocation is dedicated to activities that reduce future risk

DREF Eligible Activities Qualifying activities were limited to: – Development and adoption of a forward-thinking land-use plans – Buyout programs for floodplain, critical fire, or seismic areas – Individual mitigation measures to improve residential properties & make them less prone to damage – Implementation of modern disaster-resistant building codes, including training on new standards and code enforcement

DREF Awards California – $15 M Florida – $26.9 M Georgia – $640,000 Illinois – $24.5 M Indiana – $24.1 M Iowa – $92.2 M Kentucky – $500,000 Louisiana – $34.5 M Mississippi – $5.4 M Missouri – $5 M Puerto Rico – $12 M Texas – $55.5 M Wisconsin – $15.3 M

DREF Return on Investment $311 Million in DREF awards incentivized grantees to dedicate more than $875 Million toward activities that reduce future risk. Producing a return of investment of up to $3.5 BILLION

Other Federal Requirements Section 102(a) of Flood Disaster Protection Act of 1973 – mandates the purchase of flood insurance for any HUD-assisted property within the Special Flood Hazard Area or ‘‘100-year’’ floodplain

Other Federal Requirements Section 582 of the National Flood Insurance Reform Act of 1994 – Prohibits federal disaster assistance for repair, replacement, or restoration to any personal, residential, or commercial property if that person at any time has received federal flood disaster assistance that was conditional on the person first having obtained flood insurance and the person has subsequently failed to obtain and maintain flood insurance as required

Best Practices Watershed Planning Buyout Programs Elevation of Housing Relocation of Infrastructure Green Building Principles

Watershed Planning (Iowa) Watershed Planning—$1.5 million allocated – Create watershed management authorities to rehabilitate flood prevention systems in a coordinated fashion, and restore and enhance Iowa’s drainage infrastructure in more effective ways – Assess needs and viable drainage improvements Watershed Projects-- $8 million allocated – Design and implement projects restore more subsurface hydrology through better infiltration control overland flow through judicious application of innovative water retention technologies (this will lower the amount and frequency of floods)

Voluntary Buyouts State of Iowa has budgeted $240 million for buyouts of residential or commercial properties in flood-prone areas for which FEMA funds are not available – Funds provided to units of local government – Awards to local governments based on: overall level of damage in the proposed buyout area, extent to which the proposed buyout program supports overall flood mitigation plans for the community

Voluntary Buyouts Many grantees use CDBG-DR funds to match FEMA’s Hazard Mitigation Grant Program (HMGP)

Elevation of Housing In addition to buyouts, CDBG-DR funds can be used for elevating homes Louisiana Homeowners can be reimbursed for expenses incurred in elevating their homes to meet the Advisory Base Flood Elevation or the adopted Base Flood Elevation. More than $930 Million has been expended for this purpose Mississippi Provides grants (up to $30,000) to help homeowners defray the cost of elevating their homes to the most recent FEMA elevation standards. Assisted thousands of households.

Relocation of Infrastructure Similar to buyouts, grantees are encouraged to relocate public facilities out of harm’s way where feasible and cost is not prohibitive