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1 Hagerty Consulting 847-492-8454 www.hagertyconsulting.com Maximizing Available Funds to Enhance Recovery A Discussion for the NCDA Winter Legislative.

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Presentation on theme: "1 Hagerty Consulting 847-492-8454 www.hagertyconsulting.com Maximizing Available Funds to Enhance Recovery A Discussion for the NCDA Winter Legislative."— Presentation transcript:

1 1 Hagerty Consulting 847-492-8454 www.hagertyconsulting.com Maximizing Available Funds to Enhance Recovery A Discussion for the NCDA Winter Legislative and Policy Meeting January 20-22

2 2 INTRODUCTIONS More than 36 years of professional management experience. Over eleven years (11) managing Federal disaster programs. A full understanding of a variety of federal disaster recovery programs and grants. Managed FEMA’s Individual Assistance (IA) programs in over 30 federally declared disasters. FEMA Region 9 IA Branch Chief for 3 ½ years. FEMA’s National Disaster Housing Section Chief for over 4 years. Worked with HUD on a federal-to-federal basis coordinating HUD’s Disaster Housing Assistance Program for hurricanes Katrina/Rita and Gustav/Ike. Managing Hagerty’s CDBG-DR support team for the City of New York, overseeing the administration and implementation of the $4.2 Billion HUD grant. Steve Miller, Hagerty Consulting, Disaster Recovery Manager

3 3 DISASTER RECOVERY IS EXTREMELY COSTLY!  Since 2000, there have been more than 100 natural disasters that individually exceeded $1 billion in damages  Since 2000, the United States has incurred more than $700 billion in disaster damages  In 2005, Hurricane Katrina caused more than $150 billion in damages to the Gulf Coast  In 2012, Hurricane Sandy caused $60 billion+ in damages  In 2014 and 2015, eighteen disasters each exceeded $1 billion in damages $700B

4 4 HOW ARE YOU GOING TO PAY FOR THIS?!?!  FEMA  HUD  Other Federal Agencies SBA USACE FTA FHWA USDA VA The Federal Government has established Programs in multiple Federal Agencies to meet eligible needs for disaster-related expenses which exceed the capability of a state.

5 5 WHY THIS MATTERS TO YOU?!?! Multiple Programs Major Federal Disaster Recovery Programs Programs Designed to Work Together Differing Eligibility and Compliance Requirements ? ? Funding Can Be Layered to Increase Efficiency Duplication of Benefits YOU may be called upon to help implement community recovery and coordinate the utilization of these funds.

6 6 THIS CAN BE SO CONFUSING…..AND OVERWHELMING!!!!!!  Conduct a thorough Needs Assessment  Submit Documentation  Prepare an Action Plan  Work with other entities to distribute funds  Communicate HUD DR-specific compliance requirements  Administer disaster-specific programs and activities  Monitor activities  Provide technical assistance  AND carry your normal workload…..  And we are are just getting started…..  Will you be ready to:

7 7 THE TWO PRIMARY FUNDING SOURCES WE ARE FOCUSING ON

8 8 FEMA PUBLIC ASSISTANCE (PA) FOUNDATION AND PURPOSE  Authorized by the Stafford Act  Reimburses eligible local governments and non-profit applicants for response and recovery activity costs  Federal cost share of no less than 75%  Federal cost share may be raised  State or Tribe is the Applicant  Available when thresholds have been met for Presidential declaration

9 9 FEMA PA CATEGORIES OF EMERGENCY & PERMANENT WORK A: Debris Removal B: Emergency Protective Measures C: Road Systems & Bridges D: Water Control Facilities E: Building, Contents, Equipment F: Utilities G: Parks, Recreational, Other

10 10 HUD CDBG-DR FOUNDATION AND PURPOSE  Congress first appropriated funds to CDBG for long-term disaster recovery in 1992.  No annual appropriation for CDBG disaster recovery and Statutory authority is via individual supplemental appropriations. As a result – no regulations specific to disaster recovery.  Since 1993, HUD has provided more than $47 billion in CDBG- DR funds for impacted communities in 19 allocations.  The first allocation (1993 Andrew) was $85 million, while the most recent allocation was $300 million.

11 11 HUD CDBG-DR FOUNDATION AND PURPOSE (cont.)  These funds were provided for all forms of hazards.  Through the flexibility of the CDBG program, HUD is able to assist communities that otherwise might not recover due to limited capacity and resources.  CDBG-DR funds supplement the federal government’s standard recovery assistance programs administered by the Federal Emergency Management Agency (FEMA), the Small Business Administration (SBA), and the U.S. Army Corps of Engineers (USACE).

12 12 HUD CDBG - DISASTER RECOVERY Housing Business Infrastructure Resiliency Planning Administration

13 13 FEMA Public Assistance HUD CDBG - DR  Reimbursement based on expenditures after the fact  Funds Emergency Measures and Permanent Restoration  Includes a cost share requirement  Costs must be approved by FEMA before reimbursement  Reimbursement only for activities in approved Action Plan  Funds all costs eligible under CDBG Regulations if tied back to the disaster  Can cover FEMA PA cost share  Funds drawn directly from HUD  Must follow HUD Regulations PA PROGRAM COMPARED TO CDBG-DR

14 14 CDBG-DR REGULATIONS AND REQUIREMENTS  Community Development Block Grant – Disaster Recovery Administered by the US Department of Housing and Urban Development (HUD) Funds appropriated by Congressional Act Funds allocated and governed by Federal Register Notices  What are the basic differences between CDBG-DR and CDBG? Comply to rules, waivers, and alternatives defined by the Federal Register Notice allocating the funds (changes each disaster) Address a disaster-related impact identified in an Unmet Needs Assessment and approved Disaster Action Plan Benefit over 50% Low- to Moderate-Income (LMI) individuals instead of 70% Do not duplicate other previous disaster assistance (Stafford Act) Being an entitlement does not guarantee a direct allocation

15 15 USES OF EXISTING CDBG ENTITLEMENT FUNDS FOR DISASTERS  Existing CDBG funding can be used to assist your community with planning for and preparing to respond and recover from disasters which can help reduce impacts and recovery time for your most vulnerable populations.  CDBG funds can be redirected to assist in the recovery of a disaster but will reduce entitlement projects and may cause the appearance of a reduction in unmet needs. What plans and assessments will your community want or need?  Gap Analysis & Capabilities Assessments  Phased Plan Development Continuity of Operations Plan Emergency Operations Plan Long-term Recovery and Redevelopment Plan Hazard Mitigation Plan Disaster Debris Management Plan  Training and Exercise Plan Development

16 16 BEST PRACTICES TO MAXIMIZE RECOVERY FUNDING  Explore the use of existing CDBG entitlement funds for disaster-specific expenses  Phased Plan Development Continuity of Operations Plan Emergency Operations Plan Long-term Recovery and Redevelopment Plan Hazard Mitigation Plan Disaster Debris Management Plan  Review pre-existing contracts Discuss HUD requirements for use of funds Incorporate HUD Requirements into Contracts Potentially used in a Disaster Scenario

17 17 BEST PRACTICES TO MAXIMIZE RECOVERY FUNDING (cont.)  Identify Resiliency Projects Mitigation Sea level rise Flood control  Identify Potential Projects Housing programs Emergency response Long term infrastructure repair and rebuild Business  Identify Staff Responsible to Administer the DR program Pre-disaster planning  Provide Training Local Agencies and Departments involved in disaster response Contracting officials Political leadership Understand differences

18 18 FAILING TO PLAN IS PLANNING TO FAIL  Successful disaster recovery does not happen in a vacuum nor does it happen spontaneously.  No one can be 100% prepared for a disaster but planning can be the factor that makes the critical difference between successfully managing crises with minimal cost and effort and maximum speed, or being left picking up the pieces from the chaotic aftermath for untold lengths of time and at whatever cost providers decide to charge; forced to make decisions out of desperation.  Detailed disaster recovery planning can prevent many of the mistakes experienced by an organization in times of disaster.  If you do not have the internal capabilities or expertise you should establish pre-existing contracts or other contract vehicles to provide you the support you expect to need.

19 19  Help our clients to prepare for and recover from disasters  Over a decade of experience managing disaster recovery operations  Experience coordinating Recovery programs from multiple Federal Agencies  Involved in the largest recovery operations: World Trade Center Disaster (9/11) Hurricane Katrina Hurricane Sandy ABOUT US 250+ 12+ National Disaster Recovery Experience

20 20 HAGERTY CONSULTING RECOVERY PROFESSIONALS Mark Misczak, CEM Director of Recovery Hagerty Consulting mark.misczak@hagertyconsulting.com Deborah Seifert, JD Practice Lead, CDBG-DR Hagerty Consulting deborah.seifert@hagertyconsulting.com Steve Miller Recovery Manager Hagerty Consulting Steve.miller@hagertyconsulting.com


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