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

2. 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

3. 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

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

5. 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, $34,945,328
Edgecombe County $19,060, $28,591,632
Wayne County $16,940, $25,414,784
Year $52,980,000

6. 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.

7. 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

8. 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.

9. 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.

10. 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

11. 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.

12. 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.

13. 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.

14. 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.

15. 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

16. 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.

17. Contact Information
Kevin Landers
CDBG-DR Project Manager and Director EM
Phone number:
Michele Grant
Senior Advisor DOC Liaison CDBG-DR EM
Phone number:
Iris C. Payne
CDBG Director
NC Department of Commerce
Phone number:
Action Plan Link