HUD Secretary Preston announces $2.1 billion in disaster assistanceMortgagePress.comHUD, Steve Preston, disaster, Community Development Block Grant Program
Recognizing the tremendous unmet housing, economic and
infrastructure needs following this year's natural disasters, U.S.
Housing and Urban Development Secretary Steve Preston announced
that HUD will immediately allocate more than $2.1 billion to 13
states and Puerto Rico. The emergency funding is provided through
HUD's Community Development Block Grant (CDBG) Program and will
support the states' long-term disaster recovery.
"Families, businesses and communities are struggling to rebuild
following this year's natural disasters. Today, we are making
another installment of disaster assistance to help them get back on
their feet," said Preston. "Once we have conducted a more thorough
year-end analysis, HUD will make further allocations to States
struggling to recover from dozens of storms in 2008."
In September, Congress appropriated more than $6 billion in
supplemental funding for "necessary expenses related to disaster
relief, long-term recovery, and restoration of infrastructure,
housing and economic revitalization in areas affected by
hurricanes, floods, and other natural disasters occurring during
2008." Congress further directed HUD to allocate $2.145 billion of
this disaster funding within 60 days of enactment.
Congress also required that States devote "not less than $650
million" to support affordable rental housing (see chart). In
determining the allocations announced today, HUD focused on two
factors:
Unmet housing needs. This is each State's relative share of
estimated unmet housing needs for property owners experiencing
serious damage to their homes; and Concentrated damage. To
determine infrastructure and economic revitalization needs, HUD
focused on areas of particular concentration of damage -
specifically, each State's share of seriously damaged homes in
areas where more than 20 percent of the homes experienced
damage.
After the end of calendar year 2008, HUD will make a final
review of long-term disaster recovery needs for all states affected
by disasters in 2008 to allocate the remaining $3.972 billion. This
review will include unmet housing, infrastructure and economic
revitalization needs. The Department will publish a notice
providing guidance to these states and to assist them in their
long-term recovery planning. Once these local action plans are
developed, they will be provided to HUD for review.
For more information, visit www.hud.gov.
