House Panel Holds Hearing on Sandy Oversight

The House Appropriations Subcommittee on Transportation, Housing and Urban Development and Related Agencies held a hearing, “Sandy Disaster Relief and Recovery,” on March 15. The hearing’s witnesses were John Porcari, Deputy Secretary, U.S. Department of Transportation; Fred Tombar, Senior Advisor for Disaster Programs, HUD; and Marion McFadden, Chief Operating Officer and Leader Counsel for the Hurricane Sandy Rebuilding Taskforce, HUD.Many of the questions were related to the $16 billion in disaster Community Development Block Grant (d-CDBG) dollars provided by the Disaster Relief Appropriations Act of 2013 (see Memo, 2/1). HUD has thus far allocated $5.4 billion of the d-CDBG dollars appropriated, which can be used for Sandy-related unmet needs, as well as unmet needs from other disasters in calendar years 2011 and 2012. Mr. Tombar said in his testimony that this allocation “represents the fastest ever allocation following the signing of an appropriations bill.” He also said that the next round of allocations should be announced in two to three weeks.Subcommittee Chair Tom Latham (R-IA) asked several questions about the level of d-CDBG appropriations allocated in the Super Storm Sandy supplemental appropriations bill and said the level of funding provided awards of “$4 to $5 for every $1 in damage.” Full House Committee on Appropriations Ranking Member Nita Lowey (D-NY) joined the hearing, as her district was heavily impacted by Super Storm Sandy. Ms. Lowey asked several questions on how the d-CDBG allocation formula and county prioritization were determined. Ms. Lowey said that both Rockland and Westchester Counties fall in her congressional district, and based on her assessment, both counties have experienced equivalent levels of damage. However, while Rockland County is classified as “most impacted,” Westchester County is not. Mr. Tombar said that HUD’s assessment of unmet needs is determined based on FEMA’s assessment and requests received by the agency for assistance, as well as the Small Business Administration’s (SBA’s) assessment and estimate of damage. Mr. Tombar further said that HUD looks at what level of assistance will be provided by SBA and FEMA, and aims to fill the gap. Mr. Tombar added that the first allocation of funds only took into account housing and business losses, not those related to infrastructure, as infrastructure damage takes FEMA longer to assess.Ms. Lowey also asked why ongoing, unmet needs from Hurricanes Irene and Lee were not included in the formula, even though the supplemental funds can be used to address them. Mr. Tombar responded that it is his expectation that the needs from the earlier disasters will be addressed “first and foremost” because they are already in the pipeline, and that funds to address Sandy-related needs will be spent a little later.Representative Charlie Dent (R-PA) asked Mr. Tombar what the difference is between the d-CDBG allocation in the Super Storm Sandy supplemental bill, and existing CDBG and HOME appropriations. Mr. Tombar responded that shortly after Sandy, HUD made available waivers for existing HOME and CDBG allocations to be used for disaster recovery efforts. Mr. Tombar said, however, that HUD did not receive any waiver applications, and that he expects the appropriation of d-CDBG dollars will be sufficient to address unmet needs.Representative Dave Joyce (R-OH) asked if there are any data to show that buildings in Sandy-impacted areas have been abandoned. Mr. Tombar responded that some have been abandoned for safety reasons. Mr. Joyce then asked if these abandoned buildings will be demolished and if so, whether the demolition would be funded by HUD. Mr. Tombar responded that demolition is funded by FEMA, but added that in projects where there is a gap between the amount of funding provided and the level of unmet needs, HUD could fill the funding gap.Representative Mike Quigley (D-IL) asked when one could expect the recovery to be completed. Mr. Tombar declined to give a timeline and said that recovery efforts are difficult, and are often slow and incremental. Click here for all witness testimony.