Disaster Housing Recovery Updates – April 4, 2022

Department of Housing and Urban Development (HUD)

HUD announced on March 22 the allocation of nearly $3 billion in Community Development Block Grant-Disaster Recovery (CDBG-DR) funds to help communities recover from disasters and build inclusive resilience to climate change. HUD is allocating $2.214 billion to 10 local governments and 13 state governments to address 16 major disasters that occurred in 2021. HUD is also allocating an additional $722.7 million to five of the previously announced 2020 disaster recovery grantees to reflect higher levels of need than were previously calculated for disasters in those states.

Federal Emergency Management Agency (FEMA)

FEMA Administrator Deanne Criswell announced on March 18 that additional disaster funding is available to all states, tribal nations, and territories with Presidential major disaster and emergency declarations occurring in 2020 and 2021. The “Consolidated Appropriations Act of 2020” (H.R. 2471) granted a minimum 90% federal cost share for any emergency or major disaster declaration declared, occurring, or having an incident period beginning between January 1, 2020, and December 31, 2021. The assistance authorized in H.R. 2471 is being provided in addition to the assistance indicated in President Biden’s announcement on March 1, which extended the full federal cost share to 100% to support eligible work under COVID-19 emergency and major disaster declarations through July 1, 2022 (see Memo, 3/7)

Hurricanes

Governor John Bel Edwards joined HUD Secretary Marcia L. Fudge on March 22 to announce that Louisiana will receive an additional allocation of $450 million for recovery from Hurricanes Laura and Delta and $1.27 billion for Hurricane Ida as part of the “Disaster Relief Supplemental Appropriations Act of 2021.” Allocated in the form of Community Development Block Grants, the new aid is intended to address issues stemming from housing, infrastructure, and economic damage with which state and local governments do not have the capacity to deal on their own.

Survivors of Hurricanes Laura and Delta who are currently living in FEMA temporary housing units in Louisiana will start paying monthly rent beginning on April 1 and May 1, respectively. FEMA is setting the rent amount based on the HUD Fair Market Rent. In response to a request from the state, FEMA approved an extension to October 31, 2022, for approximately 1,750 households currently occupying direct housing units through the direct housing program for Hurricanes Laura and Delta. As part of the extension, survivors who remain in their units beyond 18 months from the date of the federal disaster declaration will be charged monthly rent.

Senator John Kennedy (R-LA), Senator Bill Cassidy (R-LA), and Representative Clay Higgins (R-LA) urged FEMA Administrator Deanne Criswell on March 25 to waive monthly rent payments through October 31, 2022, for survivors of Hurricanes Laura and Delta in southwest Louisiana.

In the six months since a federal disaster was declared for Hurricane Ida in New Jersey, FEMA has provided more than $237 million in housing grants to help pay for home repair, home replacement, and rental assistance for temporary housing.

Severe Storms and Flooding

HUD announced on March 29 the implementation of federal disaster assistance to supplement state, tribal, and local recovery efforts in the areas of Puerto Rico affected by a severe storm, flooding, and landslides between February 4 and February 6, 2022. On March 29, President Biden issued a major disaster declaration for the municipalities of Cataño, Dorado, Toa Baja, Vega Alta, and Vega Baja.

Tornadoes

Hundreds of Kentucky residents displaced by December tornadoes are still living in hotels, state park lodges, or homes in need of repairs. The severe affordable housing shortage that existed prior to the pandemic combined with the devastating tornadoes have created significant barriers to housing for displaced survivors. WKU reports that most of those displaced from their homes were low-income renters who have no permanent housing options. According to FEMA, 65% of the homes damaged by the tornadoes were rentals, but the city’s occupancy rate among rental properties is around 97%. The apartments that remain are unaffordable for most of the displaced, many of whom are low-income residents and refugees.