HUD published a Universal Notice on January 8 outlining the requirements of the Community Development Block Grant-Disaster Recovery (CDBG-DR) program and implementing changes long advocated for by organizers, advocates, and disaster survivors in the NLIHC-led Disaster Housing Recovery Coalition (DHRC). The announcement follows the appropriation by Congress of $12 billion in CDBG-DR funds for allocation to 23 states and one territory that experienced disasters in 2023 or 2024.
As the only source of long-term recovery funding for disasters provided by the federal government, CDBG-DR funds are meant to address the “unmet needs” of disaster recovery that may not be met by other federal programs or funding sources. A flexible funding source, CDBG-DR funds can be used for housing, infrastructure, and economic development in the aftermath of a presidentially declared disaster. Funds are provided as a grant to state and municipal governments, who subsequently formulate and run programs with HUD oversight.
Yet due to the lack of permanent authorization for the CDBG-DR program, each approval of program funding by Congress requires HUD to issue an allocation notice outlining how the funds will be spent. Over the past several decades, this situation has produced a dense set of notices, each building upon the last, implementing different rules depending on the specifics of each disaster.
To streamline the CDBG-DR process, HUD announced that it would seek to create a comprehensive “Universal Notice” in 2024. This Universal Notice would govern future allocations of disaster funding in a more consistent fashion, while allowing HUD to put in place reforms ensuring that the program would be more efficient and effective.
The changes were informed by a Request for Information issued by the agency in early 2023 in response to which members of the DHRC provided substantive, collaborative comments. The Universal Notice includes many of the changes requested in that comment. In particular, the changes include provisions requiring that state and local governments receiving CBDG-DR funds:
- Form a citizen advisory group of community members that represent the demographics of the disaster-impacted community to provide input, advice, and recommendations on disaster recovery programs throughout the life of the grant.
- Demonstrate that funds are being provided to impacted communities proportional to their needs – including for housing, infrastructure, and economic development activities, as well as homeowner and renter-focused programs.
- Ensure programs have alternative methods for documenting ownership of disaster damaged homes, including deed, title, mortgage documentation, tax receipts or bills, home insurance, home purchase contracts, will or affidavit or heirship naming them as heir, receipts of major repairs completed prior to the disaster, court documents, letter from a manufactured housing community owner or public official, self-certification, or utility bills.
- Work to reduce barriers for vulnerable populations, protected classes, and underserved communities in accessing disaster assistance.
- Exempt funding for accessibility related components from program award caps.
- Align housing-related programs with any HUD RUSH funding provided to assist individuals experiencing homelessness received earlier in the disaster recovery process.
- Substantively respond to public comments regarding its plan for using the funds.
- Consult with advocacy organizations working on behalf of protected classes, vulnerable populations, and other underserved communities impacted by the disaster to ensure fair housing and civil rights requirements are followed.
NLIHC thanks and applauds HUD for being responsive to the needs of disaster survivors and working to fix the country’s broken disaster recovery system.
Read the full Press Release & see the list of states receiving CDBG-DR funding here.
Read the full Universal Notice here.
Find summaries and more information about the Universal Notice here.