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The U.S. Department of Housing and Urban Development (HUD) requires that 70% of Community Development Block Grant for Disaster Recovery (CDBG-DR) funds for Hurricane Harvey be used to benefit low- to moderate-income (LMI) persons.

HUD has posted rules in a Federal Register notice, published Feb. 9, 2018, requiring that 70% of all disaster recovery funds be used for activities that benefit low- to moderate-income (LMI) persons. A household is considered LMI if they make less than 80% of the area median income (AMI). 

Infrastructure and LMI

To contribute to HUD’s 70% LMI requirement, 51% of the households in the area benefitting from a CDBG-DR funded infrastructure project, such as drainage, street repairs, and water and sewer lines, must be low- to moderate-income. A household is considered low- to moderate-income (LMI) if they make less than 80% of the area median income. The grantee or subrecipient is responsible for determining the area benefitted by a project. The GLO is available to help communities determine area benefit.

LMI Infrastructure Graphic

Housing and LMI

CDBG-DR funds will also be used for buyouts/acquisitions, rebuilding homes through the Homeowner Assistance Program, and reimbursement of homeowners for out-of-pocket home repairs. HUD requires that at least 70% of funds used for these programs must benefit LMI individuals.

GLO Resources