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The Community Development Block Grants for Disaster Recovery (CDBG-DR) program allows the GLO to work with local leadership on long-term housing that not only helps to rebuild a community but lessens the cost and impact of future disasters.

All housing activities must be conducted according to the GLO’s Housing Guidelines which outlines the limitations for repairs, environmental regulations, and other rules that the GLO must abide by for this program. In limited cases, the GLO may approve variances to the Housing Guidelines through the adoption of local or regional guidelines.

Rehabilitation, Reconstruction or New Construction

Eligible activities, which are defined in the definitions section of the guidelines, are as follows: rehabilitation, reconstruction, new construction, and associated elevation and demolition charges. The primary focus of this program is to provide relief for those people impacted with consideration given to affirmatively further fair housing, as called for within the Fair Housing Act.

Benefit for low- to moderate- income (LMI) applicants is the principal National Objective approved for the Disaster Recovery Single Family Homeowner Program. The use of Slum and Blight and Urgent Need is eligible and, if requested by the Subrecipient, will be evaluated during application review; however, under the LMI National Objective, only those funds used for households with up to 80% of the area median income may qualify as meeting the low- and moderate-income person benefit National Objective. It is important to note that to carry out this objective, the statute requires that not less than 70% of the aggregate of CDBG program funds be used to support activities benefiting low- and moderate-income persons.

Buyouts & Acquisitions

A Buyout Program uses CDBG-DR funds to purchase properties in qualifying target areas prone to flooding events and demolishes the structures on the properties to create park amenities, open space, or flood storage/overflow areas. Buyout Programs are especially effective in communities that have endured multiple disasters in the same neighborhood in the recent past or sustained severe damage where there is a high risk of additional disasters, such as a 100-year floodplain. These programs can help reduce the impact of future disasters while encouraging targeted revitalization efforts and public spaces.

Acquisition of Real Property at the post-disaster fair market value of the land and structures which allows Subrecipients to acquire real property for any public purpose, as set forth (24 CFR 570.201(a)). Methods of acquisition include purchase, long-term lease (15+ years), donation or otherwise (CPD-17-09).

Demolition

Demolition activities were developed to serve as the basis for assisting program-eligible homeowners with the elimination of slum and blight but may be eligible for the LMI national objective. The Demolition program includes total removal of all standing structural components and any debris. The purpose is to address slum and blight on a spot basis and assist in the removal of vacant, deteriorated, or abandoned buildings. The program will address both voluntary and involuntary participation for any dwelling, building, structure, or property that is unfit for human habitation or for commercial, industrial, or business use and not in compliance with applicable codes; and is vacant and being used in connection with the commission of drug crimes; or constitutes an endangerment to the public health or safety as a result of unsanitary or unsafe conditions.

Homebuyer Assistance Programs (Down Payment Assistance)

Applicants who elect to seek assistance to purchase a new home will be able to utilize funds under this program. This includes traditional activities such as: down payment assistance, principal reduction, all reasonable closing costs including pre-paid items, and principal write-down assistance as required for the property being purchased.

Subrecipients may offer up to 100% of the down payment required per household. Homeownership assistance for households earning up to 120% of the area median income, and down payment assistance for up to 100% of the down payment. While homeownership assistance may be provided to households earning up to 120% of the area median income, only those funds used for households with up to 80% of the area median income may qualify as meeting the low- and moderate-income person benefit national objective. The use of Urgent Need is limited, HUD has waived the certification requirements for documentation in using the urgent need national objective. Subrecipients must document in its guidelines how each program and/or activity funded under the urgent need national objective responds to a disaster-related impact.

Reimbursement Programs

Applicants who have completed reconstruction, rehabilitation, elevation, and/or mitigation on a single-family home prior to the date of application for this program will be eligible for a grant of up to $50,000. The applicant, as part of their application, must provide adequate documentation of eligible activities conducted on the home, including receipts, contracts, and/or photographs. Once the application is received, the GLO will conduct the appropriate environmental review on the home to ensure that activities up to $50,000 were eligible expenses within the program. The GLO will not reimburse applicants for work initiated after the submission of an application. Applicant’s homes who reside in a floodway are not eligible for this program. At that time, the GLO will make all determinations for eligibility prior to distributing any funds.

Housing Program Guidance Forms and Resources

Section 1 Subrecipient Applications

Subrecipients must complete an application prior to obtaining a contract with the GLO. The application will outline the amount of funding for the contract, purpose, responsible parties, and all associated data to properly initiate a contract.


Section 2 Subrecipient Startup Documentation


Section 3 Eligibility


Section 4 Pre-Construction Setup


Section 5 Financial Draws


Section 6 Program Inspection Forms & Construction Standards


Section 7 Closeout & Affordability Period

Additional Tools and Resources


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