HUD Issues Guidance on $2 Billion in CDBG-DR Funds

On January 31, HUD issued a new consolidated notice that lays out requirements for the use of more than $2 billion in Community Development Block Grant Disaster Recovery (CDBG-DR) funds. A total of $5 billion were appropriated by the Disaster Relief Supplemental Appropriations Act of 2022 back in September, with this first round of funding of $2 billion being allocated to nine states and Puerto Rico to help with the recovery from 15 separate major disasters that occurred in 2020. The allocation of the remaining CDBG-DR funds will be made available over the next months to address unmet needs from 2021 disasters, including Hurricane Ida.

The new consolidated notice includes significant changes in CDBG-DR policies, which reflect the Biden-Harris Administration’s priorities of combating climate change and advancing racial equity. Specifically, the notice requires that CDBG-DR grantees: 1) incorporate disaster mitigation measures into all recovery activities involving construction and 2)ensure activities undertaken by grantees advance racial equity and promote fair housing.

Low-income people of color are disproportionately impacted when climate-related disasters strike. Enterprise is pleased to see that HUD’s new consolidated notice keeps climate justice and racial equity at the forefront. To learn more about the notice’s updated requirements, read a related blog by Enterprise Policy Analyst, Ayate Temsamani.

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