HUD announces $12 billion in grants for disaster recovery across the U.S.

The U.S. Department of Housing and Urban Development (HUD) has announced the allocation of nearly $12 billion in Community Development Block Grant-Disaster Recovery funds (CDBG-DR) for communities across 24 states and territories.

The grants will help 47 grantees – including 23 states, 15 counties, eight cities and one territory – to recover from and build resilience to weather-related disasters.

CDBG-DR funding supports disaster relief, long-term recovery, restoration of infrastructure and housing, economic revitalization and mitigation in the most impacted and distressed areas.

HUD made the announcement in Asheville, North Carolina, which was hit by Hurricane Helene in September 2024, leaving more than 12,000 western North Carolinians without safe housing.

To support recovery from Helene, HUD allocated more than $1.6 billion to communities across North Carolina, including $225 million to the city of Asheville and $1.2 billion to the state for disaster impacted communities statewide.

“Over the last two years, too many communities have been impacted by devastating disasters – damaging homes, destroying infrastructure, and stretching local capacity to recover,” said HUD Agency Head Adrianne Todman. “This $12 billion in disaster discovery funds will help rebuild homes, develop affordable housing, assist impacted small businesses, and repair roads, schools, water treatment plants and other critical infrastructure.

“The impacts of these funds will be felt for years to come – especially for disaster survivors and communities in the most impacted areas,” Todman added.

Other entities receiving funding include:

Maui County, Hawaii: $1.63 billion for the destructive wildfires in 2023.

Houston and Harris County, Texas: $938 million in total for relief from flooding caused by Hurricane Beryl.

California: $925 million for flooding and winter storm relief.

Georgia: $500 million for relief from Hurricane Idalia and Hurricane Helene.

HUD also announced the publishing of a new Universal Notice that will strengthen and improve the administration of CDBG-DR, incorporating feedback received from grantees, stakeholders and survivors of disasters.

For the first time ever, HUD requested public input through the 2022 Request for Information on CDBG-DR Rules, Waivers and Alternative Requirements. HUD received more than 700 unique comments offering feedback on how to make disaster recovery faster and more efficient, effective, resilient, and equitable.

Until HUD receives permanent authorization of the CDBG-DR program, the Universal Notice is intended to provide publicly informed, consistent guidance for communities recovering from disasters.

As the only federal disaster recovery assistance to primarily benefit low- and moderate-income households and communities, CDBG-DR funding can be used to:

Replace damaged affordable housing and build it back more resiliently.

Strengthen infrastructure through repairs, upgrades, and activities to increase the resilience of public facilities and infrastructure including roadways, water systems, and utilities.

Support economic revitalization including support for small businesses, creation of jobs, and assistance for residents.

Implement disaster mitigation measures to reduce the risk of damage from future extreme weather and disaster events.

“The Universal Notice published today reflects the input of communities and professionals who have been through the process of recovery and makes dozens of survivor-centered improvements to accelerate recovery,” said Marion McFadden, Principal Deputy Assistant Secretary for Community Planning and Development. “I’m proud to say that we did everything we could – absent permanent authorization by Congress – to strengthen the program, reduce red-tape, and support survivors as they rebuild.”

The Universal Notice incorporates many of the public’s comments and recommendations, including updates to:

Improve outcomes, increasing access to information, and simplifying documentation requirements for disaster survivors

Expand and extend eligible activities for rental assistance and disaster relief, including allowing reimbursement for these expenses.

Create new eligible activities for local disaster preparedness and resilience.

Align more closely with FEMA requirements for environmental reviews and community-driven relocation.

Streamline Action Plan requirements and encouraging broader community engagement in the Action Plan Formation process.

Reduce administrative burden on grantees, creating greater flexibility regarding building standards, implementation requirements, and financial management procedures.

Photo courtesy 2C2K Photography from Houston, TX, USA, CC BY 2.0 https://creativecommons.org/licenses/by/2.0, via Wikimedia Commons