Community Development Block Grant-Disaster Recovery
Overview
The U.S. Department of Housing and Urban Development (HUD) has allocated over $71.9 million in long-term recovery funds to the state of Michigan to support recovery and mitigation efforts following severe storms and flooding in 2020 and 2021. Michigan received $59,898,000 in Community Development Block Grant-Disaster Recovery (CDBG-DR) funds for 2020 and $12,033,000 in CDBG-DR funds for 2021.
Community Development Block Grant-Disaster Recovery
CDBG-DR funding can be used for long-term recovery projects such as housing, rebuilding the local economy, and restoring infrastructure. The funds are flexible but must meet the following requirements:
At least 80% of the funds must be spent in areas that HUD defines as most impacted and distressed (MID). These areas include the following counties: Midland, Saginaw, and Gladwin (48612), and Wayne. The remaining 20% of funds may be used in other Presidentially disaster-declared counties, including Arenac and Iosco County.
At least 70% of the total CDBG-DR funding must go toward projects that will directly benefit low- and moderate-income persons or that serve a majority (over 51%) of these residents.
At least 15% of funds must be used for mitigation projects that strengthen recovery efforts from disasters and reduce or eliminate the long-term risk of loss in future disasters.
How Can Funds Be Used?
Housing Recovery: Some programs can help renters and new and existing homeowners with, for example, new construction, home elevation and rebuilding projects, homelessness prevention, buyouts, counseling, mobile home replacement, and more.
Planning: Grant funds may be used to create plans that guide housing recovery projects and help state and local agencies develop strategies to mitigate future disasters.
Infrastructure: Grant funds can be used to repair damaged infrastructure or for new projects that make communities more resilient to future disasters. Funds can also be used to cover non-federal cost share for state and local portions of infrastructure projects that FEMA funds.
Economic Development: Loans or grants to small businesses to help revive the local economy.
Flooding Recovery Programs
Flooding recovery programs will soon be available for communities impacted by the 2020 and 2021 flood events. To assist local governments with the application process, MEDC held two application webinars for the Community Development Block Grant – Disaster Recovery (CDBG-DR) 2020 Infrastructure and Public Facilities and 2021 Infrastructure Programs.
Questions can be sent to: cdbg@michigan.org. Please remember to write “question” in the subject line of your email. Below are questions received with corresponding answers:
The Application for Infrastructure 2021 and Infrastructure & Public Facilities 2020 is now available and can be accessed through the link below as well as program guidelines and scoring criteria.
The Michigan Economic Development Corporation (MEDC) must complete several steps to receive CDBG-DR funds. These tasks include conducting Unmet and Mitigation Needs Assessments and developing an Action Plan that identifies how MEDC will use grant funds to address these needs. MEDC will submit an Action Plan to HUD. Once HUD approves the Action Plan they will begin the process to award a grant to the Michigan Strategic Fund.
Unmet Needs Assessment: MEDC must analyze the impact of 2020 and 2021 storm and flood events, and the remaining needs not addressed through other funding sources.
Mitigation Needs Assessment: MEDC must identify the greatest risks in each county.
Action Plan: MEDC develops an Action Plan that includes programs to address the needs identified in the Unmet Needs and Mitigation Needs Assessments.
Public Comment: A draft plan will be shared with the public to collect feedback. After a 30-day public comment period, MEDC will respond to all comments, incorporate feedback into the plan, and submit the Action Plan to HUD for review and approval.
A CDBG-DR training series will begin early in May 2023. This will be followed by an open application period for infrastructure grants, and later staggered open application periods for planning and multifamily housing grants. The applications timeline is included below.
May 2023: Infrastructure Program Launch (Application Period Opens)
July 2023: Infrastructure Program Application Closes (Three Month Period)
July 2023: Planning Program Launch (Application Period Opens)
July 2023: Planning Program Application Closes (One Month Period)
August 2023: Multifamily Housing Program Launch (Application Period Opens)
September 2023: Multifamily Housing Program Application Closes (Two Month Period)
