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.
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 in September.
- 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.
Community input is essential to developing the Action Plan and the success of recovery and mitigation programs. We want to ensure all residents impacted by severe storms and flooding have an opportunity to participate in the planning and assessment of the CDBG-DR recovery programs.
MEDC will hold a series of four public hearings to share the proposed Action Plan and solicit public comment. Residents are invited to attend any of the following public hearings:
September 13, 2022, 6:00 – 8:00 p.m.
Swan Valley High School
8400 O’Hearn Road
Thomas Township, MI
September 14, 2022, 6:00 – 8:00 p.m.
Sloan Building, Room 114
4000 Whiting Drive
September 15, 2022, 6:00 – 8:00 p.m.
751 S. M-18
September 20, 2022, 6:00 – 8:00 p.m.
Robichaud High School
3601 Janet Street
Dearborn Heights, MI
How you can help
- Provide feedback on the plan: The draft Action Plan is now posted. Review the plan and provide your feedback by email or at a public hearing.
- Spread the word: Share the plan with others and encourage them to review it, ask questions, and submit their feedback.