Order Code RL33330
CRS Report for Congress
Received through the CRS Web
Community Development Block Grant Funds in
Disaster Relief and Recovery
April 25, 2006
Eugene Boyd
Analyst
Government and Finance Division
Congressional Research Service ˜ The Library of Congress

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Community Development Block Grant Funds in
Disaster Relief and Recovery
Summary
In the aftermath of presidentially declared disasters, Congress has used a variety
of programs to help states and local governments finance recovery efforts, among
them the Community Development Block Grant (CDBG) program. Over the years,
Congress has appropriated supplemental CDBG funds to assist states and
communities recover from such natural disasters as hurricanes, earthquakes, and
tornadoes. In addition, CDBG funds supported recovery efforts in New York City
following the terrorist attacks of September 11, 2001; in Oklahoma City following
the bombing of the Alfred Murrah Building in 1995; and in the city and county of
Los Angeles following the riots of 1992. In response to those calamities, CDBG
funds were made available for short-term relief efforts, mitigation actions, and long-
term recovery, and to provide housing and business assistance, infrastructure
reconstruction, and public services.
Most recently, Congress has provided $11.5 billion in CDBG assistance to the
five states (Alabama, Florida, Louisiana, Mississippi, and Texas) affected by the Gulf
Coast hurricanes of 2005. The funds were included in the Defense Appropriations
Act for FY2006 and are to be used for “necessary expenses related to disaster relief,
long-term recovery, and restoration of infrastructure in the most impacted and
distressed areas.” Funds were allocated among the five states based on the degree of
unmet housing needs and the degree of concentrated distress.
Congress is currently considering $4.2 billion in FY2006 CDBG supplemental
appropriations to help rebuild Gulf Coast communities affected by the hurricanes of
2005. This is part of a $19.8 billion request for funds for Gulf Coast recovery
activities. The Administration’s request, which was sent to Congress on February 16,
2006, would allocate the $4.2 billion entirely to the state of Louisiana for flood
mitigation activities; these could include infrastructure improvements, real property
acquisition or relocation, and other activities designed to reduce the risk of future
damage, including elevating homes in the most flood prone areas. As a condition of
receipt of the funds, the state would be subject to an administrative expense ceiling
of 5% and would be allowed to seek waivers of program requirements, except those
related to fair housing, nondiscrimination, labor standards, and environmental
review. None of the funds could be used for activities reimbursable by FEMA,
SBA, or the Army Corps of Engineers. On March 13, 2006, the House
Appropriations Committee reported H.R. 4939, a bill that would allocate $4.2 billion
among the five states affected by the hurricanes of 2005. The full House approved
the measure on March 16, 2006, and forwarded the bill to the Senate. On April 5,
2006, the Senate Appropriations Committee reported its version of the bill (S.Rept.
109-203), which would appropriate $5.2 billion in CDBG funds to the five states
affected by the hurricanes of 2005.
This report provides an overview of the use of the CDBG program in disaster
relief. It will be updated as events warrant.

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Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
CDBG Disaster Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Short-Term Disaster Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Mitigation Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Long-Term Recovery Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Other Actions by HUD in Support of Disaster Recovery . . . . . . . . . . . . . . . 4
Authority to Waive Program Requirements . . . . . . . . . . . . . . . . . . . . . . 4
Funding Transfers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Matching Funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Reporting Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Response to 2005 Hurricanes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
CDBG Supplemental Appropriations, P.L. 109-148 . . . . . . . . . . . . . . . 6
FY2006 Supplemental Appropriations Request . . . . . . . . . . . . . . . . . . 8
Policy Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
List of Tables
Table 1. Allocation of $11.5 Billion in CDBG Disaster Relief Assistance . . . . . 7
Table 2. Funding History of CDBG Supplemental Appropriations for Disaster
Relief . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

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Community Development Block Grant
Funds in Disaster Relief and Recovery
Background
The CDBG program, administered by the Department of Housing and Urban
Development (HUD), is the federal government’s largest and most widely available
source of financial assistance to support state and local government-directed
neighborhood revitalization, housing rehabilitation, and economic development
activities. These formula-based grants are allocated to more than 1,100 entitlement
communities (metropolitan cities with populations of 50,000 or more, and urban
counties), the 50 states, Puerto Rico, and the insular areas of American Samoa,
Guam, the Virgin Islands, and the Northern Mariana Islands. Grants are used to
implement plans intended to address local housing, neighborhood revitalization,
public services, and infrastructure needs, as determined by local officials with citizen
input.
Due to the block grant nature of the program, local and state officials exercise
a great deal of discretion in determining which combination of eligible activities (in
25 categories) to undertake when developing their community development plans.
Eligible CDBG activities include historic preservation; real property acquisition,
demolition, site preparation and disposition; economic development and job creation,
including assistance to for-profit entities and establishment of revolving loan funds;
housing assistance, including rehabilitation loans and grants; public service
activities, including job counseling and employment training; and assistance to not-
for-profit entities, including community development corporations and faith-based
institutions.
Any of the eligible activities undertaken by a community must address at least
one of the program’s following three national objectives:
! principally benefit low and moderate income persons;
! aid in eliminating or preventing slums or blight; or
! meet particularly urgent community development needs because
existing conditions pose a serious and immediate threat to the public.
It is this third program objective — meeting an urgent threat — that allows CDBG
funds to be used to assist in disaster response activities.
The program’s authorizing statute requires each state and entitlement
community to allocate 70% of its CDBG funds to activities that primarily benefit
low- and moderate-income persons. In response to previous disasters, HUD has

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waived this provision in order to allow a community to address an urgent threat to
the safety of residents.
CDBG Disaster Assistance
The CDBG program has been used frequently by the federal government to
respond to natural and manmade catastrophes (for a list of CDBG disaster recovery
appropriations see Table 2 at the end of this report). In general, Congress has
provided increased flexibility and allocated additional CDBG funds to affected
communities and states to help them respond to and recover from presidentially
declared disasters. This includes allowing communities to reprogram CDBG funds
to meet disaster-related needs, including short-term disaster relief, mitigation
activities, and long-term recovery activities. In assisting communities and states in
responding to disasters, HUD may expedite grant awards for affected communities
in presidentially declared disaster areas, including allowing affected grantees to move
up their CDBG program start dates.
Short-Term Disaster Relief. Past disaster relief legislation has allowed
CDBG funds to fill gaps in Federal Emergency Management Agency (FEMA) and
Small Business Administration (SBA) emergency relief activities. In general, such
legislation prohibited CDBG funds from substituting for FEMA or SBA funding but
allowed CDBG funds to be used for activities that are not reimbursable by FEMA or
SBA. Typically, CDBG has been used to finance the removal of debris, the provision
of extra security patrols, and the emergency restoration of essential services, such as
water, sewer, electrical, and telecommunications. For instance, approximately $250
million in CDBG funds were used to finance the emergency temporary restoration
of utilities in the affected areas of Lower Manhattan following the destruction of the
World Trade Center, and an additional $500 million was made available for
permanent utility restoration and infrastructure improvements.1
Mitigation Activities. Mitigation activities are intended to lessen the impact
of a disaster, and can range from such physical measures as the construction of levees
to protect against flooding to buildings designed to withstand earthquakes.
Mitigation activities may also involve training exercises and public awareness
programs. Less typical is the use of CDBG to compensate businesses and workers
for lost wages or revenues. Mitigation can take place at any time — before a disaster
occurs, during an emergency, or after a disaster, during recovery or reconstruction.
Mitigation activities have involved the use of CDBGs to fund buyouts of real
property in areas prone to a recurrence of the event. For instance, following the
Midwest floods of 1993, CDBG and Hazard Mitigation Grants from FEMA were
used to acquire privately-held real property within flood plain areas in the nine
1 Lower Manhattan Development Corporation, Partial Action Plan S-2 for Utility
Restoration and Infrastructure Rebuilding, prepared by the Lower Manhattan Development
Corporation in partnership with Empire State Development and New York City Economic
Development Corporation, available at [http://www.renewnyc.com/content/pdfs/PAP
%20S-2%20%20As%20Approved%20by%20HUD%20as%20of%20091503.pdf], visited
Mar. 23, 2006, p. 1.

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affected states2 and convert the land to public uses, such as recreation, or allowing
it to return to its natural state.3 CDBG funds were also used to construct and repair
levees in an effort to reduce the area’s vulnerability to future flood losses. Following
the Midwest floods of 1997, Congress again appropriated CDBG funds to cover
buyouts of privately-held land in flood prone areas in the affected states.4
Following the terrorist attacks of September 11, 2001, Congress appropriated
$2 billion under P.L. 107-117 for disaster relief and recovery assistance to New
York.5 The act earmarked at least $500 million for economic losses to individuals,
businesses, and nonprofit organizations in an effort to mitigate the attack’s economic
impact. That provision required HUD to implement the program within 45 days after
passage of the act. It limited economic loss grants to small businesses located within
a designated area to no more than $500,000. In addition, the act earmarked at least
$10 million for the tourism and travel industry.6

Long-Term Recovery Activities. The third set of activities eligible for
CDBG assistance is associated with long-term recovery and reconstruction efforts.
This would include assistance to businesses and residents affected by a presidentially
declared disaster, as well as grants intended to attract new businesses to the area. The
forms of assistance may range from business loans to infrastructure improvements.
For instance, to assist in the redevelopment of the Lower Manhattan area of
New York following the terrorist attacks of September 11, 2001, Congress
appropriated $3.5 billion in CDBG funds. Of the $3.5 billion in CDBG funds made
available, $1.49 billion has been allocated to recovery assistance including $350
million in business recovery grants (to compensate businesses for lost revenue) and
small firm attraction and retention grants (awarding incentives to businesses agreeing
to stay in Lower Manhattan).7 The $1.49 billion also included $280.5 million in
residential grant assistance to encourage renters and owners to stay in the area.8 In
2 States affected by the 1993 floods included Illinois, Iowa, Kansas, Minnesota, Missouri,
Nebraska, North Dakota, South Dakota, and Wisconsin.
3 108 Stat. 13; U.S. Federal Emergency Management Agency and State of Missouri
Emergency Management Agency, Success Stories from the Missouri Buyout Program,
(Washington: Aug. 2002) available at [http://www.fema.gov/pdf/reg-vii/
mo_buyoutreport.pdf], visited Mar. 23, 2006, p. 2.
4 111 Stat. 198.
5 In total, Congress appropriated $3.483 billion in CDBG disaster relief assistance. These
funds were made available in three separate appropriations acts: $700 million in P.L. 107-
38; $2.0 billion in P.L. 107-117; and $783 million in P.L. 107-206.
6 115 Stat. 2336.
7 Lower Manhattan Development Corporation, Partial Action Plan 002: New York Business
Recovery and Economic Revitalization, prepared by the Lower Manhattan Development
Corporation in partnership with Empire State Development and New York City Economic
Development Corporation, available at [http://www.renewnyc.com/FundingInitiatives/
PartialActionPlans.aspx], visited Mar. 23, 2006, p. 2.
8 Lower Manhattan Development Corporation, Partial Action Plan 001: Residential Grant
(continued...)

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CRS-4
exchange for a two-year commitment to stay in the area, renters and owners in
designated Lower Manhattan neighborhoods received residential grants that covered
up to 30% of their housing costs.9 In addition, $330 million in CDBG funds were
made available to cover some portion of costs incurred by Con Edison and Verizon
in restoring utility and telecommunication services to the Lower Manhattan area.
Other Actions by HUD in Support of Disaster Recovery
In addition to providing CDBG funding assistance, Congress has included a
number of other provisions in past disaster relief appropriations to facilitate relief and
recovery efforts and to ensure accountability. These have included the use of
waivers, funding transfers, matching funds, and reporting requirements.
Authority to Waive Program Requirements. Previous disaster relief
appropriations have granted the Secretary of Housing and Urban Development
significant authority to waive program requirements but have generally prohibited
waivers in four areas: nondiscrimination, environmental review, labor standards, and
fair housing. This is consistent with the program’s authorizing legislation which
states that:
For funds designated under this title by a recipient to address the damage in an
area for which the President has declared a disaster under title IV of the Robert
T. Stafford Disaster Relief and Emergency Assistance Act, the Secretary may
suspend all requirements for purposes of assistance under section 106 for that
area, except for those related to public notice of funding availability,
nondiscrimination, fair housing, labor standards, environmental standards, and
requirements that activities benefit persons of low- and moderate-income.10
Congress, on a few occasions, has waived or modified the CDBG program’s
income targeting provisions, which require grantees to allocate at least 70% of their
funds to activities that benefit low- and moderate-income persons. For instance, in
response to the Midwest floods of 1998 and the Florida hurricanes of 2004, the
income targeting requirement was lowered to 50%.11 In response to the 1992 Los
Angeles riots, Congress increased the ceiling on the use of the CDBG funds for
public service activities in Los Angeles from 15% to 25%.12
In addition to waivers, affected grantees in presidentially declared disaster areas
may request the suspension of certain statutory or regulatory provisions. This may
include extension of the deadline for submitting annual performance reports, and
8 (...continued)
Program, prepared by the Lower Manhattan Development Corporation in cooperation with
the State of New York and the City of New York, available at [http://www.renewnyc.com/
FundingInitiatives/PartialActionPlans.aspx], visited Mar. 23, 2006, p. 1.
9 Ibid., p. 9.
10 42 U.S.C. 5321.
11 112 Stat. 76; 118 Stat. 1254.
12 42 U. S. C. 5306(a)(8).

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changes in the time frame for measuring whether the community met the CDBG
program’s income-targeting requirement (that 70% of CDBG expenditures benefitted
low- and moderate-income persons).13 Grantees may also seek a suspension or
removal of statutory provisions prohibiting the use of CDBG funds for new housing
construction or for repair or reconstruction of buildings used for the general conduct
of local government. Several past disaster relief acts included language requiring
HUD to publish in the Federal Register, five days in advance of the effective date,
any waivers or suspensions of any statute or regulation governing the use of CDBG
funds for disaster relief.14
Funding Transfers. Congress has included language in previous disaster
relief appropriations allowing communities to transfer CDBG funds to other
programs. For instance, disaster relief assistance legislation in response to the
Northridge, California, earthquake of 1994 included a provision allowing HUD to
transfer $75 million in CDBG assistance to the HOME Investment Partnership
program (a housing block grant administered by HUD).15 In addition, Congress
included language in appropriations dealing with the 1998 Midwest floods that
transferred administrative authority over CDBG funds for land buyouts from HUD
to FEMA as a part of a disaster mitigation strategy.16
Matching Funds. Congress has also included language in disaster relief
appropriations requiring communities to meet a financial match requirement as a
condition for receipt of CDBG-funded disaster relief assistance. For instance,
disaster relief assistance in response to the Florida hurricanes of 2004 required each
state to “provide not less than 10 percent in non-Federal public matching funds or
its equivalent value (other than administrative costs) for any funds allocated to the
state under this heading.”17 CDBGs awarded to states following the 1998 Midwest
floods were conditioned on each state providing 25% in non-federal public matching
funds.18
Reporting Requirements. Several past appropriations acts have included
provisions requiring quarterly reports on the expenditure of funds in order to provide
oversight and ensure accountability in the allocation of disaster relief funds.
Legislation providing CDBG disaster relief assistance to communities affected by the
1997 and 1998 Midwest floods included provisions that required HUD and FEMA
to jointly submit quarterly reports to the House and Senate Appropriations
Committees on the use of CDBG funds for land acquisition and buyouts.19
13 The time frame for measuring low- and moderate-income benefits may not exceed three
years.
14 118 Stat. 1254.
15 108 Stat. 13.
16 111 Stat. 199; 116 Stat. 889.
17 118 Stat. 1254.
18 112 Stat. 76.
19 111 Stat. 199; 112 Stat. 77.

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Legislation providing CDBG assistance to New York following the September 11,
2001, terrorist attacks also included quarterly reporting provisions. 20
Response to 2005 Hurricanes

CDBG Supplemental Appropriations, P.L. 109-148. Congress included
$11.5 billion in supplemental CDBG disaster recovery assistance in the Defense
Appropriations Act for FY2006 (P.L. 109-148) which was signed by the President
on December 30, 2005. These funds were to be used for “necessary expenses related
to disaster relief, long-term recovery, and restoration of infrastructure in the most
impacted and distressed areas” in the five states (Alabama, Florida, Louisiana,
Mississippi, and Texas) impacted by Hurricanes Katrina, Rita, and Wilma. The act
allows for the following:
! the affected states may use up to 5% of their supplemental allocation
for administrative costs;
! HUD may grant waivers of program requirements (except those
relating to fair housing, nondiscrimination, labor standards, and the
environment);
! Mississippi and Louisiana, the most affected states, may use up to
$20 million for the Local Initiative Support Corporation and
Enterprise Foundation-supported local community development
corporations; and
! the governor of each state may designate multiple entities to
administer a portion, or all, of a state’s share of the $11.5 billion.
The act also lowers the income targeting requirement for activities benefitting
low- and moderate-income persons from 70% to 50% of the state’s allocation; limits
the maximum amount of assistance any of the five states may receive to no more than
54% of the total amount appropriated; and requires each state to develop, for HUD’s
approval, a plan detailing the proposed use of funds, including eligibility criteria and
how the funds will be used to address long-term recovery and infrastructure
restoration activities. It did not, however, specify the method to be used to allocate
funding among the five states; that task was left to HUD. On January 25, 2006, HUD
Secretary Alphonso Jackson announced the allocation of the $11.5 billion among the
five states (See Table 1).
20 115 Stat. 221.

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Table 1. Allocation of $11.5 Billion in CDBG Disaster Relief
Assistance
State
Allocation
Alabama
$74,388,000
Florida
$82,904,000
Louisiana
$6,210,000,000
Mississippi
$5,058,185,000
Texas
$74,523,000
Total
$11,500,000,000
Source: HUD, Federal Register, Feb. 13, 2006, vol. 71, no. 29, p. 7666.
According to an agency press release, HUD used a number of data sources in
developing the methodology for allocating the $11.5 billion in CDBG supplemental
assistance. These included data sources from FEMA, the Small Business
Administration, the National Oceanic and Atmospheric Administration (NOAA), and
the U.S. Geological Survey. Using data from these agencies, HUD calculated for
each of the five states the extent of each state’s unmet housing needs and areas of
concentrated distress. HUD defines unmet housing needs as homeowners and low-
income renters whose homes had major or severe damage, whereas concentrated
distress is defined as the total number of housing units with major or severe housing
damage in counties where 50% or more of the units had major or severe damage.21
HUD then allocates 55% of the funds based on each state’s unmet housing needs,
and the remaining 45% is allocated based on the degree of concentrated distress, as
measured by each state’s share of damaged and destroyed housing stock and business
and infrastructure damage.

On February 13, 2006, HUD published in the Federal Register a notice of
allocations, waivers, and alternative requirements governing the $11.5 billion in
CDBG disaster recovery assistance.22 In addition to providing waivers allowing the
states to allocate funds to CDBG entitlement communities and directly administer the
program, the notice also includes language that “funds allocated are intended by
HUD to be used toward meeting unmet housing needs in areas of concentrated
21 U.S. Department of Housing and Urban Development, Jackson Announces Distribution
of $11.5 Billion in Disaster Assistance to Five Gulf Coast States Impacted by Hurricanes;
Funding will help states in long-term recovery of high impact areas. Available at
[http://www.hud.gov/news/release.cfm?content=pr06-011.cfm], visited Mar. 23, 2006.
22 U.S. Department of Housing and Urban Development, “Allocation and Common
Application and Reporting Waivers Granted to and Alternative Requirements for CDBG
Disaster Recovery Grantees Under the Department of Defense Appropriations Act, 2006,”
Federal Register, vol. 71, no. 29, Feb. 13, 2006, p. 7666.

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distress.”23 The language included in the act is not interpreted as restricting the use
of these funds to unmet housing needs. Rather, it provides some level of flexibility
in allowing funds to be used for long-term recovery and infrastructure restoration in
the areas most affected by the Gulf Coast hurricanes of 2005.
FY2006 Supplemental Appropriations Request. On February 16, 2006,
as part of its ongoing efforts in support of Gulf Coast recovery efforts following the
hurricanes of 2005, the Administration sent Congress a $19.8 billion supplemental
appropriations request. The request included $4.2 billion in additional CDBG
assistance for the state of Louisiana for such housing and flood mitigation activities
as infrastructure improvements, real property acquisition or relocation, and other
activities designed to reduce the risk of future damage, including elevating homes in
the most flood prone areas.
Several concerns were raised during the March 8, 2006, Senate Appropriations
Committee hearing on the President’s supplemental appropriations request. Senator
Kay Bailey Hutchison of Texas objected to the absence of additional funding for
Texas. She noted that the state used its regular CDBG appropriations to assist
Katrina victims evacuating from Louisiana. In addition to the cost of addressing the
immediate needs of evacuees, the state has also incurred additional educational and
public safety expenses associated with the significant increase in population. The
Senator noted that the state’s population increased by three percent following
Hurricane Katrina. In his testimony before the Committee, Texas Governor Rick
Perry requested an additional $2 billion in CDBG funds for the state. Senator
Christopher (Kit) Bond of Missouri noted that states had yet to submit state plans for
the use of the $11.5 billion in supplemental assistance approved by Congress in
December 2005, under P.L. 109-148. He suggested that the additional $4.2 billion
should be made available only to Louisiana and Mississippi, but that only $1 billion
of the $4.2 billion should be made available until the states meet certain benchmarks
and goals.
On March 13, 2006, the House Appropriations Committee reported H.R. 4939,
which included $4.2 billion in funding for Gulf Coast recovery efforts. The bill,
which was approved by the full House on March 16, 2006, would allocate the $4.2
billion in disaster recovery assistance among the five states affected by the hurricanes
of 2005. On April 5, 2006, the Senate Appropriations Committee reported its version
of H.R. 4939. The Senate bill would appropriate $5.2 billion in CDBG funds for
disaster relief activities, and like the House bill, it would allocate the funds among
the five states (Louisiana, Mississippi, Alabama, Texas, and Florida) affected by the
hurricanes of 2005. The Administration had sought to provide the assistance
exclusively to Louisiana. In addition, House and Senate versions of H.R. 4939
include a number of provisions affecting the use and administration of these funds.
Both bills encourage states to use the funds for infrastructure improvements and
rental housing and would:
! require that at least $1 billion be used for repair and reconstruction
of affordable rental housing in the impacted areas;
23 Ibid.

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! allow each state to use not more than 5% of its supplemental CDBG
allocation for administrative expenses;
! allow the affected states to seek waivers of program requirements,
except those related to fair housing, nondiscrimination, labor
standards, and environmental review;

! allow governors of the affected states to designate one or more
entities to administer the program;
! prohibit the use of CDBG funds for activities reimbursable by
FEMA or the Army Corps of Engineers;
! lower the program’s low- and moderate-income targeting
requirement from 70% to 50% of the funds awarded;
! require each state to develop a plan for the proposed use of funds for
review by HUD;
! direct HUD to ensure that each state’s proposed plan gives priority
to activities that support infrastructure development and affordable
rental housing activities; and
! prohibit the use of CDBG funds to meet matching fund requirements
of other federal programs.

Policy Considerations
The CDBG program’s broad list of eligible activities and its flexibility has
allowed communities and states affected by disasters to undertake short-term disaster
relief efforts, implement mitigation strategies, and finance long-term recovery
activities. These funds have been used to support disaster recovery efforts spanning
multiple states, as well as to respond to disaster recovery efforts in highly urbanized
areas.
As Congress examines legislative proposals intended to finance long-term
disaster recovery efforts, it may choose to consider a number of CDBG-related policy
questions:

! Is the CDBG program an appropriate and effective means of
providing federal support for long-term disaster recovery efforts?
! If it is, what should be the level of CDBG assistance awarded to
affected areas?
! Should CDBG assistance be controlled by the individual
communities, by the states, or by a multi-state regional entity or
entities?

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! Should Congress require states to meet a matching fund requirement
as a condition for receiving disaster recovery-related CDBG funds?
If so, what level of matching funds would be appropriate? Would it
be fixed, or adjustable to account for such factors as level of
damage, state fiscal capacity, income levels, and other factors?
! What, if any, additional compliance and accountability measures or
actions should Congress require of CDBG recipients as a condition
of receiving CDBG funds?

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Table 2. Funding History of CDBG Supplemental Appropriations for Disaster Relief
Public law
Funding
Intended use of funds
P.L. 109-148. Department of Defense, Emergency $11,500,000,000
Hurricanes Katrina, Rita, and Wilma. CDBG funding for activities and necessary expenses
Supplemental Appropriations to Address Hurricanes
related to disaster relief, long-term recovery, and restoration of infrastructure in the most
in the Gulf of Mexico, and Pandemic Influenza Act,
impacted and distressed areas related to the consequences of hurricanes in the Gulf of
2006
Mexico in 2005 in states for which the President declared a major disaster under title IV of
the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et
seq.). (119 Stat. 2780)
P.L. 108-324. Military Construction Appropriations $150,000,000
Florida Hurricanes of 2004. For use only for disaster relief, long-term recovery, and
and Emergency Hurricane Supplemental
mitigation activities related to four hurricanes. The state may use the supplemental to
Appropriations Act, 2005
reimburse entitlement communities. (118 Stat. 1253)
P.L. 107-206. 2002 Supplemental Appropriations $783,000,000
Assistance to rebuild Lower Manhattan following Terrorist Attacks of 9/11/2001. Funds
Act For Further Recovery from and Response to
awarded to the State of New York through the Lower Manhattan Development Corporation
Terrorist Attacks on the United States
in cooperation with the City of New York in support of the city’s economic recovery efforts.
Funds may be used for assistance to properties and business, including to redevelop
infrastructure, and for economic revitalization activities. (116 Stat. 889)
P.L. 107-117. Department of Defense and $2,000,000,000
Assistance to rebuild Lower Manhattan following Terrorist Attacks of 9/11/2001. Funds
Emergency Supplemental Appropriations for
made available to reimburse businesses and persons for economic losses, including funds to
Recovery from and Response to Terrorist Attacks
reimburse tourism area. (115 Stat. 2236)
on the United States Act, 2002

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Public law
Funding
Intended use of funds
P.L. 107-73. Departments of Veterans Affairs and $700,000,000
Assistance to and reimbursement of State of New York following terrorist attacks of
Housing and Urban Development, and Independent
9/11/2001 (Sec. 434). The amounts subject to the fifth proviso under the heading
Agencies Appropriations Act, 2002
‘’Emergency Response Fund,’‘ in Public Law 107 — 38, are available for transfer to HUD
15 days after OMB has submitted to the House and Senate Committees on Appropriations
a proposed allocation method and plan for use of the funds. Funds may be awarded to the
State of New York for assistance for properties and businesses damaged by, and for
economic revitalization related to, the September 11, 2001 terrorist attacks on New York
City, and for reimbursement to the State and City of New York for expenditures incurred
from the regular Community Development Block Grant formula allocation used to achieve
these same purposes. (115 Stat. 699)
P.L. 106-31. 1999 Emergency Supplemental [$230,000,000]
Rescinds $230,000,000 in CDBG unobligated balances available under division B of the
Appropriations
rescission
Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999, P.L.
105 — 277. (113 Stat. 109)
P.L. 105-277. Omnibus Consolidated and Provision
Compensation for Oklahoma City bombings. Notwithstanding the third undesignated
Emergency Supplemental Appropriations Act, 1999 clarifying the use
paragraph under the heading Community Development Block Grants under title II of the
of funds provided Departments of Veterans Affairs and Housing and Urban Development, and Independent
to Oklahoma City Agencies Appropriations Act, 1999 ( P.L. 105-176), of the amount made available under
through the
such heading for Oklahoma City, Oklahoma, up to 50% of such amount shall be available
program in the
to such city for payment of claims for bomb damage and repairs for infrastructure located
FY1999
in the area described in clause (1) of such undesignated paragraph. Any amounts available
appropriations act. for use under such undesignated paragraph that are not expended to pay such claims or for
such repairs shall be utilized for the revolving loan pool described in such undesignated
paragraph. (112 Stat. 2681-546)

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CRS-13
Public law
Funding
Intended use of funds
P.L. 105-277. Omnibus Consolidated and $250,000,000
Presidentially declared disasters of 1998 and 1999. For use only for disaster relief, long-term
Emergency Supplemental Appropriations Act, 1999
recovery, and mitigation activities related to four hurricanes. The state may use the
supplemental to reimburse entitlement communities. (112 Stat. 2681-578)
P.L. 105-276. Department of Veteran Affairs and $12,000,000
Oklahoma City Bombing. Of the amount made available under this heading, $12,000,000
Housing and Urban Development and Independent
is for the City of Oklahoma City for a revolving loan pool that shall be made available only
Agencies Appropriations Act, 1999
for the purposes of making loans to carry out economic development activities that primarily
benefit the area in Oklahoma City bounded on the south by Robert S. Kerr Avenue, on the
north by North 13th Street, on the east by Oklahoma Avenue, and on the west by Shartel
Avenue. (112 Stat. 2476)
P.L. 105-174. 1998 Supplemental Appropriations $130,000,000
Presidentially declared disasters of 1998. $130,000,000 in CDBG funding which shall
and Rescissions
remain available until September 30, 2001, for use only for disaster relief, long-term
recovery, and mitigation in communities affected by presidentially declared natural disasters
designated during fiscal year 1998, except for those activities reimbursable by or for which
funds are made available by the Federal Emergency Management Agency, the Small
Business Administration, or the Army Corps of Engineers. (112 Stat. 76)
P.L. 105-18. 1997 Emergency Supplemental $500,000,000
Midwest Floods of 1997. $500,000,000, in CDBG funds, of which $250,000,000 shall
Appropriations for Recovery from Natural Disasters
become available for obligation on October 1, 1997, and all of which shall remain available
and for Overseas Peacekeeping Efforts, Including
until September 30, 2000. For use only for buyouts, relocation, long-term recovery, and
those in Bosnia
mitigation in communities affected by the flooding in the upper Midwest and other disasters
in FY1997 and such natural disasters designated 30 days prior to the start of FY1997, except
those activities reimbursable or for which funds are made available by the Federal
Emergency Management Agency, the Small Business Administration, or the Army Corps
of Engineers. (111 Stat. 198)

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CRS-14
Public law
Funding
Intended use of funds
P.L. 104-134. Omnibus Consolidated Rescissions $50,000,000
CDBG funds to remain available until September 30, 1998, for emergency expenses and
and Appropriations Act of 1996
repairs related to recent presidentially declared flood disasters, including up to $10,000,000
for rental subsidy contracts under the section 8 existing housing certificate program and the
housing voucher program under section 8 of the United States Housing Act of 1937, as
amended, except that such amount shall be available only for temporary housing assistance,
not in excess of one year in duration, and shall not be subject to renewal. (110 Stat. 1321-
334)
P.L. 104-19. Emergency Supplemental $39,000,000
$39,000,000, to remain available until expended to assist property and victims damaged and
Appropriations for Additional Disaster Assistance,
economic revitalization due to the bombing of the Alfred P. Murrah Federal Building in
for Anti-Terrorism Initiative, for Assistance in the
Oklahoma City on April 19, 1995, primarily in the area bounded on the south by Robert S.
Recovery from the Tragedy that Occurred at
Kerr Avenue, on the north by North 13th Street, on the east by Oklahoma Avenue, and on
Oklahoma City, Rescissions Act, 1995
the west by Shartel Avenue, and for reimbursement to the City of Oklahoma City, or any
public trust thereof, for the expenditure of other Federal funds used to achieve these same
purposes.
(109 State 253)
P.L. 103-327 Department of Veteran Affairs and $225,000,000
Northridge/1994 earthquake in Southern California. $225,000,000, in CDBG to remain
Housing and Urban Development, and Independent
available until September 30, 1996, of which $50,000,000 shall be derived by transfer from
Agencies Appropriations Act, 1995
funds provided under the heading ‘Department of Education, Impact Aid’ in the Emergency
Supplemental Appropriations Act of 1994 (Public Law 103 — 211): Provided, That of the
foregoing amount, $200,000,000 and $25,000,000 shall be for the cities of Los Angeles and
Santa Monica, California, respectively. (108 Stat. 2335)

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CRS-15
Public law
Funding
Intended use of funds
P.L. 103-327 Department of Veteran Affairs and $180,000,000
Tropical Storm Alberto and other disasters. $180,000,000 in CDBG funds to remain
Housing and Urban Development, and Independent
available until expended to be used to assist states, local communities, and businesses in
Agencies Appropriations Act, 1995
recovering from the flooding and damage caused by Tropical Storm Alberto. (108 Stat.
2335)
P.L. 103-211. Emergency Supplemental $500,000,000
1994 earthquake in Southern California and the Midwest Floods of 1993. $500,000,000, in
Appropriations Act of 1994
($425,000,000
CDBG funds for emergency expenses for all activities eligible under Title I, except those
after transfer of
activities reimbursable by the Federal Emergency Management Agency (FEMA) or available
funds to HOME
through the Small Business Administration (SBA): Provided, That from this amount, the
program)
Secretary may transfer up to $75,000,000 to the HOME program. (108 Stat. 12)
P.L. 103-75. Emergency Supplemental $200,000,000
Midwest Floods and other disasters. Only in areas affected by the Midwest floods, high
Appropriations for Relief from the Major
winds, hail and other related weather damages of 1993 and other disasters: $200,000,000,
Widespread Flooding of the Midwest Act of 1993
in CDBG funds, of which $25,000,000 is for those community development planning
activities related to recovery efforts and for immediate recovery needs not reimbursable by
the Federal Emergency Management Agency (FEMA). (107 Stat. 748)
P.L. 103-50. Supplemental Appropriations Act of $40,000,000
Hurricane Andrew, Hurricane Iniki, Typhoon Omar, and other presidentially declared
1993
disasters. $40,000,000, in CDBG funds to be derived by transfer from the $100,000,000
appropriated in the second paragraph under the heading ‘’Annual contributions for assisted
housing’‘ in the Dire Emergency Supplemental Appropriations Act, 1992 (P.L. 102 — 368),
for use only for the repair, renovation, or replacement, or other authorized community
development activities affecting structures damaged or destroyed by Hurricane Andrew,
Hurricane Iniki, Typhoon Omar, and other presidentially declared disasters. (107 Stat. 264)

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CRS-16
Public law
Funding
Intended use of funds
P.L. 103-50. Supplemental Appropriations Act of $45,000,000
Hurricane Andrew, Hurricane Iniki, or Typhoon Omar. $45,000,000 in CDBG funds for use
1993
for authorized community development activities only in areas impacted by Hurricane
Andrew, Hurricane Iniki, or Typhoon Omar. (107 Stat. 264)
Source: Compiled by CRS.

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