Disaster Resilience Investments: Community Development Block Grant Authorities for Mitigation (CDBG-MIT)

Disaster Resilience Investments: Community Development Block Grant Authorities for Mitigation (CDBG-MIT)

April 22, 2021
Disaster Resilience Investments: Community Development
Block Grant Authorities for Mitigation (CDBG-MIT)
In response to disasters, Congress has provided
In February 2018, P.L. 115-123 appropriated $12 billion of
supplemental appropriations under Department of Housing
CDBG-DR funding for hazard mitigation activities in
and Urban Development (HUD) Community Development
response to qualifying disasters in 2015, 2016, and 2017.
Block Grant (CDBG) authorities that include funding for
This allotment of funds is known as CDBG-MIT. HUD
long-term disaster recovery, or CDBG-DR. In some recent
further allocated $3.9 billion, bringing total CDBG-MIT
cases, these investments have included targeted funding for
funding to approximately $15.9 billion. Of that amount,
mitigating future disaster risks, or CDBG-MIT. This In
approximately $6.9 billion was allocated in 2019 to support
Focus considers CDBG-MIT’s background, purpose, and
mitigation activities among CDBG-DR grantees that had
structure, as well as policy considerations for Congress.
experienced presidentially declared disasters from 2015
through 2017.
Authorities Under CDBG
CDBG is a flagship community and economic development
A majority of the total CDBG-MIT funding was allocated
program that was established primarily to address housing,
in response to the 2017 hurricanes, with $774 million
infrastructure, and community development needs, with a
directed for CDBG-MIT activities in the U.S. Virgin
special emphasis on addressing the needs of low- and
Islands and $8.3 billion for CDBG-MIT activities in the
moderate-income persons. CDBG funds are relatively
Commonwealth of Puerto Rico. These tranches of CDBG-
flexible, and may be utilized for a variety of purposes
MIT funding are governed by guidance within multiple
provided that the activities meet one of three national
Federal Register Notices (FRNs).
objectives: (1) to principally benefit low- and moderate-
income (LMI) persons (which must represent 70% of
Mitigation as Resilience
funds); (2) to aid in the prevention or elimination of slums
The 2019 FRN allocating $6.9 billion of CDBG-MIT
or blight; or (3) to address an urgent need for the purposes
defines mitigation as “activities that increase resilience to
of health or safety.
disasters and reduce or eliminate the long-term risk of loss
of life, injury, damage to and loss of property, and suffering
In the past two decades, Congress has increasingly provided
and hardship, by lessening the impact of future disasters.”
supplemental appropriations for disaster recovery through
In addition, the 2019 FRN specifies that eligible CDBG-
CDBG authorities, now known as CDBG-DR. When
MIT activities must (1) meet the definition of mitigation
appropriating CDBG-DR funds, Congress utilizes CDBG
activities; (2) address “current and future risks” identified in
authorities to create one or more temporary programs to
a Mitigation Needs Assessment; (3) be eligible activities
respond to the unique circumstances, geographies, and
under the conventional CDBG program, or be able to secure
policy issues of the disaster.
a waiver; and (4) meet one of the three CDBG national
objectives.
CDBG-DR is not a permanently authorized program. As
such, its requirements are largely dependent on the specific
The Mitigation Needs Assessment (MNA) cited in the 2019
CDBG-DR appropriation, HUD’s allocations, rulemaking
FRN is intended to identify and analyze “all significant
that governs its use, and grantees’ action plans. However,
future disaster risks and provides a substantive basis for the
because CDBG-DR activities are based on CDBG
activities proposed.” The grantee must develop its MNA in
authorities, grantees are expected to generally comport with
consultation with other jurisdictions, the private sector, and
the CDBG national objectives—though exact requirements
government agencies as relevant, including state and local
may vary depending on the CDBG-DR appropriation.
emergency management agencies with primary
Resilience-building activities are generally eligible under
responsibility for administering Federal Emergency
CDBG-DR appropriations, and in recent years HUD has
Management Agency (FEMA) mitigation funds. This is
allocated funding specifically for such purposes.
intended to ensure coordination with other sources of
mitigation funding and guidance, including those from
CDBG-MIT: Origins and Features
FEMA, the U.S. Army Corps of Engineers, and the U.S.
As part of CDBG-DR allocations in response to Hurricane
Forest Service. As such, the FRN also requires that grantees
Sandy, HUD launched the Rebuild by Design (RBD)
“use the most recent risk assessment completed or currently
competition in 2013 to promote hazard mitigation—
being updated through [FEMA Hazard Mitigation
rebuilding to include resilience to future weather or climate
Assistance (HMA)] to inform the use of CDBG-MIT
events. RBD represented an early HUD effort to integrate
funds.”
resilience as part of CDBG-DR investments.
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Disaster Resilience Investments: Community Development Block Grant Authorities for Mitigation (CDBG-MIT)
The CDBG-MIT Framework
related preparedness and mitigation measures as part of
Broadly, the 2019 FRN requires grantees to utilize the
assisted activities.” In addition, the same FRN addresses
MNA process to inform the use of CDBG-MIT funding.
resilience by requiring grantees to “address long-term
For example, the MNA assesses resilience risks in seven
recovery and hazard mitigation planning” in their action
service areas: (1) safety and security; (2) communications;
plans, including the use of “sound, sustainable long-term
(3) food, water, and sheltering; (4) transportation; (5) health
recovery planning informed by a post-disaster evaluation of
and medical; (6) hazardous material; and (7) energy (power
hazard risk.” It also includes elevation requirements, local/
and fuel). In addition, the 2019 FRN lays out a number of
regional coordination of recovery and mitigation planning,
specific determinations of resilience, including:
and mitigation measures in infrastructure development.
 Long-term planning considerations, informed by the
CDBG-DR, being a variant of HUD’s flagship CDBG
MNA as well as through the “development and
program, is derived from that program’s structure and
enforcement of building codes and standards, vertical
community development purpose. Those include the
flood elevation protection, and revised land use and
national objectives, as well as the classes of eligible
zoning policies.”
activities as specified in statute. The statute specifies
eligible activities that could either potentially or explicitly
 Construction standards, to “emphasize quality,
build resilience, such as energy efficiency, energy
durability, energy efficiency, sustainability, and mold
conservation, energy resources, conservation of open spaces
resistance, as applicable”; a consideration of Green
and natural resources, environmental cleanup, and
Building Standards; advanced elevation requirements;
brownfields projects. Given these flexibilities, the
and, as applicable, addressing flood risks.
conventional CDBG program is also sometimes used as a
mechanism for resilience investments, to the extent that
 Building code and hazard mitigation planning, where
they are consistent with a grantee’s consolidated plan.
grantees are encouraged to use CDBG-MIT funding for
“building code development and implementation, land
Policy Considerations
use planning and/or hazard mitigation planning
CDBG-MIT, like CDBG-DR, is not a standing program,
activities.”
and only available through supplemental appropriations.
However, it represents a major monetary investment in
The 2019 FRN also includes more specific requirements for
post-disaster hazard mitigation and resilience-building
encouraging “green” building standards for the replacement
compared to other programs. Congress may consider policy
and new construction of residential housing; flood
options in evaluating CDBG-MIT’s purpose and long-term
insurance; elevation of nonresidential structures; and
efficacy—particularly in light of growing congressional
requirements for flood control structures, among others.
interest in weather and climate adaptation issues.
Despite the FRN’s various requirements for resilience-
CDBG-MIT could be permanently authorized—as part of,
building activities, it broadly represents a framework rather
or separately from, CDBG-DR—as a standing program for
than a suite of prescriptions. The types of resilience-
post-disaster resilience investments. Alternatively, CDBG-
building activities actually performed are highly dependent
MIT could be employed regularly as part of future CDBG-
on the action plans of the grantees. As is the case with most
DR appropriations. Congress may also consider a parallel
other forms of CDBG funding, significant discretion is
approach, where a new standing (competitive or non-
provided to the grantee in the use of those funds. In
competitive) program funds pre-hazard resilience
addition, the MNA and action plan process provides the
projects—such as making pre-disaster mitigation a fourth
grantee with the means of tailoring CDBG-MIT funds to its
CDBG national objective with increased funding—
perceptions of risk, and the means by which to address
alongside CDBG-MIT within CDBG-DR appropriations.
them. For example, CDBG-MIT “encourages” the use of
green building standards, and even specifies examples of
Additional Reading
such standards, but it does not necessarily require them.
For additional information on the CDBG program, see CRS
Report R43520, Community Development Block Grants and
Other Resilience Investments in CDBG-DR
Related Programs: A Primer, by Joseph V. Jaroscak.
Non-mitigation CDBG-DR funding may also be used for
resilience investments. Although the requirements and
On CDBG-DR, see CRS Report R46475, The Community
overall guidance for specific CDBG-DR allocations may
Development Block Grant’s Disaster Recovery (CDBG-DR)
differ considerably between supplemental appropriations
Component: Background and Issues, by Michael H. Cecire
(and, sometimes, even among the various allocations
and Joseph V. Jaroscak.
themselves), recent CDBG-DR allocations have permitted
resilience-building activities (“mitigation”) as an allowable
On FEMA hazard mitigation, see CRS Insight IN11187,
use, and to some degree include resilience standards—
Federal Emergency Management Agency (FEMA) Hazard
though they cannot duplicate CDBG-MIT activities, if
Mitigation Assistance, by Diane P. Horn.
relevant.
Michael H. Cecire, Analyst in Intergovernmental Relations
The CDBG-DR allocation for U.S. states affected by 2015,
and Economic Development Policy
2016, and 2017 disasters, for example, explicitly cites
mitigation in the FRN: “[G]rantees may include disaster
Joseph V. Jaroscak, Analyst in Economic Development
Policy
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Disaster Resilience Investments: Community Development Block Grant Authorities for Mitigation (CDBG-MIT)

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