Community Development Block Grant Funds in Disaster Relief and Recovery

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 to 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.

The Gulf Coast hurricanes of 2005 (Katrina, Rita, and Wilma) resulted in the largest appropriation of CDBG funds for disaster relief and recovery in the program’s history. Since December 2005, Congress has provided $19.85 billion in CDBG disaster-related assistance to the five states (Alabama, Florida, Louisiana, Mississippi, and Texas) affected by the Gulf Coast hurricanes of 2005. This included $11.5 billion in CDBG assistance appropriated in the Defense Appropriations Act for FY2006, P.L. 109-148; $5.2 billion in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery Act of 2006, P.L. 109-234; and $3 billion (exclusively for Louisiana’s Road Home Program) appropriated in the Department of Defense Appropriations Act for FY2008, P.L. 110-116.

The 110th Congress appropriated $6.8 billion in CDBG funds to be used to respond to presidentially declared disasters occurring in 2008. This included $300 million appropriated under the Department of Defense Appropriations Act, P.L. 110-252, and $6.5 billion included in the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, P.L. 110-329.

In general, CDBG disaster relief acts passed since 2005 have included provisions that limit the amount a state could use for administrative expenses to 5%; allow a state to seek waivers of program requirements, except those related to fair housing, nondiscrimination, labor standards, and environmental review; prohibit the use of funds for activities that were reimbursable by or made available by the Federal Emergency Management Agency (FEMA) or the Army Corp of Engineers; and require each state to develop and HUD to approve state recovery plans

As a condition for the receipt of CDBG disaster recovery assistance, states are required to submit quarterly reports to the House and Senate Appropriations Committees on all awards and use of funds. The acts do not prescribe the form these quarterly reports are to take nor the content they are to include, except for identifying and rationalizing the use of sole source contracts.

The 111th Congress approved a supplemental appropriations act for 2010, H.R. 4899, which was signed by the President on July 29, 2010, as P.L. 111-212. The act provided an additional $100 million in CDBG funds to help states and communities undertake disaster recovery activities in presidentially declared disaster areas affected by severe storms and flooding during the period from March 2010 through May 2010. Most recently, the 112th Congress also considered and passed legislation (P.L. 112-55) appropriating $400 million in supplemental CDBG disaster assistance for disasters occurring in 2011. This report will be updated as events warrant.

Community Development Block Grant Funds in Disaster Relief and Recovery

November 1, 2012 (RL33330)

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 to 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.

The Gulf Coast hurricanes of 2005 (Katrina, Rita, and Wilma) resulted in the largest appropriation of CDBG funds for disaster relief and recovery in the program's history. Since December 2005, Congress has provided $19.85 billion in CDBG disaster-related assistance to the five states (Alabama, Florida, Louisiana, Mississippi, and Texas) affected by the Gulf Coast hurricanes of 2005. This included $11.5 billion in CDBG assistance appropriated in the Defense Appropriations Act for FY2006, P.L. 109-148; $5.2 billion in the Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery Act of 2006, P.L. 109-234; and $3 billion (exclusively for Louisiana's Road Home Program) appropriated in the Department of Defense Appropriations Act for FY2008, P.L. 110-116.

The 110th Congress appropriated $6.8 billion in CDBG funds to be used to respond to presidentially declared disasters occurring in 2008. This included $300 million appropriated under the Department of Defense Appropriations Act, P.L. 110-252, and $6.5 billion included in the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, P.L. 110-329.

In general, CDBG disaster relief acts passed since 2005 have included provisions that limit the amount a state could use for administrative expenses to 5%; allow a state to seek waivers of program requirements, except those related to fair housing, nondiscrimination, labor standards, and environmental review; prohibit the use of funds for activities that were reimbursable by or made available by the Federal Emergency Management Agency (FEMA) or the Army Corp of Engineers; and require each state to develop and HUD to approve state recovery plans

As a condition for the receipt of CDBG disaster recovery assistance, states are required to submit quarterly reports to the House and Senate Appropriations Committees on all awards and use of funds. The acts do not prescribe the form these quarterly reports are to take nor the content they are to include, except for identifying and rationalizing the use of sole source contracts.

The 111th Congress approved a supplemental appropriations act for 2010, H.R. 4899, which was signed by the President on July 29, 2010, as P.L. 111-212. The act provided an additional $100 million in CDBG funds to help states and communities undertake disaster recovery activities in presidentially declared disaster areas affected by severe storms and flooding during the period from March 2010 through May 2010. Most recently, the 112th Congress also considered and passed legislation (P.L. 112-55) appropriating $400 million in supplemental CDBG disaster assistance for disasters occurring in 2011. This report will be updated as events warrant.


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 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 the Appendix). 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 affected states2 and convert the land to public uses, such as recreation, or allow 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 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:

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, Gulf Coast hurricanes of 2005, and natural disasters of 2008, 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 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

State 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

Matching Other Federal Funds

Statutory provisions governing the regular CDBG program allow states and local governments to use their annual (non-disaster related) CDBG allocations to meet the matching fund requirements of other federal programs (42 U.S.C. 5305[a][9]). However, recently Congress included language in appropriations dealing with Gulf Coast hurricanes of 2005 and natural disasters in 2008 that prohibited states and local governments from using CDBG disaster-relief funds to meet the matching fund requirements of other federal programs.19

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.20 Legislation providing CDBG assistance to New York following the September 11, 2001, terrorist attacks, the Gulf Coast hurricanes of 2005, and natural disasters of 2008 also included quarterly reporting provisions.21

Recent Legislation

On July 29, 2010, President Obama signed into law the Supplemental Appropriations Act for FY2010, P.L. 111-212. The legislation appropriates supplemental CDBG funds for disaster recovery activities. Specifically, provisions included during Senate consideration and passage of H.R. 4899, the Supplemental Appropriations Act of 2010, recommended appropriating $100 million in CDBG supplemental funds for presidentially declared disaster areas affected by severe storms and flooding during the period from March 2010 to May 2010. P.L. 111-212 limits the $100 million in CDBG disaster assistance to states where

  • the entire state has been declared a presidential disaster area; or
  • at least 20 counties in the state have been declared presidential disaster areas.

Given these parameters, the act is intended to allocate CDBG disaster recovery funds only to the states of Rhode Island, Kentucky, Nebraska, and Tennessee.22 In addition, P.L. 111-212 allows

  • each grantee to use up to 5% of its CDBG disaster recovery funds for administrative costs;
  • HUD to award CDBG disaster recovery grants to both states and local governments;23
  • CDBG disaster recovery funds to be used to meet the matching fund requirements of other federal programs; and
  • HUD, at the request of a grantee, to waive any statutes or regulations governing the CDBG program except for provisions related to environmental review, fair labor standards, civil rights, and nondiscrimination.24

The latter provision gives grantees greater flexibility in developing and implementing CDBG disaster recovery plans.

Disaster Relief 112th Congress: P.L. 112-55

On September 15, 2011, the Senate passed, by unanimous consent, its version of H.J.Res. 66, which would have appropriated $100 million in supplemental CDBG disaster assistance. The bill included many of the standard provisions included in previous CDBG disaster appropriations. It would have:

  • directed HUD to allocate funds to both states and local governments;
  • allowed CDBG disaster funds to be used to meet the matching fund requirements of other federal programs;
  • allowed states and localities to use up to 5% of their CDBG disaster allocation to cover administrative costs; and
  • allowed HUD to grant waivers or specify alternative program requirements (except those related to fair housing, nondiscrimination, labor standards, and environmental review) as long as such waivers or alternative requirements are not inconsistent with purpose and rules governing the CDBG program.

The House-passed version of H.J.Res. 66 did not include provisions appropriating supplemental CDBG disaster funds.

During consideration of the Consolidated and Further Continuing Appropriations Act of 2012, H.R. 2112, which was signed into law as P.L. 112-55 by the President on November 18, 2011, Congress included $400 million in supplemental CDBG assistance in response to multiple disasters that occurred during 2011. On April 16, 2012, HUD announced the allocation of these funds to 17 grantees, including nine local governments, in the eight states of Alabama, Missouri, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Vermont.25 The act:

  • allows funds to be used to support housing, infrastructure, and economic recovery efforts;
  • caps the percentage of funds that may be used for administrative expenses at 5% of the amount allocated;
  • requires all grantees to submit to HUD detailed disaster recovery plans prior to obligating CDBG disaster recovery funds;.
  • prohibits funds from being used to for activities reimbursable by, or made available, by the Federal Emergency Management Administration or the Army Corps of Engineers; and
  • allows HUD to waive statutory or regulatory provisions governing the use of CDBG funds, except those related to fair housing, nondiscrimination, labor standards, and environmental review.

When seeking a waiver of CDBG program requirements, grantees are required to explain why such a waiver is necessary to the grantee's recovery efforts.

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 move 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?
  • 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 additional compliance and accountability measures or actions, if any, should Congress require of CDBG recipients as a condition of receiving CDBG funds?

Appendix. Funding History of CDBG Supplemental Appropriations for Disaster Relief

Table A-1. Funding History of CDBG Supplemental Appropriations for Disaster Relief

Public Law

Funding

Intended Use of Funds

 

 

 

P.L. 112-55, Consolidated and Further Continuing Appropriations Act, 2012

$400,000

Provides $400 million in supplemental CDBG funds to be awarded directly to states and HUD-designated communities to undertake disaster relief and long-term disaster recovery activities in areas designated as presidentially declared disaster areas in 2011. Of the $400 million appropriated for disaster relief activities, the act exempted $100 million of that amount from discretionary spending limits imposed by the Balanced Budget and Emergency Deficit Control Act of 1985, as amended by the Budget Control Act, P.L. 112-25. Funds were allocated to 17 grantees, including 9 local governments, in the 8 states of Alabama, Missouri, New Jersey, New York, North Carolina, Pennsylvania, Texas, and Vermont.

P.L. 111-212, Supplemental Appropriations Act, 2010

$100,000,000

Provides $100 million in CDBG funds to help states and communities undertake disaster recovery activities in presidentially declared disaster areas affected by severe storms and flooding during the period from March 2010 through May 2010. Limited distribution of these funds to states where the entire state was declared a disaster area (Rhode Island) and to states where at least 20 counties within the state were declared disaster areas (Tennessee, Kentucky, and Nebraska).

P.L. 110-329, Consolidated Security, Disaster assistance, and Continuing Appropriations Act, 2009

$6,500,000,000

Provides funds to assist communities affected by hurricanes, floods, and other natural disasters occurring during 2008 undertake activities related to disaster relief, long-term recovery, and restoration infrastructure economic .housing, and economic revitalization. Allocates $6.5 million for HUD administrative expenses, limits the administrative expenses each state may incur in undertaking eligible activities to no more than 5% of its allocation, directs that each state allocate its pro rated share of $650 million for affordable rental housing. Requires that at least 33% of the amount appropriated be allocated within 60 days after passage of the act. (122 Stat. 3599)

P.L. 110-252, Supplemental Appropriations for FY2008

$300,000,000

Midwest floods and other natural disasters of 2008. Funds are to be used for necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure in areas covered by a declaration of major disaster under title IV of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.) as a result of recent natural disasters. (122 Stat. 2352)

P.L. 110-116, Road Home Appropriations under Department of Defense Appropriations

$3,000,000,000

Provides funding for the Road Home Program, through the Department of Defense Appropriations for FY2008. The funding will be provided as part of the Department of Housing and Urban Development, Community Planning and Development, Community Development Fund. The funds can only be used to cover costs associated with otherwise uncompensated but eligible claims that were filed on or before July 31, 2007, under the Road Home program administered by the State of Louisiana. (121 Stat. 1343)

P.L. 109-234, Emergency Supplemental Appropriations Act for Defense, the Global War on Terror, and Hurricane Recovery, 2006

$5,200,000,000

Makes emergency supplemental appropriations to HUD in response to the consequences of Hurricanes Katrina, Rita, and Wilma. CDBG disaster recovery funds were to be allocated among the five states (Louisiana, Texas, Alabama, Mississippi, and Florida) affected by the Gulf Coast hurricanes of 2005; limited the amount that any one state could receive to $4.2 billion and encouraged states to target assistance to infrastructure reconstruction and activities that would spur the redevelopment of affordable rental housing, including federally assisted housing and public housing. Requires each state to develop recovery plan that must be approved by HUD, and to submit quarterly reports to House and Senate Appropriation Committees. (120 Stat. 472)

P.L. 109-148, Department of Defense, Emergency Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico, and Pandemic Influenza Act, 2006

$11,500,000,000

Hurricanes Katrina, Rita, and Wilma. CDBG funding for activities and necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure in the most impacted and distressed areas related to the consequences of hurricanes in the Gulf of 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 and Emergency Hurricane Supplemental Appropriations Act, 2005

$150,000,000

Florida Hurricanes of 2004. For use only for disaster relief, long-term recovery, and mitigation activities related to four hurricanes. The state may use the supplemental to reimburse entitlement communities. (118 Stat. 1253)

P.L. 107-206, 2002 Supplemental Appropriations Act For Further Recovery from and Response to Terrorist Attacks on the United States

$783,000,000

Assistance to rebuild Lower Manhattan following Terrorist Attacks of 9/11/2001. Funds awarded to the State of New York through the Lower Manhattan Development Corporation 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 Emergency Supplemental Appropriations for Recovery from and Response to Terrorist Attacks on the United States Act, 2002

$2,000,000,000

Assistance to rebuild Lower Manhattan following Terrorist Attacks of 9/11/2001. Funds made available to reimburse businesses and persons for economic losses, including funds to reimburse tourism area. (115 Stat. 2236)

P.L. 107-73, Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 2002

$700,000,000

Assistance to and reimbursement of State of New York following terrorist attacks of 9/11/2001 (Sec. 434). The amounts subject to the fifth proviso under the heading "Emergency Response Fund," in P.L. 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 Appropriations

[$230,000,000] rescission

Rescinds $230,000,000 in CDBG unobligated balances available under division B of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999, P.L. 105-277. (113 Stat. 109)

P.L. 105-277, Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999

Provision clarifying the use of funds provided to Oklahoma City through the program in the

FY1999 appropriations act.

Compensation for Oklahoma City bombings. Notwithstanding the third undesignated paragraph under the heading Community Development Block Grants under title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1999 (P.L. 105-276), of the amount made available under such heading for Oklahoma City, Oklahoma, up to 50% of such amount shall be available to such city for payment of claims for bomb damage and repairs for infrastructure located in the area described in clause (1) of such undesignated paragraph. Any amounts available 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)

P.L. 105-277, Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999

$250,000,000

Presidentially declared disasters of 1998 and 1999. For use only for disaster relief, long-term 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 Housing and Urban Development and Independent Agencies Appropriations Act, 1999

$12,000,000

Oklahoma City Bombing. Of the amount made available under this heading, $12,000,000 is for the City of Oklahoma City for a revolving loan pool that shall be made available only 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 and Rescissions

$130,000,000

Presidentially declared disasters of 1998. $130,000,000 in CDBG funding which shall 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 FY1998, 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 Appropriations for Recovery from Natural Disasters and for Overseas Peacekeeping Efforts, Including those in Bosnia

$500,000,000

Midwest Floods of 1997. $500,000,000, in CDBG funds, of which $250,000,000 shall become available for obligation on October 1, 1997, and all of which shall remain available until September 30, 2000. For use only for buyouts, relocation, long-term recovery, and 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)

P.L. 104-134, Omnibus Consolidated Rescissions and Appropriations Act of 1996

$50,000,000

CDBG funds to remain available until September 30, 1998, for emergency expenses and 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 Appropriations for Additional Disaster Assistance, for Anti-Terrorism Initiative, for Assistance in the Recovery from the Tragedy that Occurred at Oklahoma City, Rescissions Act, 1995

$39,000,000

$39,000,000, to remain available until expended to assist property and victims damaged and economic revitalization due to the bombing of the Alfred P. Murrah Federal Building in Oklahoma City on April 19, 1995, primarily in the area 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, 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 Housing and Urban Development, and Independent Agencies Appropriations Act, 1995

$225,000,000

Northridge/1994 earthquake in Southern California. $225,000,000, in CDBG to remain available until September 30, 1996, of which $50,000,000 shall be derived by transfer from funds provided under the heading 'Department of Education, Impact Aid' in the Emergency Supplemental Appropriations Act of 1994 (P.L. 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)

P.L. 103-327, Department of Veteran Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995

$180,000,000

Tropical Storm Alberto and other disasters. $180,000,000 in CDBG funds to remain available until expended to be used to assist states, local communities, and businesses in recovering from the flooding and damage caused by Tropical Storm Alberto. (108 Stat. 2335)

P.L. 103-211, Emergency Supplemental Appropriations Act of 1994

$500,000,000 ($425,000,000 after transfer of funds to HOME program)

1994 earthquake in Southern California and the Midwest Floods of 1993. $500,000,000, in CDBG funds for emergency expenses for all activities eligible under Title I, except those activities reimbursable by the Federal Emergency Management Agency (FEMA) or available through the Small Business Administration (SBA): Provided, That from this amount, the Secretary may transfer up to $75,000,000 to the HOME program. (108 Stat. 12)

P.L. 103-75, Emergency Supplemental Appropriations for Relief from the Major Widespread Flooding of the Midwest Act of 1993

$200,000,000

Midwest Floods and other disasters. Only in areas affected by the Midwest floods, high winds, hail and other related weather damages of 1993 and other disasters: $200,000,000, 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 1993

$40,000,000

Hurricane Andrew, Hurricane Iniki, Typhoon Omar, and other presidentially declared 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)

P.L. 103-50, Supplemental Appropriations Act of 1993

$45,000,000

Hurricane Andrew, Hurricane Iniki, or Typhoon Omar. $45,000,000 in CDBG funds for use for authorized community development activities only in areas impacted by Hurricane Andrew, Hurricane Iniki, or Typhoon Omar. (107 Stat. 264)

Source: Compiled by CRS.

Footnotes

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.

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: August 2002) available at http://www.fema.gov/pdf/casestudys/mo_buyoutreport.pdf.

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.

8.

Lower Manhattan Development Corporation, Partial Action Plan 001: Residential Grant 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.

9.

Ibid., p. 9.

10.

42 U.S.C. 5321.

11.

112 Stat. 76; 118 Stat. 1254; 119 Stat.2781; and 122 Stat. 3600.

12.

42 U. S. C. 5306(a)(8).

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.

120 Stat. 473, 122 Stat. 3601.

20.

111 Stat. 199; 112 Stat. 77.

21.

115 Stat. 221, 119 Stat. 2781, 122 Stat. 3601.

22.

The entire state of Rhode Island was declared a disaster area on March 29, 2010; see http://www.fema.gov/news/event.fema?id=12569. At least 40 counties in Tennessee were included in a disaster declaration dated May 4, 2010; see http://www.fema.gov/news/eventcounties.fema?id=12789. At least 30 counties in Kentucky were included in a disaster declaration dated May 11, 2010; see http://www.fema.gov/news/event.fema?id=12829. At least 30 counties in Kentucky were included in a disaster declaration dated April 21, 2010; see http://www.fema.gov/news/event.fema?id=12669.

23.

The five most recent CDBG disaster recovery supplemental appropriations have awarded funds and administrative control exclusively to state governments. See Table A-1.

24.

This would include the statutory provision requiring a grantee to target 70% of its CDBG allocation to activities benefitting low- and moderate-income persons.

25.

For list of recipients and allocation amounts, see U.S. Dept. of Housing and Urban Development, "Allocations, Common Application, Waivers, and Alternative Requirements for Community Development Block Grant (CDBG) Disaster Recovery Grantees Under the Department of Housing and Urban Development Appropriations Act, 2012," Federal Register, vol. 77, no. 73, April 16, 2012, p. 22584, http://www.gpo.gov/fdsys/pkg/FR-2012-04-16/pdf/2012-9094.pdf.