Notice of Initial Allocation of Sandy Disaster Relief Grants

The Federal Register recently provided notice on the initial $5.4B of HUD CDBG Disaster Recovery Funds allocated to NYC, NY, NJ, MD, CT and RI. These grants were made by HUD based on unmet housing and economic revitalization needs, but not for infrastructure restoration needs because FEMA damage estimates have not been completed. The Notice specifies the eligible counties in each state, the most impacted counties in each state, and the minimum percentage of the grants which must be used in the most impacted counties. The Notice requires each grantee to provide to HUD an initial action plan for disaster recovery within 90 days, and this action plan must describe how the grant will be expended within 2 years. All action plans must be published for a 7 day public comment period. Highlights of the requirements of an action plan include leveraging of CDBG monies with other government funds; green building standards; sustainable rebuilding; economic revitalization which that restores or improves local or regional economies; and 50% of each grant must benefit low and moderate income persons. Standard CDBG procurement regulations apply, althought there is no limit on grant amount per job created. The action plans of the grantees should be available soon for review and comment.

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