GOHSEP Elected_Officials_Manual_2015

Type of Assistance
HUD generally awards
noncompetitive, nonrecurring disaster
recovery grants by a formula that
considers disaster recovery needs
unmet by other Federal disaster assistance programs.
Eligible Grantees
CDBG disaster recovery funds are available to States,
local governments, Tribal governments and areas
designated by the President as disaster areas.
These communities must have significant unmet
recovery needs and the capacity to carry out a
disaster recovery program. At times, supplemental
appropriations restrict funding solely to States rather
than to local jurisdictions.
Eligible Applicants
CDBG disaster recovery grants primarily benefit
low-income residents in and around communities
that have experienced a natural disaster. Generally,
grantees must use at least half of disaster recovery
funds for activities that principally benefit low- and
moderate-income persons.
Eligible Activities
Grantees may use CDBG disaster recovery funds
for recovery efforts involving housing, economic
development, infrastructure and prevention of
further damage to affected areas, if such use does not
duplicate funding available from FEMA, SBA or USACE.
Examples of
eligible activities
• Buying damaged properties in a flood
plain and relocating residents to safer
areas.
• Relocation payments for people and
businesses displaced by the disaster.
• Rehabilitation of homes and buildings
damaged by the disaster.
• Buying, constructing or rehabilitating
public facilities such as streets,
neighborhood centers, and water, sewer
and drainage systems.
• Code enforcement.
• Homeownership activities such as
down payment assistance, interest
rate subsidies and loan guarantees for
disaster victims.
• Public services (generally limited to no
more than 15 percent of the grant).
• Helping businesses retain or create jobs
in disaster impacted areas.
• Planning and administration costs
(limited to no more than 20 percent of
the grant).
5.2.5 CDBG Page 2 of 4