Community Development Block Grant Disaster Recovery (CDBG-DR)
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
Support long-term disaster recovery of housing and infrastructure, economic revitalization, and mitigation following major Presidentially-declared disasters, especially in low-income areas.
Eligibility
Eligible Applicants
- U.S. State Government
- Federally Recognized Tribal Government
- Local Government Consortium
- Municipality/Township Government
- County Government
Beneficiaries
- Unrestricted by Individual Type
The principal beneficiaries of CDBG-DR funds are low- and moderate-income households (households earning 80% of the area's median income). Grantees generally must certify that at least 70% of the grant funds received are expended for activities that will principally benefit low- and moderate-income persons. Beneficiaries can also include low- and moderate-income persons or households and businesses.
How to Apply
Award Procedure
Each grantee receiving a Community Development Block Grant Disaster Recovery (CDBG-DR) allocation (notified via Allocation Award Notification Letter), must submit an Action Plan for disaster recovery and its Financial Management and Grant Compliance certifications to US Department of Housing and Urban Development (HUD). HUD reviews and approves the Action Plans, including Administration-only Action Plans, and certification submissions. The grant agreement documents (HUD Form 7082 or grant agreement) are sent to the grantee for signature first. The grant agreement is always signed by the grantee first and then returned to HUD for signature.
Decision Timeline
- Approval: From 90 to 120 days
The target deadlines for HUD review and approval of grantee action and certifications are listed in the applicable Federal Register notice.
Program details & compliance
Description
Community Development Block Grant Disaster Recovery (CDBG-DR) provides grants to state and local governments to support disaster recovery activities that demonstrate a logical connection between the impacts of the covered disaster and community recovery and ongoing resilience to natural disasters. CDBG-DR focuses on long-term recovery efforts and addresses unmet recovery needs that remain after other federal disaster recovery programs (e.g. FEMA, SBA, or USACE programs).
Mission Categories
Primary: Disaster Relief
Use of Funds
Allowed Uses
CDBG-DR appropriation acts typically require that all funds benefit the most impacted and distressed (MID) areas resulting from a major disaster. MID areas can be designated by both HUD and the CDBG-DR grantee. CDBG-DR activities support disaster relief, long-term recovery, restoration of infrastructure and housing, economic revitalization, and mitigation in MID areas resulting from a qualifying major disaster.
Restrictions
CDBG-DR grantees may use up to five (5) percent of the total grant award for grant administration and up to fifteen (15) percent of the total grant award for planning costs. In addition, grantees are limited to spending a maximum of fifteen (15) percent of their total grant amount on public services. Public service costs subject to the fifteen (15) percent cap are those defined in 42 U.S.C. 5305(a)(8) and more broadly in 24 CFR 570.201(e). For all other eligible uses, the aggregate use of CDBG-DR funds shall principally benefit low- and moderate-income families in a manner that ensures that at least seventy (70) percent, (or another percentage permitted by HUD in a waiver), of the grant amount is expended for activities that benefit low and moderate income persons.
Required Documentation
HUD computes allocations based on
the best available data documenting damage and unmet needs for the eligible affected areas, including
unmet housing, infrastructure, and economic revitalization needs. 2 CFR 200: Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.
Matching Requirements
CDBG-DR does not have a cost sharing requirement.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart E — Cost Principles
- Subpart F — Audit Requirements
Formula
Once eligible entities are identified using the criteria outlined in Appendix A, the allocation to individual grantees represents their proportional share of the estimated unmet needs. For the formula allocation, HUD calculates total unmet recovery needs for eligible disasters as the aggregate of: • Serious unmet housing needs in most impacted and distressed areas; • Serious unmet business needs; and • Unmet infrastructure need. Mitigation is calculated as 15 percent of the unmet need calculation. Both unmet needs and mitigation grant amounts are rounded to the nearest $1,000. The unmet needs and mitigation are slightly greater than the amount to be allocated, so the amount allocated reflects the unmet needs and mitigation less a 1.2488 percent pro-rata reduction.