The U.S. Department of Housing and Urban Development (HUD) awarded the City of Fort Worth with $16,614,000.00 in Community Development Block Grant-Disaster Recovery (CDBG-DR) funding to support long-term recovery efforts following 2021 Winter Storm (FEMA DR-4586).
This allocation is designed to address needs that remain after all other assistance has been exhausted. The Action Plan details how funds will be allocated to address remaining unmet need in the City of Fort Worth. To meet disaster recovery needs, the statutes making CDBG-DR funds available have imposed additional requirements and authorized HUD to modify the rules that apply to the annual CDBG program to enhance flexibility and allow for a quicker recovery.
CDBG-DR Grant Background
The Community Development Block Grant-Disaster Recovery (CDBG-DR) grant is designed to provide funding to communities affected by major disasters such as hurricanes, earthquakes, and floods. The purpose of the program is to help communities recover and rebuild by providing financial assistance for a variety of projects such as housing rehabilitation, infrastructure improvements, and economic development.
The funds are typically administered by the Department of Housing and Urban Development (HUD) and are awarded to states, territories, and local governments that have been declared eligible for disaster assistance. The program is meant to complement other federal disaster recovery programs and fill in gaps where those programs don't provide sufficient assistance.
2021 Winter Storm Overview
In February 2021, severe winter storms plagued the State of Texas for almost a week. The 2021 Winter Storm was a severe weather event in which a record amount of snow and ice impacted the entire State of Texas, including the City of Fort Worth. On February 20, 2021, the President of the United States approved a Texas Disaster Declaration. With the State’s power grid unable to produce electricity, an estimated 70% of Texas lost power and almost 50% did not have access to water. The record snow and ice created hazardous traveling conditions, which restricted access to shelters, grocery stores, hospitals, and other services. On March 22, 2022, HUD allocated nearly $3 billion in Community Development Block Grant Disaster Recovery (CDBG-DR) funds appropriated through the Disaster Relief Supplemental Appropriations Act, 2022 for major disasters occurring in 2020 and 2021.
On May 24, 2022, HUD published a Federal Register notice titled Allocations for Community Development Block Grant Disaster Recovery and Implementation of the CDBG-DR Consolidated Waivers and Alternative Requirements Notice, 87 Fed. Reg. 100, 31636 (“87 FR 31636”) about the $2.2 billion in CDBG-DR funds specifically allocated to grantees recovering from qualifying disasters in 2021.
Use of Federal Funds
These funds have been allocated to help communities with long-term recovery and restoration from disasters and to implement mitigation activities that reduce risks in the most impacted and distressed (MID) areas. This Action Plan provides framework for how CDBG-DR funds will be utilized to achieve these goals. It includes a needs assessment that reviews unmet housing, infrastructure, and economic recovery needs along with the estimated damage and impacts. The needs assessment will guide the development and prioritization of planned recovery activities and mitigation activities.
Funding Criteria
- (1) Funds will be used solely for necessary expenses related to disaster relief, long-term recovery, restoration of infrastructure and housing, economic revitalization, and mitigation in the most impacted and distressed areas for which the President declared a major disaster.
- (2) With respect to activities expected to be assisted with CDBG-DR funds, the action plan has been developed so as to give the maximum feasible priority to activities that will benefit low- and moderate-income families.
- (3) The aggregate use of CDBG-DR funds shall principally benefit low- and moderate-income families in a manner that ensures that at least 70 percent (or another percentage permitted by HUD in a waiver) of the grant amount is expended for activities that benefit such persons. Find your Income Limit (AMI) here.
- (4) The grantee will not attempt to recover any capital costs of public improvements assisted with CDBG-DR grant funds, by assessing any amount against properties owned and occupied by persons of low- and moderate-income, including any fee charged or assessment made as a condition of obtaining access to such public improvements.