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What is Community Development Block Grant- Disaster Recovery (CDBG-DR)?
The CDBG-DR program is a federal initiative designed to provide flexible grants to help cities, counties, and states recover from presidentially declared disasters, especially in low-income areas, and is administered by the U.S. Department of Housing and Urban Development (HUD). These grants support a broad range of recovery activities, including housing rehabilitation, infrastructure repair, and economic revitalization, with the aim to address unmet needs and mitigate future risks, ensuring resilient recovery and long-term sustainability for affected communities.
Hurricanes Irma and Maria had devastating impact on the United States Virgin Islands. The two back-to-back Category 5 storms in September 2017 caused significant destruction to housing, infrastructure, and the economy. HUD’s Disaster Recovery (CDBG-DR) funding provides for unmet needs after Federal Emergency Management Agency (FEMA) funds, insurance, and other federal or private sources are accounted for, with a focus on the needs of low-and moderate-income residents.
Grant, funding, is managed by the U.S. Virgin Islands Housing Finance Authority (VIHFA), Grantee, and spending is prioritized in Programs designed through the U.S Virgin Islands CDBG-DR Action Plan. This plan proposes a portfolio of Programs to address unmet housing, public service, infrastructure, and economic needs. Territorially, the Programs are Housing, Infrastructure, Economic Revitalization, Public Services & Supportive Needs Housing (Facilities).
CDBG-DR funds are intended by HUD to address:
- Unmet needs in housing, infrastructure, and economic revitalization from the 2017 hurricanes.
- Mitigation activities to protect the Territory from the damage of future events.
CDBG-Disaster Recovery Activity Requirements:
- CDBG-eligibility activities under Title I of the Housing and Community Development Act 1974 (HCDA)
- Satisfy a Housing & Urban Development (HUD) National Objective
- Address a direct or indirect impact of the Presidentially declared disaster on HUD-identified impacted and distressed areas (Tie to the Disaster)
- Mitigation activities to protect the Territory from the damage of future events.
Grant Allocation
After the 2017 storms, HUD awarded $1,863,742,000 in CDBG-DR funds to address unmet needs in the U.S. Virgin Islands. Unless extended, these funds must be expended within six (6) years of the grant agreement. The Government of the U.S. Virgin Islands and VIHFA collaborated with community leaders and agencies to create programs. Following HUD’s rule for the utilization of the funds, the Programs aim to support the most vulnerable and affected residents with 70% of funds benefiting low-moderate income individuals.
