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How to decode HUD CDBG disaster programs

Two significant programs have similarities, but it may be challenging to determine which one may be right for an organization.

Department of Housing and Urban Development (HUD) Community Development Block Grant (CDBG) programs play a crucial role in providing funding for disaster recovery and mitigation efforts. These programs are designed to supplement traditional emergency funding programs by targeting low- and moderate-income individuals, housing communities and economic areas both during and after major disasters to address unmet needs. These programs aim to spend federal grant funds in a manner that supports the communities and individuals who have some of the most significant needs.

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Two significant programs under the CDBG umbrella are CDBG-DR (Disaster Recovery) and CDBG-MIT (Mitigation). While both programs address the impact of disasters, they differ in their objectives, focus, timing, and eligible activities. Although there are similarities between the programs, it may be challenging to determine which of them may be right for an organization. Below, a few key differentiators of each program have been outlined, which may help a grantee identify which CDBG program may be the best fit.

Key differentiators

CDBG-DR

CDBG-MIT

Perspective for funding use

Retrospective

Forward looking

Focus of funding use

Funding promotes efficient and effective disaster recovery.

Funding focuses on implementing processes and infrastructures to help mitigate the impact of future disasters.

How funds can be used
  • Infrastructure restoration
  • Housing recovery
  • Community planning
  • Economic revitalization
  • Public facilities and services
  • Certain mitigation measures
  • Infrastructure improvements
  • Housing resilience
  • Community planning
  • Economic revitalization
  • Public facilities and services
  • Natural and nature-based features

How EY can help

CDBG-DR on post-disaster: Recovery vs. mitigation

 

CDBG-DR is primarily focused on post-disaster recovery, aiming to rebuild damaged infrastructure, housing, and public services while revitalizing the local economy. These funds are activated in response to a disaster declaration and allocated on a case-by-case basis, addressing immediate recovery needs. The administration of CDBG-DR involves collaborative efforts among HUD, state and local governments, and community stakeholders. CDBG-MIT emphasizes proactive measures for long-term mitigation, seeking to enhance community resilience and reduce the impact of future disasters. These funds are pre-allocated based on the magnitude and frequency of past disasters, providing a proactive approach to disaster mitigation. The administration of CDBG-MIT involves a competitive grant process, where communities develop comprehensive mitigation plans and propose projects aligned with their specific needs and vulnerabilities.

 

For both programs, grantees receive funding based on a formula calculation. Once funds are received, the usage of these funds at the grantee and subgrantee levels must align with at least one of the CDBG program’s several national objectives.

Key takeaway

Understanding the differences between HUD CDBG-DR and CDBG-MIT programs is crucial for communities seeking to access and utilize these funds effectively. By leveraging these programs appropriately, communities can enhance their resilience and reduce the impact of future disasters.

Summary 

Two HUD CDBG programs — Disaster Recovery and Mitigation — have similarities but differ in their objectives, focus, timing and eligible activities. Knowing the key differentiators of each program may help a grantee identify which program is the best fit.

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16 Mar 2023 Bradley (BJ) Nichols
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