Glossary of Terms

Term Definition
2025 Revised Universal Notice U.S. Department of Housing and Urban Development (HUD) comprehensive guidance governing the use of Community Development Block Grant Disaster Recovery (CDBG-DR) and mitigation funds, published in the Federal Register to consolidate and standardize program rules across grantees. The Division of Community Revitalization must incorporate the 2025 Revised Universal Notice into all program policies, procedures, legal agreements, and monitoring tools for multifamily housing and other CDBG-DR-funded programs.
Action Plan The official planning document submitted by the State of North Carolina and approved by HUD that outlines how the State will use its Community Development Block Grant Disaster Recovery (CDBG-DR) funds to support long-term recovery following the presidentially declared disaster.
Affirmative Fair Housing Marketing Plan A required document that outlines how a project will proactively market housing opportunities to groups that are least likely to apply, ensuring compliance with fair housing laws. 
Affordability Compliance The process of ensuring that assisted units remain affordable to low- and moderate-income households during the required affordability period.
Affordability Period The minimum duration during which assisted units must remain affordable to eligible households, typically enforced by a recorded legal agreement such as a Land Use Restriction Agreement (LURA).   
Affordable Rental Housing/Units Residential units available to or occupied as a primary residence by households typically earning less than 80% of Area Median Income (AMI), with AMI adjusted for household size, and for which monthly rents do not exceed 30 percent of the household's adjusted monthly income, as defined by HUD. 
Annual Income The gross amount of income anticipated to be received by all adult members of a household during a 12-month period following the effective date of income determinations. Annual income is determined in accordance with the definition at 24 CFR Part 5. This determination typically includes income from wages, salaries, self-employment, Social Security, public assistance, pensions, and other sources, before deductions.
Applicant(s) Persons or entities applying for CDBG-DR Program funding, such as an individual applicant, or a local government, developer, nonprofit, or public housing authority, responsible for demonstrating project eligibility, financial feasibility, and compliance with program requirements.
Application The formal submission or document used to assess a project’s eligibility and feasibility, including funding sources, authorizations, and compliance documentation. Application requirements vary by program type.
Area Median Income (AMI) The median household income for an area adjusted for household size as published and annually updated by HUD.
Award The commitment of funds to an applicant after completion of the Notice of Funding Opportunity (NOFO) process.   
Award Letter A letter signed by the Department reserving funds for a specific project. 
Base Flood Elevation (BFE) The regulatory requirement for the elevation or flood-proofing of structures as determined by as determined by the Federal Emergency Management Agency (FEMA) and is the elevation of surface water resulting from a flood that has a 1% chance of equaling or exceeding that level in any given year.
Canceled Loans The borrower has entered into a loan agreement, but for a variety of reasons, all or a portion of the loan amount was not disbursed and is no longer available. The loan cancellation may be due to the default of the borrower, agreement by both parties to cancel the undisbursed portion of the loan, or expiration of the term for which the loan was available for disbursement. 
Closeout The formal process by which the Grantee and the Sponsor or Subrecipient complete all administrative and programmatic requirements of a CDBG-DR funded project or activity. Closeout occurs after all construction activities are completed, beneficiaries are served, financial obligations are met, and required documentation is submitted and approved. 
Community Development Block Grant Disaster Recovery (CDBG-DR) Refers to federal funding administered by HUD to help states, territories, and local governments recover from presidentially declared disasters. These funds are authorized under the Robert T. Stafford Disaster Relief and Emergency Assistance Act and appropriated by Congress through supplemental spending bills.
Corrective Action A response to findings of noncompliance, typically involving steps that must be taken to restore program compliance and avoid enforcement penalties.
Cross-Cutting Requirements Set of federal laws and regulations that apply to all activities and projects funded by the CDBG-DR Program, in addition to program-specific rules. 
Declined Loans Declined loan amounts are loan amounts that were approved or offered by a lender in response to a loan application, but were turned down by the applicant, meaning the applicant never signed loan documents to receive the loan proceeds. 
Deductions Refer to specific amounts subtracted from a household's Annual Income, which is used for calculating tenant rent and eligibility.  
Demolition Clearance and proper disposal of substantially damaged or dilapidated buildings. 
Developer A private for-profit or nonprofit organization or Tribal Entity receiving HUD assistance from the Grantee that owns or has site control over property and is responsible for planning, financing, and implementing the design and construction of a project.  
Disability For the purposes of the program, “disability” is consistent with federal law under the Social Security Act, as amended, 42 U.S.C. §423(d), the Americans with Disabilities Act of 1990, as amended, 42 U.S.C. §12102(1)-(3), and in accordance with applicable HUD regulations. 
Disaster Tie-Back The requirement to demonstrate that each funded activity or project is directly or indirectly related to the impacts of the disaster (e.g., Hurricane Helene), such as physical damage or displacement. 
Division of Community Revitalization The division within the North Carolina Department of Commerce (NCDOC) responsible for administering the State's CDBG-DR and related HUD disaster recovery and resilience programs. DCR serves as the Grantee of HUD disaster recovery funds and the primary administrator ensuring that all program activities align with federal and state requirements and guidance.
Draw Request Formal submission made by the project sponsor or Subrecipient to the Grantee requesting reimbursement of payment of eligible project costs incurred under the CDBG-DR program. 
Duplication of Benefits A duplication of benefits occurs when a person, household, business, or other entity receives disaster assistance from multiple sources for the same recovery purpose, and the total assistance received for that purpose is more than the total need. The amount exceeding the total need is the Duplication of Benefits (“DOB”) and is prohibited by federal law. Therefore, these other sources of funds must be deducted from any potential award.
Elevation All structures, as defined at 44 CFR 59.1, designed principally for residential use and located in the 1% annual (or 100-year) floodplain that receive assistance for new construction, repair of substantial damage, or substantial improvement, as defined at 24 CFR 55.2(b) (10), must be elevated with the lowest floor, including the basement, at least two feet above the 1% annual floodplain elevation. Elevation will be conducted by means of pier and beam construction, as per North Carolina building code. Fill dirt to achieve proper elevation height will not be eligible.
Eligible Activities Activities that meet the requirements of the CDBG-DR program under the Housing and Community Development Act of 1974 and are consistent with the State’s HUD-approved Action Plan. 
Eligible Costs   Project-related expenses that are reasonable, necessary, and allowable under the CDBG-DR program and directly support eligible activities as defined by HUD and the State's Action Plan. 
Environmental Review All qualified projects must undergo an environmental review process. This process ensures that the activities comply with the National Environmental Policy Act (NEPA) and other applicable state and federal laws, including the requirements found at 24 CFR Part 58.
Environmental Review Record (ERR) The documentation that supports the environmental review conducted under 24 CFR Part 58, which must be completed and approved prior to commitment of federal funds. 
Estimated Cost to Repair (ECR) A documented line-item estimate of the repairs needed for a specific property that quantifies the materials and labor necessary to repair. An ECR is used to verify damage to the property and determine the estimated scope of work to bring the property up to program standards.
Federal Flood Risk Management Standard (FFRMS) Floodplain As defined by FEMA and including the area subject to inundation from a flood with a 1% or greater chance of being equaled or exceeded in any given year.
Federal Register The official journal of the Federal government of the United States that contains agency rules, proposed rules, and public notices. A Federal Register Notice (FRN) is issued for each CDBG-DR funded disaster. The FRN outlines the rules and regulations that apply to each allocation and expenditure of disaster funding.
FEMA-designated High-Risk Area Areas designated by FEMA as vulnerable to significant wind and/or storm surge damage and areas located in 100-year flood zones. Properties located in these areas will be identified during the environmental review process. 
Financial Viability An assessment of whether a proposed project can sustain its operations and obligations throughout the affordability period based on income, expenses, and reserves. 
Flood Hazard Area Areas designated by FEMA as having risk of flooding. 
Flood Insurance The Flood Disaster Protection Act of 1973 (42 U.S.C. 4012a) requires that projects receiving federal assistance and located in an area identified by FEMA as being within a Special Flood Hazard Area (SFHA) be covered by flood insurance under the National Flood Insurance Program (NFIP).
Floodplain Any land area susceptible to being inundated by floodwaters from any source. FEMA designates floodplains as geographic zones subject to varying levels of flood risk. Each zone reflects the severity or type of potential flooding in the area.
Floodway "Regulatory Floodway" is the portion of the Floodplain effective in carrying flow where flood hazard is generally the greatest, and water velocity is the highest. And it generally means the channel of a river or other watercourse and the adjacent land areas that must be reserved to discharge the base flood without cumulatively increasing the water surface elevation above a designated height. Ideally there should be no development in these areas to ensure that there are no increases in upstream flood elevations.
Forgivable Loan A loan for which repayment is not required if the borrower satisfies specific conditions or requirements, such as maintaining affordability for a set period. Forgivable loans are not fully amortized. Instead, some or even all the principal or interest payments may be deferred to a chosen, future point. Forgiveness might be structured to occur at one point in time such as at the end of the affordability period.
Grantee The entity that receives a direct award or allocation of CDBG-DR funds from HUD to implement disaster recovery and mitigation programs.  
Gross Rent   Refers to the total monthly cost of housing for a tenant, including both the contract rent paid to the landlord and an estimate of the tenant-paid utilities. Gross rent is used to determine affordability under the CDBG-DR programs and is compared against rent limits or a percentage of the tenant's income.
HOME Rent Limits   The maximum allowable rents for units assisted under the U.S. Department of Housing and Urban Development (HUD) HOME Investment Partnerships Program (HOME). These limits are updated annually and include utilities.
Household A household is defined as all persons occupying the same housing unit, regardless of their relationship with each other. The occupants could consist of a single family, two or more families living together, or any other group of related or unrelated persons who share living arrangements. For housing activities, the Low- to Moderate-Income compliance test is based on the total household income. 
HUD United States Department of Housing and Urban Development. A federal agency that, among other things, administers the Community Development Block Grant - Disaster Recovery (CDBG-DR) program. Through allocations authorized by Congress via supplemental appropriations, HUD distributes CDBG-DR funds to eligible grantees to support long-term recovery from presidentially declared disasters. 
Income Certification The process of verifying the income of tenant households to ensure eligibility for occupancy in assisted units.  
Income Designation   Assignment of a specific income category (e.g., Extremely Low Income, Very Low Income, Low-income, or Moderate-income) to a housing unit, project, or beneficiary household for the purpose of meeting CDBG-DR program targeting requirements. 
Increased Cost of Compliance (ICC) Structures damaged by a flood may be required to meet certain building requirements, such as elevation or demolition, to reduce the risk of future flood damage before the structure can be repaired or rebuilt. To help cover these costs, the National Flood Insurance Program (NFIP) includes Increased Cost of Compliance coverage for all new and renewed Standard Flood Insurance Policies. ICC is a potential source of Duplication of Benefits, as a supplement to an existing NFIP policy. Policyholders are only eligible to receive ICC payment if a Substantial Damage Letter has been issued by the local floodplain manager. 
Individual Mitigation Measures (IMM) Activities designed to mitigate and/or reduce risk beyond the pre-disaster condition of a housing unit when the activities are above and beyond federal, state, or local construction or code requirements. In accordance with HUD's guidance, repair of housing units and the payment of flood insurance are not IMM activities. Examples of mitigation measures include elevation above the base flood elevation level or the addition of storm shutters, disaster-proof windows, roof straps, etc. so long as those improvements are not required to comply with local code requirements and did not exist prior to the disaster damage.
Ineligible Activities Activities that do not meet HUD's eligibility requirements under the CDBG-DR program or do not align with the National Objectives outlined in HUD’s regulations. 
Landlord Any individual or entity who owns a rental property, including any property owner who rents out space, whether an apartment, house, room, etc.
Land Use Restriction Agreement (LURA) A legally binding document recorded against the title of a property that imposes long-term affordability and use restrictions on a multifamily rental housing project that receives public funding, including programs such as CDBG-DR, Low Income Housing Tax Credits (LIHTC), or HOME.
Low Income Housing Tax Credits (LIHTC) This is a Federal tax incentive program administered to support the development and rehabilitation of affordable rental housing. LIHTC can serve as an indirect federal subsidy alongside the CDBG-DR program and be a key leveraging tool used by grantees, subrecipients, and project sponsors to expand the impact of disaster recovery funds. 
Manufactured Home or Housing Unit (MHU) A dwelling unit composed of one or more components substantially assembled in a manufacturing plant and transported to a building site for installation. The structure must meet HUD’s construction requirements.
Maximum Per Unit Subsidy The amount of federal funds that a grantee may invest on a per-unit basis in affordable housing may not exceed the per unit dollar limit that applies to the area in which the housing is located.
Mixed-Income   Housing development that includes a blend of units affordable to low- to moderate-income (LMI) households and market-rate units that are not income-restricted. For this program’s specific purpose, 51% or more of all units must be LMI.
Mixed-Use Developments Projects that combine residential units (such as multifamily rental housing) with non-residential components (such as commercial, retail, or community spaces) within a single structure or project site.
Modular Housing A dwelling unit composed of two or more components substantially assembled in a manufacturing plant and transported to a building site for final assembly on a permanent foundation. Once assembled, the modular unit becomes permanently fixed to one site and must be constructed in accordance with the standards established in the state and local building codes that are applicable to site-built homes. The CDBG-DR program will treat modular homes as traditional, site, or stick-built construction. 
Most Impacted and Distressed (MID) Areas HUD requires that funds be targeted to those areas identified to be Most Impacted and Distressed (MID) based on an assessment of unmet needs that remain to be addressed following a qualifying disaster. HUD identifies MID areas using FEMA data; the State, using the best available data sources to calculate the amount of disaster damage, can also define/identify MID areas after review and approval by HUD. The MID-designated areas are identified in the State’s Action Plan.
National Flood Insurance Program (NFIP)  A program created by Congress in 1968 to reduce future flood damage through floodplain management and to provide persons with flood insurance through individual agents and insurance companies. FEMA manages the National Flood Insurance Program (NFIP).
North Carolina Housing Finance Agency (NCHFA) A self-supporting public agency that finances affordable housing opportunities for North Carolinians whose needs are not met by the market. The Agency provides financing through the sale of tax-exempt bonds and management of federal tax credit programs, the federal HOME Program, the state and national Housing Trust Funds, and other programs.
Notice of Funding Opportunity (NOFO) Formal public announcement issued by a grantee to notify potential applicants of the availability of Community Development Block Grant Disaster Recovery (CDBG-DR) funding for eligible activities.
Pre-Construction Readiness Review A DCR-led evaluation to confirm that a project is prepared to begin construction, including final plans, permits, and procurement documentation. 
Private Loan A loan that is not provided by or guaranteed by a governmental entity, and that requires the CDBG–DR applicant (the borrower) to repay the full amount of the loan under typical commercial lending terms. 
Program Income Gross income received by the grantee or subrecipient directly generated from the use of CDBG-DR funds. Examples include rental income or principal/interest repayments on loans. Program income must be used for eligible activities and reported in accordance with 2 CFR Part 200 and HUD requirements. 
Project Sponsors Entities that assume responsibility for the development, ownership, and long-term operation of CDBG-DR funded projects. A Project Sponsor may be a nonprofit or for-profit organization, limited partnership, limited liability company, or Tribal entity that demonstrates sufficient capacity and experience to carry out the project in compliance with program requirements.
Property Casualty Insurance Insurance that covers structural repairs to a home resulting from, e.g., wind, fire, hail, wind-driven rain, tornado, hurricane, or other natural disaster, other than flood. 
Qualifying Event Refers to which presidentially declared disaster impacted or damaged the property and ultimately which associated CDBG-DR allocation is funding the benefits or assistance.
Quality Assurance and Quality Control (QA/QC) Quality Assurance is the planned and systematic production processes that provide confidence that the policy and procedures of the program are being executed as planned. Quality Control is testing to ensure that the policy and procedures of the program are being executed as planned.
Reconstruction The demolition, removal, and disposal of an existing housing unit and the replacement of that unit on the same lot, and in the same footprint, with a new unit that complies with the International Residential Codes (IRC), as required by the North Carolina Code. For reconstruction purposes, the number of units on the lot may not increase and the total square footage of the original, principal residence structure to be reconstructed may not be substantially exceeded.
Rent Limits The maximum rents that may be charged for assisted units, typically based on HUD’s High HOME Rent Limits or other program-specific thresholds. 
Rental Activity Repair of affordable rental housing resulting in structures where at least 51% of units are occupied by low- to moderate-income (LMI) persons. Income and rent restrictions apply to the rental units assisted with CDBG-DR funds. 
Registrant Any individual that registers with the program.  
Rehabilitation Repair or restoration of housing units in the disaster-impacted areas to applicable construction codes and standards.
Replacement Demolition, removal, and replacement of a damaged MHU with a new MHU in substantially the same footprint or at a new location, if the original damaged unit was on leased land and the MHU owner must relocate to a new property. Relocation of a new MHU will require additional environmental review.
Risk-Based Monitoring A monitoring approach that targets projects with higher risk of noncompliance based on factors like project size, funding level, or past performance. 
Scoring Criteria   The objective measures used to evaluate and rank applications during the competitive funding process, including applicant capacity, need, and leverage. 
Second Home Properties that served as second homes at the time of the disaster, or following the disaster, are not eligible for assistance through the Program. A second home is defined as a home that is not the primary residence of the owner, a tenant, or any occupant at the time of the storm or at the time of application for assistance. Additionally, seasonal, short-term and vacation rental properties are not eligible for assistance.
Scoring Criteria   The objective measures used to evaluate and rank applications during the competitive funding process, including applicant capacity, need, and leverage
Site Control Evidence that the applicant has legal authority over the project site, such as ownership, a long-term lease, or an option to purchase. 
Statement of Work The statement of work contains the repairs identified in the ECR that the contractor selected by NCDOC must complete.  
Stick-Built Home A home that has been built on-site using traditional construction materials and methods. 
Subrecipients Entities that receive a subgrant of CDBG-DR funds from the grantee to carry out eligible activities, but not as contractors or program beneficiaries. Subrecipients may include local governments, public housing authorities, nonprofit organizations, and tribal entities.  
Subrogation A legal doctrine that allows one person to take on the rights of another.
Subrogation Agreement   A legal agreement requiring recipients to repay duplicative assistance received after a CDBG-DR award, protecting against Duplication of Benefits. 
Subsidized Loans Subsidized loans are loans other than private loans, which may include terms that are more favorable than standard commercial lending terms, and/or where the loan may not be required to be repaid in full.
Subsidy Layering Review   The analysis to determine the amount of investment needed to make a project feasible is sometimes referred to as “gap analysis,” as it is used to determine the gap between approved costs (uses) and available financing and other subsidies (sources). The gap is influenced by many factors, some of which can be modified prior to the commitment of CDBG-DR funds. 
Substantial Improvement As defined in 24 CFR 55.2(b)(10), substantial improvement means any repair, reconstruction, modernization or improvement of a structure, the cost of which equals or exceeds 50% of the market value of the structure either before the improvement or repair is started, or if the structure has been damaged and is being restored before the damage occurred.
System for Award Management (SAM) A federal e-procurement system that collects data from suppliers, validates and stores this data, and disseminates it to various government acquisition agencies. Users of the System for Award Management (SAM) include contracting officials, grant-makers, contractors, and the public.
Tenant   An individual or household that lawfully occupies a residential unit under a valid lease or rental agreement. Tenants must meet program eligibility criteria, such as income limits, to reside in assisted units. 
Tenant Income Certification (TIC) A document used to verify a tenant’s household income for compliance with rent-restricted units. The TIC process includes submission of source documentation and is used to determine whether the tenant qualifies under HUD’s income limits at the time of lease-up and annually thereafter, consistent with CDBG-DR program requirements. 
Tenant Selection Plan   A document that outlines the policies and procedures for selecting tenants in compliance with fair housing and program rules. 
Threshold Criteria The minimum eligibility requirements that an application must meet in order to be reviewed and scored for funding consideration.
Underwriting The process of evaluating a project's financial feasibility, cost reasonableness, and long-term sustainability prior to award.  
Uniform Relocation Assistance (URA) A federal law that ensures fair treatment of persons displaced by federally funded projects. It mandates certain notice, assistance, and compensation requirements for persons displaced due to rehabilitation or demolition activities. 
U.S. Department of Housing and Urban Development (HUD) A federal agency that administers the Community Development Block Grant Disaster Recovery (CDBG-DR) program. Through allocations authorized by Congress via supplemental appropriations, HUD distributes CDBG-DR funds to eligible grantees to support long-term recovery from presidentially declared disasters. 
Use Restriction   Legally binding requirements that limit how a property assisted with Community Development Block Grant Disaster Recovery (CDBG-DR) funds may be used during a defined affordability period. 
Utility Allowance A deduction applied to tenant-paid utilities when calculating gross rent to ensure compliance with HUD rent limits. 
Xactimate An estimating software that is used to standardize estimates for construction costs and is generally accepted in the industry. 
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