Quarterly Performance Report: Q3 2026
This page reflects the Quarterly Performance Report for Quarter 3 of 2026 submitted in October 2026 through HUD's Disaster Recovery Grant Reporting (DRGR) System, and is awaiting HUD approval.
Downloadable PDF Version
Use the link below to open and download a PDF version of the Quarterly Performance Report for Q3 2026.
Quarterly Performance Report
July 1, 2026 through September 30, 2026
Grant Details
| Report Category | Report Details |
|---|---|
| Grant Number | B-25-DU-37-0001 |
| Grantee Name | North Carolina |
| Grant Award Amount | $1,428,120,000.00 |
| LOCCS Authorized Amount | $1,428,120,000.00 |
| Total Budget | $1,428,120,000.00 |
| Contract End Date | July 29, 2031 |
| Grant Status | Active |
| Review by HUD | Submitted: Await for Review |
| Disaster Declaration Number | FEMA-4827-NC |
Grant Funds Overall Report
| Overall | This Report Period | To Date |
|---|---|---|
| Total Projected Budget from All Sources | ($9,139,800.00) | $927,020,200.00 |
| Total Budget | ($9,139,800.00) | $927,020,200.00 |
| Total Obligated | $4,813,799.34 | $109,625,785.00 |
| Total Funds Drawdown | $7,163,835.36 | $27,468,505.05 |
| Program Funds Drawdown | $7,163,835.36 | $27,468,505.05 |
| Program Income Drawdown | $0.00 | $0.00 |
| Program Income Received | $0.00 | $0.00 |
| Total Funds Expended | $7,644,204.48 | $28,396,406.36 |
| HUD Identified Most Impacted and Distressed | $2,714,863.52 | $12,404,275.38 |
| Other Funds | $0.00 | $0.00 |
| Match Funds | $0.00 | $0.00 |
| Non-Match Funds | $0.00 | $0.00 |
| Total Funds Expended | $7,644,204.48 | $27,948,878.87 |
Progress Toward Required Numeric Targets
| Requirement | Target | Projected | Actual |
|---|---|---|---|
| Overall Benefit Percentage | 70.00% | 76.41% | 1.41% |
| Overall Benefit Amount | $949,699,800.00 | $653,775,700.00 | $19,130,415.00 |
| Limit on Public Services | $214,218,000.00 | $0.00 | $0.00 |
| Limit on Admin/Planning | $285,624,000.00 | $71,406,000.00 | $6,636,882.14 |
| Limit on Admin | $71,406,000.00 | $71,406,000.00 | $6,636,882.14 |
| Most Impacted and Distressed | $1,142,496,000.00 | $684,491,360.00 | $12,404,275.38 |
Overall Progress Narrative
This report reflects progress made by the North Carolina Department of Commerce (NCDOC) Division of Community Revitalization (DCR) for activities under the Community Development Block Grant Disaster Recovery (CDBG-DR) grant B-25-DU-37-0001 during Q3 2026 (July 1 through September 30, 2026).
Background: The Division of Community Revitalization
The Division of Community Revitalization was established on January 2, 2025, by North Carolina Governor Josh Stein's Executive Order No. 3: Reorganizing the Executive Branch to Meet the Needs of Western North Carolina, to oversee the rebuilding of homes destroyed or damaged by Hurricane Helene, coordinate and lead efforts to revitalize the economy of western North Carolina, and oversee other programs as assigned by the Governor or the Secretary of Commerce. To accomplish these objectives, DCR is administering approximately $1.4 billion in federal CDBG-DR funding, allocated by the U.S. Department of Housing and Urban Development (HUD). The HUD grant agreement was executed on July 29, 2025, establishing a six-year performance period for program implementation. These funds will support housing recovery and long-term revitalization in communities impacted by Hurricane Helene.
Action Plan Amendments
On August 11, 2026, DCR’s non-substantial paper Action Plan Amendment 4 was approved. The amendment updated suballocations within the Multifamily Construction and Repair Program while maintaining the total program budget of $191,340,000. The Small Project Component allocation was reduced by $9,139,800, and the Large Project Component allocation increased by the same amount, reflecting stronger than expected demand for projects that could leverage multiple funding sources, including Low Income Housing Tax Credits (LIHTC) and other financing.
DCR submitted one DRGR Action Plan amendment during the reporting period, which was approved on October 1, 2026. This amendment updated project budgets for the Multifamily Housing Small Projects (3-MFHS) and Large Projects (4-MFHL) to align with the revised paper Action Plan. The project description for 4-MFHL was revised to remove prior suballocation amounts. Additionally, the performance measures for the Single-Family Housing Program (SFH) and Small Rental Rehabilitation Program (MFHS) Activities were revised based on updated data.
Single-Family Housing Program
The Renew NC Single-Family Housing (SFH) Program began accepting applications on June 16, 2025, and received 7,194 unique applications by January 31, 2026, when the intake period ended. As of June 30, 2026, all applications had been reviewed, and 2,775 applications progressed to eligibility. Of these, 2,859 applications completed duplication of benefits (DOB) review; 2,666 completed damage inspection, 2,221 completed environmental review, 347 projects completed pre-construction, and 181 projects completed construction. Of the completed projects, 76 were rehabilitated projects, 80 were total reconstructions of stick-built homes, and 25 were Manufactured Housing Unit (MHU) replacements.
The progress achieved through Q3 demonstrates that the Renew NC SFH Program has successfully transitioned from application intake and eligibility determination into large-scale project delivery. With intake activities complete and applicants progressing through each stage of review, the program has established a strong pipeline of projects moving toward construction and completion, reflecting increasing operational efficiency and coordination among DCR, its implementation vendor, and general contractors. The mix of completed rehabilitation, reconstruction, and replacement projects also highlights the program's ability to address a range of housing recovery needs. As more projects continue to clear critical milestones, DCR is positioned to further increase construction production and expand housing recovery efforts.
In addition to federal CDBG-DR funding to support Helene recovery, the State of North Carolina has allocated $40 million in state funding for temporary relocation assistance (TRA). From the beginning of the program through the conclusion of Q3, the State has estimated $25.2 million toward TRA costs for projects in and beyond the award determination process point. As more projects move into the award stage, this number is expected to increase.
Multi-Family Housing: Small Rental Rehabilitation Program
The Renew NC Small Rental Rehabilitation (SRR) Program began accepting applications on December 15, 2025, and received 155 unique applications by September 30, 2026. To date, staff have completed 114 intake reviews, 62 of which were deemed eligible. The program completed 67 DOB reviews, 54 damage assessments, and 23 environmental reviews.
The program’s progress reflects the program's growing operational capacity to evaluate potential projects, verify eligibility, and prepare properties for future rehabilitation activities. As reviews advance, DCR is building a clearer understanding of recovery needs across the rental housing sector and establishing a portfolio of projects that can move toward construction.
Multi-Family Housing: Multi-Family Construction and Repair Program
The Multi-Family Construction and Repair (MCR) Program funds the development of affordable rental properties through two sub-programs: the Rental Production Program (RPP) and the MCR Non-LIHTC program.
RPP is administered through a subrecipient partnership with the North Carolina Housing Finance Agency (NCHFA), which makes $69.1 million of CDBG-DR funds available as Low Income Housing Tax Credits, as outlined in the NCHFA’s Qualified Allocation Plan for 2026. In Q3 2026, DCR amended its agreement with NCHFA to increase the award amount from $60 million to $69.1 million following non-substantial Action Plan Amendment 4. Governor Stein announced 10 CDBG-DR funded projects in 10 HUD MID counties through this program, for both 9 percent and 4 percent LIHTC awards. These 10 projects are projected to create 828 affordable housing units. In Q3, DCR continued to build out its system of record to support this work and worked to procure vendors through the staff augmentation contract to complete environmental reviews for the projects.
The MCR Non-LIHTC program opened its prescreening and application window in Q2 2026, with applications due in Q4 2026. Through Q3, DCR provided technical assistance to 19 prospective applicants and hosted five in-person sessions at regional Councils of Government (COGs) in September 2026. DCR also continued to develop its system of record, standard operating procedures (SOPs), and other documents to support upcoming application reviews.
Commercial District Revitalization Program
Round 1 of the Commercial District Revitalization (CDR) program funding cycle was open from April 6 to August 4, 2026. Prior to the application closing, DCR provided technical assistance to interested parties, including third parties supporting potential applicants. DCR also finalized the threshold eligibility checklist, scoring rubric, and grants management system functionality. Funding cycle round 1 received 27 applications totaling $153 million in requested funds. During Q3 2026, DCR staff completed threshold eligibility reviews of all applications, requested supplemental information from applicants as needed, and reviewed and scored applications. DCR also began offering technical assistance in advance of funding cycle round 2 and continued developing pre- and post-selection processes and documents for both funding cycle rounds.
Community Infrastructure Program
In Q3 2026, the Community Infrastructure (CI) program opened its round 1 application window on July 6, 2026, and advanced key program implementation activities. To support consistent communication of eligibility and application requirements, DCR staff held five in-person information sessions across regional Councils of Government, engaging approximately 100 participants. During Q3 2026, DCR staff strengthened the grants management system by improving the scoring rubric and configuring new task automations. During this period, staff also focused on prescreening, applicant assistance, and stabilizing end-to-end application workflows. The round 1 window closed on September 16, 2026, with 53 completed submissions, all of which have undergone eligibility review.
Technical scoring by a three-reviewer panel is currently underway, and preparations for subsequent decision-making steps will continue into Q4. Additionally, 93 cases continued prescreening and technical assistance during Q3 in preparation for the round 2 funding cycle. These accomplishments strengthened internal controls and positioned the program for a timely and compliant evaluation process in Q4.
Workforce Housing for Ownership Program
The Workforce Housing for Ownership (WHFO) program opened its pre-screening and application window on August 25, 2026, with applications due by December 13, 2026. Through Q3, DCR provided technical assistance to five potential applicants and hosted five in-person sessions at regional COGs in September 2026. DCR also continued to develop its system of record, SOPs, and other documents to support the application review process.
Compliance
During the reporting period, DCR maintained its focus on enhancing compliance and oversight and strengthening program operations through ongoing monitoring activities and independent internal audit reviews. The monitoring vendor conducted an organization-wide risk assessment to establish an annual risk-based monitoring plan. All DCR programs were evaluated during this process to identify potential vulnerabilities, assess existing controls, and prioritize monitoring activities based on program-specific risk factors. The internal audit team established an independent review plan designed to complement – but not duplicate – monitoring vendor activities, ensuring comprehensive independent oversight across DCR programs.
Project Summary
| Project #, Project Title | This Report: Program Funds Drawdown | To Date: Project Funds Budgeted | To Date: Program Funds Drawdown |
|---|---|---|---|
| 1-Admin | $1,515,547.88 | $71,406,000.00 | $6,636,882.14 |
| 2-SFH | $5,627,622.59 | $807,354,000.00 | $20,743,040.55 |
| 3-MFHS | $20,664.89 | $48,260,200.00 | $88,582.36 |
| 4-MFHL | $0.00 | $143,079,800.00 | $0.00 |
| 5-WHO | $0.00 | $53,380,000.00 | $0.00 |
| 6-CDR | $0.00 | $111,140,000.00 | $0.00 |
| 7-INF | $0.00 | $193,500,000.00 | $0.00 |
| 9999-Restricted Balance | $0.00 | $0.00 | $0.00 |
Grantee Activity Number: 10000-ADMIN
Activity Title: 10000-ADMIN
| Activity Category | Activity Details |
|---|---|
| Activity Type | Administration |
| Activity Status | Under Way |
| Project Number | 1-Admin |
| Project Title | 1-Admin |
| Projected Start Date | September 25, 2024 |
| Projected End Date | July 29, 2031 |
| Benefit Type | N/A |
| Completed Activity Actual End Date | N/A |
| National Objective | N/A |
| Responsible Organization | Department of Commerce North Carolina |
Grant Funds Report for 10000-ADMIN
| Overall | July 1 through September 30, 2026 | To Date |
|---|---|---|
| Total Projected Budget from All Sources | $0.00 | $71,406,000.00 |
| Total Budget | $0.00 | $71,406,000.00 |
| Total Obligated | $795,429.68 | $13,199,147.46 |
| Total Funds Drawdown | $1,515,547.88 | $6,636,882.14 |
| Program Funds Drawdown | $1,515,547.88 | $6,636,882.14 |
| Program Income Drawdown | $0.00 | $0.00 |
| Program Income Received | $0.00 | $0.00 |
| Total Funds Expended | $1,994,647.39 | $7,035,449.61 |
| Most Impacted and Distressed Expended | $0.00 | $0.00 |
Activity Description
NCDOC allocates $71,406,000 of the total CDBG-DR award for administrative costs associated with the life of the grant. This represents the maximum amount permissible for administrative costs per the CDBG-DR appropriation language of Public Law 118-158 and HUD's requirements under the Revised Universal Notice.
Location Description
North Carolina Division of Community Revitalization Office
The Dobbs Building, 4th Floor
430 N Salisbury St
Raleigh, NC 27603
Activity Progress Narrative
During the reporting period, DCR carried out a range of administrative activities necessary to support compliant and efficient implementation of its CDBG-DR programs. Key activities included financial management, procurement, policy development, and coordination across state, local, and federal partners. Staff oversaw daily program operations, continued establishing internal controls, and ensured adherence to HUD requirements through ongoing review of policies, procedures, and documentation. Staff supported program areas by providing guidance on eligibility, procurement, financial management, and reporting, while refining internal workflows to improve consistency and accuracy across all grant-funded activities. Additional activities included contract management, budget tracking, monitoring preparation, and development of communication materials to support transparency and stakeholder engagement. These efforts collectively strengthen program oversight, support compliance, and ensure the infrastructure needed for successful long-term recovery operations.
During the reporting period, ADCs were expended for allowable pre-launch purposes and reported within 10000-ADMIN. As program Activities are formally set up in DRGR, DCR will reallocate these costs accordingly to their associated Activities.
Grantee Activity Number: 20001-SFH-RR-LM
Activity Title: 20001-SFH-RR-LM
| Activity Category | Activity Details |
|---|---|
| Activity Type | Rehabilitation/reconstruction of residential structures |
| Activity Status | Under Way |
| Project Number | 2-SFH |
| Project Title | 2-SFH |
| Projected Start Date | September 25, 2024 |
| Projected End Date | July 29, 2031 |
| Benefit Type | Direct (Household) |
| Completed Activity Actual End Date | N/A |
| National Objective | Low/Mod-Income Housing |
| Responsible Organization | Department of Commerce North Carolina |
Grant Funds Report for 20001-SFH-RR-LM
| Overall | July 1 through September 30, 2026 | To Date |
|---|---|---|
| Total Projected Budget from All Sources | $0.00 | $507,720,075.00 |
| Total Budget | $0.00 | $507,720,075.00 |
| Total Obligated | $370.86 | $71,427,058.89 |
| Total Funds Drawdown | $1,222,809.23 | $14,730,797.93 |
| Program Funds Drawdown | $1,222,809.23 | $14,730,797.93 |
| Program Income Drawdown | $0.00 | $0.00 |
| Program Income Received | $0.00 | $0.00 |
| Total Funds Expended | $4,423,091.23 | $14,788,890.57 |
| Most Impacted and Distressed Expended | $2,309,175.41 | $8,607,668.86 |
Activity Description
This activity encompasses the Single-Family Housing Program's rehabilitation and reconstruction of single-family homes that benefit LMI persons through housing (LMI Housing). With the assistance of staff and contractors, the State will work with qualified contractors assigned to repair, reconstruct, or replace damaged properties. At a minimum, at least 70% of program funds must be expended for Housing R&R activities that meet the criteria for the LMI Housing National Objective and at least 80% must be expended in the HUD-identified MID areas.
Location Description
Priority will be for seriously damaged or destroyed units in the HUD-Identified MID areas with the State-Identified MID areas having a secondary priority.
HUD-Identified MID Areas
- Full Counties: Ashe; Avery; Buncombe; Burke; Haywood; Henderson; McDowell; Mitchell; Rutherford; Transylvania; Watauga; Yancey
- Full Counties Based on HUD-Identified zip code: Caldwell (zip code 28645); Cleveland (zip code 28150); Madison (zip code 28753); Polk (zip code 28782)
- Partial Counties Based on HUD-Identified zip code: Mecklenburg (zip code 28214)
State-Identified MID Areas
- Full Counties: Alexander, Alleghany, Catawba, Clay, Gaston, Jackson, Lincoln, Macon, Surry, Swain, Wilkes, Yadkin (to include any Indian territory located
within the geographic boundaries of these counties, e.g., Swain and Jackson counties)
Activity Progress Narrative
In Q3 2026, the program reclassified two cases previously reported in Q2: one from 28001-MIT-SFH-RR-LM to 20001-SFH-RR-LM and one from 20001-SFH-RR-LM to 28001-MIT-SFH-RR-LM.
During Q3, the Single-Family Housing Program produced 73 homes within the SFH Rehabilitation and Reconstruction LMI Activity. Of the 73 completed homes, 25 were substantially rehabilitated homes, and 43 were Extremely Low Income (ELI) households. Program staff completed 97 intake reviews, 351 eligibility reviews, 203 DOB reviews, 568 environmental reviews, and 531 grant agreements in Q3 2026 for the Single-Family Housing Program.
Completed rehabilitation and reconstruction projects were built in accordance with current building codes, reflecting modern resiliency standards to reduce the impacts of flood, fire, and wind.
Section 3 Qualitative Efforts
During this reporting period, contractors participating in the Single-Family Housing Program continued to strengthen their compliance with Section 3 requirements through sustained outreach, recruitment, and community engagement initiatives. Contractors expanded their use of digital platforms to advertise Section 3 employment and training opportunities, utilizing social media channels and diverse employment networks to reach a broader pool of qualified candidates.
Efforts during this reporting period included maintaining Section 3 notification signage at active construction sites, distributing informational materials to subcontractors and suppliers, and promoting awareness of Section 3 opportunities throughout project communities. Contractors also continued to leverage online recruitment tools, including Facebook and LinkedIn, to increase visibility of available positions and encourage participation by Section 3 workers.
These continued outreach and workforce development efforts demonstrate an ongoing commitment to expanding economic opportunities for low-income individuals while supporting the overall goals of the Section 3 program.
Accomplishments Performance Measures
| Performance Measure | Total for This Report Period | Cumulative Actual Total | Expected Total |
|---|---|---|---|
| Number of ELI Households (0-30% AMI) | 43 | 84 | 1,095 |
| Number of Properties | 73 | 142 | 1,825 |
| Number of Section 3 Labor Hours | 1,094 | 1,211 | 2,767 |
| Number of Substantially Rehabilitated | 25 | 67 | 1,278 |
| Number of Targeted Section 3 Labor | 809 | 1,054 | 1,384 |
| Number of Total Labor Hours | 14,899 | 43,466 | 138,358 |
| Number of Housing Units | 73 | 142 | 1,825 |
| Number of Single-Family Units | 73 | 142 | 1,825 |
Beneficiaries Performance Measures: This Report Period
| Performance Measure | Low | Mod | Total |
|---|---|---|---|
| Number of Households | 60 | 13 | 73 |
| Number Owner | 60 | 13 | 73 |
| Number Renter | 0 | 0 | 0 |
Beneficiaries Performance Measures: Cumulative Actual Total
| Performance Measure | Cumulative Total: Low | Cumulative Total: Mod | Cumulative Total | Low/Mod % |
|---|---|---|---|---|
| Number of Households | 121 | 21 | 142 | 100% |
| Number Owner | 121 | 21 | 142 | 100% |
| Number Renter | 0 | 0 | 0 | 0 |
Beneficiaries Performance Measures: Expected Total
| Performance Measure | Expected Total: Low | Expected Total: Mod | Expected Total |
|---|---|---|---|
| Number of Households | 1,278 | 547 | 1,825 |
| Number Owner | 1,278 | 547 | 1,825 |
| Number Renter | 0 | 0 | 0 |
Grantee Activity Number: 20002-SFH-RR-UN
Activity Title: 20002-SFH-RR-UN
| Activity Category | Activity Details |
|---|---|
| Activity Type | Rehabilitation/reconstruction of residential structures |
| Activity Status | Under Way |
| Project Number | 2-SFH |
| Project Title | 2-SFH |
| Projected Start Date | September 25, 2024 |
| Projected End Date | July 29, 2031 |
| Benefit Type | Direct (Household) |
| Completed Activity Actual End Date | N/A |
| National Objective | Urgent Need |
| Responsible Organization | Department of Commerce North Carolina |
Grant Funds Report for 20002-SFH-RR-UN
| Overall | July 1 through September 30, 2026 | To Date |
|---|---|---|
| Total Projected Budget from All Sources | $0.00 | $169,240,025.00 |
| Total Budget | $0.00 | $169,240,025.00 |
| Total Obligated | $58,215.28 | $20,599,961.58 |
| Total Funds Drawdown | $465,694.73 | $1,701,207.91 |
| Program Funds Drawdown | $465,694.73 | $1,701,207.91 |
| Program Income Drawdown | $0.00 | $0.00 |
| Program Income Received | $0.00 | $0.00 |
| Total Funds Expended | $466,783.30 | $1,720,572.14 |
| Most Impacted and Distressed Expended | $0.00 | $0.00 |
Activity Description
This activity encompasses the Single-Family Housing Program's rehabilitation and reconstruction of single-family homes that meet the Urgent Need (UN) criteria. With the assistance of staff and contractors, the State will work with qualified contractors assigned to repair, reconstruct, or replace damaged properties. While NCDOC does not anticipate widespread use of UN National Objective under the Single-Family Housing Program, it may be necessary, for example, in situations to ensure housing is reconstructed or rehabilitated for certain populations that are over the 80% AMI threshold; promote more complete recovery of small rural communities; or address other anomalies that could halt the provision of assistance to households that lack the resources to recover from the impacts of Helene.
In instances where NCDOC uses the UN National Objective to qualify assistance under the Single-Family Housing Program, NCDOC will comply with the requirements of section III.B.2.(iii) of the Revised Universal Notice and document how the activity responds to the urgency, type, scale, and location of the disaster-related impact described in the Unmet Needs Assessment.
Location Description
Priority will be for seriously damaged or destroyed units in the HUD-Identified MID areas with the State-Identified MID areas having a secondary priority.
HUD-Identified MID Areas
- Full Counties: Ashe; Avery; Buncombe; Burke; Haywood; Henderson; McDowell; Mitchell; Rutherford; Transylvania; Watauga; Yancey
- Full Counties Based on HUD-Identified zip code: Caldwell (zip code 28645); Cleveland (zip code 28150); Madison (zip code 28753); Polk (zip code 28782)
- Partial Counties Based on HUD-Identified zip code: Mecklenburg (zip code 28214)
State-Identified MID Areas
- Full Counties: Alexander, Alleghany, Catawba, Clay, Gaston, Jackson, Lincoln, Macon, Surry, Swain, Wilkes, Yadkin (to include any Indian territory located
within the geographic boundaries of these counties, e.g., Swain and Jackson counties)
Activity Progress Narrative
Funds disbursed in Q3 2026 continued to support activity delivery costs for ongoing program activities, including community outreach, case management, and application review. While program funds have been made available for Urgent Need projects as needed, the program is prioritizing LMI categories during the first three phases, which are currently underway.
Section 3 Qualitative Efforts
Section 3 reporting will commence once Section 3-applicable construction begins for activity 20002-SFH-RR-UN.
Grantee Activity Number: 28001-MIT-SFH-RR-LM
Activity Title: 28001-MIT-SFH-RR-LM
| Activity Category | Activity Details |
|---|---|
| Activity Type | MIT - Rehabilitation/reconstruction of residential structures |
| Activity Status | Under Way |
| Project Number | 2-SFH |
| Project Title | 2-SFH |
| Projected Start Date | September 25, 2024 |
| Projected End Date | July 29, 2031 |
| Benefit Type | Direct (Household) |
| Completed Activity Actual End Date | N/A |
| National Objective | Low/Mod-Income Housing |
| Responsible Organization | Department of Commerce North Carolina |
Grant Funds Report for 28001-MIT-SFH-RR-LM
| Overall | July 1 through September 30, 2026 | To Date |
|---|---|---|
| Total Projected Budget from All Sources | $0.00 | $97,795,425.00 |
| Total Budget | $0.00 | $97,795,425.00 |
| Total Obligated | $3,939,118.63 | $4,311,034.71 |
| Total Funds Drawdown | $3,939,118.63 | $4,311,034.71 |
| Program Funds Drawdown | $3,939,118.63 | $4,311,034.71 |
| Program Income Drawdown | $0.00 | $0.00 |
| Program Income Received | $0.00 | $0.00 |
| Total Funds Expended | $742,102.22 | $4,311,034.71 |
| Most Impacted and Distressed Expended | $405,688.11 | $3,796,606.52 |
Activity Description
This activity encompasses the Single-Family Housing Program's mitigation and resilience measures related to the rehabilitation and reconstruction of single-family homes that benefit LMI persons through housing (LMI Housing). This may include elevation, restoration, and improvement of private roads and bridges, which reduce the risks to inhabitants and protect the public investment in the reconstructed units. NCDOC emphasizes the fact that the aggressive topography of western North Carolina can make access to home sites impossible without private roads and bridges. To help address this issue, the State may, but is not required to, utilize a portion of the ~$130.4 million of mitigation set-aside funding allocated for the Single-Family Housing Program to reduce the risk that LMI homeowners receiving assistance under the program could face similar access challenges in the future and to support safe access and egress for public safety purposes.
Location Description
Projects will be in Combined MID areas, with a priority for projects in HUD-identified MID areas.
HUD-Identified MID Areas
- Full Counties: Ashe; Avery; Buncombe; Burke; Haywood; Henderson; McDowell; Mitchell; Rutherford; Transylvania; Watauga; Yancey
- Full Counties Based on HUD-Identified zip code: Caldwell (zip code 28645); Cleveland (zip code 28150); Madison (zip code 28753); Polk (zip code 28782)
- Partial Counties Based on HUD-Identified zip code: Mecklenburg (zip code 28214)
State-Identified MID Areas
- Full Counties: Alexander, Alleghany, Catawba, Clay, Gaston, Jackson, Lincoln, Macon, Surry, Swain, Wilkes, Yadkin (to include any Indian territory located
within the geographic boundaries of these counties, e.g., Swain and Jackson counties)
Activity Progress Narrative
While all homes produced in the SFH Program are built to current resiliency standards, some homes require additional mitigative features to protect the home from future damage. Two housing units reported in Q2 were reclassified in Q3: one from 28001-MIT-SFH-RR-LM to 20001-SFH-RR-LM, and one from 20001-SFH-RR-LM to 28001-MIT-SFH-RR-LM. An additional 24 housing units were reported in Q3 2026 under the 28001-MIT-SFH-RR-LM Activity. Through the end of Q3 2026, 39 homes have been completed under the MIT-LMI activity. The performance measures reported in Q3 2026 are adjusted to account for the reclassified units so that the cumulative totals align with DCR records through Q3.
Section 3 Narrative
During this reporting period, contractors engaged in mitigation projects continued implementing measures to support compliance with Section 3 requirements and increase opportunities for Section 3 and Targeted Section 3 workers. Outreach activities remained a key focus, with contractors maintaining visible Section 3 informational signage at active project locations and company offices to promote awareness of employment and contracting opportunities.
These ongoing initiatives reflect a continued commitment to expanding economic opportunities for eligible individuals and businesses while advancing the goals of the Section 3 program.
Accomplishments Performance Measures
| Performance Measure | Total for This Report Period | Cumulative Actual Total | Expected Total |
|---|---|---|---|
| Number of ELI Households (0-30% AMI) | 15 | 25 | 231 |
| Number of Elevated Structures | 7 | 9 | 50 |
| Number of Properties | 24 | 39 | 385 |
| Number of Properties Protected from | 0 | 0 | 0 |
| Number of Section 3 Labor Hours | -21 | 543 | 4,987 |
| Number of Substantially Rehabilitated | 24 | 39 | 270 |
| Number of Targeted Section 3 Labor | -20 | 3 | 1,247 |
| Number of Total Labor Hours | 34,221 | 49,810 | 249,352 |
| Number of Housing Units | 24 | 39 | 385 |
| Number of Single-Family Units | 24 | 39 | 385 |
Beneficiaries Performance Measures: This Report Period
| Performance Measure | Low | Mod | Total |
|---|---|---|---|
| Number of Structures | 18 | 3 | 21 |
| Number of Households | 21 | 3 | 24 |
| Number of Owner | 21 | 3 | 24 |
Beneficiaries Performance Measures: Cumulative Actual Total
| Performance Measure | Cumulative Total: Low | Cumulative Total: Mod | Cumulative Total | Low/Mod % |
|---|---|---|---|---|
| Number of Structures | 31 | 5 | 36 | 100% |
| Number of Households | 34 | 5 | 39 | 100% |
| Number of Owner | 34 | 5 | 39 | 100% |
Beneficiaries Performance Measures: Expected Total
| Performance Measure | Expected Total: Low | Expected Total: Mod | Expected Total |
|---|---|---|---|
| Number of Structures | 270 | 115 | 385 |
| Number of Households | 270 | 115 | 385 |
| Number of Owner | 270 | 115 | 385 |
Grantee Activity Number: 30001-MFHS-RR-LM
Activity Title: 30001-MFHS-RR-LM
| Activity Category | Activity Details |
|---|---|
| Activity Type | Rehabilitation/reconstruction of residential structures |
| Activity Status | Under Way |
| Project Number | 3-MFHS |
| Project Title | 3-MFHS |
| Projected Start Date | September 25, 2024 |
| Projected End Date | July 29, 2031 |
| Benefit Type | Direct (Household) |
| Completed Activity Actual End Date | N/A |
| National Objective | Low/Mod-Income Housing |
| Responsible Organization | Department of Commerce North Carolina |
Grant Funds Report for 30001-MFHS-RR-LM
| Overall | July 1 through September 30, 2026 | To Date |
|---|---|---|
| Total Projected Budget from All Sources | ($8,250,005.00) | $43,561,880.00 |
| Total Budget | ($8,250,005.00) | $43,561,880.00 |
| Total Obligated | $20,664.89 | $88,582.36 |
| Total Funds Drawdown | $20,664.89 | $88,582.36 |
| Program Funds Drawdown | $20,664.89 | $88,582.36 |
| Program Income Drawdown | $0.00 | $0.00 |
| Program Income Received | $0.00 | $0.00 |
| Total Funds Expended | $17,580.34 | $92,931.84 |
| Most Impacted and Distressed Expended | $0.00 | $0.00 |
Activity Description
This activity comprises the Multifamily Housing Program's rehabilitation and reconstruction of small projects (4 or fewer units) that benefit LMI persons (up to 80% AMI) through the LMI Housing National Objective. Projects may be either single structures or multiple structures in proximity to one another. Projects may include mixed-use components, with requirements to be identified in the notice of funding availability and program policies and procedures.
The State will work with its implementation vendor to assign contractors to projects upon submission of a pre-application. Each award will be calculated using consistent program construction and award calculation standards, as detailed in the program guidelines. The maximum amount of grant assistance will be $1,800,000 per project, including any mitigation costs. NCDOC may make exceptions to the maximum award when necessary, to comply with federal accessibility standards or to reasonably accommodate persons with disabilities. For this program, the State will prioritize applications from property owners who owned the property as of September 28, 2024, the date of the Helene major disaster declaration.
Location Description
Projects will be in Combined MID areas, with a priority for projects in HUD-identified MID areas.
HUD-Identified MID Areas
- Full Counties: Ashe; Avery; Buncombe; Burke; Haywood; Henderson; McDowell; Mitchell; Rutherford; Transylvania; Watauga; Yancey
- Full Counties Based on HUD-Identified zip code: Caldwell (zip code 28645); Cleveland (zip code 28150); Madison (zip code 28753); Polk (zip code 28782)
- Partial Counties Based on HUD-Identified zip code: Mecklenburg (zip code 28214)
State-Identified MID Areas
- Full Counties: Alexander, Alleghany, Catawba, Clay, Gaston, Jackson, Lincoln, Macon, Surry, Swain, Wilkes, Yadkin (to include any Indian territory located
within the geographic boundaries of these counties, e.g., Swain and Jackson counties)
Activity Progress Narrative
Funds were drawn to support the preparation of construction for the Small Rental Rehabilitation Program projects. Construction on the first projects is expected to begin in 2026. During Q3 2026, program staff completed 47 intake reviews, 35 of which were deemed eligible, as well as 34 DOB reviews, 39 damage inspections, and 23 environmental reviews.
Section 3 Qualitative Efforts
Section 3 reporting will commence once Section 3-applicable construction begins for activity 30001-MFHS-RR-LM.