Program Overview
Community Development Block Grant Disaster Recovery (CDBG-DR) Funding Overview
The United States Department of Housing and Urban Development (U.S. HUD) announced that the State of North Carolina will receive $1.4 billion in funding to support long-term recovery efforts following Hurricane Helene. Community Development Block Grant Disaster Recovery (CDBG-DR) funding 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 needs in western North Carolina counties impacted by Helene and can address three broad areas of recovery: housing, infrastructure, and economic vitality.
Commerce Recovery will administer five programs. Select a program below to learn more.
Major Milestones in the CDBG-DR Process
Disaster Events and Declarations
When a natural disaster causes significant damage, state governments can request federal assistance through a presidential disaster declaration. This request must be submitted within 30 days of the event, and the federal government typically responds quickly.
After Hurricane Helene made landfall on September 26, 2024, President Biden approved a Major Disaster Declaration for North Carolina on September 29, 2024.
Congressional Funding
Once a disaster is declared, Congress may allocate funding, including CDBG-DR grants. However, this allocation process varies in timing based on congressional approval. Until funds become available, state and local governments focus on immediate relief efforts with FEMA’s support. Long-term recovery planning using CDBG-DR funding typically begins once Congress approves the funds.
On January 16, 2025, HUD announced $12 billion in CDBG-DR funding under the 2025 Appropriations Act. North Carolina was awarded $1.4 billion to address Hurricane Helene’s impacts, with 80% ($1.1 billion) designated for the most affected counties. The City of Asheville received an additional $225 million, which it will administer separately.
HUD Allocation and Action Plan Development
Before accessing CDBG-DR funds, state and local governments must submit an Action Plan to HUD outlining damage assessments, unmet needs, recovery strategies, and public input plans.
North Carolina submitted a draft of the Hurricane Helene Recovery Action Plan to HUD on February 18, 2025 and made it available online for a 30-day public comment period. After reviewing public feedback and incorporating necessary revisions, the state submitted the final Action Plan on March 26, 2025. HUD approved the state's Action Plan on April 25, 2025.
Financial Certification
Before communities can access recovery funds, grantees must complete essential groundwork and receive certification from HUD verifying financial controls, procurement processes, and grant management procedures. This certification ensures that funds are administered effectively and in compliance with federal requirements.
Key preparatory steps include:
- Establishing program procedures and policies
- Recruiting and training staff
- Developing compliance monitoring systems
North Carolina is currently undergoing the financial certification process with HUD.
Grant Agreement Execution and Draw-Down of Funding
After financial certification is completed, HUD will execute a grant agreement for the CDBG-DR funding. Once the grantee and HUD sign the grant agreement, HUD will establish the grantee's line of credit. Then, the grantee may draw down CDBG-DR funds no later than 180 calendar days after HUD executes a grant agreement with the grantee.
Program Implementation
Within one year from the applicability date of the AAN, the grantee must create and finalize policies and procedures for its housing programs. Within eighteen months from the applicability date of the AAN, the grantee must create and finalize policies and procedures governing the rest of its CDBG-DR funded programs (e.g., economic revitalization, public service, infrastructure programs, etc.). Within two years from the applicability date of the AAN, these policies and procedures will be subject to HUD review. Additionally, all funds must be expended within six years of the date of obligation.