Quarterly Performance Report: Q1 2026

This page reflects the Quarterly Performance Report for Quarter 1 of 2026 submitted in April 2026 through HUD's Disaster Recovery Grant Reporting (DRGR) System, and is awaiting HUD approval.

Quarterly Performance Report

January 1, 2026 through March 31, 2026

Grant Details

Grant Funds Overall Report

Progress Toward Required Numeric Targets

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 Q1 2026 (January 1 through March 31, 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 will administer $1.4 billion in federal Community Development Block Grant Disaster Recovery (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

During the reporting period, DCR submitted its second substantial amendment to the paper Action Plan. The Small Rental Component of the Multi-Family Construction and Repair Program was updated to remove the minimum award amount and increase the maximum award to $1.8 million per project, inclusive of any mitigation costs. Eliminating the minimum award enables the program to support lower-cost repair needs and extend funding across a greater number of eligible properties. The increased cap aligns with the updated $450,000 per-unit limit in the Reconstruction and Rehabilitation of Owner-Occupied Housing program (Renew NC Single-Family Housing Program), ensuring consistency in how construction and repair costs are treated across housing activities. The amended Action Plan was published for a 30-day public comment period from January 30, 2026, to March 1, 2026, and received no public comments. The Action Plan amendment was approved on April 9, 2026, after the end of this reporting period.

DCR submitted an updated DRGR Action Plan on March 24, 2026, which was approved on March 31, 2026. This revision included minor Project and Activity budget adjustments and reassignment of current MIT Activities to their corresponding program Projects, rather than grouping all mitigation Activities under a standalone Project. Subsequently, the “8-MIT” Project was removed, Project budgets were revised to incorporate the mitigation funding, and Activity numbers and titles were updated to align with established Project naming conventions.

Single-Family Housing Program

The Renew NC Single-Family Housing Program began accepting applications on June 16, 2025, and received 7,242 unique applications by January 31, 2026, when the application window closed. As of March 31, 2026, the program has completed eligibility reviews for 3,345 applications, duplication of benefits (DOB) reviews for 2,023 applications, damage inspections for 1,845 applications, and environmental reviews for 1,129 applications. Pre-construction has been completed for 72 projects, and construction has been completed for 30 projects. Of the completed projects, 11 were reconstruction projects and the remainder were rehabilitations or Manufactured Housing Unit (MHU) replacements. Note: The application counts reported in the Q4 2025 QPR narratives included duplicate submissions, which were removed during the review process. The data presented in this QPR reflects only unique applications.

To achieve these milestones, DCR continued to work diligently with implementation vendors and general contractors to expedite intake and eligibility reviews and increase the volume of eligible applicants entering the award and construction phases. During the reporting period, program staff increased their focus and oversight on damage assessments as the program moves out of its intake phase. Increasing damage assessments and subsequent steps, such as environmental review and contract signing, has allowed the program to increase the volume of eligible projects assigned to builders. The program remains focused on streamlining processes while delivering excellent customer service to ensure disaster-impacted households can return to repaired, replaced, or reconstructed homes as efficiently as possible.

Multi-Family Housing: Small Rental Rehabilitation Program

The Renew NC Small Rental Rehabilitation Program began accepting applications on December 15, 2025, and received 108 applications by March 31, 2026. By the end of the reporting period, intake reviews were completed for 40 applications, and 2 applications were deemed eligible. During Q1 2026, DCR continued to work with its implementation vendor to advance the launch of the Small Rental Rehabilitation Program by continuing robust outreach, refining program policies and procedures, and developing and enhancing standard operating procedures. Program staff continued to engage with community groups, develop and distribute informational resources, conduct email and call campaigns to relevant individuals and organizations, and execute an advertisement campaign through NextDoor and Google Ads to raise program awareness and increase application volume. As the program progresses and cases move toward the award and construction phases, DCR has a qualified pool of builders prepared to execute construction activities for eligible and approved applicants.

Multi-Family Housing: Multi-Family Construction and Repair Program

During the reporting period, the Renew NC Multi-Family Construction and Repair Program continued to develop program policies, prescreening and application processes, notices of funding opportunity (NOFO), program forms, process flows, and other administrative components to prepare for program launch. Program staff also negotiated the terms of the subrecipient agreement with program partners and continued outreach efforts to ensure that the policies developed will be responsive to community needs.

Commercial District Revitalization Program 

The Renew NC Commercial District Revitalization Program developed and launched a prescreen evaluation in February 2026 to allow program staff to assess project and organizational readiness and provide technical assistance. Program staff also finalized development of the application and related processes in the grant management system (GMS), including threshold eligibility review, evaluation and scoring procedures, and an appeals process. During the reporting period, program staff continued to develop key components, including the DOB review, risk assessment, processes from selection to preliminary and final award, and subrecipient forms. Outreach efforts starting in 2025 continued through Q1 2026, as program staff prepared for NOFO publication and application launch for the Commercial District Revitalization Program in April 2026.

Community Infrastructure Program

The Renew NC Community Infrastructure Program developed and launched a prescreen evaluation in February 2026 to evaluate project and organizational readiness and provide technical assistance. Program staff also completed development of the application and associated GMS processes, including threshold eligibility review, scoring, and appeals processes. During the reporting period, the program continued to develop key components, including the DOB review, risk assessment, award processes, and subrecipient documentation. Additionally, program staff coordinated across state agencies to identify the full inventory of infrastructure projects currently awaiting FEMA Public Assistance (PA) funding, providing a clearer understanding of unmet need and potential future projects. Outreach efforts initiated in 2025 continued through Q1 2026, as program staff prepare to release the NOFO and application for the Community Infrastructure Program later this year.

Compliance

During the reporting period, DCR continued to strengthen compliance and program oversight through the coordinated efforts of an external monitoring vendor and an internal audit function. The monitoring vendor is being utilized to conduct real-time, continuous reviews of key program areas, including Single-Family Housing policies, implementation vendor oversight, and various reviews on the established system of record processes. The Internal Audit team serves as DCR's independent audit party conducting reviews of internal controls, financial management, and program operations to ensure compliance, along with conducting investigations.

Section 3 implementation continued for the Single-Family Housing Program via the DCR implementation vendor. With oversight from the DCR Compliance Manager and Reporting Team, the vendor is responsible for informing applicable General Contractors of Section 3 requirements and expectations and collecting employee labor hours and other documentation from General Contractors. Efforts during this period focused on operationalizing compliance requirements, providing technical assistance to General Contractors to support their understanding of Section 3 standards, and refining Section 3 forms and policies. As other programs move into early stages of implementation, the established Section 3 framework will be utilized to ensure consistent compliance across programs.

Project Summary

Grantee Activity Number: 10000-ADMIN

Activity Title: 10000-ADMIN

Grant Funds Report for 10000-ADMIN

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. The Administration Activity budget is temporarily adjusted to account for Activity Delivery Cost (ADC) holding activities.

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. Core efforts continue to include staffing, financial management, procurement, policy development, and coordination across state, local, and federal partners. Staff oversaw day-to-day program operations, while continuing with the establishment of internal controls, and ensured adherence to HUD requirements through ongoing review of policies, procedures, and documentation. Teams supported program areas by providing guidance on eligibility, procurement, financial management, and reporting, and continued to refine 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 strengthened program oversight, supported compliance, and ensured the infrastructure needed for successful long-term recovery operations.

Grantee Activity Number: 40000-MFHL-ADC

Activity Title: 40000-MFHL-ADC

Grant Funds Report for 40000-MFHL-ADC

Activity Description

This DRGR Activity was created to track Activity Delivery Costs (ADCs) prior to setting up program activities. Once program activities have been set up in DRGR, NCDOC DCR will transfer funding to their associated DRGR Activities.

Location Description

North Carolina Division of Community Revitalization Office
The Dobbs Building, 4th Floor
430 N Salisbury St
Raleigh, NC 27603

Activity Progress Narrative

With HUD’s approval, temporary holding Activities were established in DRGR to record Activity Delivery Costs (ADCs) incurred prior to program launch. During the reporting period, ADCs were expended for allowable pre-launch purposes. As program Activities are formally set up in DRGR, DCR will reallocate these costs accordingly based on established Activities.

Grantee Activity Number: 50000-WHO-ADC

Activity Title: 50000-WHO-ADC

Grant Funds Report for 50000-WHO-ADC

Activity Description

This DRGR Activity was created to track Activity Delivery Costs (ADCs) prior to setting up program activities. Once program activities have been set up in DRGR, NCDOC DCR will transfer funding to their associated DRGR Activities.

Location Description

North Carolina Division of Community Revitalization Office
The Dobbs Building, 4th Floor
430 N Salisbury St
Raleigh, NC 27603

Activity Progress Narrative

With HUD’s approval, temporary holding Activities were established in DRGR to record Activity Delivery Costs (ADCs) incurred prior to program launch. During the reporting period, ADCs were expended for allowable pre-launch purposes. As program Activities are formally set up in DRGR, DCR will reallocate these costs accordingly based on established Activities.

Grantee Activity Number: 60000-CDR-ADC

Activity Title: 60000-CDR-ADC

Grant Funds Report for 60000-CDR-ADC

Activity Description

This DRGR Activity was created to track Activity Delivery Costs (ADCs) prior to setting up program activities. Once program activities have been set up in DRGR, NCDOC DCR will transfer funding to their associated DRGR Activities.

Location Description

North Carolina Division of Community Revitalization Office
The Dobbs Building, 4th Floor
430 N Salisbury St
Raleigh, NC 27603

Activity Progress Narrative

With HUD’s approval, temporary holding Activities were established in DRGR to record Activity Delivery Costs (ADCs) incurred prior to program launch. During the reporting period, ADCs were expended for allowable prelaunch purposes. As program Activities are formally set up in DRGR, DCR will reallocate these costs accordingly based on established Activities.

Grantee Activity Number: 70000-INF-ADC

Activity Title: 70000-INF-ADC

Grant Funds Report for 70000-INF-ADC

Activity Description

This DRGR Activity was created to track Activity Delivery Costs (ADCs) prior to setting up program activities. Once program activities have been set up in DRGR, NCDOC DCR will transfer funding to their associated DRGR Activities.

Location Description

North Carolina Division of Community Revitalization Office
The Dobbs Building, 4th Floor
430 N Salisbury St
Raleigh, NC 27603

Activity Progress Narrative

With HUD’s approval, temporary holding Activities were established in DRGR to record Activity Delivery Costs (ADCs) incurred prior to program launch. During the reporting period, ADCs were expended for allowable prelaunch purposes. As program Activities are formally set up in DRGR, DCR will reallocate these costs accordingly based on established Activities.

Grantee Activity Number: 20001-SFH-RR-LM

Activity Title: 20001-SFH-RR-LM

Grant Funds Report for 20001-SFH-RR-LM

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

Funds disbursed in Q1 2026 continued to support program launch activities, including community outreach, case management, and construction. These activities resulted in 692 unique applications submitted in Q1 2026 before the application window closed on January 31, 2026. Of the reviewed applications, 231 were identified as meeting the LMI national objective criteria. During this period, 935 intake reviews, 1,023 eligibility reviews, 1,091 DOB reviews, 793 damage inspections, and 719 environmental reviews were completed. Additionally, 85 homeowner grant agreements were executed, 52 projects completed pre-construction, and 20 construction projects were completed. 

SFH R&R LM - Section 3 Qualitative Efforts

During this reporting period, contractors participating in the Single-Family Housing Program continued their efforts to achieve overall Section 3 and Targeted Section 3 benchmarks. They undertook a range of meaningful outreach and capacity-building efforts aimed at advancing Section 3 goals and supporting compliance. These efforts included posting Section 3 notification signage at construction sites and office locations to inform community members and business concerns of potential opportunities and provide relevant contact information. Contractors also used Facebook posts to advertise Section 3 employment opportunities and distributed mass emails to local companies and organizations with information about Section 3 requirements and registration links.

In addition, some contractors partnered with Section 3 Business Concerns to provide Section 3 labor during demolition activities. As contractors aim to recruit and provide employment to qualified Section 3 employees, they continue to refine their strategies to identify and engage Section 3 workers more effectively. These ongoing actions reflect a continued commitment to strengthening future Section 3 participation and outcomes.

Accomplishments Performance Measures

Beneficiaries Performance Measures: This Report Period

Beneficiaries Performance Measures: Cumulative Actual Total

Beneficiaries Performance Measures: Expected Total

Grantee Activity Number: 20002-SFH-RR-UN

Activity Title: 20002-SFH-RR-UN

Grant Funds Report for 20002-SFH-RR-UN

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 Q1 2026 continued to support program launch activities, including community outreach, case management, and construction. These activities resulted in 692 unique applications submitted in Q1 2026 before the application window closed on January 31, 2026. Of the reviewed applications, 118 were identified as meeting the UN national objective criteria. During this period, 313 intake reviews, 312 eligibility reviews, 87 DOB reviews, 1 damage inspection, and 4 environmental reviews were completed. 

Grantee Activity Number: 30001-MFHS-RR-LM

Activity Title: 30001-MFHS-RR-LM

Grant Funds Report for 30001-MFHS-RR-LM

Activity Description

This activity comprises the Multi-Family 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 $1,500,000 per project, including any mitigation costs, while the minimum will be $250,000. 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 disbursed in Q1 2026 supported program launch activities, including community outreach, case management, and eligibility reviews. These activities resulted in 80 applications submitted in Q1 2026. During this period, 40 intake reviews, 22 eligibility reviews, and 9 DOB reviews were completed. Construction activities have not yet begun. 

Grantee Activity Number: 80003-MIT-MFHS-RR-LM

Activity Title: 80003-MIT-MFHS-RR-LM

Grant Funds Report for 80003-MIT-MFHS-RR-LM

Activity Description

This activity comprises the Multi-Family Housing Program's mitigation and resilience measures related to the rehabilitation and reconstruction of small projects (4 or fewer units) that benefit LMI persons (up to 80% AMI) through the LMI Housing National Objective. This may include elevation, restoration, and soil stabilization to reduce risks for residents and safeguard the public investment in reconstructed units.

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

This Activity was created during the reporting period. Application intake began on December 15, 2025, and construction has not yet begun.