Quarterly Performance Report: Q4 2025

This page reflects the Quarterly Performance Report for Quarter 4 of 2025 submitted in January 2026 through HUD's Disaster Recovery Grant Reporting (DRGR) System, and is awaiting HUD approval.

Quarterly Performance Report

October 1, 2025 through December 31, 2025

Grant Details

Grant Funds Overall Report

Progress Toward Required Numeric Targets

Overall Progress Narrative

As the inaugural Quarterly Performance Report (QPR) for grant number B-25-DU-37-0001, this report reflects progress from the establishment of the North Carolina Department of Commerce (NCDOC) Division of Community Revitalization (DCR) on January 2, 2025, through December 31, 2025. Given the length of the initial reporting window, the progress narratives are correspondingly more detailed than what will appear in future quarterly reports.

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.

Single-Family Housing Program

The Renew NC Single-Family Housing Program began accepting applications on June 16, 2025, and received 7,182 applications by the end of 2025. As of December 31, 2025, 2,445 applications have had their eligibility review completed; 904 applications have had their duplication of benefits review completed; 1,103 have had their damage inspection completed; 459 have had their environmental review completed; 20 projects with pre-construction completed; and 10 construction projects were completed. Of the completed projects, 3 were reconstruction projects and the remainder were Manufactured Housing Unit (MHU) replacements or rehabilitations. To achieve these milestones, DCR hired state staff to administer the program; procured a program implementation vendor; developed the program’s policies and procedures, internal standard operating procedures, program forms, and case management software; hired and trained program staff; and implemented an outreach campaign that resulted in hundreds of thousands of door knocks, phone calls, and engagement opportunities with potential program applications. Program staff also engaged with stakeholder groups, including local governments, regional councils of government, associations, long-term recovery groups, and other state agencies to operationalize the program and identify collaboration opportunities. In addition, the state procured more than 30 general contractors through multiple procurement rounds to facilitate construction activities.

Multi-Family Housing: Small Rental Rehabilitation Program

The Renew NC Small Rental Rehabilitation Program began accepting applications on December 15, 2025, and received 29 applications by the end of 2025. In 2025, DCR hired state staff to administer the program and leveraged the existing Renew NC Single-Family Housing Program implementation vendor to support program development and implementation. DCR developed program policies and procedures, internal standard operating procedures, program forms, and case management software; hired and trained program staff; and implemented an outreach campaign focused on leveraging community partnerships and other methods of engagement. Program staff also engaged with stakeholder groups, including local governments, regional councils of government, associations, long-term recovery groups, and other state agencies to operationalize the program and identify collaboration opportunities. The Renew NC Small Rental Rehabilitation Program anticipates utilizing the same pool of qualified general contractors as the Renew NC Single-Family Housing Program to efficiently advance construction activities.

Multi-Family Housing: Large Project Program

The Renew NC Multi-Family Housing Large Project Program (5 or more units) began development in May 2025. Program staff engaged local governments, community groups, and other stakeholders interested in affordable housing development to understand housing needs in Western North Carolina and ensure regional needs are reflected in program policies and procedures. By the end of 2025, policies and procedures have been drafted, and program staff are working to build online systems to support application intake and grants management, internal standard operating procedures (SOPs), and other documents needed to launch the program in 2026.

Commercial District Revitalization Program 

The Renew NC Commercial District Revitalization Program initiated development in April 2025 with the hiring of the Director of Economic Revitalization to lead program design and outreach. Program capacity expanded in June 2025 with the addition of a Grants Manager, accelerating foundational work to prepare for launch. Program staff focused on understanding recovery needs in Western North Carolina through data analysis and engagement with local governments, businesses, and community partners. Draft policies and procedures were completed, and work began on building systems to support application intake and grant management. Outreach included readiness trainings for local governments and coordination with agencies supporting recovery efforts. These steps position the program to begin accepting applications in early 2026.

Community Infrastructure Program

The Renew NC Community Infrastructure Program began development in April 2025, progressing toward program launch in 2026. Key staff were hired, including the Director of Infrastructure, to lead program development and outreach. Program staff engaged local governments and stakeholders through biweekly coordination sessions, site visits, and grantee readiness trainings to prepare communities for infrastructure recovery funding. Surveys were conducted to identify priority projects and funding gaps, and a project database was developed to support coordination across state and federal resources. Draft policies and procedures were completed, and work began on building online systems for application intake and grants management. These efforts ensure the program is ready to help communities address critical infrastructure needs in the coming year.

Compliance

During the reporting period, DCR worked to establish an internal compliance section. In October 2025, a contract was initiated with a vendor, EAG Gulf Coast, LLC (EisnerAmper), to assist in monitoring the operations of DCR. To further strengthen compliance across all programs, DCR actively advanced the hiring of a full-time Compliance Manager during this period to oversee operations and provide guidance to programs. DCR also convened a Section 3 Working Group to support the development of a Section 3 Handbook with policies and procedures, as well as templates and other resources to support subrecipients and contractors with Section 3 compliance. With the launch of DCR and its Single-Family Housing and Small Rental Rehabilitation Programs in 2025, and in preparation for additional programs launching in 2026, TA trainings in 2025 focused on internal CDBG-DR readiness, including grant management, Section 3, GMS, DRGR, and other ad hoc trainings.

Procurement

In 2025, DCR developed and implemented two procurement manuals (Information Technology (IT) and Non-IT). DCR also advanced several key procurements essential to launching and managing the State’s CDBG-DR programs for Hurricane Helene recovery. An Implementation Vendor RFP issued on March 21, 2025, was awarded on May 9, 2025, resulting in one contract to HORNE LLP. This procurement secured a vendor to operate DCR’s Single-Family Housing Program, including outreach, eligibility, environmental review, and construction management. On November 1, 2025, HORNE LLP merged with BDO Government Services, LLC, resulting in a contract amendment with DCR. The transition will not affect the vendor’s capacity to fulfill its contractual obligations. A General Contractor RFP issued on April 16, 2025, was awarded on July 30, 2025, to 21 vendors, establishing a pool of qualified contractors to perform demolition, rehabilitation, reconstruction, and MHU repair and replacement in impacted counties. To support program administration and compliance, DCR issued an RFP for a Grants Management System on May 2, 2025, awarding the contract on November 21, 2025, to Benevate, LLC (Neighborly Software), providing a centralized platform for application intake, workflow management, and reporting. As described in the program narratives above, program teams worked with Benevate during the reporting period on prescreening and application development in the Neighborly Software system. DCR also strengthened oversight capacity through a continuous monitoring procurement issued on July 14, 2025, with a contract awarded to EAG Gulf Coast, LLC on October 15, 2025, to support compliance monitoring and subrecipient oversight. To expand staffing flexibility, DCR issued a staff augmentation RFP on August 11, 2025, awarding a pool of 25 pre-qualified vendors on December 19, 2025, to provide administrative, technical, and programmatic support as needed. Finally, to meet anticipated construction demand, DCR issued a second general contractor solicitation on August 21, 2025, awarding contracts on December 3, 2025, to 11 additional firms. Collectively, these procurements built the infrastructure, capacity, and oversight mechanisms necessary for effective and compliant CDBG-DR program delivery. The procurement manuals and contracts can be found on the DCR website.

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 the CDBG-DR program. Core efforts included staffing, financial management, procurement, policy development, and coordination across state, local, and federal partners. Staff oversaw day-today program operations, 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 prelaunch 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 quarter ending 9/30/2025 supported program launch activities, such as community outreach, case management, and construction. These activities resulted in 3,307 applications submitted, 918 intake reviews completed, 557 eligibility reviews completed, 213 duplications of benefits reviews completed, 312 damage inspections completed, 103 environmental reviews completed, 6 homeowner grant agreements executed, 2 projects in preconstruction phase completed, and 2 construction projects completed.

Funds disbursed in quarter ending 12/31/2025 continued to support program launch activities, such as community outreach, case management, and construction. These activities resulted in 3,479 applications submitted, 1,257 intake reviews completed, 1,563 eligibility reviews completed, 687 duplications of benefits reviews completed, 788 damage inspections completed, 355 environmental reviews completed, 92 homeowner grant agreements executed, 18 projects in preconstruction phase completed, and 8 construction projects completed.

SFH R&R LM - Section 3 Qualitative Efforts

During this reporting period, contractors participating in the Single-Family Housing Program met the Targeted Section 3 benchmark but did not meet the broader Section 3 benchmark. Contractors conducted numerous meaningful outreach and capacity-building efforts intended to support Section 3 objectives and compliance. These efforts included posting Section 3 notification signage at construction sites and office locations to inform the community and business concerns of potential opportunities and provide relevant contact information. Contractors also conducted preliminary research to identify small, local firms that may qualify as Section 3 business concerns by utilizing business registries designed to increase access for disadvantaged and small businesses. Further outreach efforts included connecting community residents with employment-related assistance and job placement services. Additionally, contractors restructured contracts into smaller scopes of work to encourage participation from Section 3 business concerns. Supporting documents are available upon request. While these efforts did not result in benchmark attainment during the reporting period, they represent foundational steps toward strengthening the pipeline of Section 3 workers and business concerns as construction activity continues.

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 a 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 quarter ending 9/30/2025 supported program launch activities, such as community outreach and case management. These activities resulted in 272 applications submitted, 163 intake reviews completed, 133 eligibility reviews completed, 4 duplication of benefits reviews completed, 1 damage inspection completed, and 1 environmental review completed.

Funds disbursed in quarter ending 12/31/2025 continued to support program launch activities, such as community outreach and case management. These activities resulted in 124 applications submitted, 162 intake reviews completed, 192 eligibility reviews completed, and 2 damage inspections 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

This Activity was created during the reporting period. Application intake began on December 15, 2025, and construction has 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.