HUD Approval Frees Up $616M for Irma Recovery, Affordable Housing

TALLAHASSEE, FL—US Department of Housing and Urban Development officials announced on Friday the agency approved the state’s disaster recovery plan from Hurricane Irma that will free up $616 million in HUD Community Development Block Grant funding to Florida.

In November, the State of Florida submitted a plan to HUD to address the damage caused by Hurricane Irma, which wreaked havoc in the Sunshine State in September 2017.

“This funding is part of the Trump Administration’s continued commitment to helping the residents of Florida impacted by Irma to recover and rebuild their homes and their lives,” said HUD Sec. Ben Carson. “As we move along the road to recovery, HUD will be right by Florida’s side to help in any way we can to make the state whole again.”

Florida Gov. Rick Scott said, “It’s great news that we were able to secure critical funding from HUD that will directly benefit the families who were most affected by last year’s storms. This $616 million will enable communities to build new affordable housing and to replace homes lost in the wake of last year’s hurricane season. Through this program, we can continue to move forward with long-term affordable housing solutions for displaced families as well as provide grants to businesses who were impacted by the storm.”

Florida officials report that more than 80% of the funding will be used to address needs in the hardest-hit counties and ZIP codes. These areas, determined by HUD, include: Brevard, Broward, Collier, Duval, Lee, Miami-Dade, Monroe, Orange, Polk and Volusia counties, as well as ZIP codes 32136, 32091, 32068 and 34266.

A total of $273.3 million will be allocated under HUD’s Housing Repair Program that will rehabilitate housing occupied by low- and moderate-income families damaged by Hurricane Irma.

HUD’s Workforce Affordable Rental New Construction Program will facilitate $100 million toward the creation of affordable rental housing though a partnership with the Florida Department of Economic Opportunity and the Florida Housing Finance Corporation by leveraging CDBG-DR funds with low-income housing tax credits as well using CDBG-DR funds for zero-interest loans for smaller developments.

Other HUD funding includes $20 million toward land acquisition for affordable workforce housing and $75 million for a Voluntary Home Buyout Program that encourages risk reduction through the voluntary purchase of residential properties in high flood-risk areas. Communities that participate in this program are encouraged to develop plans for the reuse of the acquired land to further reduce flood risk and/or serve as a recreational space for the public.

HUD is also earmarking $20 million to recovery workforce training, $60 million for a business grant recovery program that reimburses eligible business owners for the cost of replacing equipment and inventory damaged by Hurricane Irma and $6 million for business services assistance to new Floridians from Puerto Rico.

In April, HUD also allocated $791 million of additional CDBG-DR funding to Florida for unmet need, infrastructure and mitigation purposes. HUD will shortly issue requirements governing those funds, and Florida, along with other states, will be required to submit plans addressing their use, HUD officials stated.