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Seeking to maximize the impact of $1.4 billion in federal disaster recovery funding stemming from the impacts of Hurricane Helene, newly-minted North Carolina Gov. Josh Stein (D) is seeking public input to determine how best to address “unmet housing and economic revitalization hurricane recovery needs” in its deployment of the aid.
But with the funding award still pending — and announced before the transition of power in Washington, D.C. took place — dynamics surrounding the U.S. Department of Housing and Urban Development (HUD)’s reported cuts to key offices, which could include disaster recovery, have painted a complicated picture of the path forward even as the governor has requested significant additional financial support from the U.S. Congress and the White House.
The state’s commerce department recently published an action plan tied to the $1.4 billion in the form of a Community Development Block Grant Disaster Recovery (CDBG-DR) award, a necessary step in the process for receiving it. The governor announced the award on Jan. 7 in Asheville alongside then-acting HUD Secretary Adrianne Todman, after taking early initial steps in the opening days of his administration to address the disaster’s fallout.
Feb. 18 marked the first day of the formal comment period, which will last 30 days, and interested parties can submit their input via email, an online form, postal letter, fax or a series of public meetings scheduled over the next month.
“Western North Carolina is going to build back stronger than ever, but it’s going to take work and planning,” the governor said. “I am grateful to everyone who offers constructive feedback and works with us to turn this plan into reality and spur action in the region’s economy.”
The focus of CDBG-DR grants are to address needs in the three core areas of housing, infrastructure and economic revitalization. The commerce department’s Helene plan seeks to direct “a majority of funds to housing recovery for low- and moderate-income residents,” while also proposing a segment of the funds for “infrastructure rebuilding and economic support, particularly for small businesses and commercial districts.”
North Carolina Commerce Secretary Lee Lilley said that public input is a key part of the process as the state seeks to accelerate the recovery.
“Hearing ideas from as many stakeholders and western North Carolina partners as possible will sharpen this proposal, positioning us to succeed with the tough recovery job ahead of us,” Lilley said. “Our team looks forward to digging into the complex details of how best to help these hard-hit communities and businesses recover.”
The governor’s office noted that the damage assessments on the impact of Hurricane Helene “dwarfs past natural disasters in the state,” with a damage and needs assessment from its office of state budget and management estimating “73,700 homes were likely to have been damaged in the storm,” a tally that is “inclusive of single-family homes, manufactured homes, and duplexes.”
Residential damage alone is estimated at $12.7 billion. While the CDBG-DR allocation falls far short of covering the total estimated costs, the governor’s office said “these funds will serve as a critical cornerstone for the revitalization of western North Carolina’s homes and businesses.”
But word also came down this week that the governor has requested an additional $19 billion in federal disaster recovery aid for the western region of the state, according to reporting at NC Newsline.
The outstanding grant was also announced during the waning days of the Biden administration, and reports suggest that the disaster recovery office at HUD is poised to face severe staffing cuts under the leadership of new HUD Secretary Scott Turner and President Donald Trump.
In a prior statement submitted to HousingWire and other outlets, a HUD spokesperson said that the department is “carrying out President Trump’s broader efforts to restructure and streamline the federal government to serve the American people at the highest standard.”
Stein reportedly met with the state’s delegation in the U.S. Senate, Thom Tillis and Ted Budd, this past Thursday to discuss the new request for post-Helene recovery. Both senators are Republicans, and Tillis serves as the body’s majority leader, which gives him a high level of control over the Senate’s legislative agenda.
But the Senate has resisted any substantial conflicts with the White House during the first month of the new administration, despite a disagreement playing out between the House of Representatives and Senate regarding government funding by next month’s impending deadline to avoid a government shutdown.
HousingWire reached out to Gov. Stein’s office about any concerns it may have regarding the fulfillment of the previously-announced award for the post-Helene housing recovery, but did not receive an immediate response.
