HUD Provides Additional $5B in Hurricane Sandy Recovery Funds

On the one-year anniversary after Hurricane Sandy devastated coastal communities in the Northeast, the Department of Housing and Urban Development said that an additional $5 billion of recovery funds will be allocated to five states and New York City.

Provided through HUD’s Community Development Block Grant Program, these recovery funds will assist impacted communities to meet remaining housing, economic development and infrastructure needs.

When HUD distributed $5.4 billion in funds to this region in February, New Jersey got the most money at $1.8 billion, followed by New York City at nearly $1.8 billion, then New York State at $1.7 billion, Connecticut got nearly $72 million, Maryland received $8.6 million and Rhode Island got 3.2 million.

This time, New York State is receiving the largest amount of assistance at more than $2 billion, while New Jersey is getting $1.4 billion, New York City will receive $1.3 billion, Connecticut $65 million, Maryland $19 million and Rhode Island $16 million.

“It’s clear these communities continue to be challenged by the sheer scale of this devastating storm, requiring further investment to make certain these needs are met,” said HUD Secretary Shaun Donovan, who chaired President Obama’s Hurricane Sandy Rebuilding Task Force. “These resources are making a difference helping individuals, families, and businesses to get back on their feet and come back stronger and more resilient than ever.”

As part of this allocation, grantees will be required to incorporate a risk assessment in their planning efforts to ensure long-term resilience. The risk assessment must include climate change impacts, account for changes in development patterns and populations, and explain how CDBG-Disaster Recovery funds will address those impacts and changes and associated risks.

Following the grantee’s submission of an action plan describing how funds will be used, HUD will conduct an expedited review to enable that the money be accessed as quickly as possible. HUD is working with state and local partners throughout this process to facilitate action plans in a timely manner.

HUD’s CDBG-Disaster Recovery funds are based on data from the Federal Emergency Management Agency, the Small Business Administration disaster loan programs, the Department of Transportation, and the Army Corps of Engineers to identify the areas of greatest need in the region impacted by Hurricane Sandy.