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HUD IX No. 13-020
Brendan C. Gilfillan
(202) 708-0685
 http://www.hud.gov/news/index.cfm
FOR RELEASE
Wednesday
February 6, 2013
  

HUD ANNOUNCES FIRST ROUND OF ALLOCATIONS OF HURRICANE SANDY RECOVERY FUNDS TO THE STATE OF NEW YORK

Allocation includes $1.7 billion for the state to address most pressing housing, economic needs

WASHINGTON – The Department of Housing and Urban Development today allocated approximately $1.7 billion in Community Development Block Grant (CDBG) Disaster Recovery funding to the State of New York, representing the first round of CDBG grants from the Disaster Relief Appropriations Act of 2013 signed into law by President Obama on January 29. This is the fastest HUD has allocated CDBG funding to grantees following the passage of a funding bill, and is in addition to approximately $1.8 billion allocated directly to New York City.

“It is critical for HUD to make this funding available as quickly as possible so families can begin rebuilding and repairing their homes and small businesses can get back on their feet,” said HUD Secretary Shaun Donovan, who also chairs the Hurricane Sandy Rebuilding Task Force established by President Obama in December. “We continue to focus on providing funding and other resources to those in the most immediate need, while laying the groundwork for the region to rebuild in ways that make communities stronger, more economically sustainable and more resilient.”

"This first allocation of federal funds recognizes the substantial need that the New York has fought for to rebuild the many homes, businesses and communities across our state that were damaged by Sandy,” said New York Governor Andrew M. Cuomo. “We will work with federal and local officials for the speedy release of these funds into the areas where they are needed most. I want to thank the Department of Housing and Urban Development for their cooperation in allocating these crucial resources and I look forward to continuing to work with them as New York continues to build back stronger and better than ever before."

"With this first $5.4 billion allocation, the work it took to pass the Sandy aid bill is starting to pay off,” said Senator U.S. Charles E. Schumer. “We know there is desperate need and anxious waiting in the places hit by the storm, and we will be making sure that this money gets to homeowners, small business and communities as quickly as possible."

"This long overdue relief we fought hard to pass will help families and small business owners begin to rebuild and revitalize communities hit hardest by Superstorm Sandy," said U.S. Senator Kirsten Gillibrand. "This is an important day in the recovery process as these critical emergency funds will finally begin flowing into the hands of those who desperately need it."

“Secretary Donovan is moving quickly and effectively to provide New York and Long Island with the aid we desperately need,” said Congressman Peter King. “I commend him for being so responsive.”

The funding level of the first allocation is based on data from the FEMA Individual Assistance Program and the Small Business Administration’s disaster loan programs, which HUD used to identify the areas of greatest need in the region impacted by Hurricane Sandy. New York City, New Jersey, Maryland, Connecticut and Rhode Island were also included in this first round of allocations, which totaled $5.4 billion, or 34 percent of the $16 billion in CDBG funding included in the Disaster Relief Appropriations Act of 2013.

These allocations will be published in the Federal Registerin the coming weeks along with criteria for their use. Following the State’s submission of an action plan describing how funds will be used, HUD will conduct an expedited review to enable funds to be accessed as quickly as possible. HUD has worked closely with state and local partners throughout this process to facilitate action plans being approved as soon as possible.

The CDBG Disaster Recovery funding gives grantees significant flexibility in determining how best to use their funds to meet the greatest unmet needs. In general, the funds are intended for the restoration of housing and infrastructure as well as economic revitalization in disaster-impacted areas. The funds are to meet recovery needs that are not otherwise covered by insurance, FEMA, SBA, or other sources. HUD expects the first round of allocations to focus largely on housing and small business needs.

HUD, OMB and the Recovery Accountability and Transparency Board, which was established by the American Recovery and Reinvestment Act, will provide oversight to prevent and identify waste, fraud and abuse. In addition, the Hurricane Sandy Rebuilding Task Force, established by President Obama to coordinate the federal government’s efforts to support local rebuilding, has gone further by establishing a Project Management Office to monitor spending and progress to ensure the money is used as intended.

 

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