Monday, April 8, 2013

Superstorm Sandy Relief Summary re Federal Funding from HUD (US Housing and Urban Development Agency) As of April 5, 2013

(Information submitted by The New York Grant Company,,

In March 2013, President Obama signed Congressional legislation entitled H.R. 152, the Disaster Relief Appropriations Act of 2013. The Act authorizes the federal government to appropriate approximately $50.7 billion in relief funding in the wake of Superstorm Sandy.  

This $50 billion relief package will, in turn, allocate funds to various federal agencies for disbursement:
$2 billion for the Federal Highway Administration to repair roads and bridges

$5 billion for the Army Corps of Engineers for dredging, infrastructure, and other flood prevention and control efforts

$11 billion for the Federal Transit Administration to repair the region’s transportation systems, including MTA repairs
$11.5 billion for FEMA’s Disaster Relief Fund for both individual assistance and repair of damaged public property

$16 billion for HUD spending on expenses relating to recovery, restoration of infrastructure, housing, and economic revitalization.

The $16 billion in HUD funding is the largest allocation of federal funds, and the first tranche of $5.4 billion has been allocated as follows:

$1,772,820,000 to NYC

$1,713,960,000 to NYS
$1,829,520,000 to NJ

$ 71,820,000 to CT
$ 3,240,000 to RI

$ 8,640,000 to MD

TOTAL $5,400,000

Pursuant to HUD rules, the above jurisdictions have each presented Action Plans as to their proposed use of funds. The Action Plans are now subject to public comment, and after the public comment period (30 days) has ended, HUD will approve the Action Plans, subject to any modification, and proceed to authorize the release of funds to the jurisdictions.

It is anticipated that funding will start to roll out beginning in the summer of 2013. Jurisdictions have strict deadlines both internally and externally and must expend the HUD funds within 2 years. There are also very strict guidelines for compliance, including documentation, approvals, verifications, reporting and auditing. All funding is subject to strict and continuous auditing, with HUD reserving the right to recapture funds in appropriate cases.

Both the New York City and New York State Action Plans, now published and available online, provide details about the City’s and State’s intended uses for the HUD funds.

New York City has earmarked its initial $1.77 billion allocation as follows:

$720 million for housing
$325 million for business relief, including:
$80 million in grants and loans to small business
$100 million in “resiliency investments” (eg, to move building mechanical equipment above grade)
$100 million in a “neighborhood game changer investment competition”
$45 million in an “infrastructure and building resiliency technology competition”

$400 million in infrastructure repairs and improvements

$327 million in resiliency investments (TBD)

5% for administration

15% for planning.

New York State has earmarked its initial $1.72 billion allocation as follows:

$788 million for housing (including the voluntary home buy-out program)

$415 million in business relief, including funds for
Grants and loans
Consulting and mentoring
Coastal fishing grants
Tourism grants
Tourism marketing grants

 $30 million in resiliency and retrofitting funds for energy-related projects (eg, emergency generators, energy back up systems)

$25 million in community planning and redevelopment funds.

Each of the City and State Action Plans spells out more specifics about the above proposed expenditures. However, precise program rules, eligibility criteria, application forms, documentation requirements and other guidelines are still under development. We can expect to see these over the course of the summer. Each of the above pools of funds will have their own specific program rules and application process.

To a large extent, the HUD funds for business and residential programs will be heavily “programmed” as-of-right, with entitlements based upon criteria and rules which the jurisdictions will develop in concert with HUD administrators. To a more limited extent, certain of the programs will be discretionary. For example, the City’s fund of $100 million for resiliency investments will be administered by EDC, which must pre-approve any plans by an applicant prior to funding. Such resiliency investments can be made for up to $2 million per project, with discretion to award higher amounts if EDC grants approval. Each project will be reviewed case-by-case.

Once the initial $5.4 billion in HUD funding has started to roll out, jurisdictions will then apply for further rounds of funding for the remaining pool of $11.6 billion in additional HUD funding authorized by Congress and the President.
We will continue to monitor these developments carefully. We are fully mobilized to pursue all applications once the programs are officially in place and once the funds are available to applicants. As in the past, we will focus our efforts on businesses which are eligible for relief.         

The New York Grant Company team has 11 years of experience in processing HUD grants and HUD funding. This grows out of our deep experience in helping with the recovery and rebuilding of lower Manhattan businesses after 9/11. The primary source of relief at that time (and continuing even to today) is HUD grant funding authorized by Congress. Our team has processed literally hundreds of applications for HUD funding, and we are therefore ideally poised to assist with the rollout of Superstorm Sandy relief funds now.

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