# 2026-16499: HUD Crowdsources Disaster Cash Split—Comment by September! 2026-16499, Notice on Community Development Block Grant Disaster Recovery (CDBG-DR) Formula, is a Federal Register notice from Housing and Urban Development Department published 2026-08-13, effective 2026-08-13; PRIA reads it as touching household money (as of 2026-08-20). - Canonical: https://policyrisk.com/federal-register/2026-16499 - As of: 2026-08-20 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Document number: 2026-16499 - Title: Notice on Community Development Block Grant Disaster Recovery (CDBG-DR) Formula - Type: Notice - Agencies: Housing and Urban Development Department - Citation: 91 FR 52314 - Published: 2026-08-13 - Effective: 2026-08-13 - Comments close: 2026-09-14 - Significant: no - Touches household money: yes - Regulation identifier numbers: none - Last updated: 2026-08-20 ## In one line HUD Crowdsources Disaster Cash Split—Comment by September! ## Summary HUD is asking for your thoughts on how it decides disaster recovery money for communities hit by disasters in 2023 and 2024. Until new rules are set, they’ll keep using the 2025 formula to split the funds. If you want to help shape the future of disaster aid, send your comments by September 14, 2026! ## Abstract This notice seeks additional comment on an earlier Request for Information (RFI) on the methodology HUD uses to calculate Community Development Block Grant Disaster Recovery (CDBG-DR) allocation amounts. It also notifies the public that HUD will use the formula described in the 2025 notice for allocations to 2023 and 2024 disasters until a final rule is completed. This notice also seeks comment on potential formula modifications that HUD is considering. ## Effects PRIA read - 2025 Formula Used for 2023–24 Disasters: mixed, medium. HUD will use the allocation formula published in the January 2025 notice to split Community Development Block Grant Disaster Recovery funds for disasters in 2023 and 2024 until HUD issues an updated formula or completes rulemaking. HUD is asking for public comments by September 14, 2026 if you want… - Possible Change to Housing Need Multipliers: mixed, high. HUD is considering changing how it converts damaged housing counts into dollars by adding a separate "destroyed" category, using housing multipliers based on historic disaster experience and private construction cost data instead of matching to SBA loan data, and using different multipliers for ren… - Economic Revitalization as Share of Housing Need: mixed, medium. HUD may stop using SBA business loan data and instead assume economic revitalization unmet need equals a percentage of calculated housing unmet need. HUD notes past grantee plans show economic development shares ranged from 0% to 7% with a median of 2%, and is seeking comment on using a flat share… - Infrastructure Need May Be Tied to Housing Share: mixed, medium. HUD is considering not using FEMA Public Assistance Category C–G estimates and instead setting infrastructure unmet need as a percentage of housing unmet need. HUD notes grantee plans historically show planned infrastructure shares ranging from 9% to 31% with a median of 22%. - Reserve for Extraordinary Circumstances: mixed, low. HUD is proposing the formula could include an element that allows the Secretary to use alternative data or methods for "extraordinary circumstances" to account for unusual unmet needs (for example, lava flows making undamaged homes inaccessible). - Separate Metro, Rural, and Tribal Thresholds: mixed, medium. HUD is seeking comment on revising its definition of most impacted and distressed areas to use separate thresholds for metropolitan, non‑metropolitan (a proxy for rural) areas, and tribal areas to better measure impacts in different geographies. - Explore Narrower "Catastrophic" Eligibility Standard: cost, high. HUD is considering what standard should define a "catastrophic" disaster for CDBG‑DR eligibility and is exploring limiting eligible disasters to those with large numbers or high concentrations of homes with major-high or severe damage. Such a limit would affect which disasters and grantees can rece… - State Preference and Grantee Capacity Review: cost, medium. HUD is proposing a policy that generally prefers awarding CDBG‑DR grants to states because states typically have more capacity, unless HUD's review of capacity and damage concentration supports awarding direct grants to local governments or Indian tribes. For tribes, HUD suggests the Office of Nati… - Mitigation Set‑Aside Up to 18%: benefit, high. HUD is seeking research and comment on whether to include an additional amount for mitigation in allocations by disaster type, not to exceed 18 percent of the total estimate of unmet needs. If adopted, this would increase the portion of funds set aside for mitigation work. - Consider Repetitive Loss and Critical Infrastructure: mixed, medium. HUD is asking how repetitive loss data (properties damaged by multiple disasters) and damage to critical infrastructure should be used in the allocation formula. Using these data could shift funds toward repeatedly affected properties or toward repairing critical infrastructure. ## Related documents - [2026-16228](https://policyrisk.com/federal-register/2026-16228): HUD's Implementation of the Fair Housing Act's Disparate Impact Standard; Amendments to HUD's Title VI Regulations, 2026-08-10 - [2026-13939](https://policyrisk.com/federal-register/2026-13939): Rescission of Floodplain Management and Protection of Wetlands; Minimum Property Standards for Flood Hazard Exposure; Building to the Feder…, 2026-07-10 - [2026-08406](https://policyrisk.com/federal-register/2026-08406): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-30 - [2026-08339](https://policyrisk.com/federal-register/2026-08339): HOME Investment Partnerships Program: Further Program Updates and Streamlining, 2026-04-29 - [2026-08244](https://policyrisk.com/federal-register/2026-08244): Equal Access to Housing in HUD Programs Revisions, 2026-04-28 - [2026-06926](https://policyrisk.com/federal-register/2026-06926): HOME Investment Partnerships Program-Maximum Per-Unit Subsidy Limit Methodology and Amount; Notice for Comment, 2026-04-10 ## Sources - [2026-16499 on federalregister.gov](https://www.federalregister.gov/documents/2026/08/13/2026-16499/notice-on-community-development-block-grant-disaster-recovery-cdbg-dr-formula) - [2026-16499 as published (PDF)](https://www.govinfo.gov/content/pkg/FR-2026-08-13/pdf/2026-16499.pdf) ## Related - [Previous: 2026-16498, Notice of Inventory Completion: Texas Parks and Wildlife Department, Austin, TX](https://policyrisk.com/federal-register/2026-16498) - [Next: 2026-16500, Agency Information Collection Activity: Mandatory Verification of Dependents](https://policyrisk.com/federal-register/2026-16500) - [All Federal Register documents](https://policyrisk.com/federal-register) Source: PRIA, https://policyrisk.com/federal-register/2026-16499 (as of 2026-08-20).