HR8291119th CongressWALLET

Reforming Disaster Recovery Act

Sponsored By: Representative Green, Al [D-TX-9]

Introduced

Summary

Long-Term Disaster Recovery Fund creation aims to finance a HUD-run Community Development Block Grant Disaster Recovery Program for housing, infrastructure, economic revitalization, mitigation, and long-term recovery in communities hit by catastrophic major disasters. A new HUD Office of Disaster Management and Resiliency will oversee grants, coordinate with FEMA and the Small Business Administration, and set standards for planning, data, and allocations.

Show full summary
  • Families and low- and moderate-income households: Grants must direct not less than 70% of funds to benefit low- and moderate-income persons and prioritize housing restoration for vulnerable populations.
  • State, local governments, and Indian tribes: Eligible grantees must submit a comprehensive plan within 90 days and can receive preliminary awards of up to $5 million to speed early recovery.
  • HUD operations and resilience standards: Establishes a HUD disaster office, a formula-based allocation with up to 30% additional funding for risk reduction, minimum construction and flood insurance requirements, financial controls, and public transparency.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 0 costs, 5 mixed.

Most grant money to low-income people

If enacted, the bill would generally require that at least 70% of each HUD disaster recovery grant benefit low- and moderate-income people. Grantees would also have to split funds by unmet needs across housing, economic revitalization, and infrastructure unless HUD grants a waiver. Housing activities must address both homeowners and renters, including public and federally subsidized housing.

Relocation help and appeal rights

If enacted, the bill would apply the Uniform Relocation Assistance Act to activities assisted under this program as the Secretary sets by rule. Each grantee would need a relocation policy that minimizes displacement, explains payments and appeal rights, and covers people displaced by acquisition, rehabilitation, or demolition tied to grant-funded projects.

Data sharing and duplication rules

If enacted, HUD would get disaster applicant data from FEMA and the Small Business Administration, including personally identifiable information when permitted. HUD could share that data with grantees, lenders, and technical helpers under privacy agreements. Grantees must follow duplication-of-benefits rules, apply duplicate payments to allowable costs, and return excess funds to HUD or the Fund. Grantees could keep and reuse program income so long as it follows grant rules.

New flood insurance and construction rules

If enacted, HUD would require minimum construction standards and other conditions for grant-funded building in hazard-prone areas. If your property is in a special flood hazard area, the bill would require purchase of flood insurance meeting or exceeding current federal flood-insurance rules. The bill would also let grant recipients adopt another federal agency's environmental review to speed project approvals and release of funds.

Limits on using grants to move businesses

If enacted, HUD grants could not be used to relocate a factory or business if that move would likely cause a large loss of jobs in the area left behind. An exception would apply for a business that was operating in the disaster-declared area before the incident date and later moved to continue operations.

New long-term disaster recovery fund

If enacted, the bill would create a Long-Term Disaster Recovery Fund in the Treasury. HUD would make formula grants to States, local governments, and tribes for housing, infrastructure, economic recovery, mitigation, and resiliency. The bill would reserve 2% of each Fund appropriation for HUD planning and readiness and require HUD to include an interim 15% mitigation amount (up to 30% by final rule). Grantees would face limits like a six-year use deadline, recapture rules, and caps of 10% for administration and 20% total for admin, planning, and technical assistance.

Waivers and rulemaking deadlines

If enacted, the Secretary could waive many statutory or regulatory requirements for grant obligation or use, but not fair housing, nondiscrimination, labor, or environmental rules. Waivers would need a public finding and take effect at least five days after HUD posts them. The Secretary must publish proposed rules within six months with a 90-day comment period and final rules for the new program within one year.

Sponsors & CoSponsors

Sponsor

Green, Al [D-TX-9]

TX • D

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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