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Housing Recovery and CDBG-DR

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Housing Recovery and CDBG-DR Housing Recovery and CDBG-DR A Review of the Timing and Factors Associated with Housing Activities in HUD’s Community Development Block Grant for Disaster Recovery Program U.S. Department of Housing and Urban Development | Office of Policy Development and Research Disclaimer The contents of this report are the views of the contractor and do not necessarily reflect the views or policies of the U.S. Department of Housing and Urban Development or the U.S. Government. Housing Recovery and CDBG-DR A Review of the Timing and Factors Associated with Housing Activities in HUD’s Community Development Block Grant for Disaster Recovery Program Prepared by: Carlos Martín Brandi Gilbert Dan Teles Brett Theodos with: Rebecca Daniels Tanaya Srini Nicole DuBois Ilana Brody Christina Plerhoples Stacy April 2019 Contents Contents i List of Exhibits ii Acknowledgments iv Executive Summary 1 Findings 2 Recommendations 4 What is CDBG-DR? 8 Housing Recovery and Public Assistance 8 The History, Terms, and Uses of CDBG-DR 9 The CDBG-DR Grantmaking Sequence 10 Past CDBG-DR Grants 14 Housing Recovery Completion Rates 21 What Contributes to CDBG-DR’s Timing? 29 Identifying the Factors 29 Modeling the Factors 37 Exploring the Factors 41 How Can Timing be Further Improved? 55 Grantee Opportunities 55 HUD Technical-Assistance Opportunities 58 HUD Administrative Opportunities 63 Opportunities within the Public Disaster Safety Net 67 Conclusion: Balancing Recovery Speed and Quality 71 Appendix A: Study Methods 72 Appendix B. CDBG-DR Grantee Population 78 Appendix C: CDBG-DR Grantees and Associated Disaster Declarations 95 Appendix D: Model Estimates 98 Appendix E: Related Readings 103 References 105 HOUSING RECOVERY AND CDBG- DR i List of Exhibits Exhibit 1. CDBG-DR Sequence of Stages .............................................................................................................. 11 Exhibit 2. CDBG-DR Milestone Sequence ............................................................................................................ 14 Exhibit 3. Timeline of Study Appropriations and Disasters ............................................................................... 15 Exhibit 4. Grants and Activities ................................................................................................................................ 16 Exhibit 5. FEMA-Verified Loss Damage of Owner-Occupied Housing for Selected Disasters................ 17 Exhibit 6. Total FEMA-Verified Loss Damage of Owner-Occupied Housing by State and Territory (2004–15) .................................................................................................................................................... 17 Exhibit 7. Total CDBG-DR Housing Allocations by State and Territory (2006–15) ................................... 18 Exhibit 8. Average Housing Funds Expended (Millions) ..................................................................................... 19 Exhibit 9. Housing Grants and Activities by Administration Type ................................................................... 19 Exhibit 10. Types of Housing Activities ................................................................................................................. 20 Exhibit 11. Types of Housing Activities ................................................................................................................. 21 Exhibit 12. Time to Complete for Different Starting Points for Housing Activities and Overall Grants 22 Exhibit 13. Average Timeline for Housing Activities by Appropriation, Weighted by Activity Expenditure ................................................................................................................................................... 23 Exhibit 14. Average Timeline by Selected Disasters, Weighted by Activity Expenditure ......................... 24 Exhibit 15. Percent of Funds Expended from First Expenditure to 90 Percent of Funds Expended by Grant ......................................................................................................................................................................... 25 Exhibit 16. Distribution of Years Between HUD Funding Allocation and Completion .............................. 26 Exhibit 17. Distribution of Years Between HUD Award and Completion ..................................................... 26 Exhibit 18. Distribution of Years Between First HUD Grant Expenditure and Completion ..................... 26 Exhibit 19. Average Timeline by Administration Type, Weighted by Activity Expenditure ..................... 27 Exhibit 20. Average Timeline by Activity Type, Weighted by Activity Expenditure ................................... 28 Exhibit 21. Grant Level Accelerated Failure Time Estimates ............................................................................ 38 Exhibit 22. Estimates of the Relative Speed of Activities by Type .................................................................. 40 ii HOUSING RECOVERY AND CDBG- DR Exhibit 23. Conceptual Framework for CDBG-DR Housing Recovery Speed Retrospective Assessment ........................................................................................................................................ 72 Exhibit 24. Qualitative Study Sample Grantee Key Attributes ......................................................................... 77 Exhibit 25. Summary of CDBG-DR Grantees ....................................................................................................... 78 Exhibit 26. CDBG-DR Grantee Funding Levels .................................................................................................... 83 Exhibit 27. CDBG-DR Grantee Timelines .............................................................................................................. 88 Exhibit 28. CDBG-DR Grantee and Disaster Declarations ................................................................................ 95 Exhibit 29. Grant Level Accelerated Failure Time Estimates (Baseline) ......................................................... 98 Exhibit 30. Activity Level Accelerated Failure Time Estimates ........................................................................ 99 Exhibit 31. Grant Level Accelerated Failure Time Estimates Relationship between Disaster or Severity and First Expenditure to Complete .................................................................................................. 101 Exhibit 32. Grant Level Accelerated Failure Time Estimates Relationship between Responsible Organization or Local Capacity and First Expenditure to Complete ..................................... 102 HOUSING RECOVERY AND CDBG- DR iii Acknowledgments This report was funded by the U.S. Department of Housing and Urban Development (HUD). We are grateful to HUD and to all our funders, who make it possible for Urban to advance its mission. The views expressed within this report are those of the authors and should not be attributed to the Urban Institute, its trustees, HUD, or other funders. Funders do not determine research findings or the insights and recommendations of Urban experts. Further information on the Urban Institute’s funding principles is available at https://www.urban.org/aboutus/our-funding/funding-principles. The authors thank the many people who made this report possible. We are grateful for the support of our project officer, Paul Joice, and the many other HUD staff members who provided strategic assistance and data, including Christopher Narducci, Tyler Bridges, Tennille Parker, and James Castle. Additional thanks go to our subcontractor, Opper & Associates, and advisors, Dr. Michael Rich and Dr. Mary Comerio, for reviewing and providing feedback on this project’s design and final report. Finally, we thank the unnamed staff at HUD, HUD’s technical-assistance providers, and the Community Development Block Grant (CDBG) for Disaster Recovery (DR) grantees who generously gave us their time and insights. iv HOUSING RECOVERY AND CDBG- DR Executive Summary The U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) program for Disaster Recovery (DR) has increased in proportional value and importance within the portfolio of U.S. disaster response since its first use in 1993. Over the ensuing two and a half decades, the grants have provided long-term resources to support state and local governments as they rebuild housing and other local assets after disasters strike. CDBG-DR has become a critical backstop for filling any unmet needs after funding from private insurance and federal assistance from the Federal Emergency Management Administration (FEMA) and the Small Business Administration (SBA) has been exhausted. CDBG-DR serves as a temporary bridge helping to pave the way back from the disaster to a community’s long-term planning and development. CDBG-DR is not a permanently authorized federal program. Its funds come from special congressional budget appropriations, which have been set aside for a subset of presidentially declared disasters and for geographic units (that is, states, counties, or cities) that qualify for a variety of disaster-related needs. After each congressional appropriation, HUD issues program requirements and specific dollar allocations to which state or local grantees respond with an action plan for activities. Given the diversity in disaster types and severity, and inconsistent timing of congressional action, the speed and quality of recovery can vary substantially.
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