State receives HUD grant agreement for additional $1.72 billion for 2020-21 storms

The Louisiana Division of Administration has signed a second grant agreement with the U.S. Department of Housing and Urban Development for recovery from Louisiana’s devastating 2020-21 storms.

The agreement establishes a $1.27 billion line of credit for recovery from Hurricane Ida and the May 2021 Severe Storms, as well as an additional $450 million line of credit for recovery from Hurricanes Laura and Delta. HUD executed a previous grant agreement on Sept. 29 for the first allocation of $600 million for Hurricanes Laura and Delta. HUD also recently allocated an additional $831,502,000 in funding to Louisiana for Hurricane Ida and the May 2021 Severe Storms as part of the Continuing Appropriations and Ukraine Supplemental Appropriations Act, 2023, bringing the total allocation to $3.1 billion for all eligible 2020-21 storms.

“With the execution of this grant agreement, the state can provide recovery assistance to residents, businesses and communities affected by Hurricane Ida and the May 2021 Severe Storms and expand assistance for Laura and Delta,” Gov. John Bel Edwards Edwards said. “Louisiana was hit hard over the last two years, and with access to this new federal recovery funding, we are expanding statewide programs for homeowner assistance, affordable rental housing, economic revitalization, and infrastructure and community resilience projects.”

The state will administer 14 recovery programs for storm-affected homeowners, residents, businesses and communities, including two new programs outlined in the state’s recent action plan amendment: the Resilient Communities Infrastructure Program and the Hometown Revitalization Program. The RCIP aims to reduce overall risk to populations and structures from future hazard events, while also reducing reliance on federal funding in future disasters. The HRP will restore jobs and revitalize commercial activities in the most vulnerable communities that suffered major damage from eligible 2020-21 disaster events. The state has notified recipients of their allocation amounts and the next steps for submitting funding proposals.

The state is also launching the Non-Federal Match Program, which at this time will reimburse recipients with eligible costs across the state for FEMA Public Assistance match requirements for emergency work only (Category A or B). The program is meant to offset the burden of local match requirements. The state will notify eligible recipients of the next steps in the application process.

“This second allocation from HUD was incorporated into the state’s recent action plan amendment and significantly increases program budgets,” Louisiana Office of Community Development Executive Director Pat Forbes said. “Funding awarded through the two new disaster recovery programs—the Hometown Revitalization Program and the Resilient Communities Infrastructure Program—will also allow affected areas to implement their local recovery and resilience plans, and make long-term, impactful investments in their most vulnerable communities.”

Program lineups and allocations are as follows:

Homeowner Programs

$680 million:    Restore Louisiana Homeowner Assistance Program

$4 million:        Interim Housing Assistance Program

$1.5 million:     Flood Insurance Program

Affordable Rental Housing Programs

$764 million:    Resilient Mixed Income Gap Funding Program (PRIME)

$60 million:      Middle Market Loan Program (MMLP)

$40 million:      Neighborhood Landlord Rental Program

$15 million:      Soft Second Mortgage Assistance Program

$15 million:      Rapid Rehousing Program

$11 million:      Permanent Supportive Housing Program (PSHP)

Economic Development Programs

$125 million:    Hometown Revitalization Program

$96.1 million:   Small Business Loan and Grant Program

Infrastructure Programs

$240.8 million: Nonfederal Share Match Programs

$100 million:    Resilient Communities Infrastructure Program

$77.3 million:   HGMP Global Match Program

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