Week 3: Unveiling HUD Reconstruction Criteria for Federal Recovery Programs

Delve into the eligibility requirements essential for accessing long-term recovery programs administered by federal agencies, particularly focusing on the criteria set forth by the Department of Housing and Urban Development (HUD). Explore key factors such as home damage assessments exceeding 80% of repair costs, the significance of a FEMA Substantially Damaged Letter, and the potential need for a FEMA Condemnation Letter, all signed by designated local authorities. Understand how HUD CDBG-DR initiatives prioritize income levels, allocating resources to low and moderate-income households. Gain insights into potential waivers and action plan amendments that may broaden eligibility criteria for households with income levels up to 120% of the Area Median Income.

By Murray Wennerlund, published on 9-28-2023 updated on 9-28-2023.

Review the eligibility requirements needed to qualify for long term recovery programs provided by federal agencies like HUD.

HUD Reconstruction Criteria: (match one or more)

Home damage assessment must exceed 80% of the total repair costs; or
You'll need a FEMA Substantially Damaged Letter signed by one of the following local authorities; local municipal floodplain manager, Homeland Security Agency and FEMA representative, or zoning/building permit office; or
A FEMA Condemnation Letter, also signed by these local officials, may be required.

In most cases, HUD CDBG-DR initiatives initially allocate 90% of their resources to aid households based on income. They start with low-income individuals and extend assistance to those classified as moderate-income (80% or below the Area Median Income). Some states might seek waivers in the form of action plan amendments to this policy, broadening the eligible income group while reducing the percentage of funds for low-income households. Generally, HUD CDBG-DR programs offer support to households with income levels up to 120% of the Area Median Income within a year of the program's commencement, if not sooner.

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No guarantees expressed or implied. No empathy-seeking, no doublespeak, no government oversight—just a straightforward, no-nonsense approach to disaster recovery is all you will receive.

by Murray Wennerlund
Disaster Recovery Grant Consultant and survivor of the 2016 Louisiana floods.
Expert Strategies for a Smoother Rebuilding Journey.