NC seeks feedback on $1.4B disaster recovery plan

The money, which would come from the U.S. government if approved, would go toward long-term rebuilding rather than immediate shelter needs.

RALEIGH, N.C. — The State of North Carolina is urging residents to provide feedback on the state’s proposed Action Plan for a $1.4 billion federal disaster recovery grant aimed at aiding western North Carolina following Hurricane Helene. The public comment period, which has been open for 30 days, will close at 11:59 p.m. on Thursday, March 20.

North Carolina Commerce Secretary Lee Lilley emphasized the importance of public participation, especially from those affected by Hurricane Helene.

“I encourage everyone to review our proposal and offer suggestions on how to best utilize these critical federal funds,” Lilley stated.

The submission of a final Action Plan to the U.S. Housing and Urban Development agency (HUD) is a prerequisite for receiving funds from the Community Development Block Grant Disaster Recovery (CDBG-DR) program, announced in January. The state’s proposal focuses on addressing unmet hurricane recovery needs in western North Carolina, particularly in housing and economic revitalization. HUD has up to 45 days to approve the plan once submitted.

Gov. Josh Stein’s Executive Order 3 established a new division within the Commerce Department to manage the HUD CDBG-DR program for western North Carolina. The Division of Community Revitalization, led by Deputy Secretary Stephanie McGarrah, developed the Action Plan and conducted a comprehensive engagement program, including public meetings in six western North Carolina locations.

“We’ve gained valuable insights from the many individuals and organizations that have contributed their suggestions,” McGarrah said. “While the road to full recovery is long, the Department of Commerce is committed to making the best use of the available resources.”

CDBG-DR grants are intended for long-term rebuilding rather than immediate shelter needs and are used after other recovery sources, such as private insurance, have been exhausted. These grants address unmet needs in housing, infrastructure, and economic revitalization. The Helene Action Plan allocates most funds to housing recovery for low and moderate-income residents, with the remainder designated for infrastructure and economic support, particularly for small businesses and commercial districts.

The pending HUD CDBG-DR grant for North Carolina stands at $1.4 billion, awaiting federal approval of the state’s Action Plan. Despite ongoing damage assessments, the current allotment is expected to fall short of the estimated unmet housing needs. Additionally, a separate $225 million HUD CDBG-DR grant has been allocated directly to the City of Asheville.

The draft Action Plan is available online at commerce.nc.gov/recovery. Comments can be submitted online, by mail, fax, or email until March 20.

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