HUD Archives: News Releases

HUD No. 08-13
Sheryl Miller
(605) 330-4223
For Release
October 27, 2008

More than $1,987,271 allocated for South Dakota business and
infrastructure needs

SIOUX FALLS - U.S. Housing and Urban Development Secretary Steve Preston today allocated $200 million to 15 states affected by natural disasters. The emergency funding is provided through HUD's Community Development
Block Grant (CDBG)
Program and will help support each state's long-term disaster recovery and critical infrastructure needs.

Regional Director John Carson said, "South Dakota is one of the 15 states funded to help counties declared as
disaster areas earlier this year rebuild following the snow and flooding of May 2008."

Last June, Congress appropriated $300 million in emergency disaster assistance and directed HUD to allocate the funding based on each state's unmet needs. Understanding that states must begin their long-term disaster recovery planning, HUD allocated a third of the emergency funds as quickly as possible based on the Department's initial damage assessment. Today, HUD allocated the remaining $200 million based upon more complete data and a
thorough study of each state's unmet needs.

"This funding will help these states along the path to long-term recovery," said Secretary Preston. "Whether it's restoring damaged housing, assisting struggling businesses or rebuilding infrastructure, HUD stands ready to assist these states in the difficult process of recovering from the recent natural disasters."

On August 4, 2008, Preston made initial allocations totaling $100 million to the States of Iowa, Indiana; and Wisconsin. Recognizing that there continues to be unmet needs, HUD will allocate at least $2.2 billion more by the
end of the year to states affected by disasters in 2008. Today, Preston announced the following allocations:

Iowa: Beginning in May 2008 and continuing through June 2008, the state of Iowa experienced severe storms, flooding and tornadoes. The state's unmet housing, business and infrastructure needs were so great, HUD initially allocated $85 million allowing Iowa to begin the necessary recovery planning process. Today's $ 71,690,815
allocation brings HUD's total investment in Iowa to nearly $156.7 million, or more than half of the total $300 million emergency appropriation.

Indiana: In June 2008, several Indiana counties were declared federal disaster areas based on severe storms and flooding. Combined with the $10 million HUD allocated to Indiana in August 2008, the state's total allocation is more than $67 million or just shy of a quarter of the total funding Congress appropriated in emergency assistance.

Wisconsin: Beginning in early June 2008, severe storms, flooding and tornadoes raked the lower half of Wisconsin causing damage to the state's housing stock, business community and infrastructure. Today's allocation of $19,057,378, combined with $5 million allocated in August 2008, brings Wisconsin's total allocation to more than
$24 million or eight percent of the total emergency supplemental appropriation.

Illinois: In June 2008 and continuing, the state of Illinois experienced severe storms and flooding in two northern counties as well as many communities along the Mississippi River, and along the eastern part of the state. Illinois
will receive $17,341,434 from HUD.

Missouri: Missouri suffered severe storms, tornadoes, and flooding in May 2008 and more storms and flooding in
June 2008, prompting two Presidential disaster declarations. HUD will fund Missouri with $11,032,438.

Nebraska: In May 2008, the state of Nebraska experienced severe storms, tornadoes, and flooding. Nebraska will receive $5,557,736 in HUD funding.

Arkansas: On May 2, 2008, President Bush declared several Arkansas counties disaster areas due to severe storms, tornadoes and flooding that occurred earlier in the month. HUD funded Arkansas with $4,747,501.

West Virginia: In June 2008, several counties in West Virginia experienced severe storms, tornadoes, flooding, mudslides, and landslides. West Virginia was allocated $3,127,935.

Mississippi: Beginning in mid-March 2008, and for two months thereafter, several counties along the Mississippi
River in Mississippi experienced severe storms and flooding. As a consequence, President Bush declared these
counties major disaster areas on May 8, 2008. Mississippi will receive $2,281,287.

Maine: For approximately two weeks, severe spring storms caused significant flooding in several counties in Maine. President Bush declared those counties federal disaster areas on May 8, 2008. HUD funded Maine with $2,187,114.

South Dakota: In May 2008, South Dakota experienced a severe winter storm and near record snowfall. President Bush declared several South Dakota counties disaster areas on May 22, 2008. South Dakota was awarded $1,987,271.

Oklahoma: From May 10-13, 2008, four Oklahoma counties experienced severe storms, tornadoes and flooding. On May 14, 2008 President Bush issued a major disaster declaration for Craig, Latimer, Ottawa, and Pittsburg Counties. Oklahoma will receive $1,793,876.

Minnesota: Beginning June 7, 2008, several counties in Minnesota were struck by severe storms and flooding. President Bush declared five southern counties along the Iowa border -- Cook, Fillmore, Freeborn, Houston, and Mower Counties -- as disaster areas on June 25. HUD funding for Minnesota is $925,926.

Montana: On May 1-2, 2008, severe winter storms struck four counties in southeastern Montana. On June 13, President Bush declared Carter, Custer, Fallon, and Powder River Counties major disaster area. Montana funding
totals $666,672.

Colorado: On May 22, 2008, Larimer and Weld Counties were struck by severe storms and tornadoes. HUD funded $589,651 for Colorado.

HUD is the nation's housing agency committed to increasing homeownership, particularly among minorities; creating affordable housing opportunities for low-income Americans; and supporting the homeless, elderly, people with disabilities and people living with AIDS. The Department also promotes economic and community development and enforces the nation's fair housing laws. More information about HUD and its programs is available on the Internet

HUD's Methodology

On June 30, 2008, the Supplemental Appropriations Act 2008 was enacted into law, providing $300 million through HUD's Community Development Block Grant (CDBG) program "for necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure in areas covered by a declaration of major disaster as a result of recent natural disasters."

As there were no major declared disasters in April 2008, HUD limited eligibility to the 16 natural disasters that
occurred and were declared by the President during May and June of this year. For those 16 natural disasters, HUD calculated "unmet needs" for housing, business, and infrastructure recovery. Based on data provided by the Federal Emergency Management Agency and the Small Business Administration, HUD defined 'unmet needs' as follows:

Unmet housing needs. Number of housing units with unmet needs times the estimated cost to repair those units (less repair funds already provided by FEMA). Where:

  • The number of owner-occupied units with unmet needs are units FEMA housing inspectors determined would require more than $8,000 to become habitable and were determined by FEMA to be eligible for a repair or replacement grant (up to $28,800).
  • The number of rental units with unmet needs are units FEMA housing inspectors determined would require more than $8,000 to become habitable times the "unmet need rate" of owners. That is, if 50 percent of owner-occupied dwellings had damage not being covered by insurance or an SBA loan for a particular disaster, we assume that 50% of rental units had damage not covered by insurance or an SBA loan.
  • The average cost to fully repair the home is based on the average real property damage repair costs
    determined by the Small Business Administration for its disaster loan program (less the repair grant amount
    from FEMA) for the subset of homes inspected by SBA. Because SBA is inspecting for full repair costs,
    it reflects the full cost to repair the home, which is generally more than the FEMA estimates on the cost to make the home habitable.
  • Where the unmet housing needs are calculated using three "levels of FEMA damage" - $8,001 to $15,000; $15,001 to $28,800, and greater than $28,800.

Unmet business needs. Based on SBA disaster loans to businesses, HUD used the sum of real property and real content loss of small businesses not receiving an SBA disaster loan.

Unmet infrastructure needs. Based on FEMA data, HUD used the sum of the "non-Federal share" of costs
estimated to be eligible for funding under FEMA's Public Assistance program.


Content Archived: August 04, 2011