PRESTON ANNOUNCES $2.1 BILLION IN DISASTER ASSISTANCE TO 13 STATES AND PUERTO RICO IMPACTED BY 2008 STORMS
First installment of disaster aid will help states in long-term recovery

WASHINGTON - Recognizing the tremendous unmet housing, economic and infrastructure needs following this year's natural disasters, U.S. Housing and Urban Development Secretary Steve Preston today announced HUD will immediately allocate more than $2.1 billion to 13 States and Puerto Rico. The emergency funding is provided through HUD's Community Development Block Grant (CDBG) Program and will support the States' long-term disaster recovery.

"Families, businesses and communities are struggling to rebuild following this year's natural disasters. Today, we are making another installment of disaster assistance to help them get back on their feet," said Preston. "Once we have conducted a more thorough year-end analysis, HUD will make further allocations to States struggling to recover from dozens of storms in 2008."

HUD is announcing disaster recovery funding to the following States:

* Congress requires each state to devote a portion of its funding to support affordable rental housing.

In September, Congress appropriated more than $6 billion in supplemental funding for "necessary expenses related to disaster relief, long-term recovery, and restoration of infrastructure, housing and economic revitalization in areas affected by hurricanes, floods, and other natural disasters occurring during 2008." Congress further directed HUD to allocate $2.145 billion of this disaster funding within 60 days of enactment.

Congress also required that States devote "not less than $650 million" to support affordable rental housing (see chart). In determining the allocations announced today, HUD focused on two factors:

• Unmet housing needs. This is each State's relative share of estimated unmet housing needs for property owners experiencing serious damage to their homes; and
• Concentrated damage. To determine infrastructure and economic revitalization needs, HUD focused on areas of particular concentration of damage - specifically, each State's share of seriously damaged homes in areas where more than 20 percent of the homes experienced damage.

After the end of calendar year 2008, HUD will make a final review of long-term disaster recovery needs for all states affected by disasters in 2008 to allocate the remaining $3.972 billion. This review will include unmet housing, infrastructure and economic revitalization needs. The Department will publish a notice providing guidance to these states and to assist them in their long-term recovery planning. Once these local action plans are developed, they will be provided to HUD for review.

Since 1974, HUD's Community Development Block Grant (CDBG) Program has allocated approximately $120 billion to state and local governments to target their own community development priorities. CDBG is one of HUD's oldest and most flexible programs. The rehabilitation of affordable housing and construction of public facilities and improvements have traditionally been the largest uses of the grants, although CDBG is also an important catalyst for job growth and business opportunities.

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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 and espanol.hud.gov.