After the President declares a major disaster, Congress may appropriate funds to HUD when there are significant unmet needs for long-term recovery. Community Development Block Grant Disaster Recovery (CDBG-DR) assistance provides flexible grants to help cities, counties, and states recover, especially low-income areas.

Eligible Uses

Funds can be used for disaster relief, long term recovery projects, infrastructure restoration, housing, and economic revitalization. Activities must meet at least one of three national objectives: (1) benefit low- and moderate-income persons, (2) prevention or elimination of slums or blight, (3) or address community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community for which other funding is not available. See examples of past awards here.

Eligible Recipients

Funds are awarded to state and local governments, who then can provide grant money to state agencies, non-profit organizations, economic development agencies, citizens, and businesses.

Approx Annual Funding Amount

The program received $5 billion in FY 2021. Funding varies depending on disaster recovery needs. HUD notifies states, cities, and counties of eligibility for CDBG-DR funds and will allocate funds based on potential grantee’s recovery needs. CDBG-DR funds can be used as a non-federal match for funds from other agencies.

Cost Share Requirements

There are no cost-share requirements.

Application Cycle

The application cycle varies depending on disaster recovery needs and congressional appropriations. See the CDBG-DR Toolkit for more information.

Contact

See contacts on the HUD Exchange website.

Other Info

This program is covered under the Justice40 Initiative.