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FAQ
Community Development Block Grant-Disaster Recovery
Last updated on December 27, 2012
Q. Where is the Community Development Block Grant-Disaster Recovery (CDBG-DR) money coming from?
A. The CDBG-DR funding for the City of Minot totals just over $67.5 million and was allocated by the Department of Housing and Urban Development (HUD), as appropriated by the U.S. Congress.
Q. What is the money supposed to be used for?
A. HUD guidelines say that the funds are designed "to address a wide range of unique community development needs." As stated on the HUD website, "CDBG-DR funds must supplement, not replace, other sources of federal disaster recovery assistance." As indicated by HUD, the CDBG-DR funds can go toward disaster recovery activities including housing, economic development and infrastructure.
Q. What rules, requirements or stipulations come along with these federal dollars?
A. The funds for CDBG-DR still have to meet national objectives as laid out by HUD. These are to 1. Eliminate blight or slums, 2. Meet an urgent need, or 3. Address a need for the low- to moderate-income earner.
As indicated by HUD, "at least 50 percent of each CDBG-DR grant must be expended on activities that principally benefit low- and moderate-income persons." HUD requirements do not allow the City of Minot to provide individual cash payments directly to homeowners. HUD has also told City staff that the CDBG-DR funds are not to be used as an expense reimbursement for homeowners who have already completed rehabilitation or reconstruction to their homes. Other rules and guidelines need to be followed by the City of Minot including recognizing duplication of benefits and only disbursing funds where an unmet need can currently be identified.
Q. I heard the City Council approved an Action Plan, what projects are part of this plan?
A. A. With affordable housing a top priority for City leaders, the proposed Action Plan for use of CDBG-DR funds supports the following ideas directed to homeowner housing:
- Acquisition for affordable housing development. The City will seek to purchase 50 vacant lots to develop affordable housing, $8.5 million.
- Acquisition of flooded properties. The City will use CDBG-DR funds as a match for North Dakota State Water Commission funds intended to buy flooded properties that may be used for green space or flood access/control, $4.8 million.
- Demolition of flooded properties. The City will use CDBG-DR funds as a match for North Dakota State Water Commission funds intended to demolish flooded properties that may be used for green space or flood access/control, $2.2 million
- Rehabilitation of flooded properties. For those homeowners that meet LMI levels, approximately 70 households will be assisted with repair funds, $5 million.
- Reconstruction of flooded properties. For those homeowners that meet LMI levels, approximately 60+ households will be assisted with reconstruction of their homes if they are not able to rehabilitate, $10.5 million.
- Northern Housing Development infrastructure. The City will provide infrastructure for a new housing development outside the flood area with 51 percent affordable housing, $5.1 million.
As well, recognizing that not all those impacted by the flood were homeowners, the City proposes using funds that will benefit rental housing:
- Minot Place Townhomes tax credit rental units' infrastructure. The City would assist developing 30 LMI rental units in southeast Minot, $410,800.
- "Imagine Downtown" downtown development. Support for the development of approximately 54 LMI rental units in downtown Minot, $5.5 million.
Since a variety of key infrastructure and public facilities were impacted during the 2011 Mouse River flood, the City would apply CDBG-DR funds and leverage dollars from other sources, like the North Dakota Trust Lands Department, to make needed repairs and upgrades. These would impact sanitary sewer lift stations throughout the City, a landfill expansion, a northern sewer project development and a fire station to serve new housing developments. These infrastructure projects have a total cost of $20.45 million.
Q. What are the next steps before this money can be used by the City of Minot?
A. The City received approval from HUD in late August 2012. Some of the money is already being used by the City toward the projects approved in the Action Plan.
Q. When can I start to apply for one of these programs and how do I do so?
A. Those interested in one of these programs can contact the Minot Disaster Recovery Services Office at 837-5813 or visit during normal business hours at their location inside the Arrowhead Mall, suite 27.
Q. Once I have applied for funding assistance with rehabilitation or reconstruction how long will it take?
A. The City must follow all the federal requirements for use of these funds. Basically, there are three stages in the assistance process. First, you must be determined eligible and have information regarding your household income and any benefits received (i.e., FEMA, SBA, insurance, etc.) verified; second, damages must be assessed for your home and a scope of work developed and bid for construction; and third, your actual grant award must be determined (factoring in any assistance already received and repairs to be made to your home) and construction contracts signed. After these steps are completed, construction can begin on your home.
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