HUD approves North Carolina’s $1.4B Helene action plan

The state’s commerce department in February published an action plan tied to the $1.4 billion in the form of a Community Development Block Grant Disaster Recovery (CDBG-DR) award, a necessary step in the process for receiving the funds.

Stein announced the award on Jan. 7 in Asheville alongside then-acting HUD Secretary Adrianne Todman, after taking initial steps in the opening days of his administration to address the fallout of the disaster.

North Carolina Gov. Josh Stein

The next step is for HUD to certify the state’s financial controls for the program. At that point, North Carolina “can sign the grant agreement and begin committing these funds with a focus on housing and economic revitalization,” according to the governor’s office.

Stein praised the Trump administration for giving the plan the proverbial green light.

“This is great news for western North Carolina,” he said. “I thank the Trump administration for moving quickly to approve this plan so we can get busy rebuilding people’s homes.”

The action plan also included a comment period to take feedback from those impacted by the disaster into account as the state developed and submitted its plan to the federal government.

“We’ve learned so much from the many people and organizations that have taken time to offer their suggestions, and I’m grateful for everyone’s participation so far,” said Stephanie McGarrah, deputy secretary for the North Carolina Department of Commerce.

“We know the road to full recovery will be a long journey, but the Department of Commerce and my team are ready to get to work.”

The funds will be directed toward a large-scale homebuilding effort across the state, according to reporting from NC Newsline.

“We need you, desperately, to build those homes and get people home,” said Angie Dunaway, the director of contracting for the commerce department’s new team that will be in charge of post-Helene recovery efforts. These remarks were made to contractors who are preparing to bid on jobs to rebuild housing in impacted areas.

These bids will begin to be assessed at the start of May, and the western portion of the state will require construction with “some special type of building,” Dunaway advised the contractors.

The total price tag of the recovery is immense as residential damage alone is estimated at $12.7 billion. While the federal funds — which fall under the CDBG-DR program — don’t cover all of the estimated recovery costs, the governor’s office said in February that “these funds will serve as a critical cornerstone for the revitalization of western North Carolina’s homes and businesses.”

Still unsettled, however, is the city of Asheville’s own $225 million recovery plan it submitted to HUD.

Initially rejected on the grounds that it advanced diversity, equity and inclusion (DEI) criteria — something the Trump administration is working to expunge from government — the city recently submitted an updated action plan but has not offered any additional details on its progress.

The revised plan was submitted to HUD on April 8 and the department has 45 days to review and request changes to it, putting the deadline on or around May 23.