HUD Approves $429 Million Disaster Recovery Plan in Texas

U.S. Housing and Urban Development Secretary Alphonso Jackson approved a nearly $429 million disaster recovery plan to help homeowners and local communities in Texas to recover from the effects of Hurricanes Katrina and Rita. The Texas plan will offer grants of up to $40,000 to qualified homeowners, restore affordable rental housing, and repair critical infrastructure in the state.

The emergency funding is provided through HUD’s Community Development Block Grant (CDBG) Program and is part of President Bush’s commitment to support Gulf Coast states in their rebuilding efforts. In addition to the funding approved today, HUD last year provided $74.5 million in CDBG disaster funding to support long-term recovery in Texas.

“Clearly there is a tremendous need to put this money to work as quickly as possible to help Texas families to get back on their feet,” said Jackson. “When hundreds of thousands of people needed help, Texas opened its doors and this plan will help pay a huge debt of gratitude for the hospitality Texas offered so many others in their time of need.”

“I am pleased HUD has approved the state’s plan so the $428.6 million in emergency funding can now begin flowing to Texas communities still rebuilding from the costs of the devastating 2005 hurricanes,” Sen. Kay Bailey Hutchison said. “My fellow Texans graciously opened their doors to the thousands of Hurricane Katrina evacuees and students seeking refuge. This funding will have an enormous impact on the Houston community and Southeast Texas communities as they work to recover from Hurricane Rita.”

Sen. John Cornyn said, “Texans showed their strength and generosity following the devastation of Hurricanes Katrina and Rita. HUD’s approval of the state’s plan is an important move forward in ensuring our communities receive the resources necessary for recovery costs of Hurricane Rita. Providing this critical funding to support Texas recovery efforts is the right thing to do.”

“I applaud HUD for approving Texas’ blue print to use the $428 million in CDBG money for Hurricane Rita and Katrina recovery.Approval of the state’s plan should turn the spigot and get these dollars flowing into the infrastructure repair, home repair, and other priorities outlined by local leaders,” said Rep. Kevin Brady.

The Texas Department of Housing and Community Affairs (TDHCA) proposed its action plan to HUD on February 6th and will use CDBG funding in the following ways:

Homeowner Assistance Program ($210 million)

Texas intends to offer grants up to $40,000 to eligible homeowners whose primary residences were damaged in a 22-county area of east Texas. Qualified homeowners must agree to comply with all applicable building codes and flood elevation requirements and assure their home will remain owner-occupied for at least three years.

Sabine Pass Restoration Program ($12 million)

While many communities in southeast Texas experienced extensive damage from Hurricane Rita, the coastal community of Sabine Pass was nearly destroyed. The State will offer up to $40,000 in the form of a forgivable loan to qualified homeowners who were both under-insured or had no insurance at all. In addition, homeowners may apply for up to $30,000 to help defray the costs of elevating their homes. A homeowner whose family includes a person with a disability or an elderly person may also qualify for an additional $15,000 to help make their homes more accessible.

Rental Housing Stock Restoration Program ($82.9 million)

Texas will make available grants and loans to owners of affordable rental properties that were damaged by Hurricane Rita. These funds will be used to repair, rehabilitate and reconstruct rental properties provided applicants can demonstrate ownership at the time of Hurricane Rita (September 24, 2005) and agree to maintain their properties as affordable.

Houston and Harris County Public Service and Community Development ($60 million)

An estimated 400,000 displaced persons relocated in the Houston metropolitan area following Hurricanes Katrina and Rita. To help meet the ongoing public service and community development needs of Houston and Harris County, the State will allocate $60 million to support a wide range of activities, including public safety, education, and affordable housing.

Restoration of Critical Infrastructure Program ($42 million)

While housing remains a priority in the State’s plan, $42 million will be targeted to meet a number of significant infrastructure needs such as flood and storm drain systems, repair of roads and bridges, public utilities and debris removal. Texas intends to provide $6 million to Memorial Hermann Baptist Orange Hospital, $3.8 million to Bridge City, and up to $10 million to Hardin County.

HUD has allocated a total of $16.7 billion of CDBG funds to Alabama, Florida, Louisiana, Mississippi, and Texas to promote each state’s long-term recovery in the aftermath of last year’s hurricanes. These states are using these funds to develop plans that include helping thousands of homeowners, promoting affordable rental housing and restoring critical infrastructure.

To read the full text of the Texas recovery plan, visit HUD’s website, www.hud.gov.