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Five Strategies for Successful CDBG-DR Fund Management

Learn practical strategies for managing CDBG-DR grant funds and enhancing your community’s resilience.

Hurricane season (June 1 to November 30) is upon us. Those near coastal areas are on high alert, but some also must contend with other natural disasters, such as wildfires and tornadoes. As a community, you should implement strategic plans to manage and provide for a speedier recovery. There is a variety of funding available to governmental organizations to assist with addressing the needs of a community after a presidentially declared disaster.

One such resource is the U.S. Department of Housing and Urban Development (HUD) Community Development Block Grant Disaster Recovery (CDBG-DR) program, which is crucial to funding long-term recovery efforts. CDBG-DR is a special appropriation by Congress to provide funds to the most impacted and distressed areas for disaster relief, long-term recovery, restoration of infrastructure, housing, and economic revitalization.

How Does CDBG-DR Work?

CDBG-DR grant funds are appropriated by Congress and allocated by HUD. Then, HUD allocates funds based on the unmet recovery needs of those impacted communities. If your state is eligible to receive CDBG-DR funds, you might be familiar with their regulations and requirements, but there are unique challenges in implementing these funds. It is imperative to be proactive and plan ahead as disaster recovery programs face diverse challenges with the additional pressure of quickly assisting your community in need. A successful response by your state should be swift while also establishing a strong foundation that will continue to provide support for the ongoing recovery efforts. This article will focus on the steps you should consider for the successful implementation of your CDBG-DR program. 

Step One: Know the Laws

As with other programs, your organization should understand the governing laws, regulations, and requirements related to these funds. In addition, your organization should review the applicable public law (PL). The PL authorizes the CDBG-DR appropriation. An additional governing document, the Federal Register (FR), is the notice for your appropriation. The FR notice details the rules and regulations that govern the use of funds as well as applicable waivers to the CDBG-DR rules. It is essential that your organization, as the grantee, be aware of these rules and waivers. In addition, it is important to be cognizant of the previous FR notices to learn of the waivers granted in the past to determine if there is a need to request additional waivers for your program. Furthermore, it may be beneficial to consider creating a summary on the high points of the PL and FR notices to brief program staff and officials.

Step Two: Make an Action Plan

As you move toward implementing your CDBG-CR funds, your organization should commission a needs assessment and hold strategic planning sessions to determine the types of programs that will need to be created or bolstered. This may not be necessary for some programs, but it may be more necessary for others based on the needs assessment and where the damage occurred. Based on the assessment and internal discussions, your organization would then draft and submit your Action Plan (AP). The AP outlines the proposed use of funds, which may be a combination of housing, economic development, and infrastructure projects, to name a few. Your community’s needs following the disaster will, unfortunately, typically surpass your funding allocation, so having an unmet needs assessment as part of your Action Plan is critical.

Key Action Plan Items

  • Proposed Use of Funds
  • Unmet Needs
  • Program Priorities
  • Allocation of Funds
  • Public Input
  • Performance Measures
  • Monitoring
  • Reporting

The AP should serve as the blueprint for your CDBG-DR programs and will need to be amended as the needs of your community evolve. Your organization should be mindful that HUD’s approval of the AP is typically a prerequisite for the release of funds. 

Step Three: Have a Process

The development of policies and procedures is another important step toward the successful stewardship of CDBG-DR funds. Your organization will need to create and regularly update a standard operating procedures (SOPs) manual that will serve as your organization’s internal guide for transparent, accountable, and efficient processes for its expenditures. A clearly outlined SOP will help streamline the application process, the allocation of funds, and assist with the reporting processes. This, in turn, will help reduce delays and expedite the much-needed aid. Furthermore, robust SOPs showcase your organization’s commitment to accountability. This can help reassure the public and oversight entities that the CDBG-DR funds are being used appropriately and efficiently, helping to foster trust and confidence in your organization’s stewardship.

Step Four: Select an Applicant Tracking System

Another integral part of CDBG-DR funds management is utilizing applicant tracking and financial reporting systems. Applicant tracking systems help streamline the application and approval process, helping to ensure that eligible recipients are identified and awarded assistance. Note that not all federal assistance programs require applicant tracking; the requirements typically are identified in the FR. Simultaneously, robust financial reporting systems assist with the meticulous monitoring of fund allocations, expenditures, and compliance, facilitating transparency and accountability. The federal government already utilizes a number of grants management systems to assist in executing your federal grant program. These systems not only simplify administrative tasks but also provide real-time insights into fund utilization, enabling prompt adjustments and adherence to federal, state, and local regulations. By implementing the correct software and systems, grantees can enhance the accuracy and efficiency of their CDBG-DR management. Selecting suitable software for these systems can seem like a daunting task, especially for organizations without prior experience. Forvis Mazars can assist by conducting a needs analysis, understanding the unique requirements of your organization, and recommending software solutions that align your needs with federal, state, and local regulations.

Step Five: Submit the Reports

Lastly, CDBG-DR grantees will also need to register with the Disaster Recovery Grant Reporting System (DRGR). HUD uses this system to track and manage the allocation and use of CDBG-DR funds. DRGR is an online platform that allows grantees and subrecipients to enter data on how they utilize their awarded funds and helps ensure compliance with HUD regulations and reporting requirements. The data entered is used to review activities funded and to prepare required Quarterly Performance Reports to Congress. Using DRGR, the grantee should be able to identify the activities funded under their Action Plan/Amendment and their corresponding budgets and performance goals for those activities. Once a grantee submits an Action Plan and is approved, the grantee can submit quarterly reports summarizing their obligations, expenditures, drawdowns, and accomplishments for their activities. Grantees can also use the DRGR to draw their award funds.

How Forvis Mazars Can Help

It is crucial to consider the various factors at play when your organization initiates the recovery process following a natural disaster. As you work to navigate the best use of the CDBG-DR funds for your community, remember some of the key steps outlined within this article. If your organization is considering or has received this funding and needs assistance with your disaster recovery process, our Grants Management Services practice at Forvis Mazars is here to help. With focused experience in disaster recovery, we can guide you through the complex requirements associated with accepting this funding. If you have questions or need assistance, please reach out to one of our professionals.

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