The Big adeoffTr - HUD Exchange · (over 30 ft in a some areas) 80 miles of coastline completely...

The Big Tradeoff:

More Speed vs. Perfect Compliance

& Creating Viable Projects

Chuck Bearman & John Rice Mississippi Development Authority

August 19, 2015

The Rules of the Big Tradeoff in Disaster Recovery

• Rule #1: Every disaster is a disaster! – Each disaster brings with it unique

characteristics and features, unique impacts within a given region and area

– For this reason, CDBG is presently the best vehicle for delivery of federal assistance in the long-term recovery efforts

Katrina’s Wake in Mississippi

55 ft. sea waves with a 28 ft. storm surge (over 30 ft in a some areas)

80 miles of coastline completely destroyed Hurricane force winds 150 miles inland,

spawning 11 tornados statewide All 82 counties declared disaster areas

with 49 declared major disaster areas Entire communities – Waveland, Bay St.

Louis – obliterated

90% of all buildings along the Gulfport to Biloxi coastline wiped out

220,000 damaged housing units 60,000 destroyed housing units 46 million cubic yards of debris Major economic centers gone Over 100,000 residents homeless 235 Mississippians lost their lives



Katrina’s Wake in New Orleans

• “The greatest engineering disaster in U.S. history”

• Driving winds, pressure from the storm surge, and inundation of the lakes triggered 50 levee breaches

• By August 31, 2005, 80% of the city was flooded, with some under 15 ft. of water

• Major highways and transportation corridors completely shut down

• Remained underwater for @ 3 weeks • The city’s major economic generators –

transportation, entertainment/tourism, and public services – all severely hit

• 134,000 housing units suffered damage with approximately 600,000 displaced 1 month later

• Approximately 1,000 lives lost • Population of the city is 29% smaller today

Katrina’s Wake in New Orleans


• Rule #2: Speed is everything in a disaster! – Speed is not the enemy – it is the reality in

disaster recovery – Emergency situation exists – Must build for speed – must build to capacity – Expect pressure to perform NOW – Zoom ahead and address issues early


• Rule #3: If you’re looking for perfection, this ain’t the place! – By its very nature and due to the

overwhelming need to deliver, disaster recovery is an unruly animal

– Must be creative – Expect the unexpected – build it into the

programs


• Rule #4: They’re more “guidelines” than actual rules! – The maxim of “maximum feasible deference” – So be prepared to

• Waive the rule where possible • Work within the rules were you can • Work around the rules where necessary

– In everything, build your case in your files


• Rule #5: Steal from everyone! – Learn everything you can about what others

have done – Look to their programs – not to copy but to

mimic – Look at other approaches and follow those

paths to your own desired ends


• Rule #6: HUD Disaster Recovery is your friendly, neighborhood partner and NOT the enemy! – They want you to be successful – They are here to give the you the tools and

technical assistance you need

The Rules at Play in Disaster Recovery

• The Homeowners Assistance Program (HAP) – How do you deliver aid quickly to affected

citizens without engaging the long, required regulatory processes – especially environmental?


• HAP – How do you deliver aid quickly to affected

citizens without engaging in the long, required regulatory processes – especially environmental?

– How do you deliver aid to the broadest set of citizens, all of whom have been devastated by the disaster?


• HAP – Looked at those citizens who relied upon the

federal government’s flood maps for notice as to whether they needed flood insurance and/or needed to elevate their homes

– Suffered severe “damages” due to this reliance for which they should receive compensation


• HAP – Designed a compensation grant program

• Set the cap at $150,000 • Look to a “damage assessment” to determine a

base level of property value and loss • Issue the grant based on the value and loss less

other benefits received (DOB) • The grant’s purpose is to obtain a covenant

running with the land in perpetuity notifying all future owners of the need for flood insurance


• HAP – Program in operation from 2006 until 2009 – Received a total of 31,019 applications – Awarded almost 27,500 grants – More than $2 billion disbursed, bulk of funding

being disbursed early in the program – A true lifeline to the Coast that stabilized the

situation and brought immediate relief to those residents


• Small Rental Assistance Program (SRAP) – Designed to address the need to rebuild low-

to moderate-income rental housing throughout the Gulf Coast

– Provide a $30,000 forgivable loan to assist in bringing such rental property online and to off-set the lower rental rate

– Covenant placed on the property to ensure compliance for a set period of time


• SRAP – Issue 1: The impact of the National Historic

Preservation Act as an environmental requirement

• Aim of the program was rebuild neighborhoods in devastated communities

• Through this process, the program would have affects to historic housing and historic neighborhoods




• Regulations provide that the State Historic Preservation Office, the affected tribes, the Advisory Council on Historic Preservation, and the grantee may enter into a programmatic agreement to create alternative processes for the grant

• Engaged in an almost 9 month negotiation process to produce an agreement




• Results of the Programmatic Agreement: – Set parameters as to what needed to be submitted – Established an expedited review process (staffing and

resources) – Provided mitigation grants to SHPO and the Tribe to

offset historical affects – Preservation of Gulf Coast neighborhoods


• SRAP – Issue 2: Above Ground Storage Tanks

• 24 CFR Part 51, Subpart C – Siting of HUD Assisted Projects Near Hazardous Operations Handling Conventional Fuels or Chemicals of an Explosive or Flammable Nature



• §51.202(a) does not allow approval of an application for assistance for a proposed project located at less than the acceptable separation distance from a hazard (as defined by §51.201) unless appropriate mitigating measures (as defined by §51.205) are implemented or unless mitigating measures are in place



• The problem – of 1,200 SRAP applicants, approximately 750 properties had above ground residential propane tanks located less than the acceptable separation distance (most on adjacent properties)

• Only $30,000 – not enough money to address • Requested a waiver in June 20, 2008 • Granted August 27, 2008


• SRAP – From all phases of the program, almost $205

million dollars have been disbursed – Over 3500 units brought online thanks to the

program – Affordable rental housing is flourishing on the

Gulf Coast


• Neighborhood Home Program (NHP) – Designed to address the final “unmet needs”

of the low-income community – especially the difficult area of wind damage vs. surge damage

– Launched in October of 2010, it provided up to $75,000 in repair assistance for low-income homeowners


• NHP – Major issue here was duplication of benefits

(both in assessing what should be counted and then what documentation was necessary on this front)

– Had previously urged HUD to consider guidance here and some form of waiver, which was initially turned down


• NHP – Then in November 2011, HUD revisited the issue and

provided a “clarification” of DOB in disaster recovery (76 FR 7106)

– This provided vital explanation of what could be excluded for DOB purposes where the funds were (1) provided for a different purpose, (2) used for a different, eligible purpose, (3) not available to the applicant, (4) a private loan, and (5) other asset or line of credit

– Huge in allowing work for “unmet” needs to proceed


• NHP – Almost $170 million has been disbursed from the

program – Over 5100 low-income homes have been rehabbed,

repaired, or rebuilt/replaced – A significant change is occurring in the lives of so

many of our citizens because of this program

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The Big adeoffTr - HUD Exchange · (over 30 ft in a some areas) 80 miles of coastline completely...

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