More storm relief funds on the way

At least $367 million in federal assistance has been approved to help Connecticut residents, businesses and towns still recovering from Hurricane Sandy, with tens of millions more thought to be on the way.

The bulk of those funds are tied to $220 million in flood insurance claims that had been paid through May 3, representing more than 96 percent of the total National Flood Insurance Program claims in Connecticut following the October 2012 storm.

Additionally, the U.S. Department of Housing and Urban Development (HUD) has set aside about $72 million in Community Development Block Grant-Disaster Recovery program funds to assist with rebuilding efforts.

Last week, the Connecticut General Assembly approved a draft plan submitted by Gov. Dannel P. Malloy that outlines how the funds should be distributed. The final plan must be submitted to HUD for approval by early June, at which point the funds will become available to the state.

The $72 million in block grant dollars represents a tiny slice of $60 billion in disaster relief funding approved by Congress in January. Of the total, $16 billion was set aside for the block grant program, whose principal aims are the restoration of housing, economic revitalization and the restoration of infrastructure.

HUD said it plans to release the $16 billion in three waves to “expedite recovery while recognizing that time is needed to get a full understanding of long-term recovery needs.”

The first wave includes $5.4 billion in block grants, with $1.8 billion going to New Jersey, $1.8 billion going to New York City, $1.7 billion going to the rest of New York state and $72 million ”“ about 1.3 percent ”“ going to Connecticut.

The department said the balance of the funds would be reserved “to address the full scope of needs when better information is available on those needs.”

U.S. and Connecticut officials have said the bulk of the block grant funds will be contained within the third wave and will be targeted at infrastructure improvements and flood prevention measures.

“It”™s our anticipation that the third tranche will be available for use on mitigation,” said Andrew Doba, a Malloy spokesman. “We”™re currently working with our federal partners to figure out what Connecticut”™s allocation will be.”

While Connecticut awaits word on its remaining share of the federal aid dollars, Doba said the state is taking other steps to ensure the appropriate safeguards are in place for the upcoming Atlantic hurricane season.

“This is the way the federal law is written, so we”™re playing by those rules at this point,” Doba said. “There”™s always concern but we do think we will see some mitigation funding and we”™ll take steps accordingly.”

Evonne Klein, newly named commissioner of the state Department of Housing, will supervise the distribution of block grant funds in Connecticut.

Of the $72 million that has been approved, $30 million will go toward the rehabilitation of owner-occupied homes, $26 million will help to repair and to build new multi-family homes and public housing projects, $4 million will go toward infrastructure improvements and $4 million will be focused on economic revitalization.

The breakdown was determined based on dozens of unmet need submissions by municipalities and public housing authorities identifying more than 190 housing, infrastructure, public and commercial developments in need of assistance.

Notably, at least 80 percent of the $72 million in grants must be spent in Fairfield and New Haven counties.

Other federal disaster assistance includes:

• Nearly $43 million in low-interest disaster loans approved by the U.S. Small Business Administration for businesses, homeowners, renters and nonprofit organizations; 
• More than $12.6 million that has been approved for housing assistance;
• About $10.5 million in federal grants for social services programs;
• More than $7 million in public assistance grants for municipalities.

 

[Editor’s note: An initial version of this article was published May 6.]