the big adeofftr - hud exchange · (over 30 ft in a some areas) 80 miles of coastline completely...
TRANSCRIPT
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The Big Tradeoff:
More Speed vs. Perfect Compliance
& Creating Viable Projects
Chuck Bearman & John Rice Mississippi Development Authority
August 19, 2015
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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
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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
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Katrina’s Wake in Mississippi
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Katrina’s Wake in Mississippi
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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
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Katrina’s Wake in New Orleans
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The Rules of the Big Tradeoff in Disaster Recovery
• 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
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The Rules of the Big Tradeoff in Disaster Recovery
• 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
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The Rules of the Big Tradeoff in Disaster Recovery
• 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
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The Rules of the Big Tradeoff in Disaster Recovery
• 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
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The Rules of the Big Tradeoff in Disaster Recovery
• 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
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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?
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The Rules at Play in Disaster Recovery
• 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?
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• SRAP – Issue 1: The impact of the National Historic
Preservation Act as an environmental requirement
• 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
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The Rules at Play in Disaster Recovery
• SRAP – Issue 1: The impact of the National Historic
Preservation Act as an environmental requirement
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• SRAP – Issue 2: Above Ground Storage Tanks
• §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
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The Rules at Play in Disaster Recovery
• SRAP – Issue 2: Above Ground Storage Tanks
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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
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The Rules at Play in Disaster Recovery
• 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