|HUD No. 21-104
HUD Public Affairs
June 21, 2021
HUD Takes Additional Steps to Free Up Long-Awaited Disaster Recovery Funds for Puerto Rico and USVI
Department publishes Federal Register notice governing the use of $2 billion in CDBG-DR for a more resilient, efficient, reliable, and sustainable electric power system in Puerto Rico and USVI
WASHINGTON - The U.S. Department of Housing and Urban Development (HUD) today published a Federal Register notice governing the use of $2 billion in Community Development Block Grant Disaster Recovery (CDBG-DR) funds for electric power system enhancements and improvements for Puerto Rico and the U.S. Virgin Islands. The publication of this notice is the latest in a series of HUD actions under the Biden-Harris Administration to support recovery and renewal in Puerto Rico and the USVI.
“Today’s announcement is an important step in addressing the recovery and resilience needs of Puerto Rico and the U.S. Virgin Islands,” said HUD Secretary Marcia L. Fudge. “By opening the door to this $2 billion in funding, HUD is enabling Puerto Rico and the USVI to improve the reliability and resilience of their electrical systems to promote environmental equity and to both withstand the impacts of climate change and contribute less to its causes.”
In 2017, Hurricanes Irma and Maria damaged significant elements of the electricity systems in Puerto Rico and the USVI. Following the hurricanes, five months of repairs were required to restore power to the USVI, and approximately eleven months of repairs were needed to restore power to Puerto Rico.
CDBG-DR funds for electrical power system improvements provide a unique and significant opportunity for Puerto Rico and the USVI to carry out strategic and high-impact activities to address necessary expenses and mitigate disaster risks to their electrical power systems; improve system reliability, resiliency, efficiency, and sustainability; and address each system’s long-term financial viability.
The Department seeks to maximize the impact of these CDBG-DR funds by encouraging the formation of public-private partnerships, partnerships with local, community, and neighborhood organizations, and through enhanced coordination with other Federal programs.
In the action plan governing the use of these funds, grantees are also required to describe how the funds will be used to address the needs of vulnerable populations, protected classes, and underserved communities; how the funded activities primarily benefit low- and moderate-income persons; and how the planned improvements will be designed and implemented to address the impacts of climate change.
Since its first days, the Biden-Harris Administration has prioritized action to enable stronger recovery for Puerto Rico and the USVI. This includes obligating long-awaited disaster recovery funds and removing onerous restrictions placed on the grants, such as incremental grant obligations, Federal Financial Monitor review, and more. With today’s Federal Register notice, ninety percent of promised funds have been obligated to Puerto Rico.