Federal CDBG disaster recovery funds awarded to Michigan to support long-term flood recovery efforts

Thursday, September 8, 2022

• Michigan receives $71.9 million in Community Development Block Grant (CDBG) Disaster Recovery funds from U.S. Department of Housing and Urban Development to recover from presidential-declared disasters in our state
• Grants will be awarded to communities to assist residents impacted by storms and floods in 2020 and 2021
• Public hearings scheduled to allow impacted residents to provide feedback on MEDC’s CDBG Disaster Recovery Action Plan

LANSING, Mich. – Federal CDBG disaster recovery funds totaling $71.9 million have been allocated to the Michigan Strategic Fund by the U.S. Department of Housing and Urban Development (HUD), the Michigan Economic Development Corporation announced today. The Community Development Block Grant Disaster Recovery (CDBG-DR) funds will be awarded to Michigan communities most impacted by storms to address long-term recovery, restoration of infrastructure and housing, economic revitalization, and mitigation activities.

“We are inspired by the grit and resiliency displayed by our friends and neighbors affected by these floods. It’s absolutely critical that we utilize federal funds to support these communities in recovery and growth efforts,” said Quentin L. Messer, Jr., CEO of MEDC and President and Chair of the MSF Board. “The CDBG Disaster Recovery funds will enable these affected communities to accelerate helping residents recover and make the improvements needed to remain vibrant and attractive places for businesses to invest and where people want to live, work, visit and play.”

The impacted areas of the state include: Gladwin and Midland counties, which experienced days of heavy rain and severe storms in May 2020; Also in Midland County, the heavy rain resulted in the catastrophic failures of the Edenville and Sanford Dams, with both dams collapsing on May 19, 2020; Arenac, Gladwin, Iosco, Midland, and Saginaw counties, which experienced significant lakeshore and river flooding in July 2020; and Wayne County, where widespread rainfall following weeks of drought conditions caused major flooding, damaging wind, and tornado threats in June 2021.

Hearings scheduled in impacted communities for public input on MEDC Action Plan

Community input is essential for MEDC to finalize its CDBG-DR Action Plan detailing how the funds will be awarded. MEDC will present its draft Action Plan for public feedback at hearings in impacted communities on the following dates:

  • Sept. 13 – Thomas Township
  • Sept. 14 – Midland
  • Sept. 15 – Gladwin
  • Sept. 20 – Dearborn Heights

After a 30-day public comment period, MEDC will respond to all comments, incorporate feedback into the plan, and submit the Action Plan to HUD for review and approval. MEDC will consider any comments or views of citizens and units of general local government received either in writing or orally in preparing the final CDBG-DR Action Plan. To learn more about the hearings, visit here. To view the action plan, visit here.

At least 80 percent of the CDBG-DR funds must be spent in Midland, Saginaw, Gladwin, and Wayne counties, which HUD defines as the most impacted and distressed. The remaining 20 percent of funds may be used in other presidentially disaster-declared counties, including Arenac and Iosco County.

At least 70 percent of the total CDBG-DR funding must go toward projects that will directly benefit low- and moderate-income persons or that serve a majority (more than 51 percent) of these residents. At least 15 percent of funds must be used for mitigation projects that strengthen recovery efforts from disasters and reduce or eliminate the long-term risk of loss in future disasters.

Following public input, MEDC will submit the final plan to HUD and a timeline will be provided for allocation and expenditure of the funds. Updates will be posted to the CDBG Disaster Relief page at https://www.miplace.org/programs/community-development-block-grant/disaster-relief/.

About Michigan Economic Development Corporation (MEDC)

The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org. For Pure Michigan® tourism information, your trip begins at www.michigan.org. Join the conversation on: Facebook Instagram LinkedIn, and Twitter.