As wildfires and hurricanes continue to devastate American communities on a yearly basis, the U.S. Department of Housing and Urban Development (HUD) has increasingly become a key player in the federal government’s response to climate change. Over the past decade, HUD has allocated billions of dollars to long-term recovery projects that supplement the emergency aid provided by FEMA, which often withdraws from disaster areas after a few months. States have utilized HUD funding to rebuild essential infrastructure such as fire stations and hospitals, create new flood defenses, and purchase vulnerable homes.
When Hurricane Florence wreaked havoc on eastern North Carolina in September 2018, damaging or destroying over 11,000 homes in a matter of hours, the state directed millions of HUD dollars towards an ambitious initiative to construct affordable apartments in areas that had suffered significant housing losses. Rebuilding low-income housing post-disaster is a challenging and costly endeavor, and the HUD funding was intended to prevent displaced renters from having to relocate far away to find affordable housing.
One such project was the development of Palatine Meadows, a 60-unit apartment complex reserved for local residents earning below the median income, in the city of New Bern – the birthplace of Pepsi. However, due to a lengthy process involving setting up a program to spend the funds, selecting a site, completing extensive environmental reviews, and constructing the complex, the project faced significant delays. This delay hindered the original purpose of providing prompt and affordable housing options to storm victims, according to Mayor Jeffrey Odham.
The prolonged timeline in completing the New Bern project exemplifies a broader issue with HUD’s disaster recovery program, as stated by researcher Carlos Martín from Harvard’s Joint Center for Housing Studies. By the time states are able to use HUD funding to develop new housing, it is often too late to make a significant impact. The inefficiencies stem from the legislative process, as FEMA does not require authorization from Congress before providing disaster relief, whereas HUD must receive approval for each disaster program allocation.
Despite the challenges, North Carolina was relatively fortunate to receive over $500 million in HUD funding for Hurricane Florence recovery, allowing the state to address critical housing needs post-disaster. The state aimed to create new housing stock to better meet the needs of the recovering community, particularly in low-income areas where private investment was scarce. The involvement of HUD money was crucial in incentivizing developers to build affordable housing in regions like New Bern that had been devastated by Florence.
The process of identifying a developer, such as Woda Cooper, securing the necessary approvals, and navigating complex regulations to utilize HUD funding for the housing project was arduous but necessary to ensure compliance with environmental and other regulations. Despite the challenges, the completion of the Palatine Meadows complex is a significant step towards providing affordable housing options for storm victims, albeit belatedly.
