Despite receiving grants worth $981.8 million from the Department of Housing and Urban Development (HUD), the North Carolina Office of Recovery and Resiliency (NCORR), also known as ReBuild NC, has halted its Homeowner Recovery Program (HRP) for the victims of Hurricanes Matthew and Florence, which struck eight and six years ago, respectively.

Inexplicably, NCORR generated an estimated $319 million budget deficit while only completing homes for 68 percent of the families in the HRP. Now, with 1,364 homes damaged by Matthew and Florence still left to complete, the victims of Hurricane Helene have been placed at the back of the line, waiting on NCORR to handle those unfulfilled promises.

Helene’s Financial Impact

The Office of State Budget and Management (OSBM) has estimated Helene’s financial impact to be $59.6 billion. For perspective, Florence’s financial impact was $16.7 billion. As depicted in Table 1, the estimated financial impact is grouped into three categories: direct damage, indirect damage, and investments in minimizing future losses.

Cooper’s Funding Recommendation

As shown in Table 2, Governor Roy Cooper has requested that the state allocate $3.9 billion and expects another $6.3 billion in private funding for the Helene recovery. The state has also requested $25.6 billion from the federal government. While the request for $25.6 billion is probably optimistic, many policymakers believe the state will soon receive billions of dollars from the federal government.

Interestingly, of the $3.9 billion Cooper recommended in state funding, only $3.5 billion is for the Helene recovery. The remaining funds go to “other disasters,” most of which – $375 million – is for NCORR to cover its budget deficit for Matthew and Florence.

Recommended Funding for Housing

Within the $3.5 billion Cooper recommended for the Helene recovery, $650 million is devoted to housing. However, it is worth noting that only $325 million would be used to repair or replace homes for the direct victims of Helene.

Surprisingly, Cooper recommended spending $50 million of the $650 million on affordable housing. Unfortunately, this demonstrates the same warped priorities that NCORR displayed when it spent $54.3 million on 752 affordable housing units before completing homes for Matthew and Florence victims.

Of the $25.6 billion requested from the federal government, $5.7 billion is in HUD grants, which will be the primary funding source of the Helene HRP. While it is unlikely that we will receive all $5.7 billion, based on the extent of housing damage, more than $1 billion from HUD is probable.

Recovery Efforts to Date

As demonstrated in Table 3, state policymakers have passed three disaster recovery bills for Helene amounting to $1.13 billion to provide relief in the early stages of recovery.

Furthermore, the Federal Emergency Management Agency (FEMA) has provided more than $800 million for early relief and response efforts. Millions of dollars have also been donated to the North Carolina Disaster Relief Fund, and tens of thousands of people have volunteered their labor through nonprofits to aid in the recovery.

No More NCORR

In North Carolina, we want to be known for our beautiful beaches, majestic mountains, and low tax rates, not for our inability to help vulnerable families devastated by natural disasters. Unfortunately, NCORR has unquestionably demonstrated that it cannot fulfill its primary mission of helping hurricane victims return to their homes. 

This time, the state will likely receive billions of dollars in HUD grants for rebuilding efforts. If this money goes to NCORR, given their poor track record, we can expect Helene victims to be still waiting for help in 2030. That is why it is of the utmost importance that NCORR is not the organization that administers these funds.

Unfortunately, the General Assembly will need to provide additional funding so that the remaining 1,364 homes for the victims of Matthew and Florence can be completed. Whether NCORR is dissolved now or after these homes are completed warrants further discussion by legislators.

Policy Alternative

Rebuilding efforts for Helene should not be delayed until the homes of the Matthew and Florence victims are completed. Instead of placing Helene’s victims at the back of the line, we should create a new line specifically for them. Furthermore, direct damage, such as destroyed homes, should be addressed before spending funds on other projects.

Instead of NCORR, a smaller agency within the Department of Commerce should be established to administer HUD grants for Helene. The agency should contract rebuilding efforts with for-profit and nonprofit organizations with successful histories in disaster recovery.

For example, IEM International managed a $252 million HUD grant for the state of Florida to rebuild after Hurricane Irma. During the contract, IEM International stayed on budget and completed 96 percent of homes on schedule. Moreover, IEM International has been involved in every disaster recovery HUD grant larger than $1.5 billion since 2005.

On top of awarding contracts, the new agency should:

  • Be directed by someone with experience in the construction industry
  • Provide consistent reporting on expenditures and outcomes
  • Include decentralized teams that aid local governments
  • Be annually audited by the Office of the State Auditor

With a new year approaching, it is time to turn the page on NCORR. The resilient people in the western part of our state deserve better.