Disaster Resilience Rebuilding Program

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Disaster Resilience Rebuilding

The Disaster Resilience Rebuilding Program consists of two components, a grant program and a loan program.  The Resilience Rebuilding Grant (RRG) provides funding to qualifying homeowners for rebuilding homes in the wake of wildfires, high winds, floods, and other state and federally declared disasters. The aim is to promote rebuilding in accordance with high performance building standards adopted by local communities and voluntary sustainable building elements that exceed local code requirements, including the incorporation of fire-resistant building materials and energy efficiency measures.  

The loan fund is for eligible households that do not income qualify for the grant, but still require additional resources to rebuild their home. Together, this program aims to help Coloradans who have been affected by natural disaster not only rebuild their homes, but produce healthier, safer and more resilient homes throughout the state.

The first phase of this program focuses on rebuilding owner-occupied homes. Other phases will follow if funding is available. 

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Program Overview

For: Qualifying homeowners for rebuilding homes in the wake of wildfires, high winds, floods, and other state and federally declared disasters.

First phase focus: For the first phase rebuilding owner-occupied homes will be the focus. Other phases will follow.

Application availability: Applications and additional details are being developed and will be available in October.  Information will be available through the Boulder County Recovery Navigators and this website.

Partners: The Colorado Department of Local Affairs including the Division of Local Government and the Division of Housing are working together with the Colorado Energy Office on this program. 

Electrification Incentives: In addition to the grants and loans described here, additional funding is available through the Colorado Energy Office’s Sustainable Rebuilding Program, providing a $10,000 rebate for households that include an induction stove, electric water heater, and an air source heat pump in their reconstruction. 

Hazard Mitigation Funding: All grant recipients must rebuild to current building code standards for their community.  Additional funding may be available for additional mitigation measures beyond currently adopted building codes to include improvements in mitigation design elements and construction. 

Ask a Question about the Disaster Resilience Rebuilding Program

Print a PDF copy of the program FAQs

 
What is the Disaster Resilience Rebuilding (DRR) Program? 

Governor Polis signed Senate Bill 22-206 into law on May 17, 2022 and created three new efforts in Colorado including:

  • Disaster Resilience Rebuilding Program
  • Sustainable Rebuilding Program
  • Office of Climate Preparedness

The Disaster Resilience Rebuilding Program is a loan and grant program that supports rebuilding in accordance with high performance building standards adopted by local communities and voluntary sustainable building elements that exceed local code requirements, including the incorporation of fire-resistant building materials and energy efficiency measures. This program aims to help Coloradans who have been affected by natural disasters not only to rebuild their homes, but to produce healthier, safer and more resilient homes throughout the state.

 

Will funds be available for businesses, landlords and local governments?

In this first phase of the Disaster Resilience Rebuilding Program only owner-occupied residences are eligible for funding. In later phases, persons who own rental properties, housing authorities, impacted businesses, non-profit organizations and governmental entities including tribal governments may apply pending the availability of funds.  

Due to the large impact to housing stock in the most recent disasters, funds are being prioritized for those who lost their primary residence homes. 

 

How will my award be determined?

The award for these funds is intended to help fill the underinsurance gap and enable households to rebuild their homes in a more resilient manner. It is based on a standard rebuilding cost for the home, less insurance received (plus the deductible), Federal Emergency Management Agency (FEMA) assistance for rebuilding, Small Business Administration (SBA) assistance, or any other grants or federally subsidized loans received.

Note that the rebuilding cost calculation is inclusive of permitting fees and sales and use taxes. That difference between the cost to rebuild and the other funding sources becomes the ‘gap’. The eligible amount is the lesser of this gap and maximum award amounts (grant plus loan). The reason for the ‘gap’ determination is that federal law prohibits households from receiving more assistance than is needed for the intended purpose. The $50,000 cap on Disaster Resilience Rebuilding loan is due to the limited amount of funds available.

 

Are Permitting Fees and Use Taxes covered under this program?

Permitting fees and use taxes are a part of the overall rebuilding costs and are included in the rebuild estimate.  Therefore it is a reimbursable expense to the extent that it is included in the calculation of the underinsurance gap.  

These costs are still subject to the overall program maximum grants and loans.

 

When will the program be available and how do I apply?

Program guidelines and application documents are being developed as quickly as possible and should be available in October.

 

Who is eligible to apply?

Eligible applicants for the first phase of funding include persons who owned a disaster-damaged home as their primary residence at the time of the state-declared disaster.

 

Which disasters are eligible? 

There have been a total of 29 state declared disasters since 2018. However, only the disasters that resulted in a loss of residential structures are eligible during the first phase of the Disaster Resilience Rebuilding Program. The nine state-declared disasters that resulted in the loss of housing and the number of residences lost (X) since 2018 are: 

  • 2018 Spring Creek Fire - Costilla & Huérfano Counties (141)
  • 2018 Chateau Fire - Teller County (10)
  • 2018 Lake Christine Fire - Eagle County (5)
  • 2019 Avalanche Debris and Flooding Risk - Hinsdale County (1)
  • 2020 Cameron Peak Fire - Larimer County (200)
  • 2020 East Troublesome Fire - Grand County (401)
  • 2020 Calwood Fire - Boulder County (24)
  • 2021 Muddy Slide Fire - Routt County (8)
  • 2022 Marshall Fire & Straight-Line Winds - Boulder County (1,084)
     
What documents do I need to apply?

The application and list will be available in October.

Program staff are developing a single application and a single, comprehensive list of background documents necessary to apply for Disaster Resilience Rebuilding funds as well as other funds that may be available to those impacted by the state-declared disasters. To get started you may begin compiling the following:

  • Government issued identification
  • Proof of ownership of the property current and back to the date of the state declared disaster (e.g., title and/or property tax record)
  • Proof of residency in the property on the date of the state declared disaster (e.g., utility bills)
  • Proof of income for adults in the home (e.g., pay stubs, bank statements showing pay deposits, social security/disability/retirement fund statements, or self-owned business account statements)
  • Home/hazard Insurance claim/disbursement letter/check
  • (If a federally declared disaster) FEMA award/denial letter and disbursement statement
  • (If a federally declared disaster, and applicable) SBA award/denial letter and disbursement statement
  • Documentation of any other loans/grants/gifts received as financial assistance for rebuilding of the home
  • Documentation of rebuilding or repair cost estimates received from contractors

 

How will my award be determined?

The award for these funds is intended to help fill the underinsurance gap and enable households to rebuild their homes in a more resilient manner. It is based on a standard rebuilding cost for the home, less insurance received (plus the deductible), Federal Emergency Management Agency (FEMA) assistance for rebuilding, Small Business Administration (SBA) assistance, or any other grants or federally subsidized loans received. That difference between the cost to rebuild and the other funding sources becomes the ‘gap’. The eligible amount is the lesser of this gap and maximum award amounts (grant plus loan). The reason for the ‘gap’ determination is that federal law prohibits households from receiving more assistance than is needed for the intended purpose. The $50,000 cap on Disaster Resilience Rebuilding loan is due to the limited amount of funds available.

 

What are the loan terms and how was it established?

The intent of the loan was to be comparable to the Small Business Administration (SBA) Home Disaster Loan for those that were not able to access an SBA loan.  The terms are comparable at 1.5% with a 30 year term (the actual APR will vary depending on final loan amount).

 

What if I already have a Small Business Administration (SBA) loan?

The amount of assistance from SBA would be subtracted from any award (grant and/or loan) amount. Because the SBA typically provides $240,000 to fill the rebuilding gap, most SBA recipients will not be eligible.

 

Can I get funds to rebuild a second home or vacation home?

No. These funds are only available for homes that were used as a primary residence at the time of the disaster.

 

Who do I contact if I need assistance and clarifications on the program funding for Marshall Fire recovery?

Information on this program will be available through Boulder County’s Recovery Navigators for the Marshall Fire, who will be able to answer your questions or refer you to the appropriate provider.  

Recovery Navigators are in place and can be accessed by calling 303-446-7782 or going to the Boulder County website at: https://bouldercountynavigatingdisaster.gov/.  

The Department of Local Affairs anticipates funds to be available in October of 2022. 

 

Who do I contact if I need assistance and clarifications on the program funding for other state disasters?

For other areas, contact DLG directly at 303-864-7720 until we have an application process in place. Information on the application process will be available in August or September. 

Meanwhile, if your questions are not answered through this FAQ, please complete the form below. We anticipate funds to be available by late September to October of 2022.

Question Form

Eligible Applicants

Eligible applicants for the first phase of funding include persons who owned a home as their primary residence at the time of the state-declared disaster. Eligible property types include: single family residences, duplexes, townhomes, and manufactured homes permanently affixed to permanent foundations and taxed as real property that sustained major or severe damage.  

The applicant must be the current subject property owner of record on the disaster date and the property must have served as the primary residence of the owner at the time of the disaster. Ownership will be verified through public records, warranty deeds and real estate tax records. Second homes are not eligible.  At this time, rental and multifamily properties are not eligible for assistance through this program.

 

State-declared Disasters

The first phase of this program is available to areas impacted by declared Colorado disasters since 2018 where owner-occupied housing was lost or severely damaged. Those nine state-declared disasters include:

2018 Spring Creek Fire (141)

  • Costilla & Huérfano Counties

2018 Chateau Fire (10)

  • Teller County                

2018 Lake Christine Fire (5)

  • Eagle County                 

2019 Avalanche Debris and Flooding Risk (1)

  • Hinsdale County

2020 Cameron Peak Fire (200)

  • Larimer County

2020 East Troublesome Fire (401)

  • Grand County

2020 Calwood Fire (24)

  • Boulder County

2021 Muddy Slide Fire (8)

  • Routt County

2022 Marshall Fire and Straight-Line Winds (1,084)

  • Boulder County

Applicants will be eligible for a combination of grant and loan not to exceed the lesser of the award determination or $50,000.

Grant and Loan Amounts

The grant and loan amount combined cannot exceed the award determination, which is based on a standard rebuilding cost for the home, less insurance received (plus the deductible), Federal Emergency management Agency (FEMA) assistance for rebuilding, Small Business Administration (SBA) assistance, or any other grants or federally subsidized loans received.
 

Area Median Income Maximum Grant Amount Maximum Loan Amount
< 80% AMI Up to $100,000 Up to $50,000
81-100% AMI Up to $75,000 Up to $50,000
101-120% AMI Up to $50,000 Up to $50,000
121-150% Up to $25,000 Up to $50,000
> 150% AMI NA Up to $50,000

1Area Median Income (AMI) varies by County. A limitation on available liquid assets also applies.

Area Median Income Table

Area Median Income Table
The Area Median Income (AMI) of each of the affected counties is used to determine the maximum grant or loan amounts. Please use this table for AMI levels in counties with state-declared disasters since 2018 where residential properties were impacted.

To find your income level and eligibility take the following steps:

  1. Find your county.
  2. Find the column that represents your household size (including children and any non-family members who live there permanently).
  3. Based on your annual income, read down the column until you get to the first dollar amount that equals or exceeds the annual combined income of all household members.
  4. Follow that row to the left and the first column will indicate your AMI level (80%, 100%, 120%, 150% or greater than 150%).  This dictates how much grant you are eligible for.

All income levels are eligible for the loan pending availability of funds.

Area Median Income Table