Marshall Fire Disaster Recovery

Will those who have major income changes due to the fire qualify for lower income
brackets?

The income is based on the date of the time of application and not at the time of the disaster. This will allow for those major changes to income to be shown.

What do you consider "duplication of benefits"?

A duplication of benefits (DOB) occurs if an individual, business, or government entity receives assistance for a specific purpose from multiple sources that exceeds the need for that particular purpose. For example, if a homeowner needs $50,000 to repair their home and they receive $5,000 from insurance and $20,000 from FEMA, the maximum amount of money they can receive from another federal source for home repairs is $25,000. The funds also must be spent on what they were intended for – a citizen will have a DOB if they buy a new car with money they received to repair their home. Stafford Act for Community Development Block Grant (CDBG) Disaster Recovery Grantees’’ (84 FR 28836) (‘‘2019 DOB Notice’’)

Are you going to 1099 funds you give to individuals who receive grant funds?

No. A Form 1099-MISC reporting the payment would be required if the payment constituted income to the recipient. In this case, because the payment is not income, no Form 1099-MISC or other information return is required to be filed with the IRS or furnished to the recipient.

Will insurance funds households have received be counted towards income when we apply?

Those funds will not count towards your income, but it will be included in the DOB calculation. The total assistance you receive from all programs and insurance combined cannot exceed the fair market value(FMV) of your property before the disaster occurred.

Where do I go to get information about the CDBG-DR Program?

Please visit DOLA’s Disaster Recovery webpage or the Marshal Fire Disaster Recovery webpage.

How will low-and-moderate-income households benefit from the grants?

The Federal Register, Vol. 87, No. 100, May 24, 2022 requires that 70% of CDBG-DR funds must be used for activities that benefit persons of low- and moderate-income. The provision can only be waived by the Secretary of HUD, and even then, only when a compelling need is specifically identified.

Will there be CDBG Disaster Recovery funds available for homeowners who fall outside the low-and-moderate-income threshold?

The State is required to prioritize serving low and moderate income households in its housing recovery programs. However, in order for the State to serve those whose income is above 80% of the area median income, there are funds available in the DRR programs for those who fall outside of the HUD definition of low-to-moderate income

How do you determine the household size?

The State will use HUD’s HOME Program guidelines in determining household size at 24 CFR 92. HUD says that, as a general rule, you must include “all persons living in the unit” when determining household size. HUD guidelines provide occupancy policies that allow for two persons per bedroom as reasonable There are exceptions, however, such as children away at school. Please reference 24 CFR 92, HUD Handbook 4350.3, and Disaster Recovery Homeowner Rehab Housing Program Guidelines for more information.

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. 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 $100,000 cap on housing related CDBG-DR grant programs 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 

Which areas are eligible for CDBG-DR funding?

structures that were damaged or destroyed during the 2021 Marshall Fire & Straight-Line Winds. This includes all of Boulder County.

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 August or early September.

What documents do I need to apply for?

Program staff are developing a single application and a single, comprehensive list of background documents necessary to apply for CDBG-DR 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:

• Contact information
• Agreement to share information
• Address, city, state, ZIP
• Mailing address same as current address
• Citizenship status
• Ever serve or currently serving in United States Armed Forces?
• Any dependents?
• Current employment status/company?
• If employed, title, income, self-employed or owner, date employment began?
• Other income ?
• Applying for funds jointly/singly
• Asset information
  • 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)
• Other monthly expenses?
• Own real estate other than subject property?
• Will you occupy the property as your primary residence?
• Are you borrowing any money from this real estate transaction or obtaining any money from
  another party that has not been disclosed on this application?
• Have you or will you apply for a mortgage loan on another property on or before closing this
  transaction not disclosed on this application?
• Have you or will you be applying for any new credit on or before closing this loan not disclosed on this application?
• Will this property be subject to a lien that could take priority over the first mortgage lien, such as a clean energy lien paid through your property taxes?
• Are you a co-signer or guarantor on any debt or loan that is not disclosed on this application
• Are there any outstanding judgments against you?
• Are you currently delinquent or in default on any federal debt?
• Are you party to a lawsuit in which you potentially have any personal financial liability?
• Have you conveyed title to any property in lieu of foreclosure in the past 7 years?
• Within the past 7 years, have you completed a pre-foreclosure sale or short sale, whereby the
  property was sold to a third party and the Lender agreed to accept less than the outstanding mortgage balance due?
• Have you had property foreclosed upon in the last 7 years?
• Have you declared bankruptcy within the past 7 years?
• 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

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. 

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. We anticipate CDBG-DR funds, specifically, to be available by early January 2023 but the application will open earlier. Additionally, please visit DOLA’s Disaster Recovery webpage or the Marshal Fire Disaster Recovery webpage.

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

Information on the program for areas not impacted by the Marshall Fire can contact DLG directly at 303-864-7720. Information on the application process will be available in 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.

Who is eligible to receive CDBG-DR funding for housing rehabilitation and reconstruction?

To be eligible for the program, homeowners must meet the following criteria:

• The damaged property must have sustained damages as a result of the 2021 Marshall Fire and Straight Line Winds event and be within Boulder County.
• Must have been the owner-occupant of the damaged property at the time of the disaster.
• The damaged property must have been the applicant’s primary residence at the time of the disaster.
• The damaged property must be an eligible structure as defined in the program guidelines, including, but not limited to, single-family residences, manufactured and mobile homes, or townhomes and condominiums. Manufactured and mobile homes on leased land or commonly
• held property are eligible.
• Homeowners associations or townhomes can apply on behalf of their residents for rebuilding funds provided that funds requested do not exceed the maximum award on a per-unit basis. 51% of the units must house LMI households in order to qualify under the LMI National Objective.

What is the maximum award for housing rehabilitation and reconstruction?

For any one household, the maximum grant award is $100,000.

What activities are eligible for housing rehabilitation and reconstruction?

Costs covered will include any architectural or permitting costs. The award will be based on standard construction. Rehabilitation, reconstruction, replacement, or new construction, and associated elevation and demolition.

What activities are not eligible for housing rehabilitation and reconstruction?

Any premium construction will be at the homeowner’s expense. Due to federal restrictions, homeowners who want to expand the existing footprint of their home will not be eligible for CDBG-DR funding.

Who is eligible to receive CDBG-DR funding for rental rehab?

To be eligible for the program, landlords and their rental property must meet the following criteria:

• The damaged property must have sustained damages as a result of the 2021 Marshall Fire and Straight Line Winds event and be located within Boulder County.
• Property owners must have been the owner of record of the damaged property on December 31, 2021.
• The property owner or group of owners must have been a resident or jurisdiction-based business or nonprofit organization authorized to operate in the State on December 31, 2021. Property owners do not have to reside in the State at the time of application to be eligible. 
• Properties that sustained disaster damage of at least $5,000 as verified by a visual inspection or a 3rd party verification, including FEMA, Insurance, USDA or County estimates.
• The damaged property must be an eligible structure as defined in the program guidelines, including, but not limited to, single-family residences, duplexes and other residential buildings consisting of 4 units or less, manufactured and mobile homes, or townhomes.

What is the maximum award for rental rehab?

For any one household, the maximum grant award is $100,000.

What activities are not eligible for rental rehab?

Any premium construction will be at the homeowner’s expense. Due to federal restrictions, homeowners who want to expand the existing footprint of their home will not be eligible for CDBG-DR funding.

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. 

Is there a period of affordability required if funds are used for rental rehab?

Yes, all rental units that receive an incentive from the Rental program must be rented to a low- to moderate- income individual or family. Units must be affordable to renters earning 80 percent of AMI or less for a time period consistent with HUD’s HOME Investment Partnership Program requirements as defined in 24 CFR 92.252.

Who is eligible to receive CDBG-DR funding for the Wind & Wildfire Housing Mitigation Program?

Households will be able to apply through two avenues:

• Local governments can apply as part of a county or municipality wide initiative to provide home hardening measures to mobile homes or,
• Individual households may opt in to the program when they apply for rebuilding funds through the homeowner rehabilitation and recovery program.

What is the maximum award for the Wind & Wildfire Housing Mitigation Program?

The maximum award per household is $11,000 and up to $370,000 for nonprofits and local governments.

What activities are eligible for the Wind & Wildfire Housing Mitigation Program?

This program's eligible expenses include engineering fees, labor, and materials to properly install tiedowns to stabilize manufactured homes. Other eligible expenses include qualifying home-hardening improvements for single family homes that make a home more resistant to damage from a wildfire. Improvements include, but are not limited to:

• using materials for siding and/or roofing that resist ignition during a wildfire
• installing fire resistant windows to protect openings
• using attic ventilation devices that help reduce ember intrusion
• wind mitigation which impacted hundreds of homes in the MID area

Who is eligible to receive CDBG-DR funding for the Infrastructure Assistance Grant Program?

Local governments can apply as part of a county or municipality wide initiative.

How are projects selected?

The Long Term Recovery Working Group (LTRWG) will establish an Advisory Committee to identify and prioritize mitigation projects informed by the approved local hazard mitigation plans and other local priorities in consultation with the Division of Homeland Security and Emergency Management.

What is the maximum award for the Infrastructure Assistance Grant Program?

The maximum award is equal to the allocation of $267,000.

Who is eligible to receive CDBG-DR funding for the Resilience Planning, Education & Capacity Building Grant Program?

City of Louisville, Town of Superior, and Boulder County. These funds can support plan development and capacity building consistent with 24 CFR §570.205.

What is the maximum award for the Resilience Planning, Education & Capacity Building Grant Program?

The maximum award is equal to the program allocation of $330,000.