Marshall Fire Community Development Block Grant Disaster Recovery Program

Coming soon

For Housing recovery efforts, eligible applicants include persons who owned a disaster impacted home as their primary residence, and landlords of small rental properties, at the time of an eligible federally-declared disaster  Eligible property types include: single-family residences, duplexes, townhomes or condominiums, and manufactured homes or mobile homes permanently affixed to permanent foundations and taxed as real property that sustained major or severe damage.

What is the affordability period for rental properties?
Landlords will be able to apply for rebuilding assistance once HUD approves the CDBG-DR Action Plan and those funds are grant/forgivable loan to the State.  Receipt of this assistance is conditional on maintaining affordable rents for a period of at least 5 years and in accordance with the Division of Housing current guidelines.

Is there a timeframe for expenses?
CDBG-DR funds in Boulder County are eligible to reimburse recovery expenses from the federal disaster declaration on December 31, 2021.

Are second homes or vacation homes eligible for funding?
No. These funds are only available for homes that were used as primary residences at the time of the disaster. Second homes and short term rental properties are not eligible for this program.

Are Manufactured Homes eligible for funding?
Manufactured homes (called mobile homes prior to 1967) are eligible for HRP funds. Expenses related to manufactured homes include repairs to roofing, skirting, tie-down anchors, utilities, and the structure of the manufactured home. Eligible expenses also include the replacement of a manufactured home that is not habitable due to the disaster and cannot meet current life, safety, and building codes.

Are permitting fees and use taxes eligible expenses?
Yes, the rebuilding cost calculation is inclusive of permitting fees and sales and use taxes; 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's maximum grant/forgivable loan and loans.

What is the difference between standard and custom construction?
Standard quality reconstruction or renovation work is used to develop estimates. Should a contractor estimate or a bid be developed using custom or premium furnishings or finishes, those items will be adjusted downward to mirror the price of standard quality elements in developing the projected cost of reconstruction or renovation. Any premium construction will be at the homeowner’s expense; however, fire and wind mitigation costs are considered legitimate rebuilding costs and are not considered ‘custom or premium’ construction for the purposes of estimating rebuilding costs.
 

How can I apply?
Go to https://cedproject.org/rebuild/ to fill out an application.

Who can help me with my eligibility and application questions?
For inquiries regarding the application process, eligibility, or individuals seeking information about the State’s Housing Recovery Program, you can connect with a representative by calling or texting 303-532-2785 Monday through Friday 8:30 a.m. - 5:00 p.m. MST or emailing rebuild@cedproject.org.

 
What documents will I need to apply for funding?
A comprehensive list of required background documents to apply for funds has been developed. To get ready to apply, you may begin compiling the following:

1. 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)
2. Proof of residency in the property on the date of the state-declared disaster (e.g., utility bills). 
3. 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)
4. Home/hazard insurance claim/disbursement letter/check, and if a federally declared disaster, FEMA award/denial letter and disbursement statement
5. SBA award/denial letter and disbursement statement, If a federally declared disaster, and applicable
6. Documentation of any other loans/grants/gifts received as financial assistance for rebuilding the home
7. Documentation of rebuilding or repair cost estimates received from contractors
8. Additional documentation may be required based on your personal circumstances
    

Award Information
CDBG-DR funds come in the form of a grant/forgivable loan. The maximum eligible grant/forgivable loan amount is dictated by the income level of the applicant.

* Area Median Income (AMI) varies by County and is also dependent on household size. To find the income limits that apply to you, please click here. Household income is based on the current income at the time of application.

What is the maximum award?
The maximum CDBG-DR award is $100,000. The amount of grant/forgivable loan assistance available is dependent on the income level of each household, with lower-income households eligible for more grant/forgivable loan funding.

How is the award calculated?
Each award 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 (for loans), or any other grant/forgivable loan or federally subsidized loans received.

The difference between the cost to rebuild and the other funding sources becomes the ‘gap.’

The eligible award amount is the lesser of this gap and maximum award amounts (grant/forgivable loan 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 the grant/forgivable loans are due to the limited amount of funds available.

What are eligible expenses for housing rehabilitation and reconstruction?
The award will be based on standard construction, rehabilitation, reconstruction, replacement, or new construction, and associated elevation and demolition. Eligible expenses include:

1. Direct costs of repairs or reconstruction of a damaged or destroyed primary residence or affordable housing, including costs to rebuild to an advanced fire or other natural hazard mitigation standard;
2. Architectural, engineering, permitting, or other soft costs/fees associated with repairing or rebuilding a primary residence or affordable housing;
3. Soil sampling and air quality monitoring;
4. Clearance and demolition costs including concrete and other foundation material removal and removal of hazardous materials including asbestos;
5. Private road or bridge repair if necessary to access a primary residence or affordable housing;
6. Costs associated with using a building and site design measures that reduce risk to natural hazards including fire-resistant building materials and landscape design; 
7. Costs to replant climate-ready trees and vegetation;
8. Temporary rental assistance during relocation, rebuilding, or recovery work; and
9. Other recovery costs not covered by other sources will increase resilience to future disasters.

The eligible costs listed above are intended to be site and property specific except for #5 where a private road or bridge off-site may be necessary to access a primary residence. Work to clear the site, design and permit the replacement home or affordable housing, build the home or affordable housing and implement building and site measures to reduce risk to natural hazards and the other costs listed above are eligible.

Can I change the footprint of my home if I receive CDBG-DR funds? 
For rehabilitation and reconstruction costs, grantees may only charge costs for activities completed substantially within the same footprint of the damaged structure, sidewalk, driveway, parking lot, or other developed area. Exceptions may be made on a case-by-case basis if the size increase is required to meet current code or to provide accessibility accommodations for elderly or disabled residents.

Are permitting fees and use taxes covered under this program?
Yes, the rebuilding cost calculation is inclusive of permitting fees and sales and use taxes, 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's maximum grant/forgivable loan and loans.

What if I already have a Small Business Administration (SBA) loan?
If the household is eligible for a grant/forgivable loan, they may be able to reduce the amount of their SBA loan. Households above 150% AMI who already have an SBA loan will not be prioritized. If funds are available and a documented gap exists, there may be funds available in later rounds of funding.

What is the Recovery and Electrification Program?
An energy performance upgrade opportunity exists with funding provided by SB22-206 through the Colorado Energy Office (CEO). CEO has provided DOLA with funding to implement a high-efficiency electrification rebate program. The Recovery and Electrification Program is a $10,000 rebate available for high-efficiency electric primary homes or long-term rental units that are built to the 2021 International Energy Conservation Code standards statewide or a stronger standard as applicable. 

Any homeowner whose home was damaged or destroyed in a disaster and is rebuilding or repairing at the same location is eligible for this rebate. The rebate is available upon issuance of a certificate of occupancy by the local jurisdiction or other certification method that confirms the installation of the high-efficiency equipment.

A $10,000 rebate is available for households that have installed and made operational:

1. NEEP certified cold climate heat pump or ground source (geothermal) heat pump;
2. An electric-resistant or induction stove; and
3. A heat pump water heater.
    

What is the difference between State and Federal funding?
From the household perspective, there is little difference as there is one application for HRP program funds, and if awarded funds, applicants will be funded from the most appropriate source.  One application is required to be considered for both State and Federal funds.

The federal dollars come with additional requirements, particularly in the area of environmental review, building requirements, and income eligibility requirements.  In general, the grant/forgivable loan for moderate and lower-income households will be federally funded, and the traditional loan funds will come from state funds.  Individual exceptions will occur based on the ability to meet all federal requirements and the availability of funds from each source.

What is the background on this CDBG-DR allocation?
The U.S. Department of Housing and Urban Development (HUD) announced that the State of Colorado will receive $7,415,000 in funding to support long-term recovery and mitigation efforts following the 2021 Marshall Fire and Straight Line Winds event in Boulder County (DR-4634) through Colorado’s Department of Local Affairs (DOLA). Community Development Block grant/forgivable loan – Disaster Recovery (CDBG-DR) funding is designed to address the needs that remain after all other assistance has been exhausted.

What, if any, requirements are there for the use of the CDBG-DR funds?

• 70% of housing rehab and reconstruction dollars will be limited to LMI applicants (the other 30% can serve those up to 120% of AMI).
• 100% of the Wind and Wildfire mitigation program will go toward LMI households.
• 30% of the Local Government Mitigation Assistance must go to projects that meet LMI area benefit.