The Government Accountability Office (GAO) recently conducted a report to study the impact of the Community Development Block Grant (CDBG) disaster program in Louisiana and Mississippi. In particular, GAO was asked to report on (1) how Louisiana and Mississippi allocated their shares of CDBG funds, (2) what difficulties Louisiana faced in administering its housing recovery program, and (3) what human capital challenges Louisiana and Mississippi encountered and the efforts taken to address those challenges. GAO recommends that the Secretary of Housing and Urban Development (HUD):
- issue written CDBG disaster assistance program guidance that articulates an acceptable rehabilitation versus compensation program, including, among other things, explanation of program elements that trigger federal environmental reviews and
- coordinate with the Federal Emergency Management Agency (FEMA) to clarify options and limits of using CDBG funds with other disaster-related federal funds. HUD partially agreed with the recommendations, citing concerns about the content and timing of new guidance. GAO believes such guidance would better aid states’ housing recovery efforts.
