Emergency Home Repair Loans: Local Government as Financial Bridge

<p>While the response to Hurricane Helene continues, local governments are looking ahead to the long road to recovery. In a report issued by the North Carolina Office of State Budget and Management (OSBM), Hurricane Helene Recovery Recommendations: Preliminary Damage and Needs Assessment, OSBM notes that successful recoveries in the past have managed to “quickly mobilize significant, flexible capital and proactively invest in local capacity and expertise to support post-disaster efforts.” (p. 12)</p> <p>The investment in home repair following Helene will be substantial. OSBM reports that the U.S. Small Business Administration (SBA) has registered thousands of homeowners and renters for low-interest disaster loans, and more than 200,000 households are expected to apply for individual assistance. (p. 25) OSBM estimates that the region has suffered more than $12.2 billion in damage across more than 120,000 homes. (p. 25) Less than 10% of affected owners reported having flood insurance—meaning private insurance will cover only a small fraction of repair costs. (p. 27) Government aid, philanthropy, and owners will need to cover the rest.</p> <p>If past recovery efforts are any guide, there will be a significant time lag before federal disaster recovery funds start flowing. OSBM reports it took nearly two years after Hurricanes Matthew and Florence for the state to receive disaster recovery block grants (CDBG-DR), “yet, recovery needs to start immediately.” (p.33) The advantage this time around is that the NC Office of Recovery and Resiliency (NCORR) is already in place, whereas that office had to be created after Matthew and Florence. Regardless, State-led efforts will require time [...]</p>