Making sense of federal, state and local funding
Updated on 3/20/2025
Hurricane Helene caused unprecedented damage in Western North Carolina, including to the region’s housing. About 4,400 homes were destroyed, nearly 22,000 experienced major damage and another 150,000 reported moderate to minor damage, according to FEMA data in the most recent disaster recovery report by the North Carolina Office of State Budget and Management.
A February 20 report from that office includes an updated total estimate of 185,000 homes damaged or destroyed, and states that 96% of residents who suffered flood damage lacked flood insurance, representing an estimated $9.2 billion in uninsured property loss.
Out of the $60 billion in damages estimated by state officials, about $15 billion is needed for housing. While insurance and private donations play a role in some of that, this Q&A helps make sense of the federal, state and local programs currently in motion to address the housing crisis in WNC.
Please note: with the Trump Administration’s funding freezes, firings and cuts to agencies, some of the funding requests outlined below are not guaranteed. The administration could cut the staff of the US Department of Housing and Urban Development’s Community Planning and Development Program, one of the key agencies for disaster recovery, by 84%, reducing headcount from 936 to 150.
At the end, find a glossary to help with all the acronyms used by government agencies and to understand the main players involved in developing and running housing relief programs.
As a product of NC Local, this guide is available to news and information organizations to use as background, adapt for published articles and explainers and to draw from for newsletters, social media, broadcast conversations and other forms of distribution.
If you adapt or excerpt the guide for an article or blog post, please include the following at the end:
Reporting by Jessica Wakeman, an independent journalist based in Asheville. Jessica is a former reporter for the newspaper Mountain Xpress and has been published in The Assembly, Rolling Stone, the Guardian, and Glamour. This guide was produced for NC Local and made possible in part with funding from the Knight Foundation and Center for Disaster Philanthropy.
Ways to use this guide:
📚 Background research: Use this resource guide to get up-to-speed on the timeline for funding housing relief, where it’s coming from and what it will be used for. Each section has links to primary sources where you can find more data and information.
📝 Articles and blog posts: Publish the Q&A (or parts of it) as a standalone piece to provide readers with answers about housing relief.
📩 Newsletters: Feature the Q&A (or parts of it) in a newsletter that also promotes the WNC Housing Guide.
📱 Social media: Break down key questions and answers into shareable posts, threads, or short videos.
🎙️ Live Q&As, radio shows, or podcasts: Use the guide as a reference for journalists hosting audio or video segments.
🔤 Publish the glossary: include with your coverage of local, state and federal housing relief stories as a service to your audiences.
💡 Source for follow-up stories: Use the Q&A to identify other topics to cover: gaps in relief efforts, deep dives into Action Plans, explainers on CDBGs.
Questions, suggestions for additional material for this guide? Get in touch at catherine@nclocal.org
Where is funding coming from to rebuild housing destroyed or damaged by Helene in Western North Carolina?
Generally, there are four sources of funding to rebuild housing:
- Federal funding, which is allocated by Congress
- Some funding will come through FEMA, which distributes funds to individuals.
- Some funding will come through the Department of Housing and Urban Development, or HUD, which distributes Community Development Block Grants, or CDBGs to state and local governments.
- State funding, which is allocated by North Carolina’s state legislature.
- Property owners’ or renters’ insurance.
- Donations and philanthropy.
Read more about each of these under the tabs above.
As a product of NC Local, this guide is available to news and information organizations to use as background, adapt for published articles and explainers and to draw from for newsletters, social media, broadcast conversations and other forms of distribution.
If you adapt or excerpt the guide for an article or blog post, please include the following at the end:
Reporting by Jessica Wakeman, an independent journalist based in Asheville. Jessica is a former reporter for the newspaper Mountain Xpress and has been published in The Assembly, Rolling Stone, the Guardian, and Glamour. This guide was produced for NC Local and made possible in part with funding from the Knight Foundation and Center for Disaster Philanthropy.
How much funding has the federal government already sent to Western North Carolina for housing needs?
According to a February 20 North Carolina Office of State Budget and Management (OSBM) report on federal funding, $503 million has been obligated or allocated for housing as of February 12. That includes:
- $375 million in FEMA funding for Individual Assistance and the Housing Mitigation Grant Program.
- $124 million in home loans through the Small Business Administration.
- $3 million for the Rapid Unsheltered Housing Program for rapid re-housing and emergency shelter.
According to FEMA, some of that funding breaks down like this:
- $145.7 million in housing assistance approved for 22,860 households (as of February 25).
- $10.2 million approved for 3,677 households for rental assistance (as of February 28).
- 179 households received “Direct Housing Assistance” or Temporary Transportable Housing Units or Direct Lease Units (as of February 28)
- 13,291 households have used “Transitional Sheltering Assistance” that temporarily pays for hotel or motel costs.
An earlier OSBM quarterly report released in January, also included $5 million to 3,586 homeowners for mold remediation. The January quarterly report tracks expenditures through the end of 2024. A report on the first quarter of 2025 is anticipated May 15.
Is there other federal funding coming to Western North Carolina to rebuild housing after Helene?
Congress passed the American Relief Act in December 2024, and it was signed into law by President Biden. The Act addresses needs for multiple disasters, including Helene. It included about $29 billion for FEMA’s disaster relief fund; about $12 billion for housing needs under HUD’s Community Development Fund; and about $2.2 billion for the Small Business Administration’s low interest loans for homeowners, renters, businesses and nonprofits.
In November, then-Governor Cooper, Senators Thom Tillis and Ted Budd, U.S. Representative Chuck Edwards and Asheville Mayor Manheimer lobbied Congress for about $25 billion for the state from that bill. State officials estimate that $15.7 billion of that request may be fulfilled. North Carolina wanted $5.7 billion from HUD for Community Development Block Grants-Disaster Relief, or CDBG-DRs; it is expected to receive $1.65 billion — only about 30% of the stated need.
According to the General Assembly’s Fiscal Research Division, the $1.65 billion includes:
- $1.24 billion in CDBG-DRs for the state
- $225 million in CDBG-DRs directly for the City of Asheville
- $186.8 million for mitigation for future events
This is how North Carolina Department of Commerce proposes to allocate the CDBG-DRs awarded to the state:
- $807 million for reconstruction or rehabilitation of owner-occupied units seriously damaged or destroyed.
- $53 million for construction of workforce housing for purchase by low- and moderate-income households.
- $191 million for reconstruction/rehabilitation of small rental properties and construction of multifamily housing.
- Remainder for administration, infrastructure and other categories.
Could more federal funding be allocated later this year?
State officials are seeking additional federal funding.
On February 20, Gov. Stein announced a request for an additional $19 billion in federal funds for Helene recovery, including nearly $4 billion from HUD containing an additional $2.1 billion in CDBG-DR grants. According to Stein’s proposal, these funds would be used to:
- Assist with repairs to owner-occupied homes who reported storm damage on their individual assistance applications to FEMA.
- Elevate homes or fund other mitigation measures in areas that are at high-risk for floods and landslides.
- Short-term and other rental assistance for an estimated 10,100 renters displaced by Helene.
- Other programs.
What are the positives and negatives of funding Helene housing needs with state versus federal money?
Federal funding comes with a lot of bureaucratic compliance requirements, purportedly to provide oversight for potential mispending or fraud.
Those compliance requirements protect our taxpayer money. However, they can limit how funds are dispersed.
For example, CDBGs may have a requirement that they can only be used for housing for low-income residents.
Typically, state and local funds allow more flexibility in use and can be accessed more quickly. For example, the General Assembly has a Savings Reserve as well as the State Emergency Response and Disaster Relief Fund, or SERDRF, that it can use for disaster recovery. However, state and local funds are in a more limited supply compared to the federal coffers.
A number of Republican legislators have indicated that they want as much federal funding as possible to pay for Helene recovery and to prioritize spending state funds on that which can be reimbursed by the federal government. nate’s final versions included the Governor’s other funding requests for housing relief.
As a product of NC Local, this guide is available to news and information organizations to use as background, adapt for published articles and explainers and to draw from for newsletters, social media, broadcast conversations and other forms of distribution.
If you adapt or excerpt the guide for an article or blog post, please include the following at the end:
Reporting by Jessica Wakeman, an independent journalist based in Asheville. Jessica is a former reporter for the newspaper Mountain Xpress and has been published in The Assembly, Rolling Stone, the Guardian, and Glamour. This guide was produced for NC Local and made possible in part with funding from the Knight Foundation and Center for Disaster Philanthropy.
Was there funding for homeowners and renters in the first three state relief bills passed in 2024?
The first bill, “The Disaster Recovery Act of 2024,” or HB149 transferred $273 million from the state’s Savings Reserves. It established a Hurricane Helene Disaster Recovery Fund, or Helene Fund. However, the legislation didn’t contain anything specific to housing.
The second bill, “The Disaster Recovery Act of 2024 – Part II,” or SB743 allocated $644 million. The only housing specific provision was $1 million available to counties to provide one-time rental assistance to families facing “a housing crisis, such as imminent risk of eviction.”
The third North Carolina relief bill, “Disaster Relief-3/Budget/Various Law Changes,” or SB382, allocated $227 million to the Helene fund but did not immediately direct that funding to relief efforts. The 100-page bill was controversial for several reasons: lawmakers released it publicly only a few hours before they voted on it; and much of the bill had little to do with Helene relief, but gave more power to newly-elected Republicans. Notably, three Republicans (Reps. Mike Clampitt, Mark Pless and Karl Gillespie) who represent counties in Western North Carolina initially voted against the bill but ultimately voted to override Governor Cooper’s veto.
How much did the state spend on housing relief through February 2025?
According to the NC OSBM’s February 20 report about federal funding, North Carolina’s legislature has funded $20 million for housing as of February 12.
What is the House Select Committee on Helene Recovery?
The House Select Committee on Helene Recovery began meeting in December to work on legislation for Helene recovery, including housing. The committee held four meetings, during which it heard from state agencies on funding needs.
The committee has 42 representatives and 2 chairs. Western North Carolina representatives on the committee including Rep. Lindsey Prather (D-Buncombe), Rep. Brian Turner (D-Buncombe), Rep. Pless (R-Haywood, Madison), Rep. Eric Ager (D-Buncombe) and Rep. Clampitt (R-Jackson, Swain and Transvylvania). One of the committee’s co-chairs is Rep. Dudley Greene (R-Avery, McDowell, Mitchell, Yancey).
In the General Assembly, a committee sends a proposed bill to the House or Senate. It can be changed by both chambers, but eventually each one votes on the legislation.
The House Select Committee on Helene Recovery drafted HB47, “Disaster Recovery Act of 2025 – Part I,” and sent it to the House, which passed it unanimously on February 26, 2025.
What does the NC House’s version of HB47 propose for housing relief?
The House’s version of HB47 that passed February 26 proposed the following for housing:
- $125 million for the “Home Reconstruction and Repair Program,” which the state would seek reimbursement for from federal funds.
- $10 million for rental assistance.
- The rest of the House’s $500 million proposed budget includes other types of Helene recovery, including road and bridge repair; agricultural losses and restoration; small business grants and debris removal.
A note on process: The North Carolina Senate could take up the House bill, make adjustments or offer up its own bill. If it makes adjustments, the bill would return to the House. In the case of HB47, the Senate made adjustments which are detailed below.
After a bill is approved by both chambers, it would go to Governor Stein. He could sign it, let it become law without signature or veto it.
What adjustments to housing relief did the NC Senate make to HB47?
The Senate’s version of HB47 that passed March 5 proposed the following for housing relief:
- $140 million for the “Home Reconstruction and Repair Program,” which the state would seek reimbursement for from federal funds.
- Removes the $10 million for rental assistance.
- Reappropriates the $10 million in rental assistance funds to NC Emergency Management to disburse grants to nonprofits for repair and reconstruction projects.
The Senate’s version also provides about $112 million to complete the homeowner recovery program for Hurricanes Matthew and Florence.
This version went back to the House, and then conference committees negotiated a consolidated bill.vernor Stein. He could sign it, let it become law without signature or veto it.
What was in the final HB47 bill and was it signed into law?
On Wednesday March 19, Governor Stein signed HB47, The Disaster Recovery Act of 2025 – Part I, into law. The $535 million bill provides the following for housing:
- $140 million for the “Home Reconstruction and Repair Program,” which the state would seek reimbursement for from federal funds.
- $100 million to NC Emergency Management for repairing and replacing private roads and bridges.
- $10 million to NC Emergency Management to disburse grants to nonprofits for repair and reconstruction projects.
The House’s proposal for $10 million in rental assistance was not included.
This measure did change the stipulations for a previous allocation of $1 million for rental assistance in a 2024 funding bill to allow for up to two payments in rental assistance for households at or below 200% of the federal poverty level. Previously, it only allowed for a one-time payment.
The Act also includes $112 million to complete the homeowner recovery program for Hurricanes Matthew and Florence.
What happens after the latest relief bill is approved by all parties?
The State Controller will transfer the allocated funds into North Carolina’s 2025-26 fiscal year spending fund for use. The housing funds will go to the Department of Commerce’s home repair program fund, and counties will file plans to the department to apply to use them.
The latest relief bill is not one-and-done: the General Assembly can continue to pass bills and allocate funds.
How did HB47 differ from what Governor Josh Stein proposed for housing relief?
On Feb. 3, Governor Stein sent the NC General Assembly a $1.07 billion budget proposal, outlining immediate needs for Helene relief through July 2025. The provisions directly related to housing totaled about $263 million and include:
- $150 million for a home construction and repair program to immediately start rebuilding about 5,100 homes.
- $50 million for affordable housing construction and repairs to rentals and shelters.
- $25 million in rent, mortgage and utility assistance for those affected by Helene.
- $25 million to fill in gaps for home repairs that are not covered by FEMA.
- $10 million for housing stabilization services and financial assistance for homeless populations.
- $3 million in grants to NC Legal Aid and Pisgah Legal Services for legal aid services.
Stein’s overall spending proposal is twice as large as the state legislature’s proposal, but the final bill brought them closer together on the funding for the “Home Reconstruction and Repair Program,” as it funded 90% of Stein’s request. Neither the House nor Senate’s final versions included the Governor’s other funding requests for housing relief.
What are the positives and negatives of funding Helene housing needs with state versus federal money?
Federal funding comes with a lot of bureaucratic compliance requirements, purportedly to provide oversight for potential mispending or fraud.
Those compliance requirements protect our taxpayer money. However, they can limit how funds are dispersed.
For example, CDBGs may have a requirement that they can only be used for housing for low-income residents.
Typically, state and local funds allow more flexibility in use and can be accessed more quickly. For example, the General Assembly has a Savings Reserve as well as the State Emergency Response and Disaster Relief Fund, or SERDRF, that it can use for disaster recovery. However, state and local funds are in a more limited supply compared to the federal coffers.
A number of Republican legislators have indicated that they want as much federal funding as possible to pay for Helene recovery and to prioritize spending state funds on that which can be reimbursed by the federal government. nate’s final versions included the Governor’s other funding requests for housing relief.
As a product of NC Local, this guide is available to news and information organizations to use as background, adapt for published articles and explainers and to draw from for newsletters, social media, broadcast conversations and other forms of distribution.
If you adapt or excerpt the guide for an article or blog post, please include the following at the end:
Reporting by Jessica Wakeman, an independent journalist based in Asheville. Jessica is a former reporter for the newspaper Mountain Xpress and has been published in The Assembly, Rolling Stone, the Guardian, and Glamour. This guide was produced for NC Local and made possible in part with funding from the Knight Foundation and Center for Disaster Philanthropy.
What is GROW NC and is it working on housing issues?
In January, Governor Stein established by executive order the Governor’s Recovery Office of Western North Carolina, or GROW NC, to oversee recovery from Helene. As of March 11, it has 15 staffers, according to spokesperson Paige Pearson. The office will coordinate between state agencies and execute the proposed HUD Action Plan for $1.4 billion in recovery funding. The deadline to provide public comment on the state Action Plan is March 20
A new agency, the Division of Community Revitalization at the NC Department of Commerce, will administer the $1.4 billion CDBG-DR grant.
GROW NC staff have appeared before the House Select Committee on Helene Recovery and at local government meetings in WNC to provide updates on recovery and funding needs.
GROW NC will be providing details about its work, including an upcoming dashboard of progress on permanent housing programs, at wncrecovery.nc.gov. A newsletter is forthcoming, said Pearson.
I thought North Carolina already had an office overseeing disaster management?
GROW NC is similar in its mandate to the North Carolina Office of Recovery and Resiliencey, also known as ReBuild NC, established by former Governor Cooper in the wake of Hurricane Florence. ReBuild NC has been scrutinized for mismanaging disaster response.
Florence recovery is still underway, despite the agency reportedly being over-budget by $220 million. Governor Stein has prioritized GROW NC in overseeing Helene disaster relief; however, Inside Climate News reported the agency is providing case management for the NC Department of Emergency Management. A spokesperson for NCDEM told the outlet NCORR will only be involved in case management and will not manage FEMA funding.
How can community members affected by Helene navigate housing resources and relief?
The WNC Housing Guide, produced by NC Local in collaboration with WNC news and information providers, is a digital tool where local residents impacted by Helene can easily find the support and answers they need to rebuild. The guide answers questions for renters and property owners about housing and home repair—while providing in-depth information to help residents navigate these resources.
A few ways you can plug in using our Digital Toolkit:
🏠 Embed the WNC Housing Guide on your sites.
📢 Promote on social using ready made assets.
✉️ Share in your emails & newsletters using sample email copy.
🎙️Use the content in the guide for a “Housing Question of the Day” on radio programs, podcasts, newsletters or social.
House Select Committee on Helene Recovery Meeting Documents and Recordings
NC Office Of State Budget And Management Quarterly Report on implementation of the Disaster Recovery Act (January 17, 2025)
Grow NC Presentation: Addressing Housing Challenges Following Helene: CDBG-DR Action Plan (February 2025)
Grow NC Presentation to House Selection Committee on Helene Recovery (January 29, 2025)
Buncombe County Helene Update: Board of Commissioners Presentation (February 18, 2025)
Hurricane Helene Recovery: Governor Josh Stein Federal Funding Request (February 20, 2025)
City of Asheville CDBG-DR Action Plan
State of North Carolina CDBR-DR Action Plan
The American Relief Act: The American Relief Act is federal legislation signed into law by President Biden on December 21, 2024. The bill directs appropriations to fund the federal government through March 14; it also allocates about $29 billion for FEMA’s disaster relief fund; about $12 billion for housing needs under HUD’s Community Development Fund; and about $2.2 billion for the Small Business Administration’s low interest loans for homeowners, renters, businesses and nonprofits. (See: Is there other federal funding coming to Western North Carolina to rebuild housing after Helene?)
CDBG: Community Development Block Grants, or CDBGs, are grants awarded by the federal Housing and Urban Development (HUD) agency. Grants are used on a variety of projects, including infrastructure, economic development, housing rehabilitation, and homeowner assistance. Local governments receive CDBGs each year that are separate from federal disaster recovery grants, like this one for Asheville. State agencies, like the NC Department of Commerce, also receive and administer CDBGs. (See: Is there other federal funding coming to Western North Carolina to rebuild housing after Helene?)
CDBG-DR: CDBG-DRs are HUD grants to state and local governments that are awarded for disaster relief, such as for COVID-19 and natural disasters like Helene. They must be used specifically in the geographic area in which they were awarded; HUD requires 80% of CDBG-DR funds be spent in what the agency determines as “Most Impacted and Distressed” areas. This program is funded through supplemental appropriations by Congress. Grantees must draft an Action Plan and solicit public input. The NC Department of Commerce is seeking public comment through March 20 on its $1.6 billion CDBG-DR Draft Action Plan. The City of Asheville is also seeking public comment on its $225 million CDBG-DR Draft Action Plan.(See: Is there other federal funding coming to Western North Carolina to rebuild housing after Helene?)
FEMA: The Federal Emergency Management Agency is within the Department of Homeland Security and is dedicated to assisting communities with recovery after disasters. (See: How much funding has the federal government already sent Western North Carolina for housing needs?)
General Assembly: The General Assembly is North Carolina’s state legislature. It’s composed of two chambers — the House and the Senate. For a bill to become law, it must pass both chambers and be signed by the Governor. It may also become law after 10 days with no signature from the Governor. If the Governor vetoes the bill, it could become law if overrides are approved in both chambers by three-fifths majority.
GROW NC: In January, Governor Stein established the Governor’s Recovery Office of Western North Carolina, or GROW NC. This office oversees recovery from Helene by coordinating state agencies and executing the HUD Action Plan. GROW NC is similar in its mandate to the North Carolina Office of Recovery and Resiliencey, also known as ReBuild NC, established by former Governor Cooper in the wake of Hurricane Florence. ReBuild NC has been scrutinized for mismanaging disaster response. (See: What is GROW NC and is it working on housing issues?)
The Hazard Mitigation Grant Program: The Hazard Mitigation Grant Program, or HMGP, is a FEMA program that provides grants that can be used to mitigate damage from potential hazards. Local communities must be eligible for the grant due to being in a Presidentially-declared disaster zone. Households voluntarily apply for HMGP for rebuilding, such as elevating their property, or to receive a buy-out on the property, which may then become public greenspace. Local municipalities are tasked with determining which properties will receive the grants. (See: What role do cities and counties have in determining what is spent on housing?)
Individual Assistance/IA: Individual assistance, or IA, is part of FEMA’s Individuals and Households Program. This disaster relief provides assistance directly to individuals and families — whether they are homeowners or renters — to meet basic needs like paying for temporary housing, rental assistance, making repairs, cleaning up mold, paying for storage or funeral expenses. (See: How much funding has the federal government already sent Western North Carolina for housing needs?)
North Carolina’s Disaster Recovery Acts: These are pieces of state legislation dedicated to disaster recovery. The first three in response to Helene are called the Disaster Recovery Act of 2024 and the fourth is the Disaster Recovery Act of 2025. (See: Was there funding for homeowners and renters in the first three state relief bills passed in 2024?)
North Carolina’s Helene Fund: The General Assembly passed its first Helene relief bill, “The Disaster Recovery Act of 2024,” or HB149, in early October 2024. The legislation transferred $273 million from the state’s Savings Reserves to create the Hurricane Helene Disaster Recovery Fund. (See: Was there funding for homeowners and renters in the first three state relief bills passed in 2024?)
OSBM: OSBM is North Carolina’s Office of State Budget and Management. OSBM oversees the budget process, provides budget and policy analysis, analyzes economic and demographic data and more. OSBM is releasing quarterly reports on implementation of the Disaster Recovery Act. The first one was released January 17, 2025. The next one is expected in May. (See: How much funding has the federal government already sent to Western North Carolina for housing needs?)
SERDRF: The State Emergency Response and Disaster Relief Fund is a reserve fund that North Carolina can use for a Governor-certified emergency. The SERDRF is separate from the state’s general reserve fund — sort of like a rainy day fund only for the immediate needs in natural disaster response. The funds have to be appropriated for use by the state legislature. (See: What are the positives and negatives of funding Helene housing needs with state versus federal money?)
Is there something else we should know? Are there resources we should add?
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