Community Development Block Grants – Disaster Recovery Funding

The State of South Dakota is receiving $15,375,000 in long-term recovery funds from the U.S. Department of Housing and Urban Development (HUD). These funds are provided through the Community Development Block Grant – Disaster Recovery (CDBG-DR) program and will aid in the ongoing recovery following the severe storms, straight-line winds, and flooding (DR-4807) that hit the state in 2024.

To ensure that CDBG-DR funds are being used to address the most pressing recovery needs, the Governor’s Office of Economic Development (GOED) must conduct an unmet needs analysis, collect stakeholder feedback, and develop an Action Plan which outlines how the funds will be used to help individuals and communities.

Community Development Block Grant – Disaster Recovery

CDBG-DR funding can be used for long-term recovery projects. The funds are flexible but must meet the following requirements:

• Funds must be spent in areas defined as most impacted and distressed (MID). HUD has identified Union County and the 57049 and 57038 zip codes as MID areas.
• At least 70% of the total CDBG-DR funding must go toward projects that will directly benefit low-and-moderate-income (LMI) persons.
• At least 15% of the funds must be used for mitigation projects that strengthen recovery efforts from disasters and reduce or eliminate the long-term risk of loss in future disasters.
• All projects must address a direct or indirect impact from the disaster in a MID area, or be an eligible mitigation-activity.
• All projects must be a CDBG-eligible activity as defined by HUD.
• All projects must meet a national objective of either supporting low-to-moderate-income persons or addressing an urgent need.

Questions and Answers

Questions can be sent to: GOED.CBDGDRInfo@state.sd.us. Please write “question” in the subject line of your email.