Detroit allocates $347M for disaster recovery after August 2023 flooding

The Detroit City Council convened on May 15, 2025, to discuss the allocation of nearly $347 million in Community Development Block Grant Disaster Recovery (CDBG-DR) funds in response to the severe flooding that occurred in August 2023. The meeting focused on the city's recovery efforts following a significant rainstorm that resulted in up to 2.4 inches of rain in just one hour, overwhelming the city's infrastructure and affecting thousands of homes.

The presentation outlined the federal disaster recovery process, emphasizing the role of FEMA and the subsequent need for long-term recovery funds, which are provided through CDBG-DR. The funds are intended to address unmet needs resulting from the disaster, particularly in housing and infrastructure.

Key points discussed included the allocation of funds, with approximately 72% earmarked for infrastructure improvements, including stormwater management and sewer repairs. The plan also allocates $75 million for housing initiatives aimed at supporting low to moderate-income households, alongside $17 million for compliance and administration costs.

The council was informed that the storm impacted around 6,000 homes, with approximately 5,000 located within Detroit. The unmet needs calculation, which determines the amount of funding allocated to the city, highlighted the critical need for improved stormwater capacity and housing-related infrastructure.

The proposed action plan includes specific projects such as the Jefferson Chalmers flood mitigation project and a sewer alley repair program, which are expected to directly benefit an estimated 10,000 to 12,000 homes through improved sewer connections.

The meeting concluded with a call for public input on the action plan, which will be submitted to the U.S. Department of Housing and Urban Development (HUD) for approval. Once approved, the city will move forward with the allocation of funds to support recovery efforts and enhance the resilience of Detroit's infrastructure against future disasters.