The committee received detailed testimony from Fernando Estevis, deputy director and grants manager for the Guam Housing and Urban Renewal Authority (GHURA), on Resolution 94‑38 COR, which asks the governor and GHURA to prioritize no less than 20% of CDBG‑DR funds for urgent repairs at Guam Memorial Hospital (GMH), Department of Education (GDOE) schools and village facilities.

Estevis said GHURA administers $500,825,000 in Community Development Block Grant Disaster Recovery (CDBG‑DR) funds awarded by the U.S. Department of Housing and Urban Development (HUD). He warned that a blind legislative earmark of 20% could conflict with HUD rules and the grant's statutory priorities, notably HUD's national objective that a large share of funds benefit low‑ and moderate‑income (LMI) households. "Public input cannot stand alone," Estevis said, and eligibility and compliance checks will determine how funds may be used.

GHURA's concerns included potential repayment obligations if federal requirements are not met. Estevis pointed to prior HUD‑funded projects that carry long‑term use and maintenance obligations; he cited Head Start classrooms built with HUD funds in 1998 that are out of service and said the resulting noncompliance could create repayment obligations under HUD rules. He said GHURA must verify an applicant's eligibility, capacity to execute and long‑term maintenance plans before committing facility funding.

GHURA offered alternatives to a direct earmark. Estevis suggested that a no‑interest loan or revolving program income approach could reduce GHURA's long‑term compliance risk while allowing investments in hospital and school infrastructure. A loan repaid into a GHURA revolving fund would not be subject to the same single‑use constraints as an outright grant to a facility and would allow funds to be reused for additional recovery projects.

GHURA said it will hold outreach and technical‑assistance sessions during the submission period so applicants can prepare eligible, compliant proposals. Estevis warned that projects will be evaluated on eligibility, tie‑back to Typhoon Mawar recovery, whether higher‑tier sources (insurance, FEMA) have been exhausted, and the applicant's ability to maintain a funded facility in perpetuity.

Committee members expressed urgency about hospital repairs. Vice Chair Christopher Duenas and other senators described severe flooding and electrical failures at GMH after Typhoon Mawar and said the hospital's condition places patients at risk. Duenas defended the Legislature's interest in prioritizing hospital funding and said prior legislative appropriations have not resolved certain execution problems at GMH.

Estevis acknowledged GHURA had previously discussed options with the governor and agencies and said GHURA will continue outreach and technical assistance. He also said the action plan approved by HUD contains programmatic priorities but that the details of which projects receive funding will follow a submission and eligibility review process. GHURA asked the committee to allow the competitive submission process to operate with technical assistance to applicants rather than adopting a blind earmark.

Next steps: GHURA will continue public outreach and technical assistance, publish application and rubric details, and accept project proposals for competitive review. The committee accepted GHURA's testimony into the public record and will accept written statements for seven days. Members indicated interest in additional oversight hearings on CDBG‑DR implementation.