Volusia County presents $133.5 million CDBG‑DR Action Plan for Hurricane Milton; public raises repair, buyout concerns

Volusia County staff on Monday presented a proposed Community Development Block Grant–Disaster Recovery (CDBG‑DR) Action Plan allocating $133,500,000 to respond to damage from Hurricane Milton and outlined how the money would be divided among housing, infrastructure and mitigation programs. County staff said the plan will go to the Volusia County Council in May for review and then to the U.S. Department of Housing and Urban Development (HUD) for approval.

The Action Plan identifies $116,100,000 for unmet‑need recovery activities and roughly $17,400,000 set aside for mitigation, and staff said the county must spend all funds within six years. "The County of Volusia received $133,500,000," a County staff member said during the public hearing, summarizing the HUD allocation and the requirement that at least 15% of funds be used for mitigation. Staff also said 70% of program dollars must benefit low‑ and moderate‑income persons to meet HUD national objectives.

Why it matters: CDBG‑DR funds are intended as last‑resort recovery dollars where insurance, FEMA, the SBA or other sources do not fully cover needs. County staff said the program is designed both to address immediate unmet needs and to fund mitigation to reduce future flood damage. The allocation and program rules will shape which households and neighborhoods are eligible and how quickly the county can begin accepting applications.

Under the proposed budget, administration is capped at 5% and planning was reduced from the 15% ceiling to 5% in this plan. Staff proposed 30% of the funds for housing (about $40,000,000), with roughly $20,000,000 earmarked for buyouts; infrastructure and public facilities were proposed at 47% (presented as approximately $62,000,000) with additional mitigation investments described separately. Staff noted prior CDBG‑DR allocations for Hurricane Ian and said the county used a similar process for that recovery.

Staff described the public engagement and needs assessment that informed the plan: five community meetings (one in each County Council district), an unmet‑needs survey with more than 500 responses and data compiled from FEMA, the Small Business Administration (SBA) and the county’s Hazard Mitigation Grant Program records. The survey ranked mitigation highest among resident priorities and showed strong interest in buyouts from repeatedly flooded homeowners.

During public comment and Q&A, residents asked about repair versus demolition decisions, price fluctuations in construction, and building methods for elevated homes. One resident who said she had been approved for some assistance asked why the program appeared to favor demolition and replacement instead of repairs, saying, "It scares me to death." County staff advised that repair versus reconstruction decisions depend on multiple factors, including flood‑plain location, previous damage, and local permitting rules. Staff said the county uses the Xactimate pricing tool, updated every six months, to estimate regional construction costs and determine whether a repair or reconstruction would be eligible within program caps.

On building methods, a resident asked whether the program requires stem walls; staff replied the county typically uses pier‑and‑beam elevation and raises homes to two feet above base flood elevation when required by flood‑plain rules. Staff also clarified that taxable income (not nontaxable Social Security benefits) is used for income eligibility calculations and noted specific area‑median income thresholds discussed during the hearing.

Staff described the procedural steps remaining before applications can open: County Council review and (staff hopes) approval in May, submission to HUD (which has up to 45 days to respond), completion of required environmental reviews, and execution of a signed contract. "Once we get that signed contract, then we can start expending money," the County staff member said. Staff said the county will notify affected households by postcard, post information at transform386.org, and use sign‑in contact lists to email residents when the application period opens.

The public hearing did not include a formal County Council vote; staff said they will bring the Action Plan to the Council in May for consideration. The County staff repeatedly emphasized that CDBG‑DR is "funds of last resort" that must be used only where other sources do not cover disaster recovery needs.

Ending: The County plans to present the Action Plan to the Volusia County Council in an upcoming meeting in May and then submit it to HUD; residents seeking assistance were advised to monitor transform386.org and county notices for the application opening and to contact the county staff member present for case‑specific questions.