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Housing officials summarize CDBG-DR and CDBG‑MIT programs, list covered projects and pending HUD approvals
Summary
Secretary Siari Pérez Peña detailed CDBG-DR, CDBG-MIT and related HUD grant programs, including major covered projects (Patillas dam seismic work, Bauta-Toavaca water improvements) and multiple program amendments pending HUD approval.
The Department of Housing told the House Finance Committee that major federal disaster‑recovery and mitigation grants remain central to Puerto Rico’s housing and infrastructure recovery work and that amendments and program approvals are ongoing with HUD.
"The Department of Housing of Puerto Rico has been designated to administer the funds that will assist long-term recovery, housing restoration, infrastructure and economic revitalization," Secretary Siari Pérez Peña said in a presentation that summarized multiple CDBG‑DR and CDBG‑MIT programs.
Programs and scope
- CDBG‑DR and CDBG‑MIT: The department said the combined federal allocation for FY2026 programming is expected to be roughly $2,221,480,000 in federal funds. The testimony summarized earlier allocations beginning with the September 2018 HUD grant and subsequent major amendments, and described program portfolios that now include housing reconstruction, homeowner assistance, rental subsidies, title clearance, infrastructure, and energy resilience activities.
- Major projects covered or proposed: the testimony listed program-covered projects that HUD has identified in plan amendments, including seismic strengthening of the Patillas dam, improvements to the Bauta–Toavaca water system (tunnel and treatment-plant expansion), and a new trauma center construction project. The department described the covered‑project process and said several amendments remain pending with HUD for final approval.
- Program examples and beneficiaries: officials itemized programs now included in HUD action-plan amendments such as direct homebuyer assistance, housing for special needs populations, repair/reconstruction/relocation, rental-subsidy preservation for Section 173 properties, gap financing tied to low-income housing tax credits, title clearance, housing counseling, community facilities for resilient energy and water, a multisector investment portfolio for large transformative projects, resilience planning, and agricultural/energy resilience efforts.
- Energy resilience and ER programs: the department described programs (referred to as ER1/ER2 in testimony) designed to invest CDBG‑DR/CDBG‑MIT funds in electric-system resilience and to provide competitive awards for community-scale projects not expected to be funded by other sources. The department said HUD had approved an initial allocation for ER1 and that subsequent amendments and allocations are active.
Why it matters: These federal grants fund long-term recovery and large public‑works projects that shape where housing and infrastructure are rebuilt and how resilient those structures are to future disasters. Several projects listed in testimony carry substantial public‑safety implications, and many require sizable non‑federal match funds.
Pending approvals and administrative steps
Pérez Peña said the department has submitted multiple substantive amendments to HUD and is awaiting final approvals for several program elements. She described negotiations with HUD over administrative waivers designed to: (1) allow some municipalities or other agencies to use their own certified environmental officers to clear projects; (2) avoid duplicative environmental reviews for projects that already received a NEPA review by another federal agency; and (3) streamline transfers of land that federal review previously found unsuitable for rebuilding.
Quotes
- "We requested waivers to allow certified officers at municipalities or other agencies to manage environmental reviews directly, and HUD approved that request," Pérez Peña said, adding that other waiver requests were under review.
Ending
Committee members asked the department to provide program-level tables showing allocations, obligations and disbursements by municipality and program; the secretary agreed to supply the requested materials electronically. The testimony makes clear that many large recovery and mitigation programs are in midstream and remain dependent on HUD approvals, federal timing and municipal capacity to invoice and execute projects.
