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              Researh Sevice






CDBG-DR Funding and Oversight:

Puerto Rico



May 13, 2020

In March 2020, the Department of Housing and Urban Development's (HUD's) Office of the Inspector
General (OIG) released a report of findings from its audit of the Puerto Rico Department of Housing's
(PRDOH; also known as Departamento de la Vivienda, or Vivienda) capacity to administer funds under
the Community Development Block Grant program for disaster recovery (CDBG-DR). The audit assessed
(1) PRDOH's compliance with HUD regulations and requirements in administering CDBG-DR funds,
and (2) the existence of financial and procurement policies and procedures consistent with federal
requirements. The findings in the report are broadly consistent with other reviews of CDBG-DR
administration and oversight, such as by the Government Accountability Office.
This Insight provides a brief overview of CDBG-DR, outlines key findings and recommendations from
the OIG report, discusses past Government Accountability Office (GAO) analysis of CDBG-DR, and
considers relevant policy options for Congress.

Background on CDBG-DR

CDBG-DR pertains to supplemental appropriations for disaster recovery through the CDBG program
administered by HUD. Conventional CDBG funds can be used for disaster recovery purposes. However,
CDBG-DR appropriations were developed to provide significant additional funding to communities for
long-term disaster recovery needs unmet by other federal sources, such as the Federal Emergency
Management Agency (FEMA) and the Small Business Administration (SBA). CDBG-DR appropriations
are broadly governed by the CDBG program's statutory authority and program administration. However,
they differ in allocation, design, and implementation based on the statutory direction provided in the
supplemental appropriations act. They can also differ according to the types of disaster events, their
severity, the characteristics of the areas affected, and the unmet needs as determined by HUD.


OIG Report: Key Findings and Recommendations

Following Hurricanes Irma and Maria, Congress passed three supplemental appropriations acts that
included a total of $35.4 billion in CDBG-DR assistance (P.L. 115-56, P.L. 115-123, and P.L. 116-20).
                                                             Congressional Research Service
                                                               https://crsreports.congress.gov
                                                                                  IN11389

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