Stein submits proposal for $1.4 billion in federal Helene aid

On Wednesday, North Carolina Gov. Josh Stein submitted the proposed Action Plan for the $1.4 billion Community Development Block Grant Disaster Recovery (CDBG-DR) grant for western North Carolina.

An action plan outlines the main plans, such as providing grants for reconstruction, funding the construction of units for purchase by low—and moderate-income households, and establishing a small rental and multifamily construction program. 

The Governor’s office submitted the plan to the US Department of Housing and Urban Development (HUD) for approval after getting feedback from the 30-day public comment period.

HUD can take up to 45 days to approve the plan and finalize the grant.

According to Stein’s press release issued Thursday, North Carolina is the fastest state to have submitted a plan following a major hurricane in the past decade.

“To rebuild damaged communities, we must rebuild people’s homes and our critical infrastructure,” said Stein, a Democrat. “I am grateful to the many North Carolinians who provided input on this plan over the past 30 days, and I urge the federal government to review and approve it swiftly so we can jumpstart permanent home rebuilding as quickly as possible.” 

Out of the $1.4 billion allocated to the state for Helene relief from the US Department of Housing and Urban Development (HUD), $807 million is allocated to owner-occupied unit reconstruction and rehabilitation.

The Division of Community Revitalization, created by one of Stein’s first executive orders, will administer the HUD CDBG-DR grant funding. The Division’s Deputy Secretary, Stephanie McGarrah, led the development of the Action Plan and the program to get feedback during in-person public meetings in six western North Carolina locations.

CDBG-DR grants, which focus on long-term rebuilding, are used after other recovery sources, such as private insurance, have been tapped. The grants address unmet needs in three core areas of recovery: housing, infrastructure, and economic revitalization. The Helene Action Plan proposes that most funds go to housing recovery for low—and moderate-income residents, with the rest earmarked for infrastructure rebuilding and economic support, particularly for small businesses and commercial districts.

As the state awaits HUD approval, the Division of Community Revitalization’s housing recovery work has already begun, thanks to a recent appropriation of $120 million in state funds from the General Assembly for home reconstruction and repair as part of the $524 million for Hurricane Helene relief efforts under the Disaster Recovery Act of 2025 – Part 1 House Bill 47. Stein signed the bill into law shortly after it was passed.

As damage assessments are ongoing, the current allotment of $1.42 billion will fall short of the region’s unmet housing needs. A separate HUD CDBG-DR grant of $225 million was allocated directly to the City of Asheville to administer.

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