NC proposes how to spend $1.43B federal Helene grant. Now it wants feedback

North Carolina commerce officials released a draft plan Tuesday outlining how the state proposes to spend a $1.43 billion federal grant for disaster recovery efforts related to Hurricane Helene.

The U.S. Department of Housing and Urban Development said last month that the state would receive the grant, which aims to address unmet housing and economic revitalization needs in western North Carolina, the state said.

The draft plan proposes a majority of the funds go to housing recovery for low- and moderate-income residents. The plan also lays out proposed funds for infrastructure rebuilding and economic support, particularly for small businesses and commercial districts in western North Carolina, the state said.

Helene did $60 billion worth of damage to the state, shattering previous records as the most damaging storm in North Carolina history. That includes an estimated $12.7 billion in residential damage, state officials said. About 73,700 homes were likely damaged in the storm, according to an estimate by the Office of State Budget and Management in December.

Overall housing recovery needs approach $15.4 billion, of which OSBM estimates $9.5 billion might be covered by private and federal funding outside of the HUD funds, the state said Tuesday.

The state expects to receive $15 billion from a congressional funding package approved in December, which is several billion dollars less than state leaders had asked for. Meanwhile, state lawmakers are considering whether to approve another $500 million in state relief funding.

Officials are seeking feedback on the HUD proposal, which was compiled by the state Department of Commerce’s new Division of Community Revitalization. The plan is required for receiving the funding, which was announced Jan. 7. The final version will be submitted to the HUD for approval, officials said Tuesday. A separate HUD grant of $225 million was awarded directly to the city of Asheville to administer.

"Western North Carolina is going to build back stronger than ever, but it’s going to take work and planning,” Gov. Josh Stein said in a statement Tuesday. “I am grateful to everyone who offers constructive feedback and works with us to turn this plan into reality and spur action in the region’s economy.”

Details on how to offer feedback can be found in the disaster recovery section of the Commerce Department’s website, or by clicking here.

“Hearing ideas from as many stakeholders and western North Carolina partners as possible will sharpen this proposal, positioning us to succeed with the tough recovery job ahead of us,” North Carolina Commerce Secretary Lee Lilley said in a statement.