NC Governor Directed $100M in Disaster Funds to Housing Projects Amid Hurricane Recovery Delays

Former North Carolina Gov. Roy Cooper's administration directed approximately $100 million in disaster relief funds toward affordable housing initiatives, even as hundreds of hurricane victims continued to reside in temporary housing, according to an analysis by the John Locke Foundation.

The North Carolina Office of Recovery and Resiliency (NCORR), a state agency managing disaster recovery funds, allocated the substantial sum to affordable housing projects. This occurred while the agency faced a significant budget shortfall and a backlog of storm recovery cases. One such project, Starway Village, a 278-unit complex, received $9 million and opened to individuals earning $45,000 annually, located miles from storm-affected coastal areas. Crucially, these affordable housing developments did not prioritize applicants based on hurricane victim status.

The allocation of funds came in the wake of Hurricanes Matthew and Florence, which devastated parts of North Carolina in 2016 and 2018, respectively. Reports indicated that years after these storms, thousands of families were still awaiting rebuilt or repaired homes.

NCORR defended its use of disaster funds, stating that its programs comply with federal requirements and that affordable housing is a component of community recovery. A spokesperson for the agency noted that they collaborated with the Department of Housing and Urban Development (HUD) to identify and prioritize needs in storm-impacted areas. The agency also stated that it incorporated input from local governments, community organizations, and public comment periods when making decisions about affordable housing.

"HUD strongly encourages all grantees to have a varied program portfolio, while also requiring a demonstrated need before proposed funding can be approved in an action plan," an NCORR spokesperson said. "Due to the storm impacts experienced by both homeowners and renters, housing availability is considered a key component of community recovery."

The spokesperson also highlighted that NCORR's ReBuild NC program has successfully returned 4,240 eastern North Carolina families to improved housing.

Cooper, currently campaigning for a U.S. Senate seat, has previously faced scrutiny over the state's hurricane recovery efforts. A state audit found that reconstruction on over 1,100 homes remained unfinished by the time he left office, although 3,522 homes were rebuilt. His campaign has stated that his estimate of helping more than 14,000 homes included efforts beyond the HUD-funded reconstruction projects detailed in the audit. The audit also revealed lengthy delays, with an average of 138 days to determine eligibility for reconstruction funds and an additional four years on average for construction to commence after eligibility was confirmed.

Representatives for Cooper's campaign did not immediately respond to requests for comment. The U.S. Senate race in North Carolina is considered competitive, with the Cook Political Report rating it as "lean" Democrat.