The Universal Notice Overhaul: What’s Changing in CDBG-DR

by Marion McFadden, Vice President of Disaster Recovery

The United States Department of Housing and Urban Development (HUD) recently published updates to the January 2025 Universal Notice that consolidates guidance on Community Development Block Grant Disaster Recovery (CDBG-DR) programs dating back over 30 years. The changes infuse the notice with Trump Administration priorities. Because the CDBG-DR program is not permanently authorized, it does not have formal regulations, so policy changes can be made quickly.

To accelerate the disbursement of recovery funds, HUD issued a Universal Notice consolidating guidance for CDBG-DR programs. The revised notice integrates policies from multiple notices dating back to 1992 and aligns it with recent presidential executive orders.

Modernizing Disaster Recovery

HUD Secretary Scott Turner emphasized the importance of streamlining outdated processes to ensure timely assistance for communities affected by disasters. “With this Universal Notice, HUD will better serve the American people during trying times with the urgency they deserve,” Turner stated.

Signed by HUD staffer Matthew Ammon, the 39-page notice incorporates guidance from four executive orders issued between January 20 and March 1. These include directives aimed at improving housing affordability, eliminating diversity, equity, and inclusion (DEI) initiatives from government programs, and designating English as the official U.S. language.

Key Changes in the Universal Notice

The revised guidance introduces several notable changes to the CDBG-DR framework, including:

• Streamlined Reporting Requirements – Beneficiaries now face less stringent reporting obligations while maintaining transparency through publicly accessible websites.
• Flood-Control Adjustments – Modifications to certain structural requirements for flood control projects, giving jurisdictions greater flexibility to determine how to rebuild in flood plains.
• Shifting LMI Impact Criteria – Increased emphasis on meeting the needs of renters, homeowners, and small businesses (including farming operations), while reducing the requirement to directly benefit historically underserved communities.
• Allowing Grant Recipients to Choose Whether to Establish Citizen Advisory Groups. – HUD now encourages rather than requires grantees to receive ongoing feedback from a group of citizens appointed to serve as a bridge between the general public and decision-makers.

By consolidating existing policies into a single notice, HUD said it aims to make it easier for communities to navigate the disaster recovery process efficiently. This effort reflects the Trump Administration’s commitment to streamlining processes for homeowners and affording flexibility for renters, ensuring relief reaches affected areas as quickly as possible.

HUD issued a FAQ on the universal notice indicating that all grantees currently subject to the notice have automatically been granted a 60-day extension for the submission of the Action Plan, Financial Certifications, Housing Policies and Procedures, and other Programmatic Policies and Procedures.

Reach out to IEM’s team of CDBG-DR experts today and discover how we can help you streamline your community’s recovery and maximize the changes that come with this universal notice. Together, we can build a resilient future.