CNMI is approved for $16.2 million CDBG-MIT funds

Gov. Ralph DLG Torres announced yesterday that the CNMI will soon be receiving $16.225 million in Community Development Block Grant–Mitigation funding from the U.S. Department of Housing and Urban Development.

“On June 4, 2022, HUD formally notified the CNMI that it approved the CDBG-MIT Action Plan prepared by the CNMI’s lead agency, Northern Marianas Housing Corp., and consequently sent NMHC the initial grant agreement for my information, review and approval. Similar to CDBG-DR funding, CDBG-MIT funding comes as another historic milestone for the CNMI in that this will be the first time the CNMI will be receiving and administering this HUD grant,” said Torres.

The governor further disclosed that NMHC plans to use CDBG-MIT funds to cover smaller CDBG-DR infrastructure projects. By leveraging CDBG-MIT funds, CDBG-DR funds allocated for CDBG-DR infrastructure projects can be reprogrammed to support CDBG-DR Housing Programs, which translates to assisting more eligible families build new homes or rehabilitate existing homes, Torres added.

“I am very pleased and grateful. …I want to extend my gratitude to the NMHC [leadership’s] strong leadership and continued hard work and dedication in securing much-needed federal assistance for the CNMI as we continue to rebuild a resilient and stronger CNMI,” Torres said.

U.S. Public Laws 115-254 and 116-20 authorized the appropriations of the sum of $243 million to the CNMI in response to presidentially declared disasters: Typhoon Mangkhut and Super Typhoon Yutu. Subsequently and less than a year later, HUD awarded an additional $10 million to the CNMI, increasing the total allocation of CDBG-DR funds to $254 million.

In the formal notification to NMHC’s corporate director, HUD stated, “The department is pleased to advise you that it is approving the [CNMI] Action Plan for Community Development Block Grant mitigation funds appropriated by the Additional Supplemental Appropriations for Disaster Relief Act, 2019 Public Law 116-20. On Jan. 6, 2021, the department allocated $16,225,000 to the CNMI to help mitigate risks associated with natural disasters that occurred in 2018. This letter transmits the enclosed CDBG-MIT grant agreement for the CNMI, which will be administered under grant number B-19-DT-69-0001.

“Upon receipt of the grant agreement signed and executed by HUD and the CNMI government, NMHC will present the draft program policies and procedures to the NMHC board of directors for adoption and have these proposed regulations promulgated and published in the Commonwealth Register. After adoption and publication of CDBG-MIT program regulations, NMHC will launch the CDBG-MIT program. [Fifty percent] of CDBG-MIT funds or $8,112,000 must be spent on HUD-identified ‘Most Impacted and Distressed’ areas. For the CNMI, HUD identified the municipalities of Saipan and Tinian as MID areas,” said NMHC corporate director Jesse S. Palacios.

“The CDBG-MIT Program would not be possible without the continued strong support of Gov. Torres and the NMHC board of directors. Meetings and coordination with various CNMI government partners were facilitated by our active and responsive governor and NMHC board of directors. I want to also recognize and thank Mr. Kimo M. Rosario, NMHC’s CDBG-DR program manager, for taking the lead in getting the grant application moving from the outset and ultimately, HUD’s approval of NMHC’s CDBG-MIT Action Plan. Mr. Rosario, along with our HUD-paid consultant (ICF) and Pacific Coastal Resources and Planning, developed the CDBG-MIT Action Plan, CDBG-MIT Implementation Plan and Capacity Assessment, and CDBG-MIT policies and procedures. The CDBG-MIT program will be administered by the CDBG-DR program manager, NMHC’s deputy corporate director, NMHC’s chief financial officer, and me. For more information on CDBG-MIT, visit our website at: https://www.cnmi-cdbgdr.com/CDBG-MIT/,” Palacios added. (PR)