Since 2021, we’ve been hearing about Safeguarding Tomorrow Revolving Loan Fund (RLF), a program designed to help communities address vulnerabilities to natural hazards and disasters attributed to climate change. Eligible communities in New York may benefit from the program starting later this year.
From February to April of 2023, states, eligible federally recognized tribes, territories, and the District of Columbia were invited to apply for the program. In September 2023, FEMA announced eight states will receive grants in the amount of $50 million combined to help communities address vulnerabilities to natural hazards and disasters. New York is slated to receive just over $6.2 million (it had requested just over $15 million).
As explained on the FEMA website, “Local governments may use capitalization grant funding through low-interest loans to make structures more resilient to natural hazards.” The website also notes funds can be applied to satisfy cost-share requirements for FEMA hazard mitigation (HM) assistance grants and will serve as a sustainable financing source because, as loans are paid back, funding can finance additional projects. The program promotes funding to disadvantaged communities, which should be slated to receive at least 40% of revolving fund loans.
New York’s Intended Use Plan, developed as part of its application for the Safeguarding Tomorrow RLF, provides more details and insights into how the program may work in our state. Here are a few highlights:
…“The state will use these capitalization grants to establish a revolving loan fund from which direct loans will be provided to local governments for projects and activities that mitigate the impacts of drought, intense heat, severe storms (including hurricanes, tornadoes, windstorms, cyclones, and severe winter storms), wildfires, floods, earthquakes, and other natural hazards.”
…“DHSES (a.k.a. NY Department of Homeland Security and Emergency Services) will administer the HM RLF to support various hazard mitigation activities that address natural hazards such as severe storms and wind events, and flooding. Flooding includes highwater levels, inland flooding, and storm surges. Loan applications will also be evaluated against the NY State Hazard Mitigation Plan.”
….“Standard loans will be issued with an interest rate of 1.0 percent. Loan term will be 20 year or less following completion of the funded project. Loans for low-income geographic areas or underserved communities will be issued with an interest rate of 1.0 percent. Loan term will be 30 year or less following completion of the funded project.”
…“The loan application and instructions will be posted to the DHSES website and will follow a similar process to an existing revolving loan program that DHSES currently administers.”
…“DHSES anticipates disbursing funds within 9 months of receiving funding from FEMA by working closely with all applicants.” So, we’ll likely be hearing something by mid-year.
There’s more. At year-end 2023, the 2024 Notice of Funding Opportunity for Safeguarding Tomorrow through Ongoing Risk Mitigation Revolving Loan Fund (RLF) was announced, tripling the total amount of grants available to $150 million. The application period is open and will close on April 30, and New York is eligible to apply, which is likely according to the 2023 IUP.
For now, your municipality may want to keep all of this in mind as it develops local plans to address infrastructure vulnerabilities due to severe weather events and climate change. We will keep an eye out for more information for you.
In the meantime, if you need any accounting, tax, audit, or advisory support, please know RBT CPAs is here for you. We’ve been proudly serving municipalities, businesses, non-profits, and individuals in the Hudson Valley for over 50 years. Please don’t hesitate to give us a call and find out how we can be Remarkably Better Together.
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