Homeowner Rehabilitation

Table of Contents

A Homeowner Rehabilitation Program provides funding to homeowners to rehabilitate or rebuild disaster-damaged residences. These programs are helpful to long-term recovery in communities with a large proportion of damaged single-family properties (one to four units).  Such programs typically target low- to moderate-income households. By helping homeowners who are uninsured or underinsured, rehabilitation programs help rebuild a community’s housing stock and avoid the displacement of homeowners.


A Homebuyer Program develops housing for sale and/or provides funding to households to buy new homes that replace disaster damaged residences. A CDBG-DR funded Homebuyer Program can produce high-quality homes at affordable prices and offer attractive financial assistance to qualified homebuyers, helping to avoid displacement of community members. These programs may include income eligibility and housing counseling requirements.

Small Rental Rehabilitation

A Small Rental Rehabilitation Program provides financial assistance, such as forgivable loans, to small rental property owners so they can rehabilitate affordable rental housing stock (typically 1 – 4 units) damaged in the disaster. Such programs are appropriate in markets where a significant number of small rental property owners need assistance to bring their rental units back to the market. The program expands affordable rental options to help avoid displacement while also spurring economic growth by assisting landlords.

Multifamily Rental Housing

Multifamily rental development will likely be a component of any recovery effort where there was a significant loss of rental property and may be one of the more effective ways to meet CDBG-DR's low and moderate income (LMI) requirement. Grantees may create a new Rental Development Program or adapt their standard rental approach to the requirements of the CDBG-DR program.


A Buyout Program uses CDBG-DR funds to purchase properties in qualifying target areas prone to flooding events and demolishes the structures on the properties to create park amenities, open space, or flood storage/overflow areas. Such programs are typically part of a multi-pronged approach to community revitalization that may include relocation of residents and businesses and business development activities. Buyout Programs are especially effective in communities that have endured multiple disasters in the same neighborhood in the recent past, or sustained severe damage where there is high risk of additional disasters, such as a 100-year flood plain. These programs can help reduce the impact of future disasters while encouraging targeted revitalization efforts and public spaces.

Small Business Loan and Grant

A Small Business Loan or Grant Program provides low- or no-cost loans to small businesses that have been impacted by the disaster, or are part of a targeted industry for future growth. The goal is create and retain jobs for the community by stabilizing weakened businesses, encouraging businesses owners to re-open or expand their business, and attracting new businesses to the area. Successful programs capitalize on the economic potential of specific industries or types of business to re-build the workforce pipeline and tax base, with an emphasis on creating opportunities for low- to moderate-income individuals.

Other Program Tools

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Photo Credits: Homepage/Implementation - Wendy Kaveney Photography/Shutterstock ; Homeowner Rehabilitation - K.C.Wilsey/FEMA ; Homebuyer - City of Aurora/HUD/NSP Resource Exchange; Small Rental Rehabilitation - K.C.Wilsey/FEMA; Multifamily Rental Housing - yoshi0511/Shutterstock; Buyout - Marilee Caliendo/FEMA; Small Business Loan and Grant - Sharon Karr/FEMA; Other Program Tools - Marilee Caliendo/FEMA; Download All Tools - Barry Bahler/FEMA