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Plagued by construction delays, ReBuild NC has spent $10.6 million to house Hurricane Matthew survivors in motels, rent storage units

A house in Wayne County whose homeowner has been displaced by Hurricane Matthew since the storm hit in 2016. (Photo: Lisa Sorg)

This story has been corrected to reflect the first TRA payment was in August 2019, not January 2020.

ReBuild NC has spent $10.64 million on motels, moving and storage unit expenses in three years for displaced Hurricane Matthew survivors, as construction and administrative delays have kept people from returning to their homes.

The figures were included in Temporary Relocation Assistance (TRA) data provided by ReBuild NC, also known as the NC Office of Recovery and Resiliency. The data also includes expenses for apartment leases and stipends for friends and family of Hurricane Matthew survivors who privately house them.

As part of an ongoing investigative series, Policy Watch reported earlier this month that ReBuild NC had been unable to provide detailed expenditure documents as requested under public records law. The agency then agreed to send totals, but without supporting documentation.

In providing the new information, a ReBuild NC spokesperson noted that TRA funds come from the U.S. Department of Housing and Urban Development, although this type of assistance is not a HUD requirement. “It is an additional benefit that NCORR decided to provide to make the recovery process easier, especially for those applicants who have no other housing options during the construction process. Without this benefit, many of our applicants would not be able to participate in the program,” the spokesperson wrote in an email.

Under the TRA program, once construction begins on a home, ReBuild NC pays to move and house low-income hurricane survivors, as well as covering the cost of renting mobile storage units.

ReBuild NC incurred its first TRA expenses in August 2019. Since then, ReBuild NC has paid $6.5 million in motel bills, $1.7 million to PODS Enterprises, and $70,000 to 1-800-PACK-RAT for mobile storage units, as well as other expenses.

The relocation is supposed to be temporary — usually up to six months — but because of ReBuild NC’s mismanagement of the program, some hurricane survivors have lived in motels for more than two years. This includes the Williams family, who have been stuck in one room without a kitchen for 862 days.

Another homeowner, who asked not to be named for fear that work on their home would be delayed, told Policy Watch they have been in a motel since early 2020. However, the motel does not have a kitchen and the person receives food stamps, which don’t cover restaurant meals. As a result, it has been difficult for them to afford food, they said.

Construction delays have long plagued the program. Although some lag time can be attributed to the pandemic and supply chain issues, that does not explain all of the inefficiencies. In other instances, homeowners have been moved from livable, if damaged houses with the expectation construction would begin immediately. Instead, months, even years pass.

Several contractors have told Policy Watch that they have completed the work but have not been paid by ReBuild NC. Multiple contractors told Policy Watch that it can take months to get approval for change orders; these occur when contractors uncover additional work that needs done and that was beyond the estimate cost of repairs, such as lead paint or asbestos abatement.

According to state data that had been sent by ReBuild NC to the governor’s office and obtained by Policy Watch, 740 homes are listed as complete as of July 11. In early May that figure was 717.

The average cost per house — including new construction and rehabs — is $136,882, according to state cost estimate and invoicing data obtained by Policy Watch. Depending on the type of home, the cost of a motel stay could exceed that of new construction or repairs.

The recent TRA figures don’t capture the full extent of displaced homeowners. Hurricane survivors whose income is too high must pay for their own relocation expenses. However, several homeowners, such as the Dillahunt family, have told Policy Watch their income was miscalculated and they were in effect, homeless. The Zerby family didn’t qualify for TRA and lived in a travel trailer in a church parking lot for more than a year.

ReBuild NC operates its homeowner disaster recovery program using an eight-step process. In the first five steps, the process is primarily administrative: determining an applicant’s eligibility and benefit amounts, as well as inspecting the home.

In Step 6, ReBuild NC puts a project out for bid, and an eligible household can then move using TRA assistance. (If repairs are minor, a homeowner can remain in the house.) There are 819 households in Step 6, according to an eight-step status report dated July 11.

Construction begins in Step 7, the current status for 173 households. Another 740 are in Step 8.

Hurricane Matthew devastated eastern North Carolina in October 2016. HUD subsequently allotted North Carolina a $236 million grant for a disaster relief homeowner recovery program related to the storm. However, the recovery program, initially run by the state Department of Public Safety and the Department of Commerce was slow to launch, and cited by HUD as a “slow spender,” jeopardizing the grant.

The state legislature created the NC Office of Recovery and Resiliency in late 2018; Gov. Roy Cooper appointed Laura Hogshead as ReBuild NC’s director; she has been in charge since early 2019. Ivan Duncan is the chief program delivery officer, responsible for dealing with contractors.

Last week, state House and Senate leadership announced the formation of a 12-member oversight committee to investigate the delays and problems with the program. the first meeting has not been scheduled.

 

From Ivan Duncan’s LinkedIn page: Duncan is the chief program delivery officer at ReBuild NC. He was commenting on a United Nations post to LinkedIn about disaster relief. Multiple contractors and homeowners have complained that he is responsible for many of ReBuild’s problems. The agency has declined to make Duncan available to Policy Watch for an interview.

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Plagued by construction delays, ReBuild NC has spent $10.6 million to house Hurricane Matthew survivors in motels, rent storage units