Disaster Housing Flexibility Act of 2025
Disaster Housing Flexibility Act of 2025 would create a new optional pathway under the Stafford Act for temporary housing after a major disaster. Instead of individuals in affected areas receiving housing assistance directly through existing programs (specifically the temporary housing assistance under section 408(c)), states could elect to participate in an alternative block grant program to fund temporary housing. The bill requires FEMA to estimate and consult on the expected cost per state, allows for a one-time funding adjustment if needed, and sets up reporting and oversight requirements. Any remaining funds could be used for preparedness or mitigation. Overall, the bill shifts some flexibility and funding decisions from individual aid to state-managed block grants, with new accountability measures for implementation and results.
Key Points
- 1Establishment of an alternative block grant program (Section 431) for temporary housing assistance in states affected by a major disaster, available as an option in lieu of eligibility for individual 408(c) assistance.
- 2Cost assessment and state consultation: FEMA must assess the cost of temporary housing in each impacted state and consult with the state to ensure estimates reflect what would be needed under 408(c) or other housing programs the state identifies as necessary.
- 3State application and adjustments: States must apply to participate; the program allows a single adjustment to the grant amount if initial funding is insufficient to provide equivalent assistance to individuals as under current programs.
- 4Eligibility interaction and use of funds: If a state takes the block grant, individuals in the disaster area are not eligible for 408(c) temporary housing; any remaining funds can be used for preparedness or mitigation activities eligible under the Act.
- 5Reporting and accountability: States must submit an initial disbursement plan within 120 days, annual (and final) expenditure and impact reports, and FEMA must provide a Congressional report within 12 months of enactment and annually thereafter, detailing implementation, challenges, cost estimates, timelines, and recommendations.