With billions in new CDBG-DR funding flowing directly to local governments, first-time program managers need guidance. Our recent webinar with Sarasota County offers a roadmap for success.
The Changing Landscape of Disaster Recovery Funding
The federal government has allocated $12 billion in Community Development Block Grant Disaster Recovery (CDBG-DR) funding directly to counties and cities, bypassing states entirely. This unprecedented shift means many local governments are managing disaster recovery programs for the first time, facing complex regulations and pressing community needs without prior experience.
To help these new program managers, Neighborly Software recently hosted a strategic Disaster Recovery webinar featuring Steve Hyatt, Division Manager at Sarasota County, Florida, who oversees more than $400 million in CDBG-DR funding for Hurricane Ian (2022) and Hurricanes Helene, Debbie, and Milton (2024). Joining Steve was Jason Rusnak, Co-founder and President of Neighborly Software, who has supported over 600 communities nationwide with government-funded programs.
Sarasota County’s Experience: First-Time Management of Direct Allocation
Steve Hyatt described the unique challenges of receiving direct funding: “With our Hurricane Ian dollars, that was our first time that we got a direct allocation of funding here in Florida. Usually, that goes to the state through the Department of Commerce.”
This direct allocation required Sarasota County to quickly develop programs addressing housing, infrastructure, and economic revitalization needs. The learning curve was steep, but Steve’s team found success by networking with experienced communities.
“A lot of our lessons learned came from talking to other communities,” Hyatt explained. “We’ve talked to North Carolina, South Carolina, New York, Texas… to determine what works for them currently, what hasn’t worked for them, and build that knowledge base as quickly as possible.”
The Critical Role of Technology in Disaster Recovery
Both experts emphasized that while technology might initially seem secondary to program design, it quickly becomes evident that the right system of record is foundational to program success.
Jason Rusnak described technology as “the foundation that supports the entire program,” touching everything from application intake to fund disbursement and compliance reporting.
“The last thing that anybody wants to be doing is shuffling all kinds of sensitive data, PII data in particular between multiple systems or relying on Excel to aggregate data and create comprehensive reports,” Rusnak warned. “That kind of strategy is just a recipe for inefficiency and risk.”
Technology Challenges and Solutions
Sarasota County initially struggled with a system of record that couldn’t adapt to their specific program needs. According to Hyatt: “Unfortunately, we did have a system of record that just ultimately didn’t work for us at the get-go. There’s just a lot of customization that was needed to match our program.”
This experience highlights a key consideration for new grantees: disaster recovery programs require flexibility and customization capabilities. Each community’s program design is unique, and technology must adapt accordingly.
After switching to Neighborly Software, Sarasota County found the flexibility needed to manage their complex housing recovery programs. Hyatt appreciated the ability to handle the many “moving parts and pieces,” from applicant documentation to correspondence, workflows involving county staff, financial staff, and contractors.
Essential Features for Disaster Recovery Systems
Jason Rusnak outlined critical features that every disaster recovery system of record should include:
- Mobile-friendly design: “Almost half of all applicants are applying or using their smartphones. If your system isn’t mobile responsive, you’re automatically creating a barrier.”
- Accessibility: Systems should work with screen readers, have appropriate contrast ratios, and undergo regular VPAT assessments.
- Multi-language support: Not just portal translation, but emails and communications in applicants’ preferred languages.
- Duplication of Benefits (DOB) management: Automated data pulls from FEMA, SBA, and insurance providers to prevent duplication.
- Contractor payment systems: Direct ACH or check payments to improve cash flow for reconstruction contractors.
- Fraud detection tools: Systems that flag suspicious patterns or document alterations.
- Simplified DRGR reporting: HUD-required reporting without manual spreadsheet formatting.
- Public transparency dashboards: Visualizing program progress to demonstrate results to the community.
Steve Hyatt emphasized the importance of user experience, particularly for older residents: “We’re working with people that still get the newspaper every morning. They have never signed up for an email before. We’re trying to sign people up for their first Gmail account.”
Reporting and Transparency
Transparency emerged as a crucial component of program success. Sarasota County uses data from their system of record to generate Microsoft Power BI dashboards that provide real-time program information to elected officials and the public.
“Everybody wants to know what’s going on,” Hyatt explained. “What projects are funding, where are the drawers sitting with individual homeowners, and how many housing projects have been developed. That’s all information that can be gleaned and pulled from Neighborly into those dashboards.”
Advice for First-Time Direct Entitlements
Both experts offered practical advice for communities managing disaster recovery funds for the first time:
- Build a network of experienced peers: “Don’t reinvent the wheel,” Rusnak advised. “There’s excellent work being done across the country, and there are a lot of artifacts that you can leverage.”
- Focus on getting funds to recipients, not building software: “The last thing you want your team to be focused on is building out or customizing a software solution,” Rusnak said. “They are much better prepared to be taking in applications, reviewing those applications, and getting money in the streets.”
- Start with fewer programs: “More is not always better,” Rusnak cautioned. “It’s better to have fewer programs and launch them over a period of time versus trying to do a big bang and wait for everything to be done all at once.”
- Stay focused on true unmet needs: “These funds—it’s a lot of funding, but it’s also never enough,” Hyatt noted. “We really just need to concentrate them in certain areas.”
Managing Compliance Challenges
The webinar highlighted two compliance areas that often surprise first-time program managers:
Duplication of Benefits: CDBG-DR is typically the last funding source after FEMA, SBA, insurance, and nonprofit assistance. Program managers must track all assistance received to prevent duplication.
“Managing all of those is very complex,” Rusnak explained. “The last thing you want is a finding from an auditor that says that you’ve got a lot of duplication of benefits.”
Fraud Prevention: Both external and internal fraud risks must be managed. Technology can help detect altered documents, cross-reference applications, and track user activity through audit logs and role-based permissions.
“We don’t like to talk about it a lot, but there’s also bad actors internally that sometimes make their way into an organization or a service provider,” Rusnak noted, recommending multiple stages in draw approval processes.
Final Thoughts
Steve Hyatt offered encouraging words to new program managers: “You’re not alone. A lot of the same things you’re thinking about, everybody else has thought about and has been worried about.”
Jason Rusnak added a note of caution about the current regulatory environment: “We’re in the age of compliance and efficiency right now in government programs. There’s going to be extra scrutiny on all of these CDBG-DR recipients, so making sure that you take advantage of things that have been done before and system of records that are proven is important.”
Ready to learn more about managing disaster recovery programs successfully? Watch the full webinar featuring Steve Hyatt and Jason Rusnak, or book a demo to see how Neighborly Software can help your community effectively manage CDBG-DR funding.
For additional questions, connect with Steve Hyatt at [email protected] or find both speakers on LinkedIn.
