# Summary of S. 1686, Reforming Disaster Recovery Act
This bill creates a new Long-Term Disaster Recovery Fund and establishes a Community Development Block Grant (CDBG) disaster recovery program to help communities rebuild after major disasters. The Department of Housing and Urban Development (HUD) would manage the fund and award grants to states, local governments, and tribal nations that experience catastrophic disasters, with priority given to housing, infrastructure, and economic recovery efforts that benefit low- and moderate-income residents.
The bill requires HUD to create a formula for determining which disasters qualify as "catastrophic" and allocating funds based on the concentration of damage and community capacity. Grants must be announced within 90 to 120 days of a disaster declaration, with the option for preliminary funding up to $5 million to speed recovery. At least 70 percent of grant funds must benefit low- and moderate-income households, and up to 30 percent can support mitigation activities to reduce future disaster risks. The legislation also establishes performance targets, requires detailed recovery plans from grantees, and creates data-sharing agreements between HUD, FEMA, and the Small Business Administration to prevent duplicate assistance and streamline aid delivery.