The Department of Housing and Urban Development announced that its Community Development Block Grant — Disaster Recovery program will include a set-aside for women-owned and minority-owned restoration contractors in disaster-affected communities, effective for all new CDBG-DR grants approved in fiscal year 2025.
The set-aside requires that at least 15 percent of restoration and remediation contracts funded through CDBG-DR grants be awarded to women-owned or minority-owned businesses that meet SBA size standards for the specialty trade contractors sector.
HUD Secretary Adrianne Todman said the policy is designed to address two problems simultaneously: the shortage of certified restoration contractors in low-income communities, and the underrepresentation of women and minorities in the restoration industry's contractor base.
"When disaster strikes a low-income community, the recovery is slower and the outcomes are worse," Todman said. "Part of the reason is that there aren't enough qualified contractors who are invested in those communities. This policy is designed to change that."
The set-aside applies to grants for hurricane, flood, tornado, and wildfire recovery. HUD estimates the policy will direct approximately $340 million in restoration contracts to women-owned and minority-owned firms over the next three years.
