Executive summary 8 I. Introduction 26 II. State government capability 28

Small Business Administration Disaster Assistance Program

The United States Small Business Administration (SBA) administers the Disaster Assistance Program under the Small Business Act. The SBA issues physical disaster loans to businesses affected by declared physical-type disasters for uninsured losses. The assistance is in the form of direct loans to businesses to repair or replace uninsured disaster damages to property owned by the business, including real estate, machinery and equipment, inventory and supplies. Businesses of any size are eligible. Also eligible are nonprofit organizations, such as charities, private universities, etc. Loan amounts are limited by law to $1,5000,000. The actual amount of each loan is limited to the verified disaster loss minus any insurance or other recovery assistance. Refinancing of existing mortgages or liens on real estate and machinery and equipment repair/replacement are eligible in some cases up to the amount of the loan for real estate and machinery and equipment repair/replacement. The $1,500,000 statutory limit for business loans applies to the confirmation of physical and economic injury, and to all disaster loans to a business and its affiliates arising from any one disaster. If a business is a major source of employment, the SBA has authority to waive the $1,500,000 statutory limit. Loan amounts may be increased by up to 20% for devices that mitigate against damage to real property caused by the same type of disaster.

U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

(For a description of funding sources available from the U.S. Housing and Urban Development, please refer to the Funding Sources for Mitigation section of this Capability Assessment)
The Department of Housing and Urban Development is the principal Federal agency responsible for programs concerned with the Nation’s housing needs, fair housing opportunities, and improvement and development of the Nation’s communities. The Office of Community Planning and Development seeks to develop viable communities by promoting integrated approaches that provide decent housing, a suitable living environment, and expanded economic opportunities for low and moderate income people. The means to this end is the development of partnerships among all levels of government and the private sector, including for-profit and non-profit organizations.
While not a traditional recovery program, Community Development Block grant funds can be used for disaster clean-up, mitigation, housing rehabilitation, relocation, and acquisition.

U.S. ARMY CORPS OF ENGINEERS

(For a description of funding sources available from the U.S. Army Corps of Engineers, please refer to the Funding Sources for Mitigation section of this Capability Assessment)
The Department of the Army’s Civil Works Program, a responsibility of the U.S. Corps of Engineers (USACE) under the direction and supervision of the Secretary of the Army, is the Nation’s major Federal water resources development activity. The Corps of Engineers engages in a variety of engineering works such as major dams, reservoirs, levees, harbors, waterways, locks, and many other types of structures. These works provide flood protection for cities and major river valleys, reduce the cost of transportation, supply water for municipal and industrial use, generate hydroelectric power, provide recreational opportunities for vast numbers of people, regulate the rivers for many purposes including the improvement of water quality, protect the shores of oceans and lakes, and provide other types of benefits. Planning assistance is also provided to States and other non-Federal entities for the comprehensive management of water resources, including pollution abatement works. The Corps of Engineers is responsible for administration of laws for protection and preservation of navigable waters and related resources such as wetlands.
In the District Office located in Wilmington, North Carolina, the Corps of Engineers carries out numerous programs and projects for the State and Federal governments. The mission of the Wilmington office is to provide North Carolinians with water resource and navigation project development, management and integration; environmental remediation and restoration; regulatory permitting, enforcement and coordination,; and emergency response, recovery and mitigation.
The State Hazard Mitigation Branch coordinates on every potential project with the U.S. Army Corps of Engineers to ensure no future conflict between deed restricted property and improvements or expansions to waterways under the jurisdiction of the U.S. Army Corps of Engineers.

Floodplain Management Services Program

The Floodplain Management Services Program carried out in the Wilmington office offers a wide variety of services free of charge to the State, counties and cities. Floodplain information and technical assistance is provided for the prudent use of land subject to flooding from streams, lakes and the ocean. General technical services include flood and floodplain related data on topics such as flood formation and timing, flood depth or stage, floodwater velocity, extent of flooding, duration of flooding, flood frequency, obstructions to flood flows, regulatory floodways, natural and cultural resource values, and flood loss potentials before and after employment of floodplain management measures.

Planning assistance is provided by the Wilmington office to meet a variety of floodplain goals, including floodplain regulations, flood warning and emergency preparedness, hurricane evacuation planning, flood proofing measures, permanent evacuation and relocation. The Corps assists in all aspects of floodplain management planning, ranging from helping a community identify the future of the floodplain and related problems. Included are the impacts of off-floodplain land use changes on the physical, socio-economic, and environmental conditions of the floodplain.
The Corps also assists in recovery from natural disasters. In the wake of past disasters, the Corps has carried out several projects in North Carolina, including

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  Debris assessment, technical assistance, and monitoring
  
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  Data collection relating to high water marks of flooding
  
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  Preform transportation analysis of hurricane evacuation activities
  
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  Technical assistance and pumping services to de-water Princeville and other selected communities
  

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  Flood damage reduction feasibility study and project report for Princeville
  

Beach Nourishment Programs

The Corps has primary responsibility for shore protection programs at the federal level along the Nation’s coasts, including along the North Carolina shoreline. The COE has shifted its focus from hard stabilization projects to soft approaches such as renourishment. Beach nourishment can provide storm protection in situations where it is technically feasible (i.e., adequate and compatible sand supply) provided that erosion rates are a component of project design; engineering standards are used for the planning, design, and construction of the project; and projects are maintained according to design specifications.

Because maintaining renourishment projects is critical to their success, long-term commitments must be made by the COE and state and local partners. The Water Resources Development Act of 1999 reduced the federal cost share for shore protection projects to 50 percent, placing more responsibility directly with the state and local governments. North Carolina has several beach communities that have made this commitment along with the State, and nourishment is a widely used erosion technique along our coast.
Beach renourishment remains a controversial approach to the coastal erosion problem. Such projects are very expensive, and have been shown to have much shorter life spans than are typically estimated. A single nor’easter or other significant coastal storm can wipe out millions of dollars in renourishment expenditures. In addition, the sand sources that have been used in some beach nourishment projects have not been compatible with the existing type of sand on North Carolina beaches, resulting in an altered beach environment in some locations. North Carolina should consider ways to incorporate exit strategies in its shore projects to reduce taxpayer burden in cases where renourishment clearly is not meeting expectations. (Beatley, et al., 2001. An Introduction to Coastal Zone Management. Washington, Island Press).

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