Disaster Recovery Act of 2025 - Part 1(b).

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 863

Short Title: Disaster Recovery Act of 2025 - Part 1(b). (Public)
Sponsors: Representatives Prather, Ager, and Turner (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Appropriations, if favorable, Rules, Calendar, and Operations of the House
April 10, 2025
*H863-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO APPROPRIATE FUNDS TO STATE AGENCIES FOR HURRICANE HELENE 2
UNMET NEEDS FOR DISASTER RECOVERY IN WESTERN NORTH CAROLINA. 3
The General Assembly of North Carolina enacts: 4
5
PART I. APPROPRIATIO NS FOR WESTERN NORTH CAROLINA HURRICANE 6
HELENE RECOVERY 7
SECTION 1. There is appropriated from the Savings Reserve established in 8
G.S. 143C-4-2 the sum of five hundred eighty -two million two hundred twenty -nine thousand 9
seven hundred fifty dollars ($582,229,750) in nonrecurring funds for the 2025-2026 fiscal year 10
to provide funds for unmet needs from Hurricane Helene, as follows: 11
(1) One hundred seven million dollars ($107,000,000) to the Department of 12
Commerce for the following purposes: 13
a. One hundred million dollars ($100,000,000) t o Appalachian 14
Community Capital Corporation in partnership with the Dogwood 15
Health Trust for a grant program in accordance with Part III of this act. 16
b. Seven million dollars ($7,000,000) to the Rural Economic 17
Development Division for the Creating Outdoor Recreation 18
Economies (CORE) Program. 19
(2) One hundred five million dollars ($105,000,000) to the Housing Finance 20
Agency for the following purposes: 21
a. Fifty million dollars ($50,000,000) for affordable housing grants to 22
units of local government in the affe cted area to incentivize 23
high-quality, resilient, affordable housing. This funding may also be 24
used by recipients to repair rental units and shelters for disaster 25
victims. Each unit of local government may apply for a grant not to 26
exceed one million dollars ($1,000,000). 27
b. Twenty-five million dollars ($25,000,000) for homeowner and renter 28
unmet needs, including immediate minor repairs and needs that are not 29
FEMA-eligible. 30
c. Twenty million dollars ($20,000,000) for mortgage and utility 31
assistance. 32
d. Ten m illion dollars ($10,000,000) for housing stabilization services 33
and financial assistance for homeless populations. 34
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(3) One hundred million dollars ($100,000,000) to the Department of State 1
Treasurer for grants to units of local government for revenue replacement. 2
(4) Fifty million dollars ($50,000,000) to the Department of Natural and Cultural 3
Resources for the following purposes: 4
a. Twenty-five million dollars ($25,000,000) for the Parks and 5
Recreation Trust Fund established under G.S. 143B-135.56 for Stat e 6
parks restoration and rebuilding grants. 7
b. Twenty-five million dollars ($25,000,000) for the Land and Water 8
Fund for flood abatement and water quality protection grants. 9
(5) One hundred twenty -seven million four hundred twenty -three thousand five 10
hundred dollars ($127,423,500) to the Department of Agriculture and 11
Consumer Services for the following purposes: 12
a. Seventy-five million dollars ($75,000,000) to the Division of Soil & 13
Water Conservation for streambank stabilization and stream 14
restoration. 15
b. Twenty million dollars ($20,000,000) to divide equally among food 16
banks in the affected area. Of these funds, ten million dollars 17
($10,000,000) shall be used to buy food from local farms. 18
c. Sixteen million seventy -three thousand five hundred dollars 19
($16,073,500) for the Forest Service for fire season preparation, 20
including equipment, and on-call and overtime pay. 21
d. Twelve million five hundred thousand dollars ($12,500,000) to the 22
Agricultural Development and Farmland Preservation Trust Fund for 23
working farms and forest preservation. 24
e. Three million three hundred fifty thousand dollars ($3,350,000) to the 25
North Carolina Forest Service for new hand crew units for wildfire risk 26
reduction for one year of program operation. 27
f. Five hundred thousand dollars ($5 00,000) to the Community 28
Conservation Assistance Program for stormwater control in the French 29
Broad River watershed, consistent with the requirements of Article 73 30
of Chapter 106 of the General Statutes. 31
(6) Thirty-nine million two hundred thousand dollars ($39,200,000) to the 32
Department of Public Instruction for the following purposes: 33
a. Fourteen million dollars ($14,000,000) to each community college in 34
the affected area for small business centers. Each community college 35
shall receive one million dollars ($1,000,000) under this allocation. 36
b. Twenty-five million two hundred thousand dollars ($25,200,000) for 37
K-12 Summer Learning Programs to support 30 days of summer 38
instruction in the affected area. 39
(7) Twenty-six million dollars ($26,000,000) to the Offi ce of State Budget and 40
Management for the following purposes: 41
a. Twenty million dollars ($20,000,000) for OSBM to allocate to State 42
agencies for continuing operations and staffing, including The 43
University of North Carolina System. 44
b. Three million dollars ($3,000,000) for directed grants to Legal Aid of 45
North Carolina, Inc., a nonprofit corporation, and Pisgah Legal 46
Services, a nonprofit corporation, for disaster legal services for those 47
affected by Hurricane Helene. 48
c. Three million dollars ($3,000,000) f or North Carolina independent 49
colleges and universities in the affected area damaged by Hurricane 50
Helene. 51
General Assembly Of North Carolina Session 2025
House Bill 863-First Edition Page 3
(8) Eleven million six hundred six thousand two hundred fifty dollars 1
($11,606,250) to the Department of Public Safety, Division of Emergency 2
Management (NCEM), for the following purposes: 3
a. Ten million dollars ($10,000,000) for resilience and backup power 4
measures, including mobile solar and battery arrays. 5
b. One million six hundred six thousand two hundred fifty dollars 6
($1,606,250) to strengthen di saster financial and communications 7
teams in NCEM's core capacity. 8
(9) Sixteen million dollars ($16,000,000) to the Department of Environmental 9
Quality for the following purposes: 10
a. Ten million dollars ($10,000,000) for engineering and design work for 11
dam removal projects funded by federal agencies. 12
b. Four million dollars ($4,000,000) for septic repair and replacement 13
grants for those that suffered direct losses of eligible services and 14
structures from Hurricane Helene. 15
c. Two million dollars ($2,000,000) for recycling infrastructure and 16
business grants for post-disaster cleanup services. 17
18
PART II. HURRICANE HELENE BUSINESS RECOVERY GRANT PROGRAM 19
SECTION 2.(a) Purpose. – The purpose of this section is to help businesses located 20
in the affected area that e xperienced economic or physical loss as a result of Hurricane Helene 21
by providing grants awarded by the Department of Revenue to offset the losses suffered by those 22
businesses. 23
SECTION 2.(b) Hurricane Helene Business Recovery Grant Program. – The 24
Department of Revenue is authorized to create and administer the Hurricane Helene Business 25
Recovery Grant Program (Program). The Department shall provide a one -time grant to 26
businesses that suffered economic or physical loss as a result of Hurricane Helene and mee t the 27
requirements of this section. 28
SECTION 2.(c) Eligibility. – A business is eligible for a grant under the Program if 29
it meets all of the following conditions: 30
(1) The business is subject to income tax under Article 4 of Chapter 105 of the 31
General Statutes. 32
(2) The business experienced a reduction in sales tax collections as a result of 33
Hurricane Helene for the fourth quarter of 2024 when compared to sales tax 34
collections for the same period of 2023. 35
(3) The business is located within the affected area. 36
SECTION 2.(d) Applications. – A business must apply to the Department of 37
Revenue for a grant during the time frame and on a form prescribed by the Department and must 38
include any supporting documentation required by the Department. The Department may accept 39
applications until the funds available under this Program have been fully awarded. 40
SECTION 2.(e) Grant Amount. – The grant amount to an eligible business shall not 41
exceed seventy-five thousand dollars ($75,000). The grant to a business under this sect ion shall 42
be reduced by the amount of any Hurricane Helene relief -related grant funding previously 43
received by the business from the State or federal government, the Dogwood Health Trust, or the 44
Appalachian Community Capital. 45
SECTION 2.(f) Eligible Uses. – Grants awarded under this Program shall be used 46
by qualifying businesses for purposes otherwise consistent with the allowable uses of loan 47
proceeds under the Economic Injury Disaster Loan program and the Business Physical Disaster 48
Loan program of the Small Business Administration. 49
SECTION 2.(g) Grant Program Limit. – The total of all funds granted under this 50
Program may not exceed the amount allocated to the Program under this act. The Department 51
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must calculate the total amount of grants requested from t he applications timely filed under 1
subsection (d) of this section. If the total amount of grants requested exceeds the maximum 2
amount of funds available for grants under this subsection, the Department shall reduce each 3
grant award on a proportionate basis. 4
SECTION 2.(h) Clawback. – If a business receives a grant under this Program for 5
which it is ineligible, the business forfeits the grant awarded under this section and is liable for 6
the amounts received. An award forfeited under this section shall bear interest at the rate 7
determined in accordance with G.S. 105-241.21 as of the date of receipt until repaid. Failure to 8
pay an award forfeited shall be collected by a civil action in the name of the State, and the 9
recipient business shall pay the cost of the action. The Att orney General, at the request of the 10
Secretary of Revenue, shall institute the action in the proper court for the collection of the award 11
forfeited, including interest thereon. 12
SECTION 2.(i) Outreach. – The Department of Revenue, in consultation with the 13
Department of Commerce, is directed to inform and educate businesses that may be eligible to 14
apply for the grants provided by this section as soon as practicable to facilitate the awareness of 15
access to the grants provided by this section. 16
SECTION 2.(j) Administrative Expenses. – The Department of Revenue may retain 17
up to five percent (5%) of the funds appropriated for the Hurricane Helene Business Recovery 18
Grant Program under this section for administrative expenses. 19
20
PART III. EXPANDED DOGWOOD HEALTH TRUST PARTNERSHIP GRANTS 21
SECTION 3.(a) Purpose. – The purpose of this section is to help businesses located 22
in the affected area that experienced economic or physical loss as a result of Hurricane Helene 23
by providing grants awarded by Appalachian Community C apital Corporation (Appalachian), a 24
nonprofit corporation, in partnership with the Dogwood Health Trust (Dogwood), a nonprofit 25
corporation, to offset the losses suffered by those businesses. 26
SECTION 3.(b) Expanded Dogwood Health Trust Partnership Grant Pr ogram. – 27
Appalachian, in partnership with Dogwood, is authorized to create and administer the Expanded 28
Dogwood Health Trust Partnership Grant Program (Program). Appalachian, in partnership with 29
Dogwood, shall provide grants to businesses that suffered econ omic or physical loss as a result 30
of Hurricane Helene and meet the requirements of this section. When awarding loans under this 31
section, Appalachian shall prioritize service-providing businesses that do not generate significant 32
taxable sales. 33
SECTION 3.(c) Eligibility. – A business is eligible for a grant under the Program if 34
it meets all of the following conditions: 35
(1) The business is located in the affected area. 36
(2) The business employs 50 or fewer employees. 37
(3) The business's annual revenue for the m ost recent taxable year was not more 38
than ten million dollars ($10,000,000). 39
(4) The business otherwise meets the qualifications requisite for award of a 40
"Western North Carolina Small Business Initiative II" grant from Appalachian 41
as of February 10, 2025. 42
SECTION 3.(d) Applications. – A business must apply to Appalachian for a grant 43
on a form prescribed by Appalachian and must include any supporting documentation required 44
by Appalachian. Appalachian may accept applications until the funds available under t his 45
Program have been fully awarded. 46
SECTION 3.(e) Match Requirement. – Grants awarded by Appalachian with State 47
funds provided under this section shall be matched by funds from Dogwood on the basis of one 48
dollar ($1.00) of Dogwood funds for every dollar ($1.00) of State funds. 49
SECTION 3.(f) Grant Amount. – Appalachian and Dogwood shall jointly determine 50
the amount of the grant awarded to an eligible business under this section, provided, however, 51
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House Bill 863-First Edition Page 5
that the maximum grant amount to a single business is limi ted to seventy-five thousand dollars 1
($75,000). 2
SECTION 3.(g) Eligible Uses. – Grants awarded under this Program shall be used 3
by qualifying businesses for purposes otherwise consistent with the allowable uses of the 4
"Western North Carolina Small Business Initiative II" grant program administered by 5
Appalachian as of February 10, 2025. Of the funds allocated for this section, twenty million 6
dollars ($20,000,000) shall be reserved for artists in the affected area. 7
SECTION 3.(h) Grant Program Limit. – The total of all funds granted under this 8
Program may not exceed the amount allocated to the Program under this act. Grants shall be 9
awarded on a first-come, first-served basis. 10
SECTION 3.(i) Clawback. – If a business receives a grant under this Program for 11
which it is ineligible, the business forfeits the grant awarded under this section and is liable for 12
the amounts received. An award forfeited under this section shall bear interest at the rate 13
determined in accordance with G.S. 105-241.21 as of the date of r eceipt until repaid. Failure to 14
pay an award forfeited shall be collected by a civil action in the name of the State, and the 15
recipient business shall pay the cost of the action. 16
SECTION 3.(j) Outreach. – Appalachian, in consultation with Dogwood, is directed 17
to inform and educate businesses that may be eligible to apply for the grants provided by this 18
section as soon as practicable to facilitate awareness of and access to the grants provided by this 19
section. 20
SECTION 3.(k) Administrative Expenses. – Appalachian and Dogwood may each 21
retain up to two percent (2%) of the funds appropriated for the Program under this section for 22
administrative expenses. 23
24
PART IV. MISCELLANEOUS PROVISIONS 25
SECTION 4.(a) Funds appropriated in this act shall revert to the Savings Reserve if 26
not expended or encumbered by June 30, 2027. Unless otherwise provided, all funds are to be 27
used for Hurricane Helene purposes in the affected area, as defined in Section 1.4 of S.L. 28
2024-53. 29
SECTION 4.(b) For purposes of this act, the following definitions apply: 30
(1) Directed grant. – Nonrecurring funds allocated by a State agency to a 31
non-State entity as directed by an act of the General Assembly. 32
(2) Non-State entity. – As defined in G.S. 143C-1-1. 33
SECTION 4.(c) Requirements. – Nonrecurring funds appropriated in this act as 34
directed grants are subject to all of the following requirements: 35
(1) Directed grants are subject to the provisions of subsections (b) through (k) of 36
G.S. 143C-6-23. 37
(2) Directed grants of one hundred thousand dollars ($100,000) or less may be 38
made in a single annual payment in the discretion of the Director of the 39
Budget. Directed grants of more than one hundred thousand dollars 40
($100,000) shall be made in quarte rly or monthly payments in the discretion 41
of the Director of the Budget. A State agency administering a directed grant 42
shall begin disbursement of funds to a non -State entity that meets all 43
applicable requirements as soon as practicable, but no later than 100 days after 44
the date this act becomes law. 45
(3) Beginning on the first day of a quarter following the deadline provided in 46
subdivision (2) of this subsection and quarterly thereafter, State agencies 47
administering directed grants shall report to the Fisca l Research Division on 48
the status of funds disbursed for each directed grant until all funds are fully 49
disbursed. At a minimum, the report required under this subdivision shall 50
include updates on (i) the date of the initial contact, (ii) the date the contr act 51
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was sent to the entity receiving the funds, (iii) the date the disbursing agency 1
received the fully executed contract back from the entity, (iv) the contract 2
execution date, and (v) the payment date. 3
(4) Notwithstanding any provision of G.S. 143C-1-2(b) to the contrary, 4
nonrecurring funds appropriated in this act as directed grants shall not revert 5
until June 30, 2026. 6
(5) Directed grants to nonprofit organizations are for nonsectarian, nonreligious 7
purposes only. 8
SECTION 4.(d) This act becomes effective July 1, 2025. 9