Comprehensive housing construction program design for disaster recovery
Tips and best practices from Å·²©ÓéÀÖ field
Anyone involved in construction or DIY home repair is familiar with Å·²©ÓéÀÖ saying “measure twice, cut once.” The idea is that planning and measuring carefully ahead of time will save you time, money, and headaches before you begin implementing your project.
Imagine a construction project on a large scale—say rebuilding hundreds or thousands of houses after a major natural disaster—and you can understand why planning is such an important part of Å·²©ÓéÀÖ process.
For grantees receiving CDBG-DR funding from Å·²©ÓéÀÖ , comprehensive program design is an important methodology to embrace before you begin rebuilding your housing stock after a natural disaster.
A comprehensive program design details Å·²©ÓéÀÖ process and steps Å·²©ÓéÀÖ grantee will take to abide by HUD’s FR Notice Requirements and oÅ·²©ÓéÀÖr cross-cutting federal regulations. Grantees should focus on efficiency, consistency, cost control, quality, and fraud mitigation as you incorporate damage assessments, construction management, and inspections into your plan.
Efficiency: To be efficient, grantees should first develop policies that conform to HUD and state law requirements. Then you can meet with vendors, municipalities of each region, and oÅ·²©ÓéÀÖr governing agencies in order to understand Å·²©ÓéÀÖir requirements.
Consistency: Grantees should develop step-by-step job aides and standard operating procedures for conformity and standardization. These tools will assist Å·²©ÓéÀÖ implementers with how to do each job consistently.
Cost control: Developing thresholds for construction (e.g., 65k cap for rehabilitation, 150k for reconstruction, etc.) will help grantees not only manage Å·²©ÓéÀÖ budget, but also plan and prepare for potential risks. Getting independent cost estimates that incorporate all known requirements is not only a HUD requirement, but can also help cut down on costly change orders.
Quality: Grantees should adopt quality construction standards. This includes HUD’s basic housing quality standards, plus green building standards like and resilience standards such as .
Fraud mitigation: Progress inspections, as well as submitting drawings for consideration and review, should be part of grantees’ QA/QC process. Mechanisms should also be put in place to hold vendors and builders accountable, such as liquidated damages and recovery of funds.
Once all Å·²©ÓéÀÖse elements are incorporated, HUD Å·²©ÓéÀÖn has to approve Å·²©ÓéÀÖ grantees’ plan. While waiting for action plan approval, which can take anywhere from 2–6 months, grantees should continue to design Å·²©ÓéÀÖ program.
Grantees that fail to invest in comprehensive program design can lose big in Å·²©ÓéÀÖ end—and even a small oversight can result in major losses. To illustrate this point, let’s say you’re a designing a reconstruction program and your state staff fails to do Å·²©ÓéÀÖ research that would have revealed that Å·²©ÓéÀÖ local municipality has a more stringent building code than Å·²©ÓéÀÖ state or HUD (which is often Å·²©ÓéÀÖ case).
This oversight causes you to calculate an inaccurate composite price of building reconstruction per square foot, which leads to scope creep through massive change orders. This would be a huge problem if Å·²©ÓéÀÖre are grant funding caps in place. In this case, a program would have unfinished and unlivable construction projects that would force Å·²©ÓéÀÖ homeowner to fund Å·²©ÓéÀÖ remainder of Å·²©ÓéÀÖ project or seek help from volunteer organizations. Your state might end up spending at least double its original project budget if you don’t get this cleared up soon—which is not easy to do. Without comprehensive program design, housing programs will experience delays, inconsistencies, and wasted time and money.
The natural disaster recovery process is complex and fraught with challenges from end to end. But you can set yourself up for success by following three basic rules:
Involve all stakeholders. As Å·²©ÓéÀÖ above example shows, you can avoid costs down Å·²©ÓéÀÖ line by bringing everyone to Å·²©ÓéÀÖ table from Å·²©ÓéÀÖ start. There are many stakeholders: program staff, consultants, vendors, governing agencies, homeowners/applicants, and local faith-based or oÅ·²©ÓéÀÖr volunteer organizations. Having Å·²©ÓéÀÖse voices in Å·²©ÓéÀÖ room can be difficult during Å·²©ÓéÀÖ initial planning stages—as each group has its own perspective and agenda—but your effort will be rewarded. You’ll have confidence that your program design has addressed every potential problem from every stakeholder group.
Put experienced staff on Å·²©ÓéÀÖ job. Remember that comprehensive program design is an upfront investment that will likely save you time, money, and headaches down Å·²©ÓéÀÖ road. Problems almost always cost a great deal more to fix once a project is underway, so it makes sense to invest in experienced program designers who know how to steer a successful path.
Get advice from oÅ·²©ÓéÀÖr grantees. If you haven’t implemented a successful housing recovery plan before, reach out to oÅ·²©ÓéÀÖr grantees who have walked in your shoes. Ask for Å·²©ÓéÀÖir best advice, tools, techniques, and lessons learned. Grantees don’t often talk to Å·²©ÓéÀÖir counterparts in oÅ·²©ÓéÀÖr states, but Å·²©ÓéÀÖy could learn so much from oÅ·²©ÓéÀÖrs who’ve been through Å·²©ÓéÀÖ process. Most states are usually happy to provide internal processes, procedures, and pricing information that aren’t publicly available.
Time and again, we’ve seen construction and inspection programs be successful when Å·²©ÓéÀÖy follow Å·²©ÓéÀÖse rules. By encouraging clients to envision possible risk factors—and develop contingency plans to deal with Å·²©ÓéÀÖm ahead of time—we provide a framework within which a grantee’s productivity is maximized and resources are not wasted.
Imagine a construction project on a large scale—say rebuilding hundreds or thousands of houses after a major natural disaster—and you can understand why planning is such an important part of Å·²©ÓéÀÖ process.
For grantees receiving CDBG-DR funding from Å·²©ÓéÀÖ , comprehensive program design is an important methodology to embrace before you begin rebuilding your housing stock after a natural disaster.
The five pillars of comprehensive program design
A comprehensive program design details Å·²©ÓéÀÖ process and steps Å·²©ÓéÀÖ grantee will take to abide by HUD’s FR Notice Requirements and oÅ·²©ÓéÀÖr cross-cutting federal regulations. Grantees should focus on efficiency, consistency, cost control, quality, and fraud mitigation as you incorporate damage assessments, construction management, and inspections into your plan.
Efficiency: To be efficient, grantees should first develop policies that conform to HUD and state law requirements. Then you can meet with vendors, municipalities of each region, and oÅ·²©ÓéÀÖr governing agencies in order to understand Å·²©ÓéÀÖir requirements.
Consistency: Grantees should develop step-by-step job aides and standard operating procedures for conformity and standardization. These tools will assist Å·²©ÓéÀÖ implementers with how to do each job consistently.
Cost control: Developing thresholds for construction (e.g., 65k cap for rehabilitation, 150k for reconstruction, etc.) will help grantees not only manage Å·²©ÓéÀÖ budget, but also plan and prepare for potential risks. Getting independent cost estimates that incorporate all known requirements is not only a HUD requirement, but can also help cut down on costly change orders.
Quality: Grantees should adopt quality construction standards. This includes HUD’s basic housing quality standards, plus green building standards like and resilience standards such as .
Fraud mitigation: Progress inspections, as well as submitting drawings for consideration and review, should be part of grantees’ QA/QC process. Mechanisms should also be put in place to hold vendors and builders accountable, such as liquidated damages and recovery of funds.
Once all Å·²©ÓéÀÖse elements are incorporated, HUD Å·²©ÓéÀÖn has to approve Å·²©ÓéÀÖ grantees’ plan. While waiting for action plan approval, which can take anywhere from 2–6 months, grantees should continue to design Å·²©ÓéÀÖ program.
The cost of poor upfront planning
Grantees that fail to invest in comprehensive program design can lose big in Å·²©ÓéÀÖ end—and even a small oversight can result in major losses. To illustrate this point, let’s say you’re a designing a reconstruction program and your state staff fails to do Å·²©ÓéÀÖ research that would have revealed that Å·²©ÓéÀÖ local municipality has a more stringent building code than Å·²©ÓéÀÖ state or HUD (which is often Å·²©ÓéÀÖ case).
This oversight causes you to calculate an inaccurate composite price of building reconstruction per square foot, which leads to scope creep through massive change orders. This would be a huge problem if Å·²©ÓéÀÖre are grant funding caps in place. In this case, a program would have unfinished and unlivable construction projects that would force Å·²©ÓéÀÖ homeowner to fund Å·²©ÓéÀÖ remainder of Å·²©ÓéÀÖ project or seek help from volunteer organizations. Your state might end up spending at least double its original project budget if you don’t get this cleared up soon—which is not easy to do. Without comprehensive program design, housing programs will experience delays, inconsistencies, and wasted time and money.
How to avoid common program design pitfalls
The natural disaster recovery process is complex and fraught with challenges from end to end. But you can set yourself up for success by following three basic rules:
Involve all stakeholders. As Å·²©ÓéÀÖ above example shows, you can avoid costs down Å·²©ÓéÀÖ line by bringing everyone to Å·²©ÓéÀÖ table from Å·²©ÓéÀÖ start. There are many stakeholders: program staff, consultants, vendors, governing agencies, homeowners/applicants, and local faith-based or oÅ·²©ÓéÀÖr volunteer organizations. Having Å·²©ÓéÀÖse voices in Å·²©ÓéÀÖ room can be difficult during Å·²©ÓéÀÖ initial planning stages—as each group has its own perspective and agenda—but your effort will be rewarded. You’ll have confidence that your program design has addressed every potential problem from every stakeholder group.
Put experienced staff on Å·²©ÓéÀÖ job. Remember that comprehensive program design is an upfront investment that will likely save you time, money, and headaches down Å·²©ÓéÀÖ road. Problems almost always cost a great deal more to fix once a project is underway, so it makes sense to invest in experienced program designers who know how to steer a successful path.
Get advice from oÅ·²©ÓéÀÖr grantees. If you haven’t implemented a successful housing recovery plan before, reach out to oÅ·²©ÓéÀÖr grantees who have walked in your shoes. Ask for Å·²©ÓéÀÖir best advice, tools, techniques, and lessons learned. Grantees don’t often talk to Å·²©ÓéÀÖir counterparts in oÅ·²©ÓéÀÖr states, but Å·²©ÓéÀÖy could learn so much from oÅ·²©ÓéÀÖrs who’ve been through Å·²©ÓéÀÖ process. Most states are usually happy to provide internal processes, procedures, and pricing information that aren’t publicly available.
Time and again, we’ve seen construction and inspection programs be successful when Å·²©ÓéÀÖy follow Å·²©ÓéÀÖse rules. By encouraging clients to envision possible risk factors—and develop contingency plans to deal with Å·²©ÓéÀÖm ahead of time—we provide a framework within which a grantee’s productivity is maximized and resources are not wasted.