‘Quality work, fast’: NC gears up for homebuilding after Helene, trying to avoid past pitfalls ...Middle East

Debris and a mobile home are piled up along a tree line in the aftermath of Hurricane Helene on Sept. 29, 2024 in Old Fort, North Carolina. (Photo by Melissa Sue Gerrits/Getty Images)

As she briefed contractors about their upcoming bids to rebuild housing in western North Carolina last week, a state official laid out a candid assessment of the mission ahead.

“We need you, desperately, to build those homes and get people home,” said Angie Dunaway, the director of contracting for the NC Department of Commerce’s new team leading Hurricane Helene recovery efforts.

In early May, the state will begin fielding offers from companies to demolish, repair and rebuild homes destroyed by the deadliest storm in North Carolina history.

It is a monumental task in both scope and logistics. The western mountains will require “some special type of building,” Dunaway told contractors. And the capital involved will be immense — including more than $1.4 billion in federal money from the U.S. Department of Housing and Urban Development.

At every turn, the process will be closely scrutinized. Mismanagement and accounting errors plagued the state’s home rebuilding program after Hurricanes Matthew and Florence. Years later, some of those homes are still incomplete. Furious state lawmakers have made it clear they have little patience this time around.

Gov. Josh Stein has taken a different route than his predecessor, former Gov. Roy Cooper, and spun up new teams to spearhead recovery for Helene. He and his top lieutenants have said they intend for those teams to be smaller and leaner — making private sector contracts all the more critical.

When contractors are selected and get to work, day-to-day operations will look different than they have in the east. State officials do not intend to pay to put up survivors in hotels except in “extreme” circumstances; newly-built homes will follow strict floor plans and timelines; and every interaction between homeowners and builders must be thoroughly documented.

HUD approved the state’s plan to spend its $1.4 billion on Friday — taking another step toward repairing and rebuilding more than 73,000 total damaged homes, and around 8,800 that are significantly damaged or totally destroyed.

Jonathan Krebs, Stein’s advisory for western North Carolina, told contractors they are aiming to be “swinging hammers at the first homes in July.”

State is leaning on contractors for rebuild. Here’s what they’re asking of them

Instead of hiring dozens of new state workers to oversee rebuilding efforts, Stein’s administration is bringing on a contractor to manage the day-to-day operations.

Bidding has been open for that role, referred to as the “implementation vendor,” since mid-April. That company, once selected, will open intake centers, identify projects and source them out to construction vendors.

State officials are aiming to contract around 25 companies for home demolition, repair and rebuild (hundreds of bids are expected). Those contracts will be for at least three years, but up to six, with one-year renewal options.

The constructors must be licensed in North Carolina, and will be selected based on a wide swath of criteria — but foremost, their ability to do “quality work, fast.”

“We want you out there building homes, as quickly as possible,” Dunaway told contractors.

Companies will indicate which types of projects they want to handle — new builds or repairs. They’ll be paid, through the state’s management vendor, based on a project’s phases being completed. Dunaway said it was the state’s intent “that all vendors will be paid the same thing for each project.”

After the contractor receives a “notice to proceed” — an OK to begin construction — they will have up to 150 days to complete the project. Unless they receive a state-approved delay, they’ll be charged $100 per day they go over that deadline. The deadline for each project will depend on its scale: some could include repairs to private roads or bridges on the property, which the state is also contracting for separately.

Newly-built homes will have a two-year warranty. The state needs companies to document that they’re financially sound to ensure they’re around for the duration of that warranty.

In eastern North Carolina, rebuilding dragged on in part because of customizable homes with various layouts. That won’t be an option for homeowners this time. The state is planning to have a limited set of layouts — two-, three- and four-bedroom floor plans, all with two bathrooms — that will be provided by contractors and reused throughout the program.

The administration is also doing away with long-term hotel stays that racked up costs and infuriated legislators during rebuild efforts in the east.

“Unlike previous programs, we are expecting the homeowners to figure it out in most instances,” Krebs told contractors. “Not every homeowner in every instance is going to be relocated at the state’s expense.”

Relocation will happen as a “last resort” and only in “extreme” circumstances.

The state is also requiring construction vendors to have office space on-site in western North Carolina. Dunaway cited state lawmakers’ request that there be a “visual presence” in the region.

“Some of my kinfolk even complained about y’all’s accent,” Rep. Karl Gillespie (R-Cherokee) told state officials in January, as he relayed frustrations from locals about Raleigh. “But if you’re on the ground, we’ll make allowances for your accent.”

The state wants contractors to be able to hold in-person meetings with homeowners if needed, and to thoroughly document every interaction with them. The managing company will plan to set up three offices across 39 counties — and all contractors are expected to provide “extraordinary customer service.”

“When you engage with those applicants, those homeowners, we are looking for it to be positive,” Dunaway said.

FEMA denied North Carolina’s request for permanent housing earlier this year

Earlier this year, North Carolina sought another avenue for rebuilding homes in the mountains — FEMA.

The agency’s housing assistance program offers permanent repairs or new construction for households after disasters, depending on specific circumstances and eligibility. North Carolina applied for that construction, but the request was denied by FEMA.

“[Permanent housing construction] would not be an appropriate form of direct housing as alternative housing options in North Carolina exist,” FEMA disaster recovery manager Brett Howard wrote in an internal memo sent to administrators Feb. 26 and obtained by NC Newsline.

FEMA identified 269 North Carolina homeowners eligible for direct housing assistance as of late February, according to the memo. Twenty-seven of those homeowners would have been eligible for permanent housing aid, but the agency found 85 available resources, including 47 FEMA-contracted properties, that the homeowners could use.

Stein’s communications director, Kate Frauenfelder, confirmed that the governor’s office had requested the program in January. FEMA told them they no longer had the authority to issue permanent housing construction “except in extreme circumstances.”

As of April 22, 5,298 North Carolina households are receiving rental assistance, according to joint state and federal data. Another 216 are in mobile homes or trailers; 31 are in FEMA-leased properties, and 18 are in hotels or transitional shelter.

FEMA did not respond to a request for comment on its denial of the program, which has not been previously reported. In a news release last week, the agency touted its grants sent to North Carolina and its communities since January.

The agency recently denied a request from the state to extend its 100% reimbursement rate for debris removal and emergency services. Those rates now stand at 90%. North Carolina is appealing that decision.

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