By Theresa Opeka
Carolina Journal
The North Carolina Office of Recovery and Resiliency (NCORR) is facing new questions after a report surfaced that it has ordered contractors to stop building new homes for Hurricanes Florence and Matthew victims and has stopped paying contractors in the process of completing construction projects.
It may not be a surprise, however, as the embattled agency started by Democrat Gov. Roy Cooper in 2018 has recently come under fire for mismanaging funds. The disaster relief agency’s budget deficit is reported to be as much as $221 million.
Former NCORR Director Laura Hogshead openly took the blame in front of state legislators at a hearing last month. The North Carolina Department of Public Safety (NCDPS), which oversees NCORR, announced on Nov. 20 that she was no longer with the agency.
Pryor Gibson, the deputy legislative counsel to Gov. Roy Cooper, will serve as interim director in her place.
In accounts first reported by WBTV, NCORR told contractors it wouldn’t approve the construction of new homes and would stop issuing the approvals, known as a notice to proceed for new projects, effective Dec. 11.
A spokesperson for NCORR confirmed the stoppage in an emailed statement to Carolina Journal.
“Through its Rebuild NC program, NCORR has returned 2,955 families to safer, more resilient homes,” the spokesperson said. “NCORR remains committed to its mission of rebuilding homes for storm-impacted communities; however, new “Notices to Proceed” are being paused as we continue working with the General Assembly for funding to start new projects.”
What’s more, payments to contractors working on current projects have also stopped.
When asked if work has stopped, NCORR’s spokesperson told CJ in the email, “The general contractors NCORR works with are an essential part of hurricane recovery. We value our partnerships with them and appreciate their dedication to completing this important work. While in some instances contractor payments may have been slowed down, NCORR has continued to pay its contractors for work that has been completed as funds are approved.”
Despite having a nearly $1 billion budget, the agency still had 1,400 homes pending construction as of Nov. 18, with 766 families currently in the rebuilding process.
During the Nov. 18 Joint Legislative Commission on Governmental Operations and Subcommittee on Hurricane Response and Recovery hearing, it was reported that on top of paying $2.1 million per month on temporary relocation assistance for displaced individuals, NCORR was behind on contractor payments due to encumbered funds. It owed $37.6 million in outstanding invoices and paid out $5 million weekly.
NCORR, which employs over 200 staff under Cooper’s management, has faced legislative scrutiny for years due to operational issues dating back to Hurricanes Matthew and Florence.
Legislators slammed NCORR during the hearing, including Rep. Jake Johnson, R-Henderson.
“Right now, we’ve got folks admitting fault for this being mismanaged,” Johnson said. “It doesn’t give us a whole lot of confidence and doesn’t give my people confidence back home that it’s going to be handled right the next time. I really do hope we’ve learned from this, and going forward, we’ve got to look at some major reforms to this and how it’s administered.”
Johnson was no less critical in his emailed comments to CJ Tuesday afternoon.
“The legislature has repeatedly given NCORR the funds that it has requested, even as recently as an additional $50 million in SB382 that we will vote on Wednesday,” he said. “The fact that contractors are not getting paid and work is not getting completed just speaks to the continued mismanagement of the program. As someone who represents an area devastated by Hurricane Helene, I have absolutely zero confidence in replicating this system in the western part of the state. Let’s get these folks in Eastern NC back in their homes [as soon as possible] and then come up with a faster more efficient way to do this going forward.”
A provision in SB382 also addresses the ongoing issues with NCORR.
The bill requires the state auditor to examine NCORR’s finances and performance by July 1, 2025. Additional periodic audits are also required, including any requested by the Director of the Budget or the General Assembly.
Last Thursday, North Carolina House Speaker Tim Moore, R-Cleveland, announced the creation of the House Select Committee on Helene Recovery, in which legislators will work to continue helping the people of western North Carolina recover from Hurricane Helene.
Reps. Dudley Greene, R-McDowell, and Majority Leader John Bell, R-Wayne, will co-chair the committee, which will meet until the end of the year.
“The creation of this committee is a critical step toward helping western North Carolina recover and rebuild after the devastating impacts of Hurricane Helene,” said Moore. “By hearing from key stakeholders and resources, we can ensure that our future response is coordinated, effective, and focused on the needs of the affected communities.”
Moore, Greene, and Rep. Destin Hall, R-Caldwell, were in Washington D.C. Tuesday to urge Congress and the Federal Emergency Management Agency (FEMA) to take immediate action to aid communities devastated by Hurricane Helene.
They held a series of meetings with federal officials and lawmakers, emphasizing the urgent need for increased support for disaster recovery, expedited FEMA assistance, and long-term investments in resiliency.
Theresa Opeka is the Executive Branch reporter for the Carolina Journal.
