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North Carolina Recovery Office Leadership Change Amid Funding Challenges

North Carolina Gov. Roy Cooper greets people, Oct. 3, 2024, in Boone, N.C., in the aftermath of hurricane Helene. (AP Photo/Chris Carlson, File)

North Carolina's efforts to rebuild communities after natural disasters have faced a recent shakeup with the departure of Laura Hogshead, the former chief operating officer for the North Carolina Office of Recovery and Resiliency. Hogshead's exit follows criticism from GOP state lawmakers regarding the office's handling of recovery projects related to Hurricane Helene in western North Carolina.

Pryor Gibson, a legislative lobbyist for Democratic Gov. Roy Cooper, has stepped in as the interim replacement for Hogshead. The office, also known as ReBuild NC, was established by Cooper to enhance infrastructure in eastern North Carolina following the impacts of Hurricane Matthew in 2016 and Hurricane Florence in 2018.

At a recent joint legislative oversight committee hearing, concerns were raised about a funding shortfall for ongoing housing projects in the eastern part of the state. The office requested over $220 million to support the Homeowner Recovery Program, aimed at assisting affected individuals with home repairs, rebuilding, or elevation.

The governor's office emphasized the significant progress made by the recovery office in rebuilding nearly 2,900 houses, with an average completion rate of approximately 115 houses per month. The transition to Governor-Elect Stein will be overseen by Gibson to ensure the continuity of recovery efforts.

During the hearing, Hogshead acknowledged budgetary missteps, including challenges in managing encumbrances. While she expressed regret for not monitoring more closely, she highlighted the office's ability to reallocate funds but cautioned about potential disruptions due to breaking commitments.

The General Assembly approved an additional $50 million allocation to address the Homeowner Recovery Program shortfall, bringing the total legislative support to $80 million since last month. However, the measure also mandated a financial and performance audit by the State Auditor's Office and ongoing financial monitoring by state budget staff.

Expectations for 'wholesale reform' of the office were voiced by Rep. Destin Hall, signaling a commitment to address shortcomings in the recovery efforts in eastern North Carolina. Gibson informed lawmakers of the urgent need for at least $40 million monthly over the next three months to bridge the funding gap and prevent potential project delays.

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