As $43 million for Southwest flood relief remains unspent, residents who can’t afford to fix their homes wait for help

David Cruey hadn’t slept well — he woke up in the middle of the night gasping for air. 

The power had gone out briefly. The four box fans and the window air conditioning unit circulating air throughout the trailer home had turned off, along with his oxygen machine. When that happened, as it had many times before, everything needed to be turned back on; otherwise, the air in the home would become heavy with mold and mildew. That made it difficult for Cruey to breathe, a condition that has worsened since last year’s flood caused mold to bloom in the home. 

State funds meant to help repair Cruey’s home have yet to arrive. Even if they do, because Cruey lives in a mobile home, the help will likely cover little of the cost to repair.

A coal miner for 23 years, 57-year-old Cruey has been on palliative care since April with diagnoses of black lung, COPD, kidney failure and advanced heart failure. His doctor had recently told him that he could fall asleep one night and never wake up, he said. 

That night, he said, he sat until daybreak on a couch in the living room of the home he shared with his wife, Renee, after switching the fans and his oxygen machine back on. 

“All of this stuff is killing me,” he said.

David, Renee and their 16-year-old rescue dog, Little Bit, have lived in the trailer on Orange Street in Richlands since 2019. Their home sits about 40 feet from the Clinch River. They had weathered floods together before, but the storm that hit in February 2025 was different. The water rose quickly and inundated the homes on Orange Street. The floors, walls and insulation under the Crueys’ home were soaked by the floodwater. Mold had flourished in the months after the water receded, despite Renee’s efforts to fight it. She would regularly wipe the walls with vinegar in an attempt to fight the mold growth, she said. 

That summer, a few months after the flood, the Crueys began to collect bits and pieces from nearby destroyed and abandoned trailers to fix their home — a front door and a back door, some tile flooring for the entranceway, scraps of linoleum to cover up plywood that they’d laid down near their back door, wood planks to rebuild their back porch, an outdoor circuit breaker box after theirs shorted out. 

“I was scared to rip everything out because nobody got help, nobody got nothing,” Renee said, the rhythmic hiss of David’s oxygen machine in the background. “It was a disaster.”

The Virginia General Assembly allocated $50 million during its 2025 legislative session for recovery following widespread flooding across Southwest Virginia due to Hurricane Helene in 2024 and Winter Storm Jett in 2025. But the payment of that money to residents for recovery has been slow. 

Just under $7 million of that money, or 13% of the funds, had been disbursed to residents through the Virginia Disaster Assistance Fund a full year after applications for the program opened. There was about $43.24 million left in the fund as of June 18, according to the Virginia Department of Housing and Community Development, the agency that manages the program.

Lawmakers and agency heads said a number of circumstances created the perfect storm to slow the disbursal of money to flood-affected residents. 

Tamarah Holmes, director of DHCD, attributed the delay to the length of time it took to launch the program following the storms — about eight months in the case of Helene and about four months in the case of the February flood — as well as confusion about where residents needed to go to get help. That confusion stemmed from the influx of agencies, organizations and assistance programs from all levels of government into the region, she said.

Del. William Morefield, R-Tazewell County, played a crucial role in the inclusion of the VDAF program in the 2025 budget amendments package. He blamed the delay in the release of funds on an overreliance on federal aid by the Youngkin administration, despite legislators repeatedly stressing the importance of making the state funding available in the immediate aftermath of the disasters. 

“I knew there would be tremendous challenges for victims to qualify for the federal programs,” he said. 

He added that turnover at the top of DHCD in May 2025, during the Youngkin administration, was an issue, and that the assistance program ran into multiple “roadblocks” after the department head left that month. 

The transition from the end of Gov. Glenn Youngkin’s administration to the beginning of Gov. Abigail Spanberger’s administration in January 2026 added to the payment delays. 

“It’s typical for little progress to be made in all areas of state government during a transition in administrations,” Morefield said. 

Barriers to assistance exist within the program as well.

Only 1 application for bridge or retaining wall repair has been approved 

The Virginia Disaster Assistance Fund was created through the budget amendments package that was passed during the 2025 legislative session. It was adopted in early May of that year. The legislation allocated $50 million for recovery for residents of Southwest Virginia following flooding due to Hurricane Helene in September 2024 and the February 2025 storms. That $50 million pot of money was split into two buckets: $25 million for part one and $25 million for part two of the program. 

Part one is intended to provide assistance to homeowners who need to repair or replace damaged or destroyed homes, like the Crueys’ trailer. The property owner must provide proof of ownership and residency, photo ID, insurance documents if applicable, photos of the damage and assessment of the damage by a licensed construction professional or the Virginia Department of Emergency Management. 

The homeowner can receive up to 50% of the assessed value of the property if the home is determined to have withstood major damage, or 100% of the assessed value if it was destroyed. 

Tanya Mullins, grant administrator in Tazewell County, has helped residents complete applications for assistance. Those applications are funneled through the county emergency management department, which determines whether the applicants qualify and if the damage is major or a total loss under the VDAF guidelines, she said. If the application does not meet those guidelines, the applicant is sent a letter that outlines an appeal process. If the county’s emergency management department determines that the applicant qualifies, the application is sent on to the DCHD, which makes the ultimate decision. 

When the program was first rolled out, the goal was to get money to residents within a month. As more applications were received, the state agency got further and further behind, Mullins said. Roughly $6.7 million of the $25 million available in part one of the program had been disbursed as of mid-June to residents in Buchanan, Tazewell, Smyth, Washington, Russell and Lee counties. 

Part two of the program is meant to help property owners replace infrastructure such as retaining walls and access bridges. Many homes in the region were built on the opposite side of a creek from the road, and access bridges are necessary for residents to get to their homes. Retaining walls help to maintain the structural integrity of creek banks or hold back the earth in steep slopes behind some homes. 

As of mid-June, however, only one application for part two assistance had been approved — out of 147 submitted — and just $6,800 had been disbursed of the $25 million available.

One barrier to more residents getting help: Cost estimates to repair or rebuild a bridge can’t exceed $50,000, or $29,000 to repair or rebuild a retaining wall. Almost 60% of the applications have been denied because the cost of the work would exceed those caps; the rest remain under review by DHCD or have been withdrawn.

The 87 applicants whose requests were denied were referred to a separate program managed by the state Department of Conservation and Recreation. It will help pay for more expensive bridges and retaining walls, but it includes additional restrictions and criteria, including mitigation standards, that can increase the cost to repair or rebuild the damaged structures. 

Under Spanberger’s direction, new leadership from the housing and conservation departments has met with planning district commissions, legislators and local leaders throughout Southwest Virginia to address confusion and expedite the submission and processing of applications for part two assistance, the governor’s office said. 

The administration has held monthly meetings focused on improving coordination and expediting the application approval process, and future meetings are planned, the governor’s office said. They added that there has been an increase in projects submitted to DCR as a result. DCR will continue to accept applications to their fund on a rolling basis, and the deadline for those applications is Dec. 1, 2026.

Morefield said that the governor’s office has also agreed to meet with him in August to discuss adjustments to the VDAF program. 

Low assessments mean little money for homeowners

Renee Cruey had worked at a local McDonald’s for about 13 years before her husband’s health took a turn in 2017. Since then, she has cared for him full time with only his retirement and Social Security money to support them. 

That comes out to about $1,800 per month, and in the wintertime, their electric bill alone can climb to $1,200 per month, she said. Other monthly bills include rent for the lot that their trailer sits on, a car payment, car insurance and groceries. The Crueys have had months where they put off making their car payment to cover the electric bill — electricity is a necessity to keep David’s oxygen machine running. 

The Crueys still haven’t been able to complete comprehensive repairs or restoration on the flooring, insulation or parts of their plumbing that had been washed out in the flood. Mold and mildew grew in the walls, the floor and in cabinets; their bathroom sink does not work; and the flooring around the toilet has grown soft.

They turned in their application for assistance through the Virginia Disaster Assistance Fund near the end of May, more than a year after the storm, after learning about the program from a family member who had received help. They’re waiting to hear back from Tazewell County. If DHCD determines that they’re eligible, they’ll receive assistance through part one of the VDAF program. 

“I don’t know how long it takes,” Renee said. 

A number of people who Mullins has helped to apply for funding lived in trailers or mobile homes when the flood hit. Homeowners, including the Crueys, usually rent the lot that their trailer or mobile home sits on. 

The amount of money a homeowner can receive through VDAF is based on the tax assessed value of the home. If the home sustained major damage, the homeowner would receive 50% of the home’s total value because there is an expectation that they would be able to repair the structure and continue to live in it. If the home is a total loss, the homeowner would receive 100% of the assessed value.

“The problem with the trailers, because they don’t own the land, that value is not calculated in there, so they’re only allotted what the trailer is worth on the last tax ticket, and unfortunately trailers depreciate quickly,” Mullins said. “They may have $10,000 worth of damage, but their trailer may only assess for $2,000. So the way the VDAF program is set up — the guidelines — they only get half of that.”

Many homes sustained significant losses, but the assessed value of the structure was very low, said Eric Young, Tazewell County administrator. This was especially true, he said, of older mobile homes that had already been flooded in previous events.

“We had homes, mainly mobile homes, that were assessed for $1,800 or $2,500, which capped the program award at one or two thousand dollars,” Young said. 

Mullins concurred. 

“If they’re living in a 1978 trailer, they’re going to have a lot more damage than what the program allows, based off of the guidelines,” she said. 

She added that she has recommended United Way of Southwest Virginia to residents who did not receive enough money to repair or replace homes. 

United Way has been able to supplement state assistance through collaboration with the county to split the cost of repairs, said Dan Rice, disaster services manager at the nonprofit. 

If a contractor estimated that a home needed $10,000 of repairs, for example, but the structure was tax assessed at $2,000, VDAF would provide half of that amount, or $1,000, for a home that sustained major damage and the full tax assessed amount if it was deemed destroyed. To make up the $8,000 or $9,000 difference, United Way would split the remaining cost with the county and pay a contractor directly for the work to rebuild, Rice said. 

The County Fund Donation Program raised over $2.5 million for long-term recovery disaster assistance. United Way has raised a little over $1.1 million in grants for disaster recovery. As of mid-June, the nonprofit has helped to fund about 90 building repair and infrastructure projects totalling $381,088 for residents who were affected by either Hurricane Helene-related weather or the February 2025 floods. 

VDAF follows on the heels of 2 ‘extremely successful’ flood relief efforts

Morefield said he gave his best advice to the Youngkin administration on how to structure the flood relief program. 

“If my advice had been followed, we would not be dealing with the problems we are faced with today. I recommended to the former administration that we model the programs identical to what we crafted for the Hurley and Whitewood flood disaster assistance,” he said. “Those programs were extremely successful.” 

Tazewell and Buchanan counties experienced widespread and devastating flooding in 2021 and 2022. The General Assembly appropriated millions of dollars for recovery following those disasters as well. The cap for assistance for homes in that recovery program was 175% of a home’s assessed value. 

The Hurley and Whitewood recovery programs also included three categories for homeowners to access assistance: total loss, major damage and minor damage. Homeowners were able to submit receipts for repair and were reimbursed directly through the program. 

The 2025 disaster covered a larger geographic area compared to those earlier floods. The $50 million aid package that was approved in 2025 was different from recovery programs set up for those two previous floods as well. 

The Youngkin administration had included VDAF and the manner in which it was to be implemented in the former governor’s amendments to the 2025 budget, which were presented during that year’s reconvene session. The General Assembly was unable to craft legislation for flood relief ahead of the 2025 legislative session because the February disaster took place after the deadline to submit bills. 

During the 2025 reconvene session, lawmakers couldn’t submit their own amendments or rewrites and were allowed only an up or down vote on the legislation before them. Legislative efforts to adjust the relief program were not introduced during the 2026 legislative session.

“As legislators, we approved the commitment of the funding, but it was more complex than just using the state budget money. It also included additional funding that was part of a federal mitigation program. This was new, and unnecessary. But we had to approve it to get something moving,” Morefield said. “It quickly became obvious that the administration’s plan was much more complex than the original models that I had set up for Hurley, Whitewood and Tazewell.”

The inclusion of the federal program brought in additional bureaucratic steps that he warned would delay parts of the program dramatically. 

“The result is what we have now,” Morefield said. 

He expressed hope that the disbursal of funds will move more quickly with the new administration and after Holmes’ February appointment to lead DHCD. 

“She is working with us and the new administration to clean up the program. I am confident that by working with Dr. Holmes and once the General Assembly has adopted a state budget that we can finally get the flood relief programs moving in the right direction,” Morefield said. 

Holmes said that she believes, under the new administration, DHCD has been more effective and efficient at reviewing and responding to VDAF applicants in a more timely manner. 

“There’s been over a 100% increase in the number of applications that have been approved over the last few months,” she said. “We doubled the amount of applications that have been approved since January.”

She attributed that quicker turnaround to an increased staff capacity in the department and partnerships with planning district commissions that had joined the state agency to aid in the recovery effort in the latter part of 2025. 

The $50 million set aside in the budget for the VDAF program is a non-reverting fund, which means it won’t be absorbed back into the budget if it’s not used by a certain date but will remain available until it is spent, unless the program is changed by the General Assembly. 

“Everything that we’ve been directed to do currently as it sits in the budget language, we’re doing, and what we’re allowed to do within the confines of the budget language,” Holmes said. 

Jack Bledsoe, spokesperson for the governor’s office, said that the Spanberger administration is convening groups of local leaders, agencies and stakeholders to make sure community partners are fully equipped to administer state funds and connect Virginians with the help they need.

“With all of this being said, the programs were still implemented faster than any other program that Virginia has adopted in the past. Although we do realize that doesn’t mean much for someone who cannot access their home because their bridge was destroyed,” Morefield said. 

Regardless, the state legislature would need to act to create sweeping changes to make the program more accessible. 

The night of the flood, Renee Cruey, two of her grandchildren and many of the residents of the trailer park on Orange Street slept in their vehicles on a nearby roadway on higher ground. David Cruey stayed with his daughter, who lived nearby and had power. He needed access to electricity for his oxygen machine — he has been on oxygen for about three years, Renee said. They were able to return to their home a little over a day after the flood hit to begin the process of cleaning up.

“Before the flood we loved it, living here, and now my husband, he just wants to move, my brother, he wants to move,” she said. “You don’t get help and you have to rebuild. …There’s a lot of people that don’t have the income to do it.”

“I just wish all of us could get some help,” she said of her family and neighbors who live on Orange Street. “It’s been chaos since last year.”