IEM’s media response

Rebuild Florida Irma

“IEM remains committed to working closely with FloridaCommerce and the Agency’s
construction subcontractors to ensure homeowner needs are addressed swiftly and
appropriately. IEM’s employees have been delivering program management services for CDBG-
DR Housing programs since 2005, beginning with Hurricane Katrina.”

1. Question: Dozens of homeowners are still waiting for work to be completed,

some have complained about work completed to date as being “shoddy”

“We acknowledge the concerns raised by a small number of overall homeowners regarding
incomplete and subpar work on their properties. These homeowner complaints are being
addressed. The homeowners you have heard from represent less than 1% of the population
being served by the Rebuild Florida Irma homes, which is expected to assist about 3,900
homeowners.

It is also important to clarify that the construction is carried out by contractors selected and
hired by Florida Commerce, which IEM did not have direct oversight to manage until 2021. In
addition, each completed home comes with a home warranty and requires a municipal and final
home inspection. IEM has a call center and case management team that homeowners may
contact when issues arise. Any warranty-related issues are directed by IEM to the Construction
Contractors for resolution and reported to FloridaCommerce. We understand the frustration
experienced by those still awaiting resolution. We urge homeowners to utilize these warranties
and contact our program call center for assistance if contractors are not responding to eligible
warranty claims.

Our commitment to ensuring that Hurricane Irma survivors have safe, habitable homes remains.
In fact, 94% of constructed homes repaired by the Program endured little to no subsequent
damages in Hurricane Ian, primarily due to the resiliency construction techniques (e.g., windows,
doors, roofs) applied to every home.”
IEM’s media response
Rebuild Florida Irma

2. Question: What went right with this program?

“As of May 6, 2024, over 8,000 Floridians have returned to 3,646 homes, with an
additional 134 homes nearing completion. These figures demonstrate tangible progress,
with over 96% of the program completed since the first construction project was assigned
by the Agency in April 2019.

IEM, partnering with Florida Commerce, completed all but 4% of the homes in less than five
years despite two major hurricanes and a global pandemic that interrupted the supply chain,
created labor challenges, and, in numerous situations, restricted access by General Contractors
to homes. IEM implemented innovative solutions like working directly with mobile home
manufacturers struggling with labor shortages and supplies to prioritize manufacturing lanes
specifically for the Program and other material providers to try and prioritize materials for
homes being reconstructed through the Program. During this time, there was a furious,
nationwide competition for building materials and labor. Despite these challenges outside our
purview, the Program accomplished good, if not better, results than similar CDBG-DR programs
with fewer obstacles.

In February 2021, IEM took on oversight of construction management duties from the
Department of Commerce, and the recommendations we made to the then-Florida DEO in
December 2020 were enacted. Our recommendations accelerated the completion of
homes. As of January 2021, only 351 Homes had been completed. With our
recommendations implemented, IEM accelerated construction and completed 90% of the
work—totaling 3,300 homes—in just over three years.

Moreover, what went right was that IEM and FloridaCommerce designed a crucial building
requirement unlike any other HUD-funded housing program in history that we are aware of –
the “Home Resiliency Construction Package.” This package meant that each home would not be
built back as before. Instead, it would be constructed to withstand future storms. IEM’s
resilience initiatives have proven instrumental to the sustainability of the homeowners and their
communities. With the mitigation measures IEM put in place for our builds, 94% of repaired
homes endured subsequent hurricanes (e.g., Hurricane Ian) with minimal or no damage,
with over two-thirds (or 69%) of these homes experiencing no damage, and only 25%
receiving minor cosmetic damage. This outcome underscores IEM’s commitment to ensuring
the safety and security of homeowners and building communities back better than before.
These initiatives also reduce a homeowner’s insurance rates and future repair costs while
increasing energy and cost-efficiency for financially burdened homeowners. “
IEM’s media response
Rebuild Florida Irma
3. Question: What, if anything, went wrong?

“Alongside these achievements, we cannot overlook the challenges and shortcomings

encountered along the way. Key among them, it is crucial to highlight the extraordinary and
unforeseen circumstances that slowed down Rebuild Florida’s efforts and significantly impacted
project timelines and costs. While we acknowledge setbacks, it’s imperative to contextualize
them within the broader framework of unprecedented challenges disaster recovery programs
nationwide have faced.

The global COVID-19 pandemic, followed by inflation, caused unprecedented construction

and material cost spikes and significant material shortages, disrupting the entire
construction supply chain. In addition to supplies, the pandemic caused significant restrictions
on home access for Rebuild Florida General Contractors.

Securing replacement Mobile Home Units (MHU) became extremely difficult, and basic materials
like roofing supplies, windows, lumber, and shingles were in high demand, causing delays in
acquisition and production and increasing construction prices. To address these shortages, the
IEM team worked directly with MHU providers to secure required units and ensure a supply
chain for Rebuild Florida homeowners during an extraordinary demand period for construction
products.

Additionally, the areas Rebuild Florida Irma was serving were repeatedly hit by severe weather
events over the past two years—including Hurricanes Ian, Nicole, Idalia, and Tropical Storms Eta
and Elsa. These events delayed projects and escalated repair costs due to increased demand and
changing project scopes.

These factors inevitably and regrettably led to extended stays in temporary housing for
homeowners, increasing costs due to surging hospitality sector costs.”
IEM’s media response
Rebuild Florida Irma

4. Question: Anything we would have done differently?

“In hindsight, there are areas where improvements could have been made. Enhanced
contingency planning to mitigate unprecedented supply chain disruptions and bolster resilience
measures against unforeseen events (e.g., a worldwide pandemic) could have better positioned
us to navigate the complexities of this post-disaster recovery.

In late 2020, IEM presented ten recommendations to then-Florida DEO, including IEM taking
over construction management duties, which was not part of our original contract. In retrospect,
IEM should have requested construction contractor oversight authority and the implementation
of the additional recommendations before December 2020. IEM’s recommendations fast-tracked
and improved the overall disaster recovery process, increasing the overall production of
FloridaCommerce’s General Contractors and removing impediments slowing the overall
production rate, thereby allowing us to increase the number of homes completed.

With 134 homes completed pending final inspections and 150 homes - or less than 4% -
left to complete, we continue working with FloridaCommerce and its construction
subcontractors to address homeowner concerns swiftly and effectively. Unfortunately, as with
most disaster recovery programs, we are finishing the more complex or challenging homeowner
cases at the end of the program. IEM will continue to focus on delivering quality, sustainable
housing while minimizing the financial burden on impacted communities. We remain steadfast
in our dedication to serving the people of Florida and ensuring that their needs are met with
urgency and compassion.”
IEM’s media response
Rebuild Florida Irma

IEM Contract Context

“IEM was brought on to administer Rebuild Florida Irma on July 26, 2018, with then Florida DEO
performing construction assignments with the first construction project beginning April 24,
2019. For Rebuild, IEM has supported FloridaCommerce in the program design, launch, and
implementation. Leveraging decades of CDBG-DR expertise, IEM was awarded a six-year
contract valued at just over $252 million. More than half of IEM’s contract is direct
construction costs ($110 million) and temporary housing benefits (e.g., hotel) for
survivors ($35 million). Our service contract spans various activities over the six-year period,
totaling just over 7.5% of the entire CDBG-DR award, which aligns with standard
administrative costs for CDBG-DR programs.”

CDBG-DR Context

“For additional context, following a disaster, it can take up to a year or longer for CDBG-DR
recovery funding to be Congressionally appropriated and then allocated to impacted states.
Following HUD allocation, states must create HUD-compliant plans and program guidelines
before launch. We recognize that this process significantly impacts how quickly a homeowner
returns to a safe and habitable home when dependent upon CDBG-DR funding for their
recovery.

HUD CDBG Disaster Recovery (CDBG-DR) funds come with many federal requirements that must
be adhered to, like rigorous environmental reviews that must occur before one nail goes into a
home. Large-scale housing programs funded with CDBG DR funds to construct 3,000 or more
homes take five or, in most cases, more years to complete based on data from similar programs
from other grantees (e.g., NY, NJ, LA, TX, PR, NC, CA.). We know this firsthand as the IEM team
has worked in this field since Hurricane Katrina, the first time HUD CDBG-DR funds were used
for large-scale housing recovery.”