Watch Your STEP: Finding Replacement Funding Sources for a Critical Disaster Relief Program

The Sheltering and Temporary Essential Power (STEP) program was managed under the Federal Emergency Management Agency (FEMA) from 2012-2019. Consistent with FEMA’s mission to help people before, during, and after disasters, the STEP program aimed to support disaster survivors’ quick returns to their homes in the aftermath of a natural disaster by funding emergency repairs on disaster-damaged homes. In 2019, the program was canceled by the federal government after it was implemented in Puerto Rico because the presidential administration believed the program failed to effectively address immediate threats to life, public health, safety, and property. 

This report was developed in response to a request from the New York City Mayor’s Office for Housing Recovery and the National Center for Disaster Preparedness (NCDP) to evaluate the program’s successes and failures, identify critical elements of disaster repair programs, and explore alternative models for funding a program similar to STEP. 

The report identified implementation issues related to the program, including performance management, potential corruption, supply chain management, pollution, and lack of renter assistance. The Capstone team made recommendations on how to improve the STEP program based on each issue. Their findings also included a thorough discussion of available financial instruments and alternative funding sources for the city; the Capstone team proposed a combination of sources that can be tied to a disaster relief rainy day fund. Other than commenting on future outlooks, the team proposed innovative solutions to deal with housing needs, such as 3D-printed accessory dwelling units and modular shelters/homes.