Infrastructure Investment Program

Post-Disaster Infrastructure Investment Program

The Post-Disaster Infrastructure Investment Program is a grant program designed to provide capital investments for infrastructure projects which address disaster impacts and enhance post-fire watershed stabilization in disaster-affected counties.

Local governments or recognized political subdivisions, including acequias, in Lincoln County, Chaves County, San Juan County, Rio Arriba County, or Mescalero Apache Tribe can submit a project proposal.

Eligible Expenses

  • Public road and public bridge repair
  • Drainage/stormwater improvements
  • Acequia restoration
  • Utility system restoration
  • Public facility rehabilitation
  • Demolition and clearance
  • Code enforcement
  • Accessibility improvements
  • Public space rehabilitation
  • Flood/fire mitigation measures
  • Non-federal cost share

Ineligible Expenses

  • Buildings for the general conduct of government
  • General government expenses
  • Political activities and lobbying
  • Purchase of equipment
  • Operating and maintenance costs
  • Direct income payments

Submit a proposal for funding

Download Proposal template

INFORMATION SESSIONS

DHSEM hosted information sessions so eligible jurisdictions could learn about the program and ask questions.

Topics covered included:

    • Eligibility requirements
    • Required documentation
    • How to submit a project proposal
Watch the recording of the information session. 

Frequently Asked Questions

Are acequias considered eligible entities?

Yes. Acequias which are recognized political subdivisions are eligible.

Can we partner with Federal entities for a project (e.g., BLM)?

Yes, partnerships are allowed; however, costs attributable to federal agencies are generally not eligible for reimbursement.

Can funds be used to upgrade existing flood control infrastructure?

Yes. Projects that repair, replace, or improve infrastructure to reduce risk and increase resilience are eligible.

Are applications considered on a first-come, first-served basis?

No. Applications are evaluated and scored based on criteria including disaster tieback, LMI benefit (minimum 51%), project readiness, and alignment with program priorities.

Is damage from cascading events eligible?

Yes. Damage from cascading events (i.e., flooding resulting from post-fire flood impacts) meets program criteria.

How strict is the application deadline?

The application deadline is firm. All proposals must be submitted by September 13, 2026 at 11:00 PM MDT.

Are public hearings required?

Applicants must include a Citizen Participation Plan with at least a 30-day public comment period and two public hearings. Supporting documentation must be submitted within 60 days of Notice of Intent to Fund. Public hearings may be held during this post-award 60-day period, but must be conducted before starting work.

Are there limits to the number of applications an entity can submit?

No specific limit is defined, but each application must meet program requirements and may be subject to review and funding constraints.

Is engineering covered?

Yes. Engineering costs such as planning, design, studies, and construction oversight are eligible if tied to the project.

What types of engineering costs qualify?

Eligible costs include design, planning, surveying, environmental analysis, and construction oversight.

Can an applicant include multiple proposals in one application?

No. Each application must represent a single, distinct project-multiple proposals cannot be combined into one application.

Does an existing project already underway qualify?

Yes. Existing projects may qualify if they are tied to disaster-related impacts, do not duplicate other funding sources, and meet program eligibility requirements.

Is there a percentage for advance payment?

No fixed percentage. Advance payments are limited to startup activities such as procurement, studies, and initial staffing. Additional draw requests will be processed based on tie to measurable project milestones and actual cost documentation (e.g., invoices to be paid).

Can advance payments be used to cover the 25% FEMA cost share?

Yes, however, advance payments may be used only for eligible startup activities and must be approved. Use for cost share depends on availability of actual cost documentation (e.g., invoices to be paid using that portion of the PDIIP award) and must not duplicate other funding sources. For example, PDIIP funds should not be used as cashflow for the FEMA Public Assistance reimbursement process.

How does a DFA match fund grant factor into this program?

A DFA match fund grant will be calculated when considering the total award so that the Applicant does not receive duplicative benefits. For example, a project might receive FEMA Public Assistance for 75% the value of the project, a DFA match fund grant for 10% match, and the CDBG-DR program would assist with the remaining 15% value of the project. All funding sources must be properly documented and cannot duplicate benefits.

Are three proposals required for procurement?

Applicants must follow state and federal procurement law (i.e., 2 CFR 200) for all projects. For projects with a value less than $60,000, three quotes must be collected to demonstrate a competitive and cost-reasonable process. For projects with a value more than $60,000, the Applicant must conduct a fully competitive procurement such as a Invitation to Bid or Request for Proposals.

What if fewer than three bids are received?

For projects less than $60k only, per New Mexico State Procurement Law, there must be documented attempts to receive three bids. This documentation should be submitted to DHSEM, and a project may be approved based on demonstrated attempts to receive competitive bidding process. The applicant must demonstrate good-faith effort and justify limited competition. For projects above $60k, the Applicant must condcut a fully competitive procurement such as an Invitation to Bid or Request for Proposal process. These processes do not have a mandatory minimum number of quotes selected, but must be posted for at least 20 days and be distributed (e.g., via newspaper, website) to encourage bids.

Can a nonprofit assist acequias with grant writing, and is this eligible?

Yes. Nonprofits may assist with grant writing, and those costs may be eligible if they are necessary, reasonable, and directly related to project development.

Is in-person technical assistance available?

Yes. DHSEM provides technical assistance to support applicants.

How can I request in-person technical assistance?

Contact PDIIP@dhsem.nm.gov or a State Applicant Liaison to request assistance.

Is tree thinning eligible?

Yes, installing defensible space zones around public facilities and infrastructure corridors is eligible. Routine maintenance or general vegetation management is not eligible, and eligibility must be supported by documented risk or a vulnerability assessment.

When will the application process officially open?

The Notice of Funding Availability (NOFA) was released June 15, 2026, and applications must be submitted by September 13, 2026 at 11:00 PM MDT.

What will the application process entail?

Applicants must submit a complete proposal including scope, budget, LMI eligibility, citizen participation plan, and required certifications.

What documentation will be required for applicants to apply?

Required documentation includes project scope, cost estimates, LMI data, Citizen Participation Plan, and required forms such as SF-424.

What specific costs or activities will this program cover for acequias?

Eligible activities include acequia restoration, drainage improvements, hazard mitigation, infrastructure repair, and non-federal cost share.

What are the individual funding limits or maximum amounts available per acequia?

The minimum award amount per project is $50,000, and the maximum award amount per project is $10,000,000. There is no limit to the number of project proposals an entity can submit, so there is no individual funding limit per entity, but each project must fit within the above minimum and maximum award amounts.

Does the work already have to be completed in order to qualify for assistance?

No. Projects may be proposed for work to-be-completed.

Will match funding apply to FEMA and other cost share programs?

Yes. Non-federal cost share is an eligible activity.

Will the program address cascading events in DR-4795 and DR-4843?

Yes. Damage from cascading events (i.e., flooding resulting from post-fire flood impacts) meets program criteria.

Who is responsible for hiring contractors?

Applicants are responsible for procurement and must follow applicable procurement requirements.

What documentation is required to be eligible (UEI, etc.)?

Applicants must have a UEI, provide organizational documentation as detailed in the proposal template, and submit required certifications and forms.

Will culvert upsizing be covered, and who provides H&H studies?

Yes. Culvert upsizing is eligible, and applicants may fund H&H studies through advance payments.

Will technical assistance be provided (SAL or Navigator)?

Yes. DHSEM provides technical assistance through PDIIP program staff and State Applicant Liaisons.

Is funding paid upfront or reimbursed?

Funding is provided up front and includes advance payments for startup activities and milestone-based drawdowns based upon actual cost documentation (e.g., the invoice to be paid using PDIIP funds).

Are there exclusions based on previous funding?

Yes. Costs already paid by other sources (e.g., FEMA, SBA, insurance) are not eligible due to duplication of benefits rules.

What is required to demonstrate LMI (Low- to Moderate-Income) benefit?

Projects must demonstrate that at least 51% of beneficiaries are low- to moderate-income and that the project benefits the entire service area. A resource describing how to demonstrate this is provided in Appendix A of the project proposal template.

Are nonprofits eligible entities for this program?

Eligible entities for this program are local government entities and recognized political subdivisions. A nonprofit could be an eligible entity if they are also a political subdivision. Nonprofits that are not also a political subdivision are not eligible.

Can eligible entities partner with Federal agencies for projects? What would the minimum level of ownership for the eligible entity be? For example, if the county had a 99 year lease, right of way agreement, project maintenance agreement, etc., or does the entity have to own outright the land the project is on?

Eligible entities under the Post Disaster Infrastructure Investment Program are limited to units of local government and political subdivisions, including acequias. Eligible entities may partner with other units of local government or political subdivisions, including acequias, to submit a project proposal (co-entity). Federal agencies are not eligible for assistance from the Post Disaster Infrastructure Investment Program. Eligible entities may combine PDIIP funds with other local, state, federal, or private funding sources to support the completion of awarded infrastructure projects and enhance overall project feasibility. However, in accordance with HUD duplication of benefits requirements, PDIIP funds may only be used to address unmet recovery needs and must not duplicate financial assistance received from any other source for the same purpose or activity. The eligible entity must have legal ownership of, or documented legal authority and responsibility for, the infrastructure asset that is the subject of the proposed project. Ownership may be demonstrated through fee simple ownership, easement rights, rights-of-way, leases, operation and maintenance agreements, or other legally enforceable instruments that provide the applicant with sufficient site control to implement, operate, maintain, and sustain the project for its intended useful life. Where project activities involve property acquisition, easements, rights-of-way, or the displacement of persons, businesses, farms, or nonprofit organizations, the applicant must comply with all applicable requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (URA), as amended, and its implementing regulations at 49 CFR Part 24. Any required real property interests must be obtained in accordance with federal and state requirements prior to construction and occupancy, as applicable. Applicants proposing projects on property not owned by the eligible entity must provide documentation demonstrating adequate site control and legal authority to undertake, operate, and maintain the proposed improvements for the duration required by program regulations and grant conditions.

Can the Rio de Chama Acequia Association (RCAA) help entities with awarded PDIIP projects implement those projects?

Eligible entities may independently seek and agree to external assistance completing project proposals and implementing projects. DHSEM is the only entity authorized by HUD to provide official guidance and cannot verify that organizations providing external assistance are doing so in full compliance with PDIIP rules and regulations. All entities and supporting partners are strongly advised to reach out to DHSEM directly with questions and requests for technical assistance to ensure all information provided is accurate. 

Can acequias submit a combined project addressing infrastructure needs across acequias in close proximity?

Eligible entities under the Post Disaster Infrastructure Investment Program are limited to units of local government and political subdivisions, including acequias. Eligible entities may partner with other units of local government or political subdivisions, including acequias, to submit a project proposal.

Each proposal submitted will be considered as one single project. Each proposal must meet all requirements as outlined in the Notice of Funding Availability (NOFA), project proposal template, and DHSEM’s Post Disaster Infrastructure Investment Program Guide accessible on DHSEM’s CDBG-DR website at www.dhsem.nm.gov/cdbg-dr2025 including but not limited to: 

-All entities (including co-entities) must be units of local government or political subdivisions
-All eligible entities (including co-entities) must submit their financial management policy, procurement policy, recordkeeping policy, and other applicable internal controls, policies, and procedures in the proposed project submission
-Each project within the combined project must satisfy the Low-and-Moderate Income Area Benefit requirement
-Co-mingled funds are subject to HUD compliance regulations

Is Hagerman Irrigation Company an eligible entity? We are a 510c(12) nonprofit and a Mutual Ditch Association

Hagerman Irrigation Company’s classification as a Mutual Ditch Association does not meet the regulatory authority as a political subdivision under NMSA 73-2-28 and is therefore not eligible for direct assistance from the Post Disaster Infrastructure Investment Program. 

Chaves County is an eligible entity. An infrastructure project supporting Hagerman Irrigation Company’s disaster recovery could be submitted by Chaves County with a memorandum of understanding between Chaves County and Hagerman Irrigation Company on the use and oversight of the PDIIP funding if awarded.  

Is the Rio de Chama Acequia Association (RCAA) an eligible entity for this program?

Rio de Chama Acequia Association’s classification as a nonprofit does not meet the regulatory authority as a political subdivision under NMSA 73-2-28 and is therefore not eligible for direct assistance from the Post Disaster Infrastructure Investment Program. 

Rio Arriba County is an eligible entity. An infrastructure project supporting RCAA’s disaster recovery could be submitted by Rio Arriba County with a memorandum of understanding betweenRio Arriba County and RCAA on the use and oversight of the PDIIP funding if awarded.  

Office of the State Auditor (OSA):

    • The OSA is an independent and nonpartisan oversight agency responsible for holding local and state government officials accountable in the use of public resources.

Special Audits and Investigations:

    • The Office of the State Auditor (OSA) in New Mexico has a Special Investigations Division that handles cases related to allegations of governmental fraud, waste, abuse, or mismanagement. They conduct thorough reviews and investigations into complaints involving public funds or resources.

Fraud Reporting Hotline

Complaints alleging violation of fair housing laws will be directed to HUD for immediate review. Members of the public can file a complaint directly with the HUD Region VI Fair Housing and Equal Opportunity Office through the following options:

The State of New Mexico will forward all complaints regarding fraud, waste, or abuse of funds to the HUD Office of the Inspector General (OIG) Fraud Hotline (phone: (800) 347-3735 or email: hotline@hudoig.gov). The State of New Mexico’s procedures for identifying and addressing waste, fraud, and mismanagement will also be available for review on the CDBG-DR website.